TV streaming, sometimes known as OTT or CTV, has become a mainstream advertising medium. It’s also relatively new. Perhaps it’s no surprise, then, that some common misconceptions about TV streaming still persist.
There’s no better way to address those misconceptions than to hear from seasoned experts, so we spoke with two executives at USIM, the world’s fastest-growing independent media agency, about their experience with TV streaming. Melissa Sierra, SVP at USIM, and Rob Jayson, EVP of Insights & Analytics, have seen what works for their clients, so we thought we’d ask them to share some of what they’ve learned and to dispel some myths around TV streaming.
If you want to dive into best practices of TV streaming, you can also register for the upcoming webinar with Roku and USIM on May 13.
Here are the myths that Melissa and Rob debunked:
While brands may still think of TV streaming as an “extension” of their traditional linear TV strategies, Rob says that there has been a shift in thinking.
A lot of this has to do with the idea of “scale.” For years, traditional linear TV seemed like the best place to communicate your message with the power of sight, sound, and motion to the largest and most engage audience.
That’s not necessarily the case anymore because of how many consumers have moved to TV streaming. More than half (57%) of Roku users don’t have cable TV anymore. Rob recommends that TV streaming is the only way to reach about half of your audience, especially younger consumers, especially adults 18-34.
Not only that, TV streaming has become much more mainstream over the past few years. With Roku, you can reach homes with an estimated 148 million people.
Contrary to what some may assume, Rob has concluded that TV streaming can cater to a better audience – and drive better results - than traditional linear TV.
“CTV is a more direct channel than linear TV,” he says. For local campaigns, this can be crucial. Rather than buying an ad spot on a linear channel that will broadcast your ads to consumers who don’t live near your store, advertisers can use geo-location data to reach streamers who live near the location.
Rob has the data to back up his claim. Roku’s precision targeting at scale helped grocer Winn-Dixie, a USIM client, deliver superior campaign outcomes.
Exposed viewers, when compared to those who didn’t see the ads were:
56% more likely to visit the homepage
76% more likely to view the store locator on the website
57% more likely to shop online
The biggest difference between traditional linear TV and TV streaming, Melissa says, is that traditional linear TV is all about mass reach and TV streaming is about going audience-first.
TV streaming ads are much more precise than traditional linear ads. Since your ads will only reach streamers who are most likely to be interested in your product, pricing is based on the value of the audience, rather than total number of people reached.
This means that you can maximize your ad budget in new ways by making sure that your ads are only shown to streamers who will most likely be interested in your product, while reducing wasted impressions with sophisticated frequency management.
Melissa says that TV streaming reflects the new way that consumers are used to interacting with brands today.
“Consumers want to have a direct relationship with brands,” she observed. Ads have to be personalized and relevant to each streamer. And, with the data from TV streaming platforms like Roku, that’s finally possible.
As the third-party cookies fade away, having direct relationships with consumers, especially through first party data like Roku Audiences, also makes ad campaigns more measurable.
“Linear TV can’t really measure sales, site traffic, or cross-channel behavior,” Rob says. “With TV streaming, advertisers can optimize their campaigns and really see what’s happening.”
Want more advice on the best practices for CTV for CPG, Education and QSR? Register for Roku’s webinar with USIM on Thursday, May 13 @ 11am EST.