Linear television has been around for a long time now, but it seems that its popularity is waning. With online video streaming services at our fingertips and easy access to so much VOD and live content, traditional TV formats are slowly dying out. So is linear TV advertising even worth it anymore? Should you invest in this advertising channel? Let’s find out!
- What Is Linear TV Advertising?
- The Problems With Linear TV Advertising
- Can Publishers Even Leverage Linear TV Advertising?
- What Are Better Opportunities for Publishers?
- Why Should Publishers Consider Getting Into the OTT & CTV Markets?
- How to Get Started With OTT and CTV Monetization
- Launch an OTT or CTV App With Brid.TV
What Is Linear TV Advertising?
Linear TV is the traditional method of broadcasting content in a scheduled (i.e., linear) manner. Cable and satellite TV are both based on this broadcasting method. However, linear broadcasting is also present in some online content delivery formats, such as FAST and IPTV. Linear TV advertising is a type of traditional advertising that happens within linear broadcasting.
The Problems With Linear TV Advertising
Although it has been one of the most popular video advertising methods for decades, linear TV advertising is not without issues. Here are the most common ones.
The Decreasing Popularity of Linear TV
As you likely already know, with more and more cord-cutters around the globe, cable TV is dying. TechJury estimates that, by the end of 2022, 55.1% of Americans will have terminated their cable TV subscriptions. This also means that linear advertising is becoming less profitable, as fewer people will see these ads. According to Insider Intelligence, linear TV advertising made up 71% of all video ad spending in the US in 2020, and 62% in 2021. In 2022, predictions say that this number will be even lower — 57%.
Poor Targeting Options
A shrinking audience is not the only problem with linear TV advertising. Another issue is that audience targeting is basically non-existent, especially when compared to OTT advertising.
For example, digital video advertising allows for behavioral targeting, where users see ads based on their search history and other online behavior. This is not possible with linear TV, where all viewers see the same advertisements at the same time.
Audience targeting on linear television is limited to the type of channels the ads are shown on and the prime viewing times for certain demographics. This is why, for example, we’re likelier to see toy commercials on kids’ channels.
No Measurable Data
OTT and CTV advertising, along with other digital advertising formats, comes with detailed ad performance analytics. In other words, publishers and advertisers have access to data such as how many people saw an ad, how many of them watched it until the end or clicked on it, which demographic was most interested in it, and so on. What’s more, they can then use this information to better optimize the ad and maximize ad yield. This kind of detailed analytics is not possible with traditional linear advertising.
Can Publishers Even Leverage Linear TV Advertising?
While linear advertising has been on a downward trend for some time, it is still not completely obsolete. This type of broadcasting is still a favorite among the older population, and it is one of the best ways to reach that demographic.
Secondly, linear TV is almost exclusively limited to the TV screen. This means that advertisements are shown in a much larger format than, for example, on mobile phones or tablets. As such, they tend to be more attention-grabbing.
Lastly, the expected phaseout of the third-party cookie has left many advertisers questioning the future of digital advertising as we know it. In response, a certain portion of them has turned back to linear TV as a platform for raising brand awareness and attracting new customers.
What Are Better Opportunities for Publishers?
While there are arguments in favor of advertising on linear TV, we can’t deny that there are better opportunities for publishers to monetize their content. OTT broadcasting has been experiencing a steep increase in popularity across all demographics.
But introducing OTT and CTV into your offer will not only help you reach new audiences but will also open up new revenue streams. Both content distribution channels come with an array of ad inventory formats not available on traditional television. On top of this, programmatic advertising makes the whole process easier and more affordable.
AVOD mimics the traditional TV advertising experience, but OTT monetization comes in several different types, and advertising is just one of them. It supports additional monetization models that weren’t available before, such as SVOD and TVOD. In other words, the revenue potential of OTT and CTV is much greater than that of linear television.
Why Should Publishers Consider Getting Into the OTT & CTV Markets?
Are you considering entering the OTT and CTV markets? If you’re still not convinced that this is the right step, here are a few more benefits to these content distribution channels:
- Better Audience Targeting — OTT and CTV offer much more precise audience targeting than traditional advertising channels. For example, you can pick your target audience based on their location, age, interests, online behavior, and so on. Contextual targeting is also an option that has been gaining traction in recent years.
- Ad Performance Tracking — With digital advertising, you can have access to data on the performance of your campaigns in real time. You can later use this information to optimize your ads.
- Ad Optimization — Ad optimization is crucial for boosting ad yield and the overall effectiveness of campaigns. What’s more, you can tweak and optimize ads while the campaign is still running (which is virtually impossible with traditional television).
- Wider Range of Ad Formats — Digital advertising offers more variety in terms of video ad formats. Whether you want your ad to play within a video as an instream ad unit or would prefer a display ad, the possibilities are endless. On top of this, OTT devices allow for interactive ads, which makes advertising on them much more effective.
How to Get Started With OTT and CTV Monetization
Getting started with OTT and CTV is not as difficult as it may seem. Building an OTT app is the first step, and the best way to do it is by using a white-label app builder. The best online video platforms offer this service. All you have to do is choose the right one. Brid.TV’s OTT solutions can help you launch a branded OTT app for a wide array of devices.
Once you launch your app, it is time to monetize your content. If you’re planning to serve video ads, you will need a good video ad network, ideally one that supports real-time bidding and programmatic advertising. The best OVPs come with built-in monetization options, so you won’t have to worry about finding a third-party network. Check out our list of the best OTT advertising platforms to pick the best one for your business.
Launch an OTT or CTV App With Brid.TV
Have you decided to expand into the OTT and CTV markets? Then all that’s left to do is to find a reliable OTT platform to help you launch your CTV and OTT apps.
With Brid.TV’s white-label app, users from all over the world will be able to access your OTT streaming service and enjoy quality streams. Our state-of-the-art HTML5 player comes fully optimized for video ad serving, and our Marketplace will help you connect with the right advertisers in a few clicks.
