Tampa Bay business owners are expected to spend $257,507,00 on streaming video advertising in 2021, according to Borrell Associates, a company that tracks online marketing expenditures across the country. This spending will be 25.9% higher than in 2020.
Streaming video advertising expenditures are accelerating as Tampa Bay consumers continue to abandon shows on local TV stations and cable systems in favor of programming streamed via an internet connection. These online channels include Netflix, Hulu, Prime, Disney+, Paramount+, Peacock, Prime Video, Roku Channel, SlingTV, PlutoTV, and dozens more.
This type of streamed video content is known collectively as OTT (Over-The-Top-Television) or CTV (Connected-Television). These two terms are sometimes used interchangeably but do have a subtle difference.
OTT generally means the video is watched on a small device like a computer, tablet, or smartphone. CTV, on the other hand, typically means the content is viewed on a smart-TV or a regular television using a streaming device like a Roku or Amazon stick.
In Tampa Bay, according to Nielsen, OTT/CTV has exceeded the weekly reach of local newspapers and streaming audio services such as Pandora and Spotify. The medium is rapidly approaching the reach of local cable and broadcast TV stations.
A Nielsen report from May of this year reveals streaming video accounts for 26% of all the time consumers spend in front of a screen.
Until recently, most video streaming networks like Netflix and Hulu relied only on subscription revenue and did not offer advertising opportunities. This is known as SVOD (Subscription Video On Demand)
To expand viewership amongst local consumers, other streaming networks are offering free or low-cost options. The trade-off, however, is that the content contains advertising, similar to traditional cable and TV. Because these channels make money from advertising revenue, they are called AVOD (Advertiser-Supported-Video-On Demand). The most well-known of these channels are NBC's Peacock, Hulu, Paramount+, Fubo, Vudu, RokuTV, and Crackle.
According to IAB, 45% of all consumers who watch OTT/CTV regularly are tuning in to AVOD networks. This makes OTT/CTV a viable advertising medium for Tampa Bay small business owners to market their goods and services. And that's why expenditures for streaming video advertising are soaring.
As more Tampa Bay small business owners consider migrating their traditional TV and cable advertising budgets to streaming video, there are several words and phrases they should become familiar with.
Below is a glossary of those terms. You can find more terms at www.Nielsen.com
GLOSSARY OF STREAMING MEDIA TERMS
- AVOD: Ad-supported video-on-demand. These are streaming video channels that contain advertising.
- Connected TV: TVs that have access to an internet connection and can stream video content. This can include smart TVs or standard TVs with a connected device (Apple TV, Roku, Chromecast, Amazon Fire TV, etc.)
- CPM: Cost-per-thousand impressions. In other words, this is how much an advertiser needs to pay to have an advertisement seen 1000 times.
- Frequency: The number of times an individual consumer is exposed to an advertising message.
- Global Frequency Capping: Ad serving feature that ensures a user is only exposed to a certain number of ads within an allotted time period. This allows advertisers to determine the reach and frequency results of a campaign.
- Impressions: The total number of times an advertisement is seen during the course of a marketing campaign.
- In-stream Video Ads: 15- to 30-second long ads that play before or during the program. They are a clever and cost-effective way to reuse your existing television ads for connected TV.
- Incremental Reach: Unique audiences exposed to your ads, beyond those you are reaching via other screens or mediums.
- Interactive Pre-Roll Ads: The same as in-stream video ads, except they allow the viewer to click through to a landing page. For example, if you’re advertising a restaurant, this type of ad could bring the viewer to a page where they could book a reservation.
- Over-the-Top (OTT): Streaming services like Hulu, Netflix, Amazon Prime, YouTube TV, and Disney+ that can be streamed on any internet-connected device without a cable or satellite subscription.
- Reach: The number of different consumers who are exposed to an advertisement.
- Streaming: Streaming refers to the delivery of audio and video content to a device (phone, tablet, computer, TV) through an internet connection. Streaming content can be delivered wirelessly as well as through a wired connection.
- Suppression: Utilize advanced techniques to prevent targeting someone who already bought a product or service. This ensures will only see an ad for goods and services they are still in the market for
- SVOD: Subscription video-on-demand. These are channels like Netflix and Disney+ that make money only on subscription fees and not by selling commercials.
- vMVPD: An acronym for Virtual Multiple Video Programming Distributor. These companies are content providers that deliver aggregated live and on-demand video content through an internet connection. Examples include Sling TV, Hulu Live TV, YouTube TV, DirecTV Now, and fuboTV.
Tampa Bay small business owners and marketers can purchase OTT/CTV advertising through several local media companies, including Beasley Media Group. The cost to advertise is based on the number of advertising impressions utilized.
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