This article was based on the interview with Peter Hamilton of Roku by Greg Kihlström, MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
The advertising landscape is undergoing a profound transformation as brands increasingly pivot from traditional linear television to streaming platforms and a digital advertising model. This shift has been catalyzed by the rise of streaming services, which have not only surpassed linear viewership in recent years but have also begun to capture a larger share of advertising dollars. As brands navigate this new terrain, they are compelled to rethink their advertising strategies, focusing on the unique opportunities that streaming offers.
Historically, brands have relied heavily on linear television for advertising, a medium that has dominated the landscape for decades. However, as streaming becomes the preferred choice for viewers, brands are recognizing the need to adapt their strategies to align with changing consumer behaviors. The transition from linear to streaming is not merely a shift in medium; it represents a fundamental change in how brands engage with their audiences. Streaming allows for a more targeted approach, enabling brands to tailor their messages based on user preferences and viewing habits. This personalized advertising is a stark contrast to the broad strokes of linear TV, where ads are often broadcast to a general audience without the ability to customize content for specific demographics.
One of the most significant advantages of streaming is its potential for interactivity and engagement. As highlighted in the podcast, the integration of shoppable and commerce-oriented experiences within streaming content has been a long-held aspiration for advertisers. With the advent of sophisticated operating systems that can facilitate these experiences, brands are now able to create interactive advertisements that resonate more deeply with viewers. This capability allows consumers to engage with brands in a way that was previously unattainable in the linear TV space. For instance, viewers can explore products directly from their screens, enhancing their overall experience and driving consideration in the purchasing funnel.
Moreover, the nature of streaming as a “lean back” experience presents unique challenges and opportunities for advertisers. While viewers are often seeking entertainment, there is a growing interest in content that seamlessly integrates shopping experiences. This requires brands to strike a delicate balance between delivering engaging content and providing actionable opportunities for consumers. Unlike traditional direct response (DR) advertising, where immediate purchases are the goal, streaming advertising can foster a more nuanced approach that emphasizes brand recall and consideration over instant transactions. This shift in mindset encourages marketers to think beyond the immediate sale and consider the long-term relationship they can build with consumers.
As brands continue to explore the potential of streaming, they are also recognizing the importance of being part of the discovery experience. The podcast discusses how brands can leverage streaming platforms to enhance their visibility and reach. By integrating their products into the content that consumers are already enjoying, brands can create a more organic connection with potential customers. This approach not only elevates brand awareness but also encourages viewers to consider products in a more meaningful context, ultimately enhancing the likelihood of conversion.
Roku’s position as a leading streaming operating system exemplifies the innovative approach necessary to thrive in this evolving landscape. The platform’s ability to connect consumers with a diverse array of content while offering brands targeted advertising opportunities sets it apart in the digital marketplace. As streaming continues to reshape how brands engage with consumers, Roku stands at the forefront, ready to lead the charge in redefining brand interactions in the digital age. Embracing the potential of streaming will undoubtedly empower brands to forge valuable, lasting relationships with their audiences, ensuring their relevance in an increasingly competitive marketplace. The shift to streaming is not just a trend; it is a fundamental change that will shape the future of advertising strategies for years to come.
