The TV Media Climate Change

The TV industry is experiencing its own climate change with the mass of viewership shrinking due to the rising streaming tide. With the explosion of video content and sources, along with the ever-expanding array of devices by which viewers can access that content, there could be thousands of permutations to consider for reaching your desired target audience. With this growth and shift of media channels, we are here to help you familiarize yourself with ConnectedTV (CTV) and integrate it into your brand strategy.

Streaming Is Where It’s At

CTV: The Basics

(CTV) includes all devices connected to the internet that people can use to stream video. The key is that CTV is a physical device (e.g., actual connected television set, smartphone, tablet), not content.

Over-the-top television (OTT) is what is streamed. OTT is video content that is delivered via some connected-to-the-internet device as opposed to through linear TV (over the air and/or cable). OTT includes premium, subscription, and free content. Most OTT streaming content includes advertisements – these are split into two primary categories:

  • Free ad-supported television (FAST) encompasses over 1,400 channels. FAST functions similarly to traditional television, where viewers can watch a program that is broadcast at a certain time via devices connected to the internet.
  • Ad-supported video on demand (AVOD) is videos that can be selected on demand by an individual. It can be watched from beginning to end irrespective of when one decides to start watching.

The current OTT landscape is divided into three core buckets:

  1. Streaming Video on Demand (SVOD)
    • These services charge a recurring monthly fee to access content and are ad-free (Netflix, HBO, Disney +)
  2. Transactional Video on Demand (TVOD)
    • This model offers shows or movies that consumers can purchase or rent at a one-time cost (iTunes, Amazon)
  3. Ad-Based Video on Demand (AVOD)
    • This content is typically free but includes ad breaks like traditional linear TV (Pluto, Tubi, non-premium Hulu).
Millennials Gen Z Parents Hispanics
Do not have paid TV 58% 66% 49% 59%
Watch TV via streaming services 91% 81% 81% 82%
Shop while they stream TV 46% 45% 38% 43%
Purchased a product using the purchase function on their TV or mobile device 60% 50% 40% 56%

Source: Samba TV

What Does This Media Landscape Mean for Advertisers?

Multiple studies have shown that viewers are looking for content and are willing to watch advertisements to gain access to that content and/or to save money.

The driving forces of advertising have not changed. The goal is still to deliver the right message to the right person at the right time. And the planning process is still the same: (1) Define what your specific objectives are, (2) Identify your target audience, (3) Determine how you will measure success, and
(4) Develop a plan designed to deliver the desired outcomes.

The changes we have seen, however, affect every step of the process:

  • New technologies have increased the options for identifying and targeting audiences, which also have implications for overall marketing/advertising objectives.
  • Media choices/consumer touchpoints seem to have grown almost exponentially.
  • Audience/performance measurement is in a state of flux.

Where Do We Go from Here?

Stay tuned as we continue our CTV blog series to help provide education around the new streaming TV landscape.