If you’ve ever logged into YouTube to play a song or watch a quick video, you’ve almost certainly encountered a streaming ad. These days, they’re everywhere — Hulu, Netflix, you name it.
For viewers, they’re an easy way to save money on their subscriptions. For advertisers, they’re the opportunity of a lifetime — better audience targeting and engagement, the possibility of going viral, and access to a growing population that’s cutting the cord on cable.
But how does streaming advertising work? In today’s article, we’ll break it down for you.
What are streaming ads?
Streaming ads, also known as OTT (over-the-top) ads, are advertisements delivered directly to viewers via the internet, bypassing traditional broadcast, cable, or satellite TV platforms. Streaming services and devices that support streaming content, such as smart TVs, game consoles, set-top boxes, smartphones, and tablets show streaming ads in between on-demand programming.
Characteristics of streaming ads
Compared to traditional forms of advertising, streaming is quite different. While traditional cable advertising is limited in terms of targeting and placement options, streaming advertising allows for far more precise and personalized targeting.
Let’s take a closer look and what makes streaming ads so special:
Platform diversity
Streaming ads can appear on various platforms, including streaming video services (like Netflix, Hulu, or Amazon Prime Video), websites, and applications that provide streaming content. This wide range of platforms enables advertisers to reach audiences across different devices and viewing contexts.
Targeting capabilities
One of the key advantages of streaming ads is their advanced targeting capabilities. Advertisers can use viewer data, such as demographics, viewing habits, and interests, to target ads more precisely than traditional TV advertising, enhancing the relevance of the ads to the audience.
Engagement and interactivity
Streaming ads can offer interactive elements that are not possible with traditional TV ads. For example, viewers might be able to click on an ad to learn more about a product or service, directly engaging with the brand’s message.
Measurement and analytics
Streaming platforms provide detailed analytics and performance metrics, allowing advertisers to measure the effectiveness of their campaigns in real-time. This data can include metrics like view-through rates, clicks, and conversions, enabling advertisers to optimize their campaigns for better performance.
Variety of formats
Streaming ads can come in multiple different formats — pre-roll (before the content), mid-roll (during the content), and post-roll (after the content). Some platforms also offer innovative ad formats like interactive ads, branded content, and sponsorships, providing advertisers with multiple options to engage their audience.
How does streaming advertising work?
Advertising on over-the-top (OTT) platforms, follows a sophisticated process that leverages digital technologies and data analytics to place ads in streaming content.
- Objective setting and budget allocation — The process begins with defining the campaign goals, target audience, and KPIs. Advertisers need to understand their audience’s behavior on streaming platforms, including what they watch and when they are most active.
- Audience segmentation — Utilizing advanced data analytics, advertisers segment audiences based on demographics, interests, viewing behavior, device usage, and even geographical location.
- Choosing platforms — Advertisers select the streaming platforms and specific content where their ads will appear. This could include popular streaming services, niche platforms catering to specific interests, or connected TV apps.
- Purchasing ad inventory — You can buy streaming ads directly from a content provider (direct buying) or through programmatic advertising platforms. Programmatic buying uses algorithms to purchase ad space in real-time, allowing for more precise targeting and often more efficient spending.
- Creative development — Depending on the campaign, you’ll develop ad creative suited for streaming. This might include different lengths (e.g., 15-second, 30-second spots) or interactive elements designed for engagement on digital platforms.
- Ad placement and delivery — Ads are delivered to the targeted audience through the streaming platform’s ad server technology. In programmatic buying, algorithms determine the best opportunities to place ads in real-time based on the advertiser’s targeting criteria and bid price.
- Measurement and Optimization: Streaming platforms provide detailed analytics on ad performance, including metrics like impressions, clicks, engagement rates, and conversion. You’ll use that to assess the effectiveness of your ads and make real-time adjustments to improve performance, such as tweaking the creative, adjusting the targeting, or reallocating the budget.
Best practices for creative development
When it comes to streaming ads, creative is crucial. With the ability to target niche audiences and engage viewers in unique ways, advertisers need to ensure that their ad creative is effective and well-suited for a digital platform. Here are some best practices to keep in mind when developing your streaming ad creative:
- Keep it short. With viewers having the option to skip ads, shorter ad lengths (15-30 seconds) tend to perform better.
- Make it engaging. Use interactive elements like clickable buttons or polls to make the ad more engaging and increase viewer interaction.
- Personalize the message. Take advantage of targeting capabilities to deliver personalized messages that resonate with your audience.
- Optimize for mobile. With a growing number of viewers watching streaming content on their smartphones, make sure your ads are optimized for smaller screens.
- Test and iterate. A/B test different versions of your ads and measure which performs better. Use the data to make real-time adjustments and improve ad performance.
Final thoughts
Streaming advertising offers a host of benefits for advertisers, from advanced targeting capabilities to interactive and measurable formats. By understanding the unique characteristics of this advertising medium and following best practices, advertisers can engage with their audience in new and effective ways, driving better results for their campaigns.
