The Evolution of Advertising: How SVOD Services are Altering how Brands Advertise

Streaming services and connected television sets now dominate living rooms, but what influence has OTT programming had on brands when it comes to content development, strategy, and advertising? 

“If you can create content that appeals to the kid, but also the overall family and the parents, that's a win-win. You're going to get no pushback from the parents when everyone sits down and says, ‘Let's watch The LEGO Movie because it's fun, it's funny, it's exciting.’ Brands that want to create content, the reality is that some brands have afforded themselves the rights to be entertainment brands and some are just not there or will never be there.”

While sitting down and picking a show has become easier, the ecosystem that on-demand services such as YouTube, Netflix and Disney+ offer is changing the game for advertisers looking to capitalize on the influx in inventory. On this episode of Marketing Trends, Charles Gabriel, Head of U.S. Advertising at WildBrain Spark, explores the intricacies of advertising on OTT services, including where advertisers go wrong in the space. Charles also covers major trends that he sees occurring within the industry, including why linear advertising continues to decrease. Enjoy this episode.

Main Takeaways:

• Money Talks: What used to make TV an easy buy are now the same factors that are making it difficult for advertisers to invest in linear television. With more users cutting the cord than ever before, ratings are not only declining, but traditional media options that advertisers have are far fewer than their streaming counterparts.
• It’s All About Control: One of the biggest factors leading brands to invest in AVOD services is the level of control and frequency they have in picking where their ads are displayed and which audiences those advertisements are targeting. For example, if advertisers only want to reach families that watch children’s programming, AVOD offers better targeting and attribution for those particular audiences.
• It’s an Entire Ecosystem: Advertisers are now investing in more than just 15- and 30-second commercials. With streaming services, they can now invest in the entire ecosystem, from the actual content, to the advertisements that are played during the show. This is giving brands more influence in the overall product and the message they are able to send to the audience.

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