It’s official: Brands and advertisers must tap into the power of being on screens inside of businesses, or risk losing the game – because inside the home is OVER.
According to a recent survey conducted by Sharethrough, a staggering 66% of viewers admit that they don’t actively watch TV ads. Instead, they grab their phones during commercial breaks, switch to another channel, or simply leave the room. Even among the 34% who claim to watch traditional television and cable ads, 28% do so on mute. These statistics clearly indicate a lack of interest in paying attention to traditional in-home television and cable advertising.
In today’s fast-paced world, where digital technology has become an integral part of our lives, the effectiveness of traditional television and cable advertising is being called into question, and for good reason. With streaming services, DVRs, and ad-blockers as the norm, it is simple for viewers to avoid or skip television and cable commercials at home.
Another study by YouGov revealed that people don’t mind watching commercials in certain situations. However, this study focused on traditional live TV viewers (i.e. live sports) and did not account for the huge popularity of streaming services and on-demand viewing. And according to long-revered television and cable ratings juggernaut, Nielsen, as of August 15, 2023, traditional consumer television and cable viewing is now less than 50% of all television viewing, therefore the consumer shift to streaming platforms and other non-traditional television and cable viewing, continues to call into question the efficiency and effectiveness of in-home television and cable advertising.
The Changing TV Landscape
In contrast to traditional television and cable advertising, connected TV/digital out of home (DOOH) advertising offers a fresh and engaging approach to reaching consumers. CTV/DOOH refers to connected TV’s digital displays and screens placed in public spaces such as shopping malls, airports, bus stops, and even billboards. These displays can be interactive, dynamic, and highly targeted and measurable.
It’s just TV that’s evolving alongside changing consumer viewing behavior. One of the key advantages of CTV/DOOH advertising is its ability to capture consumers’ attention in a way that traditional television and cable ads cannot. CTV/DOOH ads are strategically placed in out of home high-traffic areas where people are more likely to notice them and unlike traditional TV and cable commercials, they can’t be skipped. This increased visibility translates into higher brand exposure and recall.
Moreover, CTV/DOOH advertising allows for greater flexibility and creativity in terms of content and delivery. Advertisers can leverage real-time data and location-based targeting to deliver personalized messages to specific audiences. For example, a coffee brand can display an ad for its new iced coffee near a beach during summer months. This level of customization ensures that ads are relevant and resonate with consumers.
Better ROI for Advertisers
In addition to its effectiveness in capturing consumers’ attention, CTV/DOOH advertising offers a superior return on investment (ROI) compared to traditional television and cable advertising. According to another study by Nielsen, DOOH campaigns generate an average ROI of $5.97 for every dollar spent. This is significantly higher than the average ROI for traditional TV and cable ads.
The higher ROI can be attributed to several factors. Firstly, CTV/DOOH ads have a longer lifespan compared to traditional TV and cable commercials. While traditional TV and cable ads are fleeting and easily forgotten, CTV/DOOH ads remain visible for extended periods. This extended exposure increases the likelihood of brand recall and message retention.
Secondly, CTV/DOOH advertising allows for better targeting and reduced waste. Advertisers can select specific locations and times to display their ads based on their target audience’s demographics and behavior patterns. This precision targeting ensures that ads are seen by the right people at the right time in the right location.
Lastly, CTV/DOOH advertising provides valuable data insights that can be used to optimize future campaigns. Advertisers can track metrics such as impressions, engagement rates, and conversions in real-time. This data-driven approach enables advertisers to make informed decisions and refine their strategies for maximum impact.
Full Funnel CTV Is Now Possible with CTV/DOOH
While CTV/DOOH advertising has already proven its worth in capturing consumers’ attention outside their homes, there is another emerging category that holds immense potential: CTV for OOH (Connected TV for Out-of-Home). Microsoft Advertising has introduced this new category to better categorize ad inventory available for purchase on TV networks that play inside bars, restaurants, nail salons, airports, universities, and other captive audience environments.
CTV for OOH combines the power of connected TVs with out-of-home advertising to create an ideal captive audience environment for television advertising. In these settings, viewers are often engaged with the content being displayed on screens while waiting or relaxing. Whether it’s catching up on news at an airport lounge or watching music videos at a bar, viewers are more likely to pay attention to advertisements shown on these CTV for OOH screens.
By leveraging CTV for OOH advertising opportunities, brands can tap into this captive audience environment and maximize their reach. The combination of high-quality content displayed on connected TVs with strategically placed screens in various locations creates a powerful synergy that captivates viewers’ attention.
Furthermore, CTV for OOH offers advanced targeting capabilities similar to DOOH advertising. Advertisers can select specific locations such as airports or universities where screens are installed and target their ads based on demographics or other relevant criteria.
We emphatically believe that the advertisers need to shift their strategy focus to follow their audiences, and the behavior of those audiences. The media mix is imperative and can’t be stagnant. Consumer behavior has changed with advances in technology but many times, advertisers walk behind their customers. Follow the consumer and help close the CTV marketing funnel.
CTV/DOOH and CTV for OOH can do more for your brand awareness, CTA and your campaign than traditional TV and cable. Period.
Have fun out there, and until next time, Loop on!
1: Survey: Two Thirds of Viewers Don’t Actively Watch TV Ads 2: Actually, People Don’t Mind Watching Commercials (In Certain Situations) 3:Streaming services need to stop showing me the same ad over and over (and over). 4Broadcast and cable make up less than half of TV usage for the first time ever
About Jon Niermann
Niermann brings over 30 years of experience across diversified senior executive roles in media, entertainment, and technology. His proven abilities for fusing innovative and creative thinking with top operational acumen, team building, and deep understanding of digital technology have powered his success in both the world of startup, and Fortune 500 firms in both the U.S. and Asia.
Early in his career, Niermann rose from a Disney Channel marketing representative in Burbank, California to President/Managing Director of Walt Disney International, Asia-Pacific, based in Tokyo, Japan. He was instrumental in stitching together each of The Walt Disney Company’s diverse divisions into a combined, structured, and integrated Asia Pacific region by successfully assembling a top tier management team to manage thousands of employees in more than 16 countries — overseeing the fastest growing sector of The Walt Disney Company’s global empire (at the time).
Simultaneously seeking to further enrich his cultural and business dealings in the Asia Pacific region while finding additional creative, financial and business experience in the gaming and digital industries, Niermann joined Electronic Arts (EA) where he spent seven years as President, Electronic Arts Asia, helping to convert the company’s business model from consumer packaged goods to a consumer digital purchase and download business. In his tenure at EA Asia, his team created the company’s first mobile game as well as the first online gaming platform with FIFA Online, which broke gaming platform industry records with the number of simultaneous users across multiple countries, transforming EA Asia propelling EA to some of its most profitable years (at the time).
After helming the Asia entities of two Fortune 500 companies, Niermann left to start his own entertainment and media company, FarWest Entertainment, bolstered by the key observation that most Asian cultures were watching English-language content at high rates, and these same cultures might be willing to devour Hollywood-styled Asia-themed English-language content. Niermann’s first English-language pan-Asian original production was “Asia Uncut” which he sold to Fox Television’s Asia network, Star World, which reached 53 countries and 250 million homes. “Asia Uncut”, which was produced in Hong Kong, was the region’s only late-night English-language talk show. Niermann was the creator, executive producer, and host for the show, which won the Asian Television Award for Best Entertainment Host in its first year. “Asia Uncut” ran for multiple seasons on Fox’s Star World and featured interviews with top Asian and Western celebrities such as Jackie Chan, Edward Norton, Donnie Yen, Maggie Q, Aaron Eckhart, Ethan Hawke, among many more. Niermann also helped create and launch “Asia Pop 40”, the Asia Pacific region’s only weekly English-language music chart countdown show. “Asia Pop 40” is now licensed and broadcast in over 100 markets across Asia and reaches over one billion listeners every week, including its Mandarin-language production for China.
After living in Hong Kong, Shanghai, Singapore and Tokyo for over 15 years, Niermann moved his family back to California in pursuit of his next career challenge. After considering various opportunities and offers from different corners of the entertainment and technology sectors, Niermann identified a potentially explosive opportunity in the nascent but burgeoning digital-out-of-home and connected television industries – uniting screens in business venues across the country (and the world) via a streaming platform that could deliver unparalleled premiere content and advertising. To capitalize on this, Niermann, co-founded Loop Media, Inc., and after acquiring Screenplay Entertainment, which had the largest library of music videos and movie trailers in the world, Niermann swiftly rocketed Loop to a consumer FAST (Free Advertising Supported Television) channel during the COVID19 pandemic to meet high. Loop then deftly pivoted back to a business venue-forward model when the pandemic began to recede.
Loop Media currently provides content to over 30,000 locations across 71,000+ screens in North American and is expanding into other English language territories including New Zealand and Australia. Loop is based in Burbank, CA with additional offices in New York, Nashville and Seattle.
Niermann received his BSBA from the University of Denver and his MBA from UCLA’s Anderson School of Business. He has lived in five countries, seven cities and has three children.
About Loop Media
Loop Media, Inc. (“Loop Media”) (NYSE American: LPTV) is a leading digital out of home (DOOH)TV and digital signage platform optimized for businesses, providing free music video, news, sports, and entertainment channels through its Loop TV service. Loop Media is the leading company in the U.S. licensed to stream music videos to businesses through its proprietary Loop Player.
Loop Media’s digital video content reaches millions of viewers in DOOH locations including bars/restaurants, office buildings, retail businesses, college campuses, airports, and on free ad-supported TV platforms and at local gas stations on GSTV terminals in the United States.
Loop is fueled by one of the largest and most important short form entertainment libraries that includes music videos, movie trailers, branded content, and live performances. Loop Media’s non-music channels cover a multitude of genres and moods and include movie trailers, sports highlights, lifestyle and travel videos, viral videos, and more. Loop Media’s streaming services generate revenue from advertising, sponsorships, and from subscriptions.
Copyright © 2023 California Business Journal. All Rights Reserved.