The TV streaming advertising market has grown into an ecosystem that spans hundreds of data analytics, measurement, content, creative, data, and devices providers. Advertisers are eager to master the TV streaming medium, but doing that requires understanding how this constellation of ecosystem players fit together.
Since Roku was founded in 2002, it’s been our mission to make TV better for everyone. We’ve seen how TV streaming and TV streaming advertising have evolved over the years, so we decided to visualize how the industry works and all the key players interact across the landscape.
Here’s our overview of both the TV streaming advertising landscape today and the different categories that define the market:
With dozens of different companies for each space in the TV streaming advertising landscape, it’s important to understand the industry categories for each ad service. Services can generally be put into eight different categories:
Data Analytics & Measurement: Determine outcomes of advertising efforts, targeting, and engaging different audiences
Demand Side Media Facilitation: Manage ad buying, optimization and measurement across a range of media and devices
Supply Side Media Facilitation: Manage publisher inventory across websites, mobile, and other media, optimizing for returns and profit
Distribution: The networks of content that host the channels and content where ads are displayed
Content: Opportunities for advertisers to show in-stream video ads known as long-form video ads and short-form video ads that are usually only 15 to 30 seconds.
Ad Creative: Experiences built for video and streaming solutions that are interactive, native display, or a brand microsite
Data Providers & DMPs: Enriches audience segments and profiles with identity graphs and other identity solutions while allowing for advanced segmentation and bidding via a data management platform (DMP)
Streaming Players & Smart TVs: Hosts the streaming experience from hardware solutions like TVs or streaming devices
Some streaming TV ads are video ads. Others may be static banners that are shown across devices. Some publishers and platforms also offer native streaming ads embedded in the flow of streaming, or Brand Experiences.
Here’s how the TV streaming advertising landscape defines different types of streaming TV ads:
1. Addressable TV Ads: Serve ad to a household in cable TV based on specific demographic or buying behavior
2. Connected TV Ads: Serve ads across smart TVs and streaming players that are integrated with customer behavior data from other devices
3. Programmatic Ads: Automated ad buying that places your ads based on identity, bidding prices, planning, measurement, and desired outcomes
4. Interactive Ads: Ads that allow streamers to interact with a TV ad via their remote, mobile phone, or other device to receive information or offers
5. Brand Experiences: A microsite or display ad that appears during the streamer’s journey, offering movie passes, curated content, or sponsored movies and TV shows with limited ads that showcase one brand’s messaging and creative.
Finally, there are different streaming TV environments. Some, like subscription video on demand (SVOD) may not allow ads, while others – like the aptly named advertising video on demand (AVOD) - are ad-supported.
If you’re looking to launch a TV streaming ad campaign, you should understand the basics of each environment:
Video on Demand (VOD): A service that allows viewers to watch video content wherever and whenever they choose, rather than at the scheduled broadcast time.
Subscription Video on Demand (SVOD): A video content service for which the user pays a subscription for (i.e. Netflix, Amazon Prime).
AVOD (Advertising on Demand): A video content service that is funded by advertising, including video services that are free to the user and those that offer a subscription fee with ads.
Transactional Video on Demand (TVOD): A video content service where customers pay for each piece of video on demand content. For example, a customer pays a fee for each movie and/or TV Show they watch.
There are many different ways for your ad campaign to reach your audience. With the right streaming TV ad platform, you can control that ad experience from creative and conception to delivery and measurement.
With the pace of change in the TV advertising streaming market, we expect that this chart may look a lot different even by the end of this year. But one thing is for sure – TV streaming is only going to keep increasing as more and more people cut the cord. Across the Roku platform, we saw streaming hours increase by 55% last year alone.
TV streaming advertising is the way that you can start reaching these audiences in new and innovative ways. The innovative data and analytics of TV streaming, alongside new creative options, will help advertisers create better ad experiences, too. By understanding the TV streaming advertising landscape today, you can make the ad campaigns for tomorrow.
Want to learn more about the future of TV streaming? Download "5 Predictions for TV Streaming Advertising in 2021."