As of May 2020, more than two million American households have decided to cut cable or satellite TV, turning toward streaming services such as YouTube TV, Hulu, Netflix, and many more. With so many people turning away from cable, what does this mean for advertisers?
Connected TV is growing, and growing fast. With new streaming services popping up daily, Connected TV presents opportunities to marketers that cable never could. With the new way of watching television, advertisers can now target audiences more tightly and efficiently than before with awareness-based campaigns.
Different from traditional television ads, Connected TV ads can draw clicks if someone is streaming their content on a laptop or mobile device, which is one of the main benefits of switching to Connected TV (watch shows, movies, or live TV anytime, anywhere). If someone is not streaming on their laptop or mobile device, however, the key metrics are similar to display advertising. Some of these key metrics to track are awareness, video completion rate (similar to thruplays on Facebook), and cost per completed video view (similar to cost per thruplay on Facebook). One thing to note is that Connected TV will require a larger initial investment than traditional video advertising, with marketers being required to pay a minimum floor price. Although the initial cost is higher, the cost per video completion will almost always be cheaper than using traditional video assets on a platform like Facebook.
With streaming services replacing cable in millions of homes across the country, Connected TV is quickly becoming the medium of choice for display advertising. Although the cost of running these campaigns is greater than running display advertising on a site such as Facebook, the tight targeting and increased likelihood of your audience completing the video make for an exciting combination for awareness campaigns.