Advertising is crucial for any business wanting to reach new customers and increase brand awareness. Two popular options for reaching local audiences are streaming ads and linear TV ads. While both can effectively get your message out, each comes with its advantages and disadvantages. So how do you know which one to choose for your business?
DW Creative is a Kansas City-based marketing agency that drives growth for clients by creating meaningful connections between their clients’ brands and the homeowners they serve.
By reading this article, you will learn the pros and cons of both streaming and linear TV ads to better help you decide which best meets your needs.
What Are Streaming Ads and Linear TV Ads?
Streaming ads are delivered over the internet through devices like computers, phones, or smart TVs. If you’re using an application like Netflix, Tubi, or Amazon Prime Video, then the ads you view are streaming ads.
Linear TV ads, on the other hand, are delivered via cable or antenna through local or cable channels. These are the traditional commercials you see when watching live TV on networks like ABC, NBC, or local news stations.
While streaming ads and linear TV ads often look the same, the difference lies in how they are delivered. Advertisers sometimes use the same ads on both platforms to test which is more effective.
Pros of Streaming Ads
Although comparable in appearance, the technology used for streaming ads is very different from that of linear TV ads. This creates different advantages.
The Ability to Track Ad Impact and Interactions
One of the biggest advantages of streaming ads is the ability to track who watches the ad and how they interact with your website afterward.
Streaming ads can capture data on which device viewed the ad and whether that device or another device tied to the IP address, later visited your website. This allows advertisers to see which ads drive the most traffic and online conversions.
Better Targeting
With streaming ads, you can specify the exact audience you want to reach.
For example, a local roofing business may want to target homeowners between the ages of 30-70 within the Chicago area. They can arrange with the streaming platform to only stream their ads to that specific demographic.
This precise targeting can make your ad more effective by showing it to people who are more likely to be interested in your product or service.
Growing Technology
While still considered new compared to linear TV, streaming technology continues to grow in both popularity and quality. Its growth and potential reach should seriously be considered by advertisers.
Cons of Streaming Ads
However, streaming ads are not without their downsides.
More Targeting Means A Higher Price
The more targeted your audience and smaller the universe of audience, the more expensive the ads can become to serve. This allows you highly specific targeting but can cause potential strain on your budget.
More Limited Reach
Additionally, while streaming is growing rapidly, it still has a more limited reach compared to traditional linear TV ads, which means it may not yet be ideal for reaching a mass audience.
Risk of Fraud
Another challenge with streaming ads is the risk of fraud. Sometimes, bots, rather than real people, may view ads. Bot program interaction can lead to misleading metrics about who is watching your ads.
Less Control of When Your Ad Plays
With streaming, you have less control over where and when your ads appear.
Your ad might play next to content that doesn’t align with your brand values, and it’s hard to verify exactly when your ad is being shown.
Lack of Trust
While trust in streaming is improving, some advertisers still have reservations about how ads are utilized in streaming applications.
Pros of Linear TV Ads
Age doesn’t make linear TV ads irrelevant. This traditional form of advertising is still powerful and carries advantages.
Trust
Linear TV ads have been around for decades and come with a level of trust and established connections between local TV companies and their communities. TV stations have entire departments dedicated to community involvement. This trust can be valuable when deciding where to spend your advertising dollars.
Broadcast TV Reaches Wide Audiences
Everyone with a TV can get the broadcast channels for free with an antenna. No cable subscription needed. So there is “reach” inherently built into broadcast TV advertising. Analyze any market in the US and broadcast TV will still account for the largest share of viewing throughout the day. In other words, you may need to add up the reach of 100 cable channels to get the same viewership of the big four networks (ABC, CBS, NBC, FOX).
Pricing
Depending on when and where your ad plays, prices for linear TV ads are generally less expensive than prices for streaming ads, on a “Cost per Thousand Persons Reached” basis.
Control
With linear TV ads, you can decide exactly when to play your ad. You can watch your ad go live and verify it is airing at the right time, unlike streaming ads.
For instance, a business may specialize in building walk-in bathtubs for senior citizens. They know their target audience is most likely to watch a particular game show early in the afternoon. This business would choose to play its ads during that program. If the business tunes in, they can see their ad play live on the television.
Relevance
Despite the rise of streaming, linear TV isn’t going away anytime soon. It remains a powerful advertising tool with a wide reach.
Cons of Linear TV Ads
Lack of tracking
One drawback of linear TV ads is that you can’t track exactly who watches your ad or what they do afterward online. Without QR codes or vanity url tracking, you won’t know if new visitors to your website came from your TV ad, which makes it harder to measure the effectiveness of your campaign.
Less Specific Targeting
Linear TV ads play for anyone on that channel at that time. You can’t target specific audiences with the same precision as streaming ads. Instead, you are casting a wider net, which may mean your ad reaches people who may not be the audience you are looking to serve.
You can try to target certain demographics based on the time of day, the type of program, and the location of the station, but it’s not as precise as streaming.
Which Should You Choose?
If you have the resources, you might consider using both streaming and linear TV ads. Audiences today are a mix of digital and analog viewers, so using both types of ads can help you capture a broader audience and reap the benefits of both ad types.
However, if you want more control over who sees your ad and want the ability to track how they interact with it, you might lean more toward streaming.
On the other hand, if you prefer a wider net, more control when your ad plays, and a potentially smaller price tag, linear TV ads might be a better match.
Pricing
In general, streaming ads can range from $20 to $70 per thousand ads served (CPM).
Often linear TV ads are less expensive than streaming ads. YouTube TV, for instance, charges $65 CPM for local ads. In comparison, local linear TV ads may cost around $10 CPM.
What Determines the Price and Placement of Your Ad?
Several factors determine the price and placement of your ad, whether it’s for streaming or linear TV.
Your Audience
The most important is knowing who your audience is.
For linear ads, you need to consider what time of day your audience is most likely to watch and what content they are interested in.
For streaming ads, consider which demographics you’d like to reach, and the streaming service will play your ad on devices with owners who meet that description.
Ad Length
The length of your ad also affects cost. The shorter the ad, the less expensive it will be, however, disproportionately. For example, a :30 second ad is typically 50% of the rate on TV, but a :15 second ad is 65% of the rate. That is because it’s harder for stations to fit the “puzzle” together in :15 second advertisers when breaks are structured around multiples of :30 seconds.
How long must your ad take to convey your message with the greatest impact? How much airtime can you fit into your budget?
Specific to streaming, consider whether you want the ad to be skippable or non-skippable. Skippable ads are cheaper, but there’s no guarantee viewers will watch the ad, meaning they miss your message entirely.
Next Steps for Choosing Your Ad Type
Choosing between streaming ads and linear TV ads depends on your business needs, target audience, and budget. Both have unique advantages and challenges, and many businesses find success using a combination of both.
To get started, consider speaking with your local media representative. You can contact your local TV stations, ask for the sales office, and discuss their offerings. These representatives may also have connections to streaming services and can help you explore those options.
Alternatively, you could work with a media buying agency that will negotiate the best deals for you, regardless of whether it’s for linear TV or streaming ads. They can handle the placement of your ad, but keep in mind that you will still need to create the ad yourself or hire a separate team for that.
If you’re looking for help creating or purchasing ads, schedule a fit call with our team to see how DW Creative can help.
If you’re not ready to make a commitment or want to learn more about purchasing media, we recommend the following articles: