The sheer amount of content consumed in 2020 was unreal. From Tiger King, to The Handmaid’s Tale, to Frozen II, hundreds of hours were spent streaming video content across a variety of platforms. A good majority of viewing was done by cord cutters, people who do not have a traditional cable package, or cord shavers, people who opt for a smaller cable package with fewer channels to supplement their streaming subscriptions.
Source: eMarketer, 2021
Not only was a large amount of content consumed in 2020, but there was also a large uptick in subscribers to OTT services and time spent streaming. Notably, this coincided with the beginning of the pandemic. It is assumed that viewing levels will curb now that the pandemic is coming to an end. However, for the millions of people who began streaming during Q1 2020, streaming will likely become part of their continued day-to-day practice.
Source: ComScore, 2020
With households averaging 5 subscription services and the time spent watching content continuing to grow, it is important to understand if and where your target audience is streaming. Some services do not allow for ads to be placed, like the newer Disney+ and Netflix, while others, like YouTube and some beta tested Hulu ads, allow for advertisers to demographically and geographically target. This ability to use data in a way that reaches the right person at the right time allows for the feel of a large television buy while making sure the ads are seen by the target audience.
Viewer habits will continue to illustrate that large volumes of people will stream their content; however, there will always be a place for linear television. Research shows that a majority of homes with a CTV still have, and watch, linear tv. Linear being the more “old-school” TV that is cable, broadcast, “tune into NBC at 7pm to watch the local news” type viewing.
Source: ComScore, 2020
Ads that run within linear television programming tend to increase overall brand awareness and assist in pushing offers like specific sales. While linear advertising will always have a place in the video advertising mix, we encourage our clients to explore the world of OTT. While it was once incredibly expensive/high CPM, this tactic is now a more reasonable cost and great addition to round out a paid advertising campaign.