Advertising Shifts to On-demand TV

The way we view content, including traditional television, is a constant evolution. Watching content on-demand shifts the dynamics and empowers consumers to watch what they want, when they want and literally on any device (television screens, desktop, laptop and mobile) of their choosing. As complex as this is, if advertisers embrace the new paradigm, the results can be pretty darn good.

When DVR’s were new, ads could be skipped or fast-forwarded however, the advent of on-demand platforms solves this issue without necessarily influencing viewers; and advertisers only pay for 100% views since viewers cannot skip or fast-forward. Studies show that most viewers don’t mind ads, they just don’t like being inundated with too many at one time. Ads can actually be interesting, enjoyable and informative — especially if viewers are targeted with surgical precision and they are perceived as short breaks vs. long drawn out time periods. For example, Hulu is a viewer’s dream come true. Audiences (particularly millennials and younger) have fully adopted and embraced it. Advertisers target by genre, interests, viewing patterns, demographics, geography and don’t have to worry about time slots or audience numbers. They pay for what they get and what they get is an audience who is in control and entertained by content of their choosing.

There are some tips to offer. Make sure your content is just as rich on any device. In addition, the :15 rule applies on this platform. Remember, audiences don’t mind ads. Just keep them short and to the point. Get the facts on measuring results. You need to understand the value of viewer impressions (especially 100% viewed), the CPM or the cost of 1,000 impressions. If possible, include measurable calls to action that you can track. If the media buy includes display banners, include tracking URLs. Consider retargeting strategies to augment your frequency. Keep track of your results and realize what performs so you are able to adjust your plans to be as effective as possible.