Other digital channels often see data stuck in a one-way system. This is not the case with streaming.
TV has evolved.
A technology revolution has enabled our beloved box to transcend its own boundaries; TV can now be every screen and every platform, while broadcasters are streamers and streamers are broadcasters. Audiences certainly don’t see the difference, so how come, despite reports of digital ad spend increasing, advertisers aren’t necessarily keeping up?
In theory, streaming platforms should be just as appealing to advertisers as they are to viewers. The digital nature of streaming services, with users logged in and able to consent to sharing data that reveals their viewing behaviour and preferences, offers a significant step forward in terms of audience insights.
This combination of quality programming and data-backed insights means that streaming has much to offer advertisers. Those that fully understand this potential can not only reap the benefits, but make a valuable contribution to improving the viewer experience and enabling media owners to maximise the value of their platforms too.
Rethinking the viewer experience in its totality
Throughout the history of television, the medium has had the power to create captivating experiences that live long in the mind of audiences; one reason why it is such an effective advertising platform.
That quality content is now available on streaming platforms, providing original and licenced programmes, live sports and, thanks to FAST channels, those classics that made us fall in love with TV in the first place.
From a media buyer’s perspective, streaming inventory, such as professionally produced long-form content, bears a quality seal: brand-safe, premium with incremental reach opportunities on tap. While the content is high quality, our research shows that this isn’t the only factor that impacts the viewers’ overall experience.
For streaming audiences, the top four areas that affect the perception of quality are the content platform, the content itself, the device the viewer is watching on, and the ad load effectively, the number of ads per break. Getting these factors right can improve the quality of the viewer experience by up to 3.6 times.
Our data shows seamless ad experiences lead to higher perceived quality scores for both the platform and — crucially — the advertiser, poor ones can have the opposite effect. Factors that are likely to have a negative impact on viewers are latency issues, where ads don’t load quickly enough or at all; interruptive breaks that disrupt the flow of the content viewers are watching; and blank screens or countdown timers displayed instead of ads.
Solving these pain points is vital when creating a viewing experience that is high quality in every respect as well as filling the knowledge gaps that persist among media buyers.
Going beyond data as a commodity
As advertisers are planning to dedicate more spend towards CTV, they are particularly keen to take advantage of the new data possibilities opened up by these channels.
While it’s readily apparent that streaming platforms use the data that users consent to share with them to power their recommendation engines, advances in data and technology allow them to go deeper, strengthening the bond with audiences and advertisers.
Streaming platforms’ investments in data capabilities undoubtedly aim to extract greater value from their audience and for their audience, but all parties stand to reap the benefits. As brands have access to advanced audience insights and greater control over inventory, they can better leverage their customer data with a streaming platform’s audience to create targeted campaigns.
At a measurement level, streaming platform data can also allow advertisers to get better insights from their campaigns to ensure they are driving their desired outcomes. This is possible thanks to industry partnerships that aim to introduce new metrics such as brand lift and attention. What’s more, the real-time nature of this data allows advertisers to optimise campaigns while they are live, further maximising their impact.
While other digital channels often see data stuck in the one-way system, this is not the case with streaming. Instead, it has become a player in its own right powering key advertising operations. Ultimately, in this data-driven feedback loop, viewers see ads the way they want to see them, enhancing their experience and boosting their perception of the brand and the platform itself.
Adapting to a dynamic premium video environment
Streaming’s digital flexibility and fast data cycle mean that media companies can adapt quickly to market evolutions and consumers’ shifting needs in a way legacy networks haven’t yet managed.
A prime example is the introduction of ad-supported tiers, which make content more accessible but also facilitate a different relationship with the audience.
Reacting to viewers’ preferences in such a way shows that the relationship between the audience and the platform is not merely transactional, but based on a dialogue where content providers listen and respond to consumer wishes. This approach creates a virtuous cycle where the viewing experience continues to improve alongside the viewer’s perception of the streaming platform and the advertisers it encounters. Our research shows that brands seen within video environments considered to be of high quality or ‘premium’ by viewers increase their brand credibility by 66%.
This premium, dynamic environment offers exciting opportunities for advertisers. While linear TV remains an effective way of reaching audiences at scale, streaming platforms have the potential for highly personalised advertising experiences — something that viewers are increasingly seeking.
With AI and interactive technologies set to propel user experiences to another level of personalisation, advertisers and media companies have even more reasons to be excited about the next phase of the evolution of streaming.
