Streaming sites are sneaking into our TV budgets
Loadshedding, looting, lockdown…3 words that have had its part to play in declining viewership rates on linear TV. The average weekly minutes was down by an average of -20% during July 2022 and a shift was seen where we noticed an increase in the use of digital TV streaming sites like Netflix and Showmax, especially from mobile devices, as users were catching up on content amidst loadshedding.
Loadshedding is here to stay and will continue to affect the way we consume media. As advertisers, we need to evaluate how we can navigate loadshedding while still spending some much-needed time on our consumer’s couch.
So now as we stare at our media plans, we ask ourselves, how do break through their binge watch?
The good news is that popular streaming sites such as Disney Plus and Netflix are planning to roll out ad supported plans towards the end of this year which gives advertisers more reason to consider shifting a higher portion of their TV budget towards ad supported streaming platforms to combat the decline in linear TV viewership.
Netflix announced that it has partnered with Microsoft for their advertising technology and capabilities. It is estimated that the advertising cost will be around $60 CPM for the United States on ad supported subscription plans which the company is eyeing to introduce for between $7 – 9 but there is no official news for advertising and subscription pricing for other regions in the world.
It is important that we take note that streamers are quick to consume, highly engaged and reach boredom fast. Streaming sites like Netflix understands the need to differentiate and provide exclusive content to keep their customers on the edge of their seats.
If Netflix can bring their customers exclusive content i.e., Stranger Things, advertisers might need to consider doing the same to keep this customer engaged. One strategy to consider is sharing branded content that is exclusively shown on the streaming platform to keep this type of customer engaged by serving them “never-seen-before” content.
Think clever in-series product placements, key taglines that have references to our target audience’s favourite Netflix shows and Netflix only offers and discount codes.
Streaming sites such as Netflix and Disney plus will change the way we advertise on TV by allowing us to understand when customers are pausing in an advert, what did they watch after? Did the advertisement force them to leave their show? Where did they land before watching this advertisement…and more. These insights will be to our budget’s benefit as it will allow us to craft creative strategies using measurable TV like never before while still being able to reach our customers despite the loadshedding schedule.
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