Advertising on Streaming Platforms: What You Need To Know (2024)

Most people don’t give too much thought to all the memories they’ve made in front of the TV. Simple moments like your parents yelling that the commercials are over and the movie resumes defined many childhoods.

You always knew when Christmaswas near becauseCoca-Cola started its ads with Santa Claus and polar bears. Some thingsjuststick in your mind, and you can never forget them.

Advertisers know about this. Backin the day, the only way to reach an audience was through TV, billboards, newspapers, and radio. That was it. All these forms of media are still available today, but newer methods work better. Social media ads can personalize an offer for you. The same thing is true about streaming platforms, and that’s what we’ll talk about today.

The Upgraded TV And Radio

Cord-cutting is a phenomenon that’s been happening for the past couple of years. It’s the process when households cancel satellite and cable TV to replace it with streaming services. Predictions for this year are that46.6 million households will cut their relationship with the cord. That means advertisers have a lot of room to implement their marketing strategies.

Netflix and Spotify are the new and upgraded forms of TV and radio. The difference from the traditional thing is that you have everything on demand, and companies have more data about you. Thus, users have more personal experiences, and marketers create more personal ads.

Streaming platforms know about your listening and watching habits, likes, and dislikes. Traditional radio and TV statistics only showed how many householdswatched or listenedto a program. Their buyer personas were limited, and the target audiencewas basedon the hour of the broadcast.

Due tohow streaming services work, advertisers can get more exposure. Instead of paying for a single ad to run one day per week during a specific hour, advertisers can select adsduringa particularshow. So, ifyou’re binge-watching a hunting show – they’ll show you ads for hunting equipment.They’ll sell you a cookbook ifyou’re watching a cooking show.

How much does advertising on streaming platforms cost?

Advertising on streaming platforms doesn’t cost as much as traditional TV marketing. Let’s look at an example. Linear advertising asks you to spend a large chunk of money upfront.Thismeans it’s limited to big playerswiththe cash to take advantage of the opportunity.Connected television (CTV) advertising can be usedfor multiple campaignsandboughtmonthly.Thismeans you have less commitment and more of the right audience.

You should know thatwhateverform of advertising you purchase, some of those dollars will go to waste. Some people sleep with their TV on. Others use aFirestick VPNto change their location or enhance their security. Some people have the TV in the background while scrolling on their phones. But if your ad can gain their attention, your campaign will have a high potential to convert.

Which Popular Streaming Platforms Should You Consider?

These are some of the most popular streaming platformsyoushould consider as an advertiser.

YouTube TV

YouTube is the king of video. Now, the global giant is trying to create its own streaming platform. Currently, it offers 50 channelsfor a monthly subscription, and it hasdifferent ad options. With your campaign, you can select cord-cutters or target people who are watching YouTube TV on their televisions. That way, youcanselectthe environment and the type of person who sees the ad.

Spotify

Spotify is themost popularmusic streaming service in the world, and it’s completely free. However, it can bombard you with audio ads, so you’ll have to pay a few bucks every month if you don’t want to listen to them.Out of 157 million active users, only 70 million are paying for subscriptions. Apart from ads, you can create sponsored playlists and partnerships from podcasts. Even paying customers can’t escape thse.

Netflix

Netflix and YouTube were neck-and-neck as competitors, especially since Netflix was the TV version of YouTube with no ads.But two years ago, they decided tomake a change, bring ads to some of their plans, and increase prices.That mademanypeople angry, but many customers just accepted the changes.The company’s focus on becoming a revenue-driving machine by cracking down on password sharing was metwith criticism. Yet itgrew by 5 million users in half a year. So, they’restill the most popular streaming service and a lucrative option for marketers.

Hulu

With only 17 million subscribers, Hulu offers insane targeting options for its audience. What they lack in quantity of users, they make up with customization options. First, there’s the Targeted Blitz option. You can pick users based on the content length, genre, geographic area, and demographics. Second, there’s Splash. This feature lets you target every single unique viewer during the day. Plus, you can choose to run an ad on a specific episode of a show. Imagine watching an episode of The Simpsons where Homer eats donuts, and you get an ad for a donut. It’s like magic!

Pandora

Pandora allows people to create personalized radio stations. This feature alone boasts 78 million monthly listeners andwill enablethemto fully customize their experience. Marketers love it when userscan accesscustomization because that’s how they get data on their preferences. Leveraging the specific markers will help you target an ideal audience. Since the platform serves only one ad at a time, conversions are very likely.

DirecTV

The Super Bowl is a hit every year because of the ads presented during the show. All eyes are on the big screen. Thanks to DirecTV, you can lock into season finales and premieres to get a tidbit of that effect.Plus, you can reach your audience on multipledevicesand allow them to interact with the ads directly.