This year’s Upfront season will look different for advertisers. There will be less original scripted content, more competition for ad inventory, and new ways to measure and transact. To boot, it’s also a presidential election and Olympics year.
Against this backdrop, streaming TV will play an even greater role in this Upfront and NewFront season, when networks and programmers — including Roku — will host events to present their content and advertising opportunities for the upcoming year.
At a time when the world is becoming more reliant on ad-supported streaming, Roku plays a pivotal role as America’s #1 TV streaming platform.¹ With more than 80 million active accounts, we have an unparalleled view of the streaming TV landscape. Here’s what advertisers need to know as they gear up to make their 2024 TV commitments.
Unlike years past, we’ll see a slimmer slate of new shows released this season due to last year’s writers’ and actors’ strikes and fewer new shows being greenlit as streaming services focus on profitability. Consequently, some programmers may lean more on sports-related offerings.
A presidential election will also lead to a flood of campaign dollars. About 13% of total political ad spend is expected to be attributed to CTV this upcoming election cycle, which is up from the 2020 election.² As a result, brands will face more competition for fewer opportunities to align with new scripted programming.
That means advertisers will have to get creative to reach their desired audiences at scale. For example, there are a wealth of innovative native advertising opportunities on streaming platforms that can be leveraged to extend their reach. Brands like Coca-Cola and Paramount+ have found success by advertising in Roku City, our iconic screensaver that reaches 40 million households every month.
Brands can also curate sponsored playlists in Roku’s NFL Zone or Women’s Voices Zone or work with us to create inclusive content on The Roku Channel as SheaMoisture did.
Fortunately, the reach of these placements does not depend solely on content freshness. As the lead-in to all TV, Roku’s platform connects audiences whether they are seeking out a new series or a cherished show from years past. This reach can’t be achieved by placing ads solely with individual streaming apps. Consider that the median user visits the Roku platform 23 days each month, but any given app only sees that user a few of those days.³
"Given its fast-growing, engaged audience and diverse targeting and measurement capabilities, streaming TV is critical to our clients' full-funnel integrated marketing efforts. In 2024 and beyond, Roku and streaming TV will be key to unlocking both the quality reach and results that make for a successful campaign," said Harry Browne, VP, Media Innovation, Tinuiti.
As advertisers seek out new types of streaming inventory, they will also reconsider how they transact and measure those ads. Increasingly, brands will use their preferred buying platforms to holistically manage data-driven streaming campaigns, offering wider and more flexible access to streaming audiences.
These more flexible approaches will be aided by the gradual rise of alternative currencies, giving advertisers new avenues for buying and measuring their campaigns across platforms. NBCUniversal, for instance, plans to transact half of its business this year on strategic audiences, rather than ratings, and give brands unduplicated reach through a single media plan across linear and streaming. These changes will pave the way for advertisers to measure the performance of their streaming campaigns in ways that haven’t previously been possible.
Brands are no longer interested in a spray-and-pray approach for their TV campaigns. Instead, they want bespoke advertising opportunities that will make their messaging stand out.
Streaming TV advertising offers unprecedented opportunities on the biggest screen in the house. For example, when Timberland wanted to celebrate the 50th anniversary of its game-changing boot, it curated a movie and show playlist spotlighting cultural change-makers from Roku’s content library. The brand used targeted video and Marquee Ads on Roku’s home screen to boost the playlist, driving nearly 150,000 clicks and a 20% lift in purchase intent from multicultural adults 18 to 44 years old.
This type of multi-faceted activation simply isn’t possible with linear TV.
“One of the big things that we're doing to make our brand unmissable is a partnership with Roku and Hello Sunshine to create our own original content,” says Andrea Brimmer, chief marketer and PR officer, Ally. “We'll have everything from smart brand integrations all the way to original production. From my lens as a CMO, those opportunities never really existed with linear.”
The number of advertisers who are cutting the cord on linear TV will grow in 2024 as they gain confidence in the super-sized reach that TV streaming delivers.
For example, linear TV dropped below 50% of total TV usage for the first time, while streaming hit 37.7% of all TV usage.⁴
Advertisers are more likely to find younger audiences in streaming TV than linear. In fact, 74% of adults under the age of 50 streamed entertainment every week in Q3 2023, per Roku data, compared to 62% who tuned in to linear TV.⁵ The last time 18- to 34-year-olds spent the majority of their TV time watching linear was February 2021.⁶ And households are also more likely to co-view streaming TV vs. linear—and pay more attention.
Finally, streaming is more actionable. As a full-funnel solution, it delivers the reach needed for brand awareness while also driving to measurable performance outcomes. For example, furniture retailer Raymour & Flanigan leveraged Roku’s ad platform and geotargeting to drive traffic to its retail stores. The campaign inspired 337,000 store visits after exposure, with 146,000 visits attributed directly to Roku media.⁷
We’re excited to reveal new experiences, content, and advertising opportunities at Roku’s NewFront event, which will take place on April 30.
Learn more about Roku’s 2024 NewFront.
¹ Based on hours streamed, December 2023, Hypothesis Group
² AdImpact
³ Median days streaming app by app audience
⁴ Nielsen, February 2024
⁵ Internal Roku Data, 2023
⁶ Internal Roku Data, 2023
⁷ InMarket Local Attribution; Campaign Flight: A2 2023