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Advertising on Streaming Services (Hulu, Twitch, HBO)

Let’s talk about advertising on streaming services. When you think about streaming services, you probably think about Netflix, Hulu, and Amazon Prime. But, Netflix doesn’t have ads and it can be COSTLY to advertise on some of these bigger platforms. But, everyone is watching streaming services now, even more than cable TV nowadays. So, let’s breakdown streaming service ads. Can it be helpful for your business, even with a lower budget? Let’s chat about it.

By 2025, the global streaming service market is going to be worth $125 billion. That’s a LOT of money. Most of us remember the days when Hulu had a free version that played old black and white shows and Netflix was a mail delivery movie rental service. Boy, have time changed. US consumers now spend an average of 40 hours a week streaming videos and about 15 of those hours are on streaming services. Consumers are cutting ties with traditional TV and cable subscriptions and opting for streaming alternatives such as Hulu TV and YouTube TV. 1 in 3 Americans no longer have cable. And with the option to pay a higher premium to avoid ads, consumers are willing to pay to continue watching their favorite shows. Hulu allows some consumers to choose the ads they want to watch, opt for interactive ads, or even choose one long commercial at the beginning of the show rather than breaking up their watch-time. This range of options is a lot more appealing than a 45-minute show broken by every 10 or so minutes by a commercial break. The binge-culture nowadays is also very contradicting to cliff-hangers and commercial breaks. Times have changed and streaming services are rolling with the times. That means ads have also changed. But, where does that leave you?

You need to learn about the audience that’s watching your ads on a streaming service, whether that’s YouTube, or Hulu, or Twitch. When you know who’s watching your ads, it’s a lot easier to create something that will target your customers. That means you have to be strategic about your platforms. Do your research in advance. We can’t tell you exactly which streaming platforms are going to give you the most CPM or views or ultimately revenue because you know your industry and audience the best. But we can make suggestions if you have specific questions. Another idea is to vary your ad types. Create funny ads, shorts ones, long ones, sappy ones. Create a variety of ads that are on-brand and that could work with different platforms. Use A/B testing. Vary your content with one campaign and use a variety of strategies to test what works the best for your audience. If there is anything that we can recommend, it’s being consistent across platforms (staying on brand) and including a clear message and call to action. Encourage traffic to your website. Offer deals. Get customers to click off your ad and visit your website. Be sure to advertise on multiple streaming platforms. In order to see what works best, you have to try multiple channels. Ever considered radio ads online? That’s right. Advertising on sites like Pandora and Spotify (which have millions of free users) has gained popularity in recent years. Shockingly, people don’t want to pay $5-10 a month to avoid ads in their music. That, my friend, is a market of gold. Especially if you’re a smaller company. A 30-second ad on Pandora is a lot cheaper than a 30-second ad on Hulu.

Well, that’s a basic rundown on streaming service advertising. There are so many opportunities when it comes to online ads, this is only the beginning. The only want to find out what works for your company is to learn by doing.

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