5 Myths About Advertising on Streaming TV

by Katy Treadwell

As one of the biggest emerging advertising channels these days, there’s a strong possibility that you may have already heard of advertising through streaming platforms, such as CTV and OTT. But with that, it may have also raised a few questions.

To help understand the potential of advertising on streaming TV, we’re debunking five common myths about it.

Myth #1: People 55+ don’t watch or subscribe to streaming TV services. 

In reality, even older adults who may seem less likely to “cut the cord,” are doing so in big numbers. In fact, a recent study conducted by TradeDesk found that 56% of US Households 55+ have already cut the cord, and 58% of adults 45-64 subscribe to at least 1 streaming service.  

Myth #2: The streaming audience isn’t big enough yet. The traditional TV audience is bigger. 

While yes, there are currently still an estimated 82.9 million cable subscribers in the US, streaming service Hulu has over 99 million viewers alone. On top of that,  Roku has over 53 million, Pluto has over 50 million, and Tubi has just over 33 million viewers… just to name a few.  And while the numbers for these streaming services and others like them continue to grow, cable is losing an average of 14,000 subscribers per day.  

Myth #3: People only use subscription based streaming services without commercials (like Netflix or Disney+).

False. More than 55% of all streaming users say that they prefer an ad supported service like Hulu, Tubi, Pluto, or Roku, over subscription based platforms like Netflix or Disney+. Why? Because they help keep costs down. This also applies to 47% of people 55+.

Myth #4: Streaming TV doesn’t produce results.

Big time myth! In reality, a recent study by Roku found that streaming TV provides a more direct channel and response than traditional TV.  In fact, the major grocery store chain, Winn Dixie, recently found that those who were exposed to their streaming ads were 56% more likely to visit their website home page, 76% more likely to view the store locator on the website, and 57% more likely to shop Winn Dixie online. How’s that for results?

Myth #5: Streaming TV is more expensive. 

Think of it this way… streaming ads are much more precise than traditional linear television. Streaming TV uses a more effective and efficient, Audience First approach, while traditional television relies on mass reach; meaning, a lot of wasted dollars. 

So what’s that mean in terms of pricing? Well, since you are only reaching the streamers who are most likely to be interested in your products/services, streaming TV pricing is based on the value of the audience, rather than the size.  This means that you can maximize your ad spend by ensuring that your ads are only shown to streamers who are most likely to be interested in your brand, all while reducing wasted impressions and dollars. 

If you are still curious about how video advertising through streaming TV can benefit your business, feel free to reach out to us! We’ll help build your audience and develop a strategy that will maximize your ad spend and give you long term results.