How many of us watch traditional TV in this day and age? Or is it simply a big screen for all our streaming needs?
Connected TV, also known as smart TV, is TV that comes integrated with the internet, meaning users can use their TV as they would their tablet, laptop or mobile phone. And that includes streaming videos, like YouTube.
In this blog, we’re going to be primarily exploring YouTube’s place in connected TV and how it’s boomed since the pandemic, almost threatening to overtake traditional TV. Bye-bye Freeview, hello streaming!
Recently, YouTube launched in-app TV shows, raising the question, is time nigh for us to have one app for all of our essentials? Sure, it’s convenient, but where does that monopoly leave brands competing for a spot in the streamlight with only a small budget to play with?
Blurring the lines
How is streaming changing consumers’ behaviours and blurring the lines between media types?
YouTube’s Chief Product Officer Neal Mohan stated, ‘viewers are watching over 700 million hours of YouTube content on TV daily’ – highlighting how we’re only using our TVs as a medium to stream our favourite shows from somewhere else.
In fact, consumers are committed to this new way of video viewing. According to Forbes, 68% of view time is devoted to streamers, only 28% to traditional TV.
People are beginning to shift entirely to connected TV and cancel their pay-TV package, accelerated by the pandemic and changing behaviours amid lockdowns when watching videos was one of the few forms of entertainment available. We all got lost on YouTube at 3AM looking for random giraffe videos in lockdown, right?
But a key driver in this behaviour change has been technological developments. TVs have got smart; equipped to stream whatever consumers want – from Netflix to YouTube, Disney+, or even surf the internet. In 2021, 67% of UK households used smart TVs, up 10% from 2020 56% since 2014!
Why has the shift happened?
You could argue that younger audiences aren’t interested in traditional media – they want to watch when it suits them right there and then. And, of course, the pandemic was a catalyst for this changing behaviour.
But we’re also creatures of comfort – that means that if we can watch the shows we want, when we want to, then we sure will. And as technology shifts to accommodate these changing behaviours, connected TV will likely become the ‘new normal’ in video-viewing.
What does connected TV mean for marketers?
- Better targeting
Advertising on connected TV and streaming sites blows traditional media out of the water in more ways than one. With traditional media, your ad spend is higher, given that you’re advertising to a large audience who you can target with fewer parameters.
Put simply, when people watch traditional TV, we know less about them. Whereas on social media – YouTube, for example, we can understand those users far better with tracking software like cookies or our Google Analytics dashboard. (Check out GA4 if you haven’t already.)
Through digital media, you can tailor your ads, direct them to your target audience and funnel your ad spend into the important places that matter most.
- Better audience understanding
Once people have seen your ads, you’ll be able to map their journey – whether they visit your website, call you up or send an email.
Another key consideration is how the marketing and behaviour change with on-demand content streaming. The Trade Desk has already noted behaviour shifts, highlighting ‘the need for integrated, cross-channel strategies that are more targeted and that tightly control frequency’.
At Arke, we often use Video on Demand at the awareness stage of the funnel as video is more engaging than static ads.
According to a study by HubSpot, video drives 20% higher clicks than static image ads, making video a fantastic tool for building brand awareness from day to day. After this point, we recommend using other platforms when retargeting your audience – check out the funnel below for an overview of the platforms we recommend at each stage of the funnel.
But do people really want to see ads?
When watching YouTube on the small screen – laptop, mobile phone or tablet – viewers are in control of the ads they’re getting exposed to, thanks to adblockers, no matter how much budget marketers put behind their ads.
According to HubSpot – a whopping 63% of those watching YouTube do so without an ad blocker. This is good for those of us wanting to get visibility of our ads on the platform.
Studies also show that people don’t mind seeing ads if it means they don’t have to pay the premium price. If an ad-free version is readily available and easily accessible, they’ll be sticking with that option. In fact, according to WarnerMedia, “more than 40% of daily signups for HBO Max are on its ad-supported tier”. To save $5 a month – people are willing to watch advertisements.
So how can you get creative to quash the possibility of ad fatigue and still get your ads in front of your target audience?
- Native advertising – create ads that don’t stand out – but blend in. A study revealed that native ads gain 50% more views than banner ads. They don’t take away from the audience’s experience; they enhance it.
- Clever storytelling – consider how you can use sequential storytelling across your ads to enhance the viewing experience while reminding your audience of your brand.
- Rewarded ads – playable ads that reward a user for completing an action. For example, when it’s game over, the user can watch your branded video ad again for an extra life, meaning they can continue to play.
How should you be advertising?
There’s no doubt that digital is the way forward if you want to maximise your budget and get your brand in front of your audience. But the work doesn’t stop there, as digital advertising still has some way to go. What do you need to do?
- Build trust with your audience
Getting people to buy into your ads on social media still depends on trust.
‘52% of social media users say that when a platform protects their privacy and data, it’s incredibly impactful on their decision to interact with the ads or sponsored content they see on the channel.’
So you’ve got to make sure to find a nice balance between ad bombardment and building trust with your audience – retargeting is a great way to go about this!
- Don’t put all your eggs in one basket
YouTube advertising should be a part of your larger omnichannel strategy.
Here, an omnichannel approach refers to cohesive advertising campaigns that work across platforms. Are you wondering what else to include in your media mix for maximum impact? Get in touch!
- Check-in with your retargeting strategy
Retargeting to those already aware of your brand can be a highly effective way of increasing conversions, as they have already engaged with some of your content, seen an ad or visited your website.
Digital advertising wins in this department, offering vastly improved options for retargeting versus traditional media, where there’s little data to go off when deciding who to retarget.
Is connected TV the end of traditional media?
Are you wondering, ‘is connected TV the end of traditional media?’ The answer is: not quite. Highly-anticipated events, such as the Super Bowl, always gather large groups who want to view the show live. And this year did not disappoint – 11.2 million people tuned into the big game.
And those people were exposed to nearly 70 ads. Streaming services even leveraged the event to promote their brand, showing how there’s some way to go until streaming becomes king of the TV jungle.
What set adverts apart during the Super Bowl was the creativity behind them. And we’ve written a blog all about the ads that made waves and those that flopped, which you can read here!
What about YouTube – are YouTube ads worth it?
Yes! With an audience of 50 million (and counting) in the UK alone, YouTube offers opportunities for audience engagement.
And given that 63% of YouTube users stick around for the ads, creating ads for audiences to watch at their leisure only adds to the user experience. Just remember, you’ve got to make your ads fun, engaging and part of the YouTube experience to avoid them turning to ad blockers.
And people are more likely to learn about new brands on social media – YouTube included. In fact, 55% of consumers learn about new brands on social media, highlighting the potential for brand discovery on the platform.
So if you want to boost your brand on YouTube or any other streaming service, our paid media experts have launched successful YouTube ad campaigns for our clients and are happy to advise on best practices- why not get in touch!
