Video Streaming is the New Black
Television, like radio, has been reorganized, revolutionized, and reimagined. In its infancy, there were the few broadcast channels to choose from – with commercials. Then there was the cable boom that offered more channels – and commercial-free viewing. Then satellite. For the last few years, video streaming has taken civilization by storm. One company in particular has used this over-the-top (OTT) streaming technology to create an extraordinary advertising opportunity. Yes, commercials – but with a difference.
The strength of streaming
The relatively new trend of video streaming has dramatically disrupted, and continues to disrupt, how people watch television – or view content on smartphones, tablets, or desktop computers. One example of this disruption is in the significant number of customers who are abandoning these once tried-and-true choices of cable and satellite by opting to watch their video content exclusively via streaming. Sounds extreme? Consider streaming’s advantages:
- It is cost-effective
- Depending on the provider, there are no long-term, locked-in package plans
- Customers don’t need to spend time browsing through a gazillion channels in the hope of finding something that might interest them
Video streaming literally gives customers what they want
Through streaming, customers choose what, how and when they want to watch a program, movie, or other content. Roku, Google Chromecast, Apple TV, and Amazon Fire are the big names in video streaming. But a recent article in “Forbes” singled out Roku for an innovative marketing breakout – its own channel for movies; more specifically, its own ad-supported channel for movies.
The Roku Channel
The ad-supported “Roku Channel” launched last year – and it has steadily gained momentum. A concept was developed and executed that is nothing short of a win-win scenario for Roku subscribers and publishers. The Roku in-house marketing sales team sells ads against content on the Roku Channel, providing cash flow to other participating channels. With revenue for the advertising channels already secured, the content that subscribers select is free of charge. Yes, everybody’s happy.
Customer chosen content – complemented by customized ads
Since the novelty of streaming video is based in how users can customize their personal choices of content, advertisements for products and services that would likely match each individual customer’s tastes (i.e., content they’d find interesting – not annoying) are met with positive reception (and increased likelihood for purchase consideration). And the Roku Channel’s modus operandi has been to run advertising this content discreetly, sparingly, and with respect to the program the customer is watching. That’s what make these modern day commercials different.
And Roku went one step further to success
Recently, Roku launched this channel on the web, free of charge, with no need for supportive hardware. This channel can be accessed on any desktop or mobile device, and subscribers can view the ad-supported movies they desire as well as live news feeds, which were introduced this past April. Roku is capitalizing on advertiser demand and has recently been Nielsen DAR (Digital Ad Ratings) guarantees.
The Roku Channel created a model that built on – and doubled – its success: The new disruption to video viewing through online streaming has in effect launched a new and disruptive method to advertising. This is a perfect example of a creative marketing opportunity matched by equally effective execution, and the success it can yield.
As the title of this blog reads: video streaming is the new black, and that’s also where the ad revenue for Roku is firmly secured – in the black.
Care to know more about the variety of marketing strategies and services that EGC can utilize to promote your brand’s message in ways that would appeal to potential customers? Contact us.