To Reach Streaming Audiences, Marketers Must Diversify Channels

Competition is heating up for CTV device makers to take control of screens and find ways to grab a piece of the growing CTV advertising spend which eMarketer projects to increase 32 this year reaching 19 billionOne way for existing smart TV makers like Samsung LG and Vizio to monetize their platform is by growing their own adsupported channels However these channels are fighting for viewers against the entrenched positions of builtin thirdparty apps like HBO Max Hulu or Disney Vizio revamped WatchFree Plus last year adding a program guide and customcurated channels Samsung TV Plus offers over 100 channels of free content LG Channels has more than 175 free channels spanning across 12 genresThe question becomes whether a slew of free content is enough to entice viewers away from their latest binge on the other AVOD apps such as Hulu Tubi or PlutoThe Survey SaysBroadbeam Media fielded a study in third quarter 2021 to try to understand how consumers were discovering and interacting with AVODs including OEM owned and operated apps We found that Samsung has reaching power with devices in 64 million households but only 14 of Samsung device owners have either watched or are even aware of Samsung TV Plus Seventyseven percent of Samsung TV owners are using a Roku Amazon Fire Stick or other CTV device to stream content Less than 10 of LG and Vizio TV owners are watching LG Channels or WatchFree Plus compared to 23 watching Roku content Despite efforts to push their own channels smart TV manufacturers have not yet been able to compete against other AVODsIn addition to relying on other devices to stream content subscribers are also being courted by thirdparty streaming platforms which are often already built into CTV devices However streamers such as Netflix and HBO Max are investing heavily into exclusive content eg Squid Game and Succession further driving up streaming app adoption With 31 of device owners saying that having apps preloaded on devices is the most influential factor in their streaming decisions it39s clear that this makes it easy for viewers to skip their smart TV39s free channels to consume their favorite exclusive content elsewhereBRAND CONNECTIONSQuality And QuantitySmart TV manufacturers make money from subscription revenue share models so even if viewers are using builtin apps TV brands still benefit However if smart TV makers are serious about growing their adsupported channels content offering needs to have quality as well as quantity Vizio recently reached agreements with Disney Lionsgate and Sony to expand their WatchFree library Samsung TV Plus added six new channels including Holiday Movies by Lifetime last NovemberCasting A Wide NetWith the new smart TV entrance of Amazon and Comcast both platforms have the potential to grow their own AVOD channels as well XClass TVs let Comcast offer the platform directly to consumers without an Xfinity subscription and Amazon39s expanded footprint means more household access to IMDBtv Samsung LG and Vizio might not be able to touch Amazon39s advertising and brand power but if they continue to invest smartly into their free channels more people might just tune inWith all CTV tactics advertisers need to watch price along with scale to ensure they are casting the widest reach net possible With eMarketer forecasting that CTV ad spending in the US alone will surpass 30 billion by 2025 marketers need to assemble a diverse media plan incorporating not only CTV but thirdparty streaming platforms as well to reach the most eyes possible on their messagingThis article was written by Shukmei Wong Vice President Media Director Broadbeam Media and originally published at TVNewsCheck on February 23 2022Click the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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To Reach Streaming Audiences, Marketers Must Diversify Channels

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To Reach Streaming Audiences, Marketers Must Diversify Channels

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