It should come as no surprise that digital streaming continues to skyrocket. The number of users who are canceling their cable TV subscriptions is on the rise, and the opportunity for advertisers in the CTV space is immense. Cord-cutting has been a prevalent phenomenon for a few years now but has started to increase exponentially as the cost of cable TV continues to rise (in spite of its offerings being more limited than those of competitor streaming services).
- How many people are REALLY cutting cords?
This past year, traditional TV is down 6.5 million subscribers from last year. In comparison, streaming television has experienced an increase of 2.3 million subscribers over the past year. These numbers are significant, and if your brand hasn’t started to develop a full-funnel plan for CTV advertising, now is a good time to start and increase your visibility.
- The live sports exception
Right now, sports exist as the biggest hindrance to those looking to transition fully from Cable TV to streaming video on demand (SVOD). However, we’re already seeing streaming services tap into the live sports market. Most notably, Hulu offers live sports streaming, and recently, it’s offered live streaming of NHL Stanley Cup Playoff games. Similarly, Amazon Prime secured exclusive rights to NFL Thursday Night Football in 2021 and will continue to host those games through the 2024 season. Currently live sports are the biggest driver of cable TV subscriptions, but even this landscape is on the verge of shifting (which is something advertisers should take note of).
- What types of ads are most effective on streaming services?
Many streaming services, especially Hulu, are experimenting with using interactive ads for viewers. Many brands enjoy higher engagement rates when they use QR codes in their CTV ads. Just this past Super Bowl, Planters incorporated a QR code into their commercial and experienced a 70% conversion rate as a result. Streaming services are taking part in interactive ads as well, with some ads giving viewers the opportunity to choose which commercial they want to watch based on their specific interests. This keeps viewers engaged and encourages them to watch ads they’re interested in, thereby hopefully increasing engagement rates.
How to capitalize on cord-cutting
The shift of users and content alike to streaming platforms continues to impact Cable TV prices and subscribers. Brands that are looking to use streaming video for growth should partner with an agency that knows the ins and outs of this ever-changing tactic. Our media team is composed of experts in the CTV space — contact us to learn more about how we can develop a full-funnel plan with your goals in mind.
