How Do I Advertise on Television?

Many businesses, from major corporations to small local businesses, advertise on television. Reaching consumers through their favorite programs is a great way to build brand awareness and loyalty and grow your market segment. Yet, it is important to know your different options and how they work when you want to advertise on TV.  

Traditional TV Advertising

Most people are familiar with traditional TV advertising. Ads play during commercial breaks during live television broadcasts. People watch live TV either over the air using an antenna or through a cable or satellite provider. Some people can also tune into live broadcasts through various streaming services. 

Pros

• Has a broad reach: It is easy to reach a large audience with a single ad.
• Increases brand awareness: Consumers get to learn more about your brand.
• Increases credibility: TV advertising allows you to show consumers your business is real. 

Cons

• Is expensive: Traditional TV advertising can be expensive and cost-prohibitive to small businesses.
• Locked into a network: You are locked into a single network for your TV ads, or you must buy multiple networks to have higher coverage.
• May be limited to a specific show/timeslot: Your ads may only air during a specific show or a timeslot.
• No guarantee it is being seen: You have no way to measure who is seeing your ad.
• Difficulty in targeting campaigns to a specific audience: With traditional TV advertising, people outside your targeted audience often see the ad, wasting marketing dollars. 

CTV/OTT Advertising

Connected TV (CTV) and over-the-top (OTT) advertising are quickly becoming more popular with businesses when they want to advertise on TV. CTV is where people view TV over connected devices, such as:

• Smart TVs
• Gaming systems (PS5, Xbox Series X, etc.)
• Streaming devices (Roku, Firestick, etc.)

OTT includes CTV devices, as well as:

• Smartphones
• Tablets
• Laptop/desktop computers

The number of people switching to streaming services continues to increase as they cancel cable and satellite TV services. According to Forbes Home, some interesting statistics to be aware of are:

• 99% of all households have at least one streaming service
• On average, households pay for three streaming services
• Netflix has 260.28 million subscribers
• 50% of users pay for ad-supported streaming because it costs less

Pros

• Cost-effectiveness: CTV/OTT advertising is much more cost-effective and affordable, especially for small businesses and mom-and-pop operations. 
• Targeted reach: Ads can be developed to reach specific audience segments based on geographical, age, shopping habits, and other such criteria.
• Results are measurable: It is easy to know how an ad campaign is faring using real-time data.
• Enhanced features: Ads can be created that are not skippable, contain immediate calls to action, and limit the number of times they are played to specific individuals and households using enhanced features.
• Increased engagement: Most people will view the entire ad, even when it is skippable or when it is played during their favorite programs.
• Easier to reach younger viewers: 80.2% of 12 to 17-year-olds, 73.6% of 21 to 34-year-olds, and 56.8% of 25 to 54-year-olds use CTV, according to Nielsen.

Cons

• Not as likely to reach older audiences: Most elderly people still view programs over-the-air or through a cable or satellite TV provider.
• Skippable ads may not be fully viewed: When skippable ads play on YouTube or other such channels, they can have a lower completion rate. 

Why Move to CTV/OTT Advertising?

If you are already advertising on television, you should consider moving to CTV/OTT advertising to ensure you reach your targeted audience. Some important reasons to consider moving are:

• Changing viewership habits: More and more people are cutting the cord and switching to streaming services. As of 2023, the number of cord-cutters has outpaced the number of people still paying for cable or satellite TV.
• Growing market segment: The number of connected TV viewers continues to grow each day, especially with Millennials and Gen Z. 
• Targeted campaigns: CTV and OTT ad campaigns can be targeted so they are only viewed by the desired audience segment. 
• Measurable results: You have actual measurable results to know precisely how your TV ad campaign is performing. 
• Better allocation of advertising on TV budget: Since you are not tied to a particular network, show, or timeslot, you have more control over how to allocate your budget to advertise on TV. 
• FASTs continue to increase: FASTs (free ad-supported streaming TV), like Pluto TV and Tubi, continue to grow. According to Grand View Research, FASTs account for $8.03 billion in 2024. 
• Ad-supported subscribers are increasing: With the costs of ad-free services increasing, many people are choosing the more affordable ad-supported option. There are now over 170 million subscribers, and 56% of new subscribers during the first 3 months of 2024 signed up for an ad-supported service, as reported by the New York Times. 

Start Advertising on Television To Reach CTV Viewers Today

As the way we access television and streaming content continues to evolve and change, so too, must your business. Traditional TV advertising is no longer sufficient to deliver the results you seek. It requires you to adjust your TV ad campaigns to include CTV viewers to reach your target audience. For further information about CTV/OTT advertising and how it can benefit your business, request a free consultation with Levy Online today.

Contact us to start your CTV/OTT campaign now.

Sources:

Amid the Fragmented TV Landscape, Time Spent With Content Is the Best Planning Data There Is. (2024).

Durrani, A. (2024). Top Streaming Statistics in 2024.

Free Ad-supported Streaming TV Market Size, Share & Trends. (2024).