As Connected TV (CTV) continues to dominate the advertising landscape, many brands are naturally drawn to premium channels like Hulu, Netflix (with its new ad tier), and Disney+. These platforms offer expansive reach, high-quality content, and a certain prestige that makes them a safe bet for advertisers. But is sticking to these premium channels the best strategy? If you want to get the most bang for your advertising buck, it might be time to think beyond the big names.
The CTV Ecosystem Is Bigger Than You Think
When most people think of CTV advertising, premium channels are likely the first thing that comes to mind. It’s easy to see why: These platforms offer top-tier content, often with star-studded productions that attract large audiences. However, the CTV ecosystem is much more diverse than just a handful of premium channels.
Platforms like Pluto TV, Tubi, and even niche services like Crackle have been growing rapidly. These platforms may boast different cachet than bigger ones, but they offer something equally valuable: engaged, diverse audiences open to ads. The growth of these platforms isn’t just a fluke; it reflects a shift in viewer behavior. According to recent reports, ad-supported video-on-demand (AVOD) platforms are expected to account for a significant portion of the CTV ad market by 2025 (Pixelcrayons).
Audience Segmentation: The Hidden Gem of Non-Premium Channels
Let’s get one thing straight: Premium channels offer mass reach, but that doesn't always translate to targeted reach. In contrast, non-premium CTV platforms often excel in audience segmentation organizing content into niche channels catering to specific interests - from crime dramas to cooking shows. For advertisers, this presents an opportunity to reach a highly targeted audience without the hefty price tag of premium platforms.
Think of it this way: If you’re trying to sell vegan snacks, wouldn’t you rather advertise on a platform where you know your target audience is actively engaging with related content? Non-premium channels allow for this type of granular targeting, often at a fraction of the cost of advertising on a more general premium supply.
The Cost-Effectiveness Factor
Speaking of costs, one of the most compelling reasons to look beyond premium is cost-effectiveness. Advertising on top-tier platforms is like buying beachfront property - you’re paying for location, but there might be better value just a few blocks away. Non-premium inventory often offers lower CPMs (cost per thousand impressions), allowing brands to stretch their advertising dollars further.
But here’s the kicker: Lower costs don’t mean lower impact. A study by the Video Advertising Bureau found that ads on ad-supported streaming services were just as effective as those on premium platforms in driving purchase intent. In other words, you don’t have to empty your wallet to get results.
Flexibility and Experimentation
Another advantage of non-premium channels is the flexibility they offer. Because these platforms are generally more affordable, advertisers can experiment with different ad formats, creative strategies, and even A/B testing without breaking the bank. Want to see if a 15-second spot performs better than a 30-second one? Or maybe test out interactive ads? Non-premium platforms give you the freedom to experiment and refine your strategy based on real data.
One marketing manager quipped, “It’s like the difference between renting a penthouse for a weekend or renting a cozy cabin for a month. Sure, the penthouse is flashy, but the cabin gives you room to breathe and try new things.” This flexibility can lead to more innovative campaigns that capture audience attention in unexpected ways.
Leveraging Local and Niche Content
Local and niche content is another area where non-premium channels shine. Big players often feature a mix of national and local content, giving advertisers the chance to connect with viewers on a more personal level. This can be particularly valuable for brands looking to build a loyal, localized customer base.
For example, a regional restaurant chain might find more value in advertising on a local news channel available via CTV than on a national premium platform. Why? Because local content resonates more with local audiences. And when ads feel relevant, viewers are more likely to engage with them.
Non-Premium Channels Are Catching Up in Quality
It’s also worth noting that the quality gap between premium and non-premium channels is narrowing. As these platforms continue to grow, so does their potential for advertisers. Plus, many non-premium channels are available on the same devices as premium ones, meaning viewers can easily switch between them, giving your ads just as much visibility.
A Balanced Approach: The Best of Both Worlds
So, should you abandon premium channels altogether? Not necessarily. The key is balance. Premium channels still offer significant advantages, especially for brand-building campaigns. But diversifying your strategy to include non-premium channels allows you to tap into unique audiences, experiment with different formats, and maximize your ad spend.
In today’s fragmented media landscape, sticking to just one strategy is like putting all your eggs in one basket - or in this case, one streaming service. By thinking beyond premium channels, you can reach your audience where they are, not just where you assume they’ll be.
Conclusion: Expand Your Horizons
CTV advertising is no longer just the domain of premium channels. As the ecosystem continues to expand, advertisers who limit themselves to the big names might miss out on valuable opportunities. By embracing the full spectrum of CTV platforms - including those that are less well-known - you can create more targeted, cost-effective, and impactful campaigns.
In the end, it's about finding the right mix that works for your brand. As the saying goes, "Don't judge a book by its cover - or in this case, a streaming platform by its brand name." With a bit of flexibility and creativity, you'll discover that the best opportunities might just lie beyond the premium channels.
By taking this broader approach, you'll not only reach more viewers but also build more meaningful connections with them. And in the world of advertising, that's what really counts.
Want to understand how programmatic CTV advertising can help to grow your ROMI? Send an email to hello@adeclipse.io and we'll gladly help you!