Affordable TV Commercials
How Small Businesses can leverage localized OTT technology and opportunities to gain a competitive market share and compete alongside the big players
Think TV commercials are out of reach for your small business? Think again.
In 2024, television advertising has undergone a major transformation, not only in its appearance but also in terms of cost. The days of needing enormous budgets to air TV commercials are a thing of the past.
As many of our clients know, The Agency is dedicated to the future of the open-internet as a viable marketplace for independent, small, and local businesses – so this is an exciting time!
At The Agency, we are dedicated the improvement and advancement of local digital advertising because the future of the open-internet depends on it. At its best, the internet is an open marketplace of ideas, content, and commerce that is accessible to everyone and a viable for resource independent, local businesses. And we want to see it stay that way.
With the rise of ad-supported streaming platforms and technological advancements, the barriers of entry for TV advertising have significantly lowered. This makes it a practical and affordable option for small businesses looking to boost their visibility to their local audience through national streaming services.
Why Small Businesses Should Consider TV Commercials—Especially on Streaming Platforms
TV commercials have always had a powerful influence, whether aired on traditional cable or modern streaming services.
Appearing on the “big screen” while viewers relax at home has a significant impact. TV commercials engage audiences at a time when they’re more open to absorbing new information, unlike digital ads that can be easily scrolled past. TV ads are an effective way to ensure your message gets noticed.
In addition, TV commercials have long been viewed as a trusted advertising medium. Consumers tend to associate TV advertising with credibility—if your business can afford a TV ad, it’s often assumed to be legitimate. In fact, TV commercials rank alongside print media as one of the most trusted forms of advertising.
The Shift from Cable to Streaming
The television landscape is rapidly evolving, with streaming services becoming more popular than traditional cable.
Today, more than 60% of U.S. adults stream content via services like Hulu, spending more time on streaming platforms than on live TV. This trend is even more pronounced in younger audiences, with 90% of those aged 13 to 54 preferring streaming over traditional television.
Why Streaming Services Are Ideal for TV Commercials
One of the biggest advantages of advertising on streaming platforms is the ability to precisely target your audience. Streaming services allow advertisers to tailor their campaigns based on demographics, location, interests, and even specific genres of shows. This strategic targeting ensures that your ad reaches the right viewers—the ones most likely to be interested in your products or services.
Unlike traditional TV ads, which can often be fast-forwarded, ads on streaming services are typically non-skippable. This guarantees that your audience watches your message from start to finish.
The best part? Modern TV commercials on streaming platforms are more affordable than ever, making them accessible to businesses of all sizes. This means small businesses can now take advantage of the reach and credibility that TV advertising provides.
Netflix Changes the Game
The dawn of Netflix advertising has arrived! With approximately 230.7 million subscribers as of 2023, and projections aiming at 500 million thanks to the launch of an ad-supported tier in late 2022, Netflix is positioning itself as a prime platform for advertisers across different budgets to engage with viewers on a variety of screens.
Advantages of Advertising on Netflix
While Netflix’s recent moves—such as raising prices, limiting password sharing, and introducing ads—may have stirred some dissatisfaction among users, these changes open up significant opportunities for advertisers.
- Vast Reach
With its immense user base, Netflix offers advertisers the chance to connect with a wide and varied audience. The sheer number of subscribers makes it a platform worth considering for reaching diverse demographics. - Precision Targeting
Leveraging Netflix’s wealth of user data, including viewing habits, preferences, and demographic insights, advertisers can craft highly specific ad campaigns. This level of targeting ensures ads are more relevant to viewers, boosting their effectiveness. - Active Engagement
Netflix’s audience is notably engaged with the platform’s content, which increases the likelihood that viewers will be receptive to the ads they see, making for a potentially more impactful advertising experience. - Unskippable Ads
Netflix ads cannot be skipped, ensuring that the message reaches viewers. - Premium Ad Placements
Ads on Netflix are expected to occupy prime real estate—like the homepage and in between episodes—providing high visibility and stronger engagement with viewers. - Limited Competition
As Netflix’s advertising offerings are still in their early stages, advertisers have the advantage of entering a less crowded space. Early adopters can enjoy benefits such as standing out as innovators and potentially benefiting from lower CPMs due to limited competition.
Netflix Partners with The Trade Desk
At The Agency, our preferred distribution partner for OTT is The Trade Desk, an independent media buying platform designed for the open-internet, which offers not only a full range of distribution services but also premier partnership relationships. In May, Netflix followed Disney Plus and announced an exciting new partnership with our distribution partner, The Trade Desk. You can read more here.
This is exciting news for our clients who want to reach local audiences on the major streaming platforms!
Hulu
Why Hulu Should Be Part of Your TV Ad Strategy
Since its launch in 2007, Hulu has become a top player in the world of streaming, offering a wide range of shows and movies from major networks like NBC, CBS, and ABC, along with original content. Recognizing the need for accessible advertising options, Hulu revamped its ad offerings in 2020, making it easier and more cost-effective for small and medium-sized businesses to run ads on the platform. Today, Hulu is the largest ad-supported streaming service in the world.
The Benefits of Advertising on Hulu
- Broad Reach: Hulu is available in nearly half of U.S. households with connected TVs, reaching over 115 million ad-supported viewers.
- Boosted Brand Recall: Ads on Hulu are 150% more effective at increasing brand recall compared to traditional TV commercials.
- Enhanced Purchase Intent: Viewers exposed to Hulu ads are 24% more likely to consider making a purchase than those watching traditional TV ads.
- Improved Brand Awareness: Hulu ads have been shown to be 200% more effective at raising brand awareness compared to other advertising formats.
- Higher Engagement: Research shows that 88% of viewers engage with ads on Hulu, far outpacing the 51% engagement rate on social media.
- Trust and Credibility: Hulu is consistently rated higher than social media platforms for trustworthiness, safety, and content quality.
As more consumers shift to streaming, Hulu offers an excellent opportunity for businesses to get in front of engaged audiences at a fraction of the cost of traditional TV ads.
Integrating TV Ads into Your Overall Marketing Strategy
To fully leverage the impact of TV commercials, it’s essential to incorporate them into your larger marketing strategy, blending both online and offline channels. Consistent branding across all platforms reinforces your message, improving recognition and deepening customer loyalty. A cohesive approach ensures that your brand stands out, even as you explore new advertising avenues.
Strategies for Effective TV Commercials
- Branding from Start to Finish: Ensure your logo and branding elements are prominently displayed at both the beginning and end of your ad. Studies show that 63% of the most successful campaigns use branding throughout, with 43% featuring it within the first second.
- Clear, Focused Message: Keep your message simple and to the point, so it resonates with your audience without causing confusion.
- Text and Voice Combo: Use both text and voice-over in your ads to appeal to different viewer preferences and ensure your message reaches a wider audience.
- Authentic Branding: Highlight what makes your brand unique. Authenticity not only makes your ad relatable but also fosters a stronger connection with viewers.
Strategic Ad Length: Choose ad lengths that suit your content goals. Use 30-second spots for storytelling and education, and 15-second ads for consistent branding and engaging content.
Conclusion
TV advertising is no longer exclusive to large corporations. Thanks to targeting advancements in OTT and new distribution opportunities on the open-internet, small businesses can now afford to run targeted, non-skippable ads that fit within their budgets. By embracing this new landscape of TV advertising, small businesses can increase their visibility, credibility, and engagement, competing effectively with larger players in the market.
For our existing clients, reach out any time to discuss OTT opportunities targeted for your niche. If we haven’t met you yet, you can contact us here.
At The Agency, we are dedicated to the improvement and advancement of local digital advertising because the future of the open-internet depends on it. At its best, the internet is an open marketplace of ideas, content, and commerce that is accessible to everyone and viable for resource independent, local businesses. And we want to see it stay that way.
