Streaming services and video ad opportunities

Shirley Cheng, Katerina Sandford, Hannah Vinlöf Nylen 

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In today's digital era, streaming services have fundamentally transformed the entertainment landscape, providing consumers with unparalleled access to a vast array of content. However, beyond their role as mere content providers, streaming platforms like Amazon Prime and Netflix have emerged as pivotal players in the advertising realm, offering advertisers an opportunity to connect with their desired audience.

Leveraging extensive user data, these platforms tailor ads based on viewers' preferences, viewing habits, and demographic profiles. This precision targeting ensures that ads resonate with the right audiences - optimising their impact and relevance. Unlike traditional television, which viewers often skip or ignore, ads on streaming platforms can be strategically placed within the content or tailored to appear during natural breaks, ensuring higher engagement rates. Attention-based metrics are crucial in validating the effectiveness of ads on streaming platforms compared to traditional television. Metrics such as view-through rates (VTR), completion rates, and interaction rates offer insights into viewer engagement with streaming ads. With these capabilities, advertisers benefit from comprehensive analytics provided by such platforms. Detailed metrics such as impressions, click-through rates, engagement levels and conversion rates empower brands to refine their strategies for maximum effectiveness.

A recent study conducted in the UK, sheds light on consumers' attitudes towards advertising on streaming platforms. Interestingly, the research reveals that UK consumers are reluctant to pay extra to remove ads from their Amazon Prime Video experience. This insight underscores the growing acceptance of advertising as an integral part of the streaming experience, rather than a nuisance to be avoided at all costs. In a recent survey from LoopMe, 24% of consumers said they would retain their subscription to Prime Video when it introduces ads. 

For advertisers and brands, this presents a significant opportunity. By leveraging the sophisticated targeting capabilities and seamless integration of ads offered by streaming platforms, advertisers can effectively reach their target audience with tailored messages. This not only enhances brand visibility but also fosters deeper engagement and connection with consumers. In the dynamic landscape of streaming TV advertising, media planners face complex considerations as they navigate emerging trends, such as addressable advertising, advanced targeting capabilities, personalisation, and cross-platform measurement. Balancing precision targeting with broad reach, planners must carefully analyse data to plan campaigns that resonate with diverse audience segments, as well as business and marketing objectives.