Roku says streaming is changing the way people shop. This has implications for marketers and where and how they think about advertising.
Roku recently released its annual survey, finding that streaming services are beating out traditional TV for US shoppers’ attention.
Streaming ads are also getting better engagement.
Based on the results of surveying 2,007 adults who plan to do holiday shopping this year, Roku found people are spending 78 more minutes per week streaming versus regular TV.
That’s an additional 12 minutes over 2020.
Of course, this is what Roku is saying, as they’re a streaming company and they would naturally want this.
But they’re not just blowing smoke out of self-interest.
eMarketer data also showed that connected-TV and linear TV ad spending will come to around $80 billion this year and come to around $95 billion by 2025. Most of the growth is coming from connected-TV spend.
Millennials (in this case defined as people aged 25-40) are a demographic that marketers increasingly want to target. About one-third of them can’t be reached through traditional TV.
This means budget shifts are in store for marketers. Many marketers are still spending the bulk of their TV budgets on regular TV. But a lot of their audience isn’t available there.
More ad flexibility with streaming is a plus
Ad formats come in various forms in the streaming world. That means the limitations aren’t constrained to just a 30- or 60-second slot.
Marketers can use QR codes in ad overlays, sponsor a streaming service’s pause feature, or include augmented reality (AR) filters, and other versatile options.