Streaming platforms are gradually replacing linear TV, changing the advertising market. For businesses, it is more profitable to utilize streaming platforms because they offer more precision and more detailed analytics. In this article we will talk about top strategies for maximizing ad ROI in streaming platforms.
Streaming platforms: modern TV formats
Linear television is the traditional viewing of programs and movies on TV via satellite, cable, antenna, or special set-top box. A person can select a program by switching channels.
Non-linear TV (streaming) is video on demand. A person chooses what and when to watch. This format is provided by OTT (over-the-top) services. That is, those that transmit video not via cable or satellite but via the Internet. OTT services include social networks (YouTube, Facebook) and streaming providers (Netflix, Megogo, Discord, Twitch).
There are different types of devices for streaming platforms:
- Smart TV. This type of TV can stream video from the Internet and also work in the usual linear (analog) mode.
- Set-top box. It is a special streaming device connected to a linear TV to watch streaming platforms.
- Gaming consoles. It is a gadget that is connected to a TV or monitor to play video games.
To avoid confusion, marketers often use CTV (connected TV) and OTT terms together when discussing advertising on streaming platforms. The diagram below visualizes the difference between the terms.
What ad formats can you place in streaming video?
There are several options for placing ads in streaming videos. The main ones are:
- All-roll. A clip up to 30 seconds long that can be inserted anywhere without being tied to timing — at the beginning, in the middle, or at the end of the video.
- Video ad break or pause-roll. An ad that plays when you press/pause.
- Pause-banner. A static ad that is displayed when you press pause.
- Overlay. A promo that plays at the same time as the main video.
- Banner ads and page branding of a service or application website. Static or video formats that are shown to users in different sections.
Streaming platform ads compete with fewer ads in the commercial break, so they may be more memorable, especially because they directly relate to the demographic the marketer wants.
5 strategies for maximizing ad ROI in streaming platforms
Here are 5 strategies you can utilize to maximize digital ad ROI in streaming platforms.
Targeting precision: know your audience inside out
Precision targeting is king. Utilize the rich data available on streaming platforms to understand your audience's demographics, interests, and behaviors. Using a DSP or demand-side platform when buying streaming platform ads gives you access to many targeting options.
Use advanced targeting options such as geolocation, device targeting, and behavioral targeting to ensure your ads reach the right audience segments at the right time. Targeting specific audiences, similar audiences, retargeting, and even cross-device marketing are just a few examples of what's available on DSP.
Contextual relevance: align your message with content
The success of digital ads hinges on their relevance to the content surrounding them. Align your ad creatives with the tone, themes, and context of the streaming content to capture viewers' attention. Crafting tailored messages that resonate with the audience's current viewing experience enhances engagement and drives better ROI.
Dynamic ads: embrace personalization and interactivity
Static ads are a relic of the past. Embrace dynamic ads that adapt to viewer preferences in real-time. Leverage interactive elements such as polls, quizzes, and shoppable ads to transform passive viewers into active participants. Personalize ad experiences based on user behavior and preferences to drive deeper engagement and conversions.
Experimentation mindset: test, learn, and iterate
Cultivate an experimentation mindset by constantly testing new ad formats, targeting strategies, and creative approaches. Embrace failure as an opportunity to learn and iterate, refining your tactics based on empirical evidence to stay ahead of the curve and maximize ROI.
Seamless user experience: optimize landing pages and conversion paths
Driving traffic to your website or landing page is only half the battle. Ensure a seamless user experience by optimizing your landing pages for speed, relevance, and usability. Streamline the conversion path, removing friction points and distractions that might deter users from completing desired actions. A frictionless user experience translates directly into improved ad ROI.
How to measure the effectiveness of advertising on streaming platforms?
Linear TV has significant limitations in the metrics that advertisers receive. Most often, these are standard reports with the number of shows, ratings of programs, and demographic information. Additional data is obtained through specialized market research.
Advertising on streaming platforms is measured both by general demographics (family composition, what programs are watched, and on what devices) and digital metrics (CPC, CPM, CTR).
Marketers use:
- Research.
- Google Analytics: cookies; UTM tags on all-roll clicks, banners, and other clickable formats.
- Analyzing downloads and subscriptions using CRM systems.
- Programs and specialized platforms for tracking user activity in mobile apps, such as Adjust, Firebase Analytics, Flurry, etc.
When analyzing advertising performance like CTR on streaming platforms, it is worth remembering that it is often not about a specific user but a family.
Conclusion
Streaming platform penetration is quite high, although linear TV share is still substantial. However, it is possible to say that streaming TV is the future. And you must leverage this. Now, you know 5 strategies that will help you maximize your ad ROI in streaming platforms.