We are living in an ad-tier age. Streaming services across the board are moving towards ad-driven revenues as a way of offering high-quality content at affordable prices, as well as finding alternative revenue streams from brands and advertisers.
How can brands make the most of this shift in perspective and, more importantly, what are the creative inroads for a new advertising universe?
Some streaming services are even removing their basic plans in favour of ad-tiered versions, creating an entirely new realm for advertisers to break into. The modern, savvy entertainment seeker is drawn to ad-tier plans because of their affordability, with research suggesting that many prefer watching ads over paying higher subscription fees.
But, as always with advertising, location and placement can only bring brands so far. Creative ingenuity remains the ultimate differentiator, sealing the deal and keeping audiences engaged. So, where does this leave advertisers? How can brands make the most of this shift in perspective and, more importantly, what are the creative inroads for a new advertising universe?
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Above: Streaming services are dominating culture and, therefore, eyeballs.
Finding the right audience
Most streaming services are based on deeply intelligent algorithms. They’re built to work out what viewers want and then serve them up the most relevant content, whether that’s thrillers for the thrill-seekers or rom-coms for the newlyweds.
Streaming platforms dominate the entertainment market which means that advertising can enter into this cultural universe.
Effective algorithms that present a specific viewer with a specific show at a specific time can also be used to display relevant ads alongside it. The best part of this is the opportunity to be incredibly creative with your ad placement.
Streaming platforms dominate the entertainment market which means that advertising can enter into this cultural universe. Why not consider placing the latest Nike trainers alongside Netflix’s Break Point, or cheekily advertise Starbucks alongside certain episodes of Game of Thrones?
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Above: Brands need to be smart and, sometimes cheeky, says McHenry, like having a Starbucks commercial during Game of Thrones.
Striking the balance
Introducing ads into previously ad-free platforms isn’t a risk-free venture. Winning the critics over will require a high calibre of ads that seamlessly integrate with the platforms they sit on. Low-quality, irrelevant adverts will feel out of place to savvy streamers accustomed to high-budget blockbusters on their television, and adverts that are deemed irrelevant can end up doing more harm than good for brands, while the platforms themselves need to ensure that ads are served up without disrupting the viewing experience.
Understanding and tapping into the cultural zeitgeist is the key to brands success. Whether these moments are big or small, being able to adapt to changing habits to ensure relevance is paramount.
Understanding and tapping into the cultural zeitgeist is the key to brands success.
And that’s why speed is the name of the game. Producing high-value ads has always been a slow and costly process and, in our modern world of streaming and social media, trends and ideas come and go very quickly, so capitalising on them requires agility.
New technology makes this much easier. The latest creative innovations, like Yahoo Creative, make it possible to utilise AI and data streams in order to iterate and improve creative ads. In real-time, the latest technology means that brands can pivot more effectively to make high-quality ads quickly, giving a real bonus to the first movers here.
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Above: Advertisers need to be relevant, like promoting gourmet restaurant experiences during The Bear.
The fandom potential
Streaming services, under the broader umbrella of Connected Television (CTV), are at the forefront of creative advertising. They are almost universally used, a hotbed of cultural inspiration and a place filled with highly passionate and engaged audiences.
The potential offered by these highly engaged viewers cannot be understated. In the days of purely linear broadcasts, audiences would have to wait for their weekly slot to indulge in their favourite shows; streaming opens the door to endless repeat viewing opportunities. The final aim should be to create broad ‘entertainment universes’, incorporating the best content with related and relevant ads. Let’s have a Stranger Things finale complemented with an advert for the nostalgic fashion of the 1980s, or gourmet restaurant experiences to contrast the chaotic kitchen of The Bear.
If brands can avoid the pitfalls, and streaming services continue to update their ad placement based on what audiences want, then we may enter another golden age of modern TV advertising.
CTV doesn’t just feature the best parts of linear TV, it's inherent interactivity enables advertisers to not only present a brand or product to their audiences, but also take them directly to their online store, reducing the time to impact and taking viewers further down the funnel faster than ever before.
Creative + data = impact
It doesn’t take a telescope pointed at the stars to see that ad-tiers are on the rise. Streaming’s continued evolution has been the foundation for advertising creativity to ascend to a whole new world, and it’s the brands that move first - and move effectively - that will thrive.
Three factors can be attributed to streaming services’ newfound importance in the advertising ecosystem: intelligent placement, agile creative development and well-informed, data-backed strategies. If brands can avoid the pitfalls, and streaming services continue to update their ad placement based on what audiences want, then we may enter another golden age of modern TV advertising.