Historically, performance marketers focused on smaller screens, including desktops and mobile phones.
But in the last few years, that’s started to change. Now, thanks to enhanced targeting options on bigger screens coupled with the targeting changes made by Apple and soon Google and legislation like GDPR in Europe and CCPA, etc., in the US, performance marketers have new opportunities on larger screens.
According to research from Advertiser Perceptions, 56% of marketers are turning to streaming and connected devices because of the ability to precision target audiences. Why? Because consumers are happy with ad-supported streaming services. The results of a survey conducted by Hub Entertainment Research found that 56% of respondents prefer to save $4-5 dollars/month for a service with ads. This is even more true given the challenging economic realities today. And among consumers of leading Free Ad-Supported Streaming services, more than 75% of respondents rate their services as an ‘excellent’ or ‘good’ service.
First, streaming services enable contextual targeting made possible by tying the context of the shows. Next, depending on the specific streaming service, marketers can target based on keywords, zip code/location, and interests. And marketers are also able to leverage their first-party data for enhanced targeting of their streaming ad campaigns.
With more streaming services now offering advertising, including premium market leaders Netflix and Disney, marketers have more opportunities for sophisticated ad targeting. For example, some streaming services enable performance marketers to utilize audience-first targeting tactics such as targeting audience personas based on a broad range of behaviors. Select streaming services enable running localized and personalized campaigns with dynamic creative targeting. These ads deliver a unique message sending prospects to a local branch of a store or providing localized and personalized calls-to-action.
Bigger can be better
There’s a reason why brand marketers have craved advertising on big screens in the living room. There is something captivating about experiencing an ad on a larger screen.
Now, we’re moving into a device-agnostic world where each user decides on which device to view and engage with content, even starting on one device and shifting to another seamlessly. In this new marketing world, performance marketers will have opportunities to create richer, more engaging ad experiences that move users to take action across a range of devices and screens.
The Netflix/Disney+ factor
In Q4 2022, both Netflix and Disney+ entered the streaming advertising market. Unlike most other streaming services, at present, Netflix is only offering ad targeting based on genre and content category. The company, which launched ads first in November, ended up refunding advertisers because the company was only able to deliver 80% of the expected audience. According to Antenna data published by The Wall Street Journal, only 9% of Netflix’s new subscribers signed up for the version with ads. Among those subscribers, 43% downgraded from Netflix’s more expensive plans.
Disney+ with ads launched ads in December. The company relied on advertising experience from sister company streamer Hulu. Hulu’s ad-supported tier has more subscribers than its ad-free tier. Given Disney’s family-friendly content, the company committed to keeping some kid’s shows and profiles ad-free. The company’s ad breaks will be limited to four minutes per hour, fewer than for other streaming services.
Thanks to better targeting opportunities on larger screens next to premium content, streaming went up market in 2022. For 2023, we expect more surprises and opportunities for performance marketers to take advantage of the big screen.
Do you have questions regarding marketing in a device-agnostic world? If so, reach out to Creative Clicks and let our team get you up to speed on the opportunities in streaming.