The lines are blurring between the content we watch on TV and the content we watch online. More than ever before, we’re able to watch what we want, when we want. Connected TVs, streaming devices, and now full episode players (FEPs) have gradually assumed a spot alongside traditional network television—and shaken up the way we watch (or don’t watch) commercials.
It’s easy to consider how this technology has radically changed our lives as consumers, but how has this changed the rules for advertising? The days of Nielsen ratings and peak TV watching hours are still here, but audiences are spending more and more time in a new landscape: streaming video. Advertisers need to shift their strategies, and in doing so, they’ll reap the benefits of dynamic ad insertion (DAI) that targets audiences in a more cost-effective, efficient way.
Small businesses in particular who have been priced out of the network cable ad market stand to gain a lot by tailoring their ad strategies to leverage FEPs. In this article, we’ll take a brief look at the changing world of streaming video, how FEP ad placement works, and how it can work for your business.
A quick glossary of streaming advertising terms
First, let’s look at how and where viewers are streaming content these days.
Connected TVs (CTVs)
CTVs are TVs that are connected to the internet via a streaming device or gaming console (e.g., Roku, Apple TV, Xbox, or devices like Chromecast and Amazon FireStick), or a smart TV, through which you log in to apps to stream content (e.g., Hulu, Netflix, Amazon, etc.). Companies serving up advertising to CTVs are able to target viewers by the time of day, their location, and category of content.
Full episode programming, or full episode players (FEPs)
FEPs are next-level, streaming 30- to 60-minute videos via a network’s app or website online, often with multiple ad breaks. These players are premier spots for advertisers to target because they’re often streaming long-form shows (Think: seasons of episodes that viewers are more likely to “binge watch”), allowing exclusive, highly controlled advertising placement (and captive audiences). With FEPs, advertisers are able to target viewers by not only their location, the time of day, and category, but also by their demographic.
Over-the-top (OTT)
Know anyone who’s “cut the cord” and no longer subscribes to a cable or satellite provider? This kind of viewing, including the streaming options mentioned above, fall into the “OTT” category. OTT is streaming service lingo for accessing content that’s transmitted over the internet, taking distributors out of the equation entirely. For advertisers, this can be a more cost-efficient option.
Dynamic ad insertion (DAI)
Think about Moveable Ink’s dynamic email marketing technology that creates customized user experiences. It’s highly targeted, effective, and engaging. The same can apply to targeted advertising on streaming services with DAI. Ads can be dynamically placed (and removed, and swapped) in streamed content. Even if a viewer is watching a show from two years ago, the ads can be brand new, relevant to their preferences, and based on their location and demographics.
Premium content
Not all streaming video is created equal. There’s user-generated content on YouTube and there are premium network shows, and everything that falls in between. A media company can typically help businesses plan what content to target based on their budget and audience. The more premium the content, the higher the cost to advertise with it. (This can include video on demand [VOD], full episodes streamed through your set-top box from your cable provider.)
Programmatic advertising
Programmatic advertising takes humans out of online ad negotiations altogether and is notoriously efficient. A computer carries out the plans and strategies that ad buyers have created, running insertion orders and more simple tasks quickly and efficiently. Real-time bidding (RTB) is a type of programmatic advertising and a cornerstone of online advertising. What a business is willing to pay will determine whom their ads get in front of, on a per-impression basis. It allows advertisers to target users rather than websites. It’s also more efficient and gives advertisers access to a wide range of inventory depending on what they’re willing to pay, taking middlemen out of the equation.
Server-side ad insertion (SSAI)
With SSAI, where and when ads are embedded into streaming video is entirely up to the provider of the video. SSAI ads are more directly spliced into the content, which means they’ll load faster, but the advertiser has less control over their placement. It also makes gathering analytics about who sees the ad and when more difficult, but a bonus: these ads are less likely to be filtered out by an ad blocker.
Frequency
FEP advertising has a few new metrics for advertisers to get familiar with, but one of the most important metrics carries over from traditional network TV advertising: frequency. This is an important metric in CTV and FEP advertising because it helps set the pace for ads and ensures variety. No one wants to see the same ad over and over during their streaming video; this both prevents repetition and keeps slots open for other brands.
How businesses can amplify their message with streaming content
With the basics out of the way, let’s talk about how and why to leverage FEP advertising.
With network television advertising, you’re able to narrow down a spot and a time, but not an audience, which means your ad has to be appealing to a broad spectrum of viewers to be effective. With FEP advertising, you can create ads as specific and targeted as you like.
Say you’ve created a video commercial for your brand and you’re looking to get it in front of viewers. Depending on your budget, audience demographics, and category, it’s possible to buy affordable, highly targeted spots within FEP content.
Typically, ads within streaming content can play before, during, and at the end of streamed content. You’re either purchasing ad buys through networks, or having a media agency like FreeWheel plan your placements for you. They’ll make sure ads are running in safe places, with quality content—not content that could create damaging associations. There’s also a lot of data that goes into the planning, targeting, and measurement of ad ROI.
There’s a lot to learn about leveraging this new channel. The Interactive Advertising Bureau (IAB) has created guidelines and best practices for digital video advertising, offering insight into how users interact with player ads by defining in-stream metrics advertisers need to know—things like audio mute, pause, skips, expand/collapse, and more.
The first benefit is an obvious one: Cost. Advertising over network TV has priced out all but the biggest brands. Note that FEP advertising is not always cheaper, however: some premium content streamed over VOD or FEP can be as (or more) expensive to advertise within as cable television—it really just depends.
The next benefit is targeting. Like we mentioned above, you don’t have to create a broad-sweeping ad and pay a premium to get eyes on it. FEP advertising offers not only more opportunities, but more targeted ones.
Finally, optimize your budget by using remote talent to produce the ads which will promote your business. From writing to design and the voice talent you need to tell your story, consider remote talent on Upwork to get more work done!
