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The Future of TV Advertising

By some estimates, America’s pay TV audience is set to shrink to less than 38 million by the year 2025. So with the streaming revolution pretty much locked in place, it’s a good time to think about how that’s affected TV advertising, and how major players like Youtube and Amazon are adapting.

Expanding the Ad Experience with Amazon

The big buzzword today is Connected Television, or CTV, which simply refers to streaming content through an app, whether that’s on a smart TV or a connected device like Roku. Unsurprisingly, with offerings like its Prime streaming service, Amazon has been at the forefront of redefining TV advertising.

What exactly does Amazon offer? Well, there’s all the data a tech behemoth can bring to its ad targeting, but as a bonus, Amazon’s CTV allows advertisers to directly tie their ads to a customer’s Amazon purchases and interactions, providing a crystal-clear view of their ads’ effectiveness.

But ads won’t show up on Prime Video, which is something to keep in mind. Instead, ads are seeded in other apps, like CNN Go, Tubi, and AMC, that can be accessed through Amazon. Though of course, further integration of ads into the Amazon Prime service in the future wouldn’t be surprising, so it’s something to keep an eye on.

Reaching a New Market with Youtube

Youtube’s CTV audience continues to grow, but for the most part, its key strength lies in its ability to help advertisers reach viewers on a wide variety of devices. In other words, think increased audience targeting when it comes to Youtube’s CTV. That’s one reason smaller brands looking for a brand awareness boost are turning to Youtube’s CTV. It’s still cheaper than a traditional TV spot, after all, and you can’t argue with the sheer number of eyeballs the service offers.

For larger advertisers, Youtube’s CTV might be the move when it comes to promotional tie-ins. If there’s a new product launch, holiday campaign, or other big marketing events in your future, taking advantage of Youtube’s CTV can spread the word and make sure your message trickles out to as many consumers as possible. It’s a far cry from the bazooka-like approach of traditional, big-spot TV advertising, but it works.

Final Thoughts

For advertisers, these new options offer great attribution data that can help justify ad spend. And while these advertising models might feel more dispersed than traditional TV advertising, that’s no excuse to compromise on quality. Consumers still expect polished, personalized advertising experience — especially when they’re streaming.

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