Streaming TV (STV) has revolutionized the way we consume content, offering viewers convenience, cost-effectiveness, and a vast range of options to binge-watch. As STV continues to experience exponential growth, its potential as an advertising channel is becoming increasingly important. However, to fully leverage this potential, robust measurement capabilities are essential.
STV serves as a bridge between the targeted advertising of digital formats and the mass reach of linear TV. In June 2024, STV accounted for over 40% of TV usage, marking the highest share recorded by Nielsen. Forbes estimates that by early 2024, 99% of US households will subscribe to at least one streaming service. Additionally, Amazon Ads‘ meta analysis reveals that two-thirds of viewers who watch Amazon STV campaigns do not watch linear TV. Despite this remarkable growth, STV still lags in ad spend share compared to its viewership.
To unlock the full potential of STV as an advertising channel, advertisers need to focus on building scale in measurement capabilities beyond traditional reach metrics. By enabling unique reach tracking, engagement measurement, and cross-channel conversion attribution in a privacy-compliant manner, advertisers can transform STV from a mere brand-awareness tool into a comprehensive, full-funnel advertising channel.
Measuring reach and engagement is crucial in maximizing the effectiveness of STV campaigns. Advertisers should partner with STV supply partners who offer deduplicated reach across unique audiences at scale. Utilizing frequency controls in STV campaign management helps reduce redundancy and oversaturation, ensuring optimal ad frequency for all viewers. STV’s ability to reach precise audiences makes it more effective for advertisers to connect with desired audiences, including cord-cutters and cord-nevers, who make up a significant segment of the population.
Moreover, STV offers the potential to measure true viewer engagement and attention, going beyond traditional linear TV reach and impression metrics. Attention metrics such as viewability, dwell time, and engagement rate provide valuable insights into viewer behavior and engagement with ads. STV ad exposures can also be attributed with direct engagement actions taken by viewers, offering marketers powerful insights into the impact of their video ads on driving tangible outcomes.
Evaluating performance and gaining insights from STV campaigns is essential for optimizing marketing strategies. STV enables granular measurement of campaigns from awareness to conversion, providing a clear view of how it fits into the overall customer journey. Clean room solutions like Amazon Marketing Cloud allow advertisers to understand the optimal combination and sequence of advertising touchpoints for desired customer outcomes. Cross-channel visibility enables brands to optimize spend, messaging, and audience targeting for maximum return on investment.
Building a privacy-first, future-ready ad tech stack is crucial in the evolving landscape of digital advertising. Advertisers must invest in transparent ad tech anchored in machine learning, privacy-by-design practices, and open industry standards. By prioritizing consumer privacy and adopting future-proof ad infrastructure, brands can build sustainable strategies that preserve consumer trust while driving reliable, long-lasting results.
In conclusion, STV is still in the early stages of its growth as an advertising channel. Advertisers who invest in advanced measurement capabilities and capitalize on STV’s unique ability to build awareness at scale will have a competitive advantage. By leveraging the power of STV to drive mid-funnel engagement and lower-funnel conversions, brands can tap into a powerful source of engaging, premium content to reach their target audiences effectively.