The way people consume their media has changed drastically over the last five years. Consumers are no longer bound by program schedules. They have the ability to watch what they want when they want for as long or short as they want. Many viewers are switching to various forms of over-the-top (OTT) media. OTT media is a streaming media service delivered to viewers via the Internet, allowing customers to bypass cable, broadcast and satellite platforms. 

The most common OTT examples would include streaming services like Netflix and Hulu, or devices like Roku. Traditionally, these outlets had acted as the controller or distributor of media. A combination of the 2020 COVID-19 pandemic and the increasing number of subscriptions services resulted in roughly 80% of US consumers reported having at least one subscription service, compared to 73% before the pandemic began.

While they still exist, there is a shift by viewers to switch to OTT media over these traditional distributors. This shift has created a window of opportunity for advertisers by lowering the barriers of entry (mainly high costs) for running an effective media campaign.

Disruption in Cable Television Viewership

There has been a disruption in the traditional media world that started years ago. First, viewing habits shifted to when viewers wanted to watch shows and not when the shows actually aired. The advent of DVR recordings allowed this change in when television programs were viewed to occur. Then, viewing habits changed again with OTT media and connected TV devices (smart TVs). In younger generations, traditional TV viewing time has dropped by 40 percent over the course of the last five years, according to data recently released by Nielson. [1]

Connected TVs (or smart TVs) are televisions that have Internet and Web 2.0 capabilities. This capability gives users the ability to download and run applications from various OTT media services. According to the Parks Association, 50% of broadband households own at least one Smart TV.These trends might seem as if people are watching less video media, but this is not the case. In fact, Limelight Networks reported average online video viewing time grew 59% since 2016 with an average of 6 hours and 48 minutes per week. By 2022, it is projected that 82% of the global internet traffic will come from video streaming and downloads. Regardless of the source of their video, people are no longer willing to make the time to watch their media on a set schedule.

Most current televisions available on the market today come with these capabilities.

Advertising Opportunities with Streaming

All of the available streaming options provide a variety of advertising options for both business and consumers. Many assume the less ads the better, but that’s not always the case. A Deloitte consumer survey from 2020 found that even before the coronavirus pandemic hit, 40% of consumers chose an ad-only model, like NBC’s Peacock, compared to 38% no-ad model such as Disney+ and Netflix, and 22% were willing to choose a some-ad model like Hulu. The reasons may have more to do with which content the consumers prefer and not ads; regardless, commercials are still part of the average expectation of consumers. The advertising models provided by OTT media outlets prove to be distraction-free opportunities for businesses of any size. [2]

New Opportunities for Small Businesses

While these changes have led to major headaches for big cable companies, they have opened big doors for small businesses. OTT media is known for its precise targeting attribution models. To the small business owner, this means you can have the prestige of video advertising on television sets while not having to cough up large sums of money. The precise targeting capabilities and even measured results provide a whole world of opportunities that otherwise wouldn’t be available.

The most appealing aspect may be that these campaigns require no minimum budget and a much lower initial budget than traditional TV campaigns and media buys in order to be effective. Video ads on connected TVs can be bought either on Spot TV advertising, meaning you purchase an allotted time slot with a particular station, or through private contracts, but the pricing model will almost always be on a cost-per-thousand impressions (CPM). Perhaps the biggest benefit is being able to bid on a per-user basis.Targeting a customer base through television ads has never been easier; determine a target audience, set up a corresponding campaign and place a winning bid.If you are a small business owner who thought about running a television media campaign but couldn’t afford it, the opportunity presented by connected TV and other OTT media services should not be ignored.

Points Group has an in-house video production department, as well as a full-service digital marketing department with access to premium inventory across many different Connected TV devices and OTT media services. If you are interested in running a highly effective media campaign, contact our specialists for more information.

[1] http://www.nielsen.com/us/en/insights/news/2014/advertising-and-audiences-making-ad-dollars-make-sense.html

[2] https://marketingland.com/covid-is-accelerating-tv-advertisings-transformation-into-an-addressable-medium-280555?utm_source=feedburner&utm_medium=feed&utm_campaign=feed-main

Leave a Comment

Your email address will not be published. Required fields are marked *

Our Partners

partners
facebook marketing partner
google partner
shopify logo
hubspot partner program

European Office

Agentur Webfox

Berlin, Germany

Join Our Newsletter!

@ 2023 Points Group / All Rights Reserved

Privacy Policy

This Privacy Policy governs the manner in which Points Group, LLC collects, uses, maintains and discloses information collected from users (each, a “User”) of the https://www.pointsgroup1.10web.me website (“Site”). This privacy policy applies to the Site and all products and services offered by Points Group, LLC.

PERSONAL IDENTIFICATION INFORMATION

We may collect personal identification information from Users in a variety of ways, including, but not limited to, when Users visit our site, subscribe to the newsletter, respond to a survey, fill out a form, and in connection with other activities, services, features or resources we make available on our Site. Users may visit our Site anonymously. We will collect personal identification information from Users only if they voluntarily submit such information to us. Users can always refuse to supply personal identification information, except that it may prevent them from engaging in certain Site related activities.

NON-PERSONAL IDENTIFICATION INFORMATION

We may collect non-personal identification information about Users whenever they interact with our Site. Non-personal identification information may include the browser name, the type of computer and technical information about User’s means of connection to our Site, such as the operating system and the Internet service providers utilized and other similar information.

WEB BROWSER COOKIES

Our Site may use “cookies” to enhance User experience. User’s web browser places cookies on their hard drive for record-keeping purposes and sometimes to track information about them. User may choose to set their web browser to refuse cookies, or to alert them when cookies are being sent. If they do so, note that some parts of the Site may not function properly.

HOW WE USE COLLECTED INFORMATION

Points Group, LLC may collect and use Users personal information for the following purposes:

  • To improve customer service
  • Information you provide helps us respond to your customer service requests and support needs more efficiently.
  • To personalize user experience
  • We may use information in the aggregate to understand how our Users as a group use the services and resources provided on our Site.
  • To improve our Site
  • We may use feedback you provide to improve our products and services.
  • To run a promotion, contest, survey or other Site feature
  • To send Users information they agreed to receive about topics we think will be of interest to them.
  • To send periodic emails
  • We may use the email address to respond to their inquiries, questions, and/or other requests. If User decides to opt-in to our mailing list, they will receive emails that may include company news, updates, related product or service information, etc. If at any time the User would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email.

HOW WE PROTECT YOUR INFORMATION

We adopt appropriate data collection, storage and processing practices and security measures to protect against unauthorized access, alteration, disclosure or destruction of your personal information, username, password, transaction information and data stored on our Site.

SHARING YOUR PERSONAL INFORMATION

We do not sell, trade, or rent User’s personal identification information to others. We may share generic aggregated demographic information not linked to any personal identification information regarding visitors and users with our business partners, trusted affiliates and advertisers for the purposes outlined above. We may use third party service providers to help us operate our business and the Site or administer activities on our behalf, such as sending out newsletters or surveys. We may share your information with these third parties for those limited purposes provided that you have given us your permission.

THIRD PARTY WEBSITES

Users may find advertising or other content on our Site that link to the sites and services of our partners, suppliers, advertisers, sponsors, licensors and other third parties. We do not control the content or links that appear on these sites and are not responsible for the practices employed by websites linked to or from our Site. In addition, these sites or services, including their content and links, may be constantly changing. These sites and services may have their own privacy policies and customer service policies. Browsing and interaction on any other website, including websites which have a link to our Site, is subject to that website’s own terms and policies.

CHANGES TO THIS PRIVACY POLICY

Points Group, LLC has the discretion to update this privacy policy at any time. When we do, we will revise the updated date at the bottom of this page. We encourage Users to frequently check this page for any changes to stay informed about how we are helping to protect the personal information we collect. You acknowledge and agree that it is your responsibility to review this privacy policy periodically and become aware of modifications.

YOUR ACCEPTANCE OF THESE TERMS

By using this Site, you signify your acceptance of this policy. If you do not agree to this policy, please do not use our Site. Your continued use of the Site following the posting of changes to this policy will be deemed your acceptance of those changes.

CONTACTING US

If you have any questions about this Privacy Policy, the practices of this site, or your dealings with this site, please contact us at:

Points Group, LLC

https://www.pointsgroup1.10web.me

150 Morristown Road, Suite 220

Bernardsville, NJ 07924

This document was last updated on July 24, 2014