“Must See TV” no longer refers to NBC’s Thursday night lineup. Television has evolved beyond broadcast and cable networks to streaming and on-demand models. Netflix, Hulu, Amazon, and other on-demand services offer consumers endless programming choices and advertisers unlimited ways to reach them. Understanding the new television landscape—and how consumers view programming on multiple devices—will help marketers make better advertising decisions.
CTV, OTT, VOD: What does it all mean?
Connected TV (CTV)
64% of Americans own a connected TV device. CTV devices connect your TV screen to the internet, whether by Fire Stick, dongle, gaming console, or a connection built into the TV itself (smart TV). These devices connect to premium content without a cable subscription, allowing cord-cutters and streamers to either replace or supplement their traditional cable bundle with these services.
Any app or website (such as HBO Now, Hulu, Netflix, and YouTube) that provides streaming video content over the internet and bypasses traditional distribution. These disruptors allow viewers to consume content on virtually any device.
Video-on-demand allows consumers to watch what they want, when they choose to view it. There are different types of on-demand services: Subscription Video-On-Demand allows users unlimited access to a wide range of programs for a monthly flat fee, Transactional Video-On-Demand allows users to pay individually for each program consumed (includes pay-per-view), and Ad-Supported Video-On-Demand is a service in which content is free to the consumer and funded by advertising.
How Consumers Use Streaming Video
While Netflix, Hulu, and Amazon Prime may be competing for eyeballs, researchers found that consumers use each service to view different types of content. Netflix has been heavily investing in original programming and this strategy is paying off—audiences spend about 37% of their time watching Netflix original series, 34% watching other series, and 29% viewing movies. Rival Hulu licenses a robust programming lineup from other networks, including Disney, NBC, Fox, and Turner; 54% of viewing time is spent watching non-original series, only 24% of viewing time is spent on original series, and less than a quarter on movie content. Amazon, meanwhile, dominates movies—39% of time spent watching Amazon Prime is spent watching movies, 27% on original series, and only 24% on other series.
Reaching the Consumer
Digital advertisers have access to technology to target specific groups of consumers with personalized messages. By combining rich data with robust cross-device information, marketers can serve customized ads targeted to the consumers or households that match their desired audience and measure results.
Learn how Women’s Marketing can help your brand connect with consumers when and where they’re most receptive to your message. Contact us today to learn more.
Sources: eMarketer U.S. SVOD and Linear OTT Services: Pay TV Alternatives Come Into Focus 2017; The Trade Desk Connected TV Definitions A New Set of Terms for A New Type of Channel; Quartz People are Using Netflix, Hulu, and Amazon Prime in Very Different Ways 2018