It’s no secret that the way we consume media has drastically evolved over the past few years. We’ve gone from appointment-viewing to on-demand streaming, and now to the rise of connected TV.
No longer do we need to squint at our tiny phone screens or lug out the laptop just to watch our favorite shows – with connected TV, the entertainment experience has been taken to the next level.
But what exactly is connected TV? Simply put, it’s the integration of internet capabilities into your television, allowing for a seamless streaming experience. It’s no wonder that this technology has skyrocketed in popularity, especially as COVID-19 has kept many of us at home searching for new forms of entertainment.
As marketers, it’s crucial that we take note of these changing consumer habits. Our job is to understand the shifting landscape and ensure that our strategies are keeping up with the times. With new technologies emerging and audience preferences constantly evolving, there’s no time to rest on our laurels.
So what can we expect from the streaming space in the coming years? That’s exactly what we’ll be exploring in this blog post. We’ll delve into the significant trends and opportunities that have emerged in this space, empowering you to stay ahead of the curve and make the most of your marketing efforts.
The Shift to Subscription-Based Services:
It’s hard to overstate the impact that subscription-based streaming services have had on the entertainment industry. According to the Motion Picture Association, global online video subscriptions reached $68.8 billion in 2021 alone and have continued to skyrocket since.
So, what’s driving this shift away from traditional cable or satellite TV packages? One major factor is the convenience of being able to watch what you want, when you want.
With streaming services, viewers can choose from a vast library of content, including movies, TV shows, documentaries, and original programming, and watch them on their own schedule. Plus, the absence of long-term contracts and the ability to cancel anytime appeals to the modern consumer.
The Emergence of Ad-Supported Video on Demand:
It’s not just subscription-based streaming services that are changing the TV landscape — ad-supported video-on-demand (AVOD) platforms are also gaining popularity. These services, such as The Roku Channel, Pluto TV, and Tubi, allow viewers to watch content for free, with revenue generated through advertisements.
From a marketer’s perspective, AVOD offerings provide a unique opportunity to reach an engaged audience without the high cost of traditional TV advertising.
In recent years, digital advertising spend has been on the rise, with a projected spend of $424 billion in 2024. And with the success of AVOD, more and more brands are shifting their ad dollars to these platforms.
The Advent of Interactive and Immersive Services:
Perhaps the most exciting development in the connected TV space is the emergence of interactive and immersive services. These offerings, such as AR/VR content, shoppable TV shows, and social TV, provide an experience for viewers that’s more engaging, immersive, and effective.
For marketers, this presents an opportunity to create advertising strategies that are more targeted and relevant to the consumer.
With AR/VR content, for example, brands can create immersive experiences that allow viewers to interact with their products in a more meaningful way. And with shoppable TV shows, viewers can instantly purchase items they see on-screen, taking impulse buying to a whole new level.
The Impact of Regionalization:
One trend often overlooked in the connected TV space is the importance of regional streaming services. Platforms such as iFlix, StarzPlay, and Hotstar are gaining significant traction, particularly in markets where traditional TV is not yet saturated.
For international advertisers, this presents a challenge.
When advertising on traditional TV, an advertiser can reach a broad audience with one campaign. But with the rise of regional streaming services, advertisers need to create localized campaigns that resonate with specific markets.
However, it also presents an opportunity to create more targeted campaigns that speak directly to the needs and interests of local audiences.
The evolution of connected TV is an exciting development for advertisers and consumers alike. Subscription-based streaming services, AVOD offerings, interactive and immersive services, and regionalization are all trends that are shaping the future of TV.
And with continued growth projected in the coming years, the opportunities for marketers are only going to increase.
As we look to the future, it’s important for marketers to stay informed of these trends and adapt their strategies accordingly. The key is to create advertising that resonates with the consumer and provides a positive, engaging experience.
And so, we leave you with this final question: what will be the next big thing in the connected TV space? Only time will tell, but we’re excited to find out.