Why Video Streaming Ads Are the Next Big Opportunity for Digital Marketers

Video streaming services have become a major force in digital marketing, with the average household subscribing to at least three different platforms according to Basis 2025 Media Trends Report. It's almost impossible to picture our video consumption habits without them. Whether you're binge-watching a new series, enjoying a favorite film, or discovering the latest releases, the landscape for reaching viewers is increasingly fragmented and competitive.

As a result, marketers must innovate and think outside the box to capture and maintain viewer attention.

A New Era of Media Consumption

As the digital landscape evolves, the way we consume video content is undergoing significant transformation. Traditional TV is no longer the dominant medium that it once was.

The Rise of Connected TV (CTV)

People are increasingly turning to digital media, spending less time with traditional forms. Connected TV (CTV) is seeing a surge in viewership, creating more chances for advertisers to connect with their audiences through streaming services. According to EMARKETER , the daily time spent on digital video continues to rise with 3 hours & 40 minutes a day vs. 2 hours & 40 minutes on TV.

The Growth of Ad-Supported Streaming Services

Ad-supported streaming services, such as those from Netflix, Disney+, and Hulu, are becoming increasingly popular, according to Basis Technologies. They offer a budget-friendly way for people to enjoy streaming content. As a result, the number of viewers using ad-supported video on demand (AVOD) is steadily increasing. This trend is now attracting a growing number of advertisers eager to reach this expanding audience.

Increased Digital Ad Spending

Digital advertising is projected to account for over 80% of total ad spend in 2025. This massive shift in ad spending indicates a strong belief by advertisers in the effectiveness of digital channels, including YouTube and streaming platforms, to reach their target demographics. Specific channels like CTV are expected to see the most significant growth in ad spending.

For example, with over 2.5 billion active users, YouTube isn't just a platform for entertainment; it's a powerful search engine and advertising tool that enables brands to connect with engaged audiences and communities. For a deeper dive into how brands can leverage YouTube effectively, explore our guide on YouTube Ads for Brand Growth: Strategies and Best Practices.

Key stat: 58% of US media agency professionals plan to increase their connected TV (CTV) investments, while almost a third (32%) plan to decrease linear TV investments, according to November 2024 data from Pixability.

Why Invest in Video Streaming Ads?

Streaming ads present a unique opportunity for advertisers, allowing them to unlock new ways to engage with their target audience more effectively. Here are some key benefits of investing in streaming ads:

1. Unlock New Audiences: Streaming ads allow advertisers to reach audiences who are increasingly shifting away from traditional TV. With more people subscribing to multiple streaming services, advertisers can engage with viewers in a more personalized and targeted manner.
2. Enhance Targeting Capabilities: Streaming platforms offer advanced targeting features that enable advertisers to reach specific demographics, interests, and behaviors. This precision ensures that your ads are seen by the right people, increasing the likelihood of engagement and conversion.
3. Measurable Impact: Marketers are putting more emphasis on investing in tools and technologies that can measure how their ads influence consumer behavior, sales, and overall campaign success.

Streaming platforms provide advanced targeting features, enabling advertisers to precisely reach specific demographics and interests. This precision makes streaming an increasingly attractive option for advertisers looking to maximize their impact.

Future-Proof Your Digital Media Strategy with Streaming Ads

With digital advertising expected to account for over 80% of total ad spend by 2025, channels like connected TV (CTV) is expected to see significant growth. To capitalize on this expanding audience opportunity, brands must align their overall ad spend with the expected increase in CTV viewing time. Investing in tools and technologies can help measure the impact of advertising campaigns on consumer behavior, sales, and overall performance. Luckily, streaming platforms, with their advanced targeting capabilities, allow advertisers to reach specific demographics and interests with greater precision.

In conclusion, as consumer habits continue to evolve, it's clear that CTV and streaming are where a significant portion of consumer time is spent. Ensuring that streaming ads are a part of your strategy is crucial for staying competitive and maximizing your advertising impact.