An Overview of Streaming TV Advertising: What You Need To Know

Writer: Luis Reyes
Date: February 10, 2025

With the rapid growth of on-demand platforms, ads on streaming services have become a game-changer in digital marketing. Not only has streaming advertising transformed how brands connect with consumers, but it has also provided unmatched opportunities for precision targeting and engagement.

By leveraging streaming TV advertising, you can reach highly engaged audiences across multiple devices while ensuring tailored messaging that resonates with viewers. This guide explores how to advertise on streaming services, highlighting the benefits, mechanics, and cost considerations, while showcasing how Simpli.fi can help you excel in this space.

 

WHAT IS STREAMING TV ADVERTISING?

Streaming TV advertising refers to placing ads on streaming services that deliver targeted, on-demand content via the internet. Unlike traditional cable, advertising on streaming services enables marketers to tap into specific audience segments using data like viewing habits, demographics, and geographic location.

By adopting this approach, brands ensure a more personalized and impactful message, creating opportunities for higher ROI and better engagement with their target audience.

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TYPES OF STREAMING PLATFORMS FOR ADS

A variety of platforms offer prime opportunities for home entertainment advertising. Major platforms where streaming ads thrive include:

• A&E Networks (A&E, History and Lifetime)
• FanDuel Sports Network
• Sling
• FrndlyTV
• Scripps
• Xumo
• Philo

Each platform offers unique targeting capabilities and ad formats, allowing you to tailor campaigns for maximum impact.

 

HOW STREAMING ADVERTISING WORKS

Streaming TV ads can appear at various points within content—before, during, or after programming—commonly referred to as pre-roll, mid-roll, or post-roll ads. What sets streaming advertising apart is the ability to leverage advanced viewer data to deliver highly tailored ads based on behaviors and interests, ensuring your message reaches the right audience.

Simpli.fi empowers advertisers to tap into these opportunities with tools like ZTV, CTV, and Programmatic Guaranteed, layered with precise targeting solutions such as Addressable Geo-Fencing, Geo-Fencing, and Keyword Search Retargeting. These products allow you to seamlessly buy streaming placements and meaningfully connect with viewers.

Before mastering how to advertise on streaming TV, it’s essential to understand two key distinctions:

OTT VS. CTV

While both OTT and CTV fall under the umbrella of streaming TV, each has distinct characteristics and applications. The primary difference is that OTT refers to the method of delivering content, whereas CTV refers to the device used to watch said content:

• Over-the-top advertising (OTT): OTT ads are typically pre-roll and can be delivered on any streaming platform that supplies content via the internet. These ads are delivered “over the top” of the platform’s content, regardless of the device type, such as a TV, smartphone, tablet, or desktop computer. While OTT remains an umbrella term within the industry, it is increasingly viewed as somewhat dated as advertising strategies continue to shift toward more device-specific approaches, particularly with the rise of Connected TV.
• Connected television advertising (CTV): CTV focuses on internet-connected TVs, with ads displayed on devices like smart TVs, gaming consoles, or streaming sticks. Due to larger screen sizes and home entertainment environments, CTV advertising offers a more immersive experience, making it a highly effective format for brands seeking deeper engagement.

CTV advertising is typically more immersive due to the larger screen size, making it a highly effective format for home entertainment advertising. Simpli.fi specializes in CTV solutions, providing advanced targeting and optimization tools that enhance the effectiveness of each campaign.

Video on Demand Models (AVOD/SVOD/ FVOD)

Again, both models present unique opportunities for advertisers. The key distinction lies in how each platform monetizes content and, by extension, how ads are integrated into viewing experiences.

• Advertising-based video on demand (AVOD): AVOD platforms provide free content to viewers in exchange for ad views. These platforms rely on ads to generate revenue, making them prime real estate for streaming TV advertising. The subscription-less nature of AVOD advertising allows marketers to reach large, diverse audiences, often resulting in wider exposure and higher viewer volume.
• Subscription video on demand (SVOD): As the name suggests, SVOD platforms operate on a subscription-based model where viewers pay a recurring fee to access ad-free content, which limits advertising opportunities. However, some platforms offer ad-supported content in return for a lower subscription fee. Because this type of advertising reaches users who have actively opted into ad content, SVOD campaigns often result in better retention rates and stronger brand loyalty.
• Free video on demand (FVOD): FVOD platforms offer viewers access to a library of content at no cost, typically without requiring a subscription. Unlike AVOD, which monetizes content through advertising, FVOD may be supported by sponsorships, partnerships, or as a promotional tool for premium services. This model allows brands and content providers to engage audiences without the barrier of payment, making it an effective channel for broad reach, customer acquisition, and content discovery.

Each approach offers value in its own way. At Simpli.fi, we provide tools that help you target both AVOD and SVOD audiences to maximize engagement and ROI.

 

BENEFITS OF ADVERTISING ON STREAMING SERVICES

There are numerous advantages to placing ads on streaming services. From precise targeting to measurable results, streaming platforms offer brands unique opportunities to maximize reach while minimizing waste. Here are the top benefits:

• Targeted advertising: By segmenting audiences based on detailed data points, you can serve relevant ads directly to viewers who are most likely to engage.
• Increased engagement: Streaming TV ads typically generate higher engagement rates, as viewers actively choose the content they want to watch.
• Cost-effectiveness: Advertising on streaming services often has lower CPMs and total costs than traditional TV, with the added benefit of targeting specific audiences.
• Brand awareness: Streaming advertising combines expansive reach with precise targeting, boosting your brand’s visibility while connecting with the right audiences to establish market leadership.
• Measurable results: With advanced reporting tools, it’s easy to track the performance of campaigns and make real-time adjustments to optimize marketing outcomes.
• Higher conversion rates: With precise targeting capabilities, streaming ads ensure your message reaches the right audience, maximizing the potential for conversions.

With all these bottom-line boosting benefits, it’s easy to see why savvy advertisers increasingly turn to streaming solutions to connect with audiences and maximize campaign impact.

 

HOW TO ADVERTISE ON STREAMING SERVICES

Ready to master advertising on streaming TV? Follow these five steps to create impactful, targeted campaigns that drive results:

1. Select the Right Mix of Platforms
   Choose a combination of platforms that align with your audience and campaign goals. For example, pairing AVOD platforms for expansive reach with other options for more premium engagement allows for an omnichannel approach. Simpli.fi’s solutions make it easy to integrate multi-targeting tactics within a single media buy for maximum impact.
2. Create Ads
   Develop creative tailored to the platform. Whether designing short pre-roll videos or immersive commercials, ensure your ads align with the format and your brand messaging.
3. Target the Right Audience
   Using data like demographics, interests, and location, optimize targeting to ensure your streaming ads reach the right viewers.
4. Measure Results
   Track KPIs such as engagement, video completion, and conversion rates. Simpli.fi offers advanced analytics to keep you informed every step of the way.
5. Optimize Campaign Accordingly
   Refine your strategy in real-time based on performance. Whether adjusting creative, targeting, or budgets, adaptability is key to maximizing the impact of your streaming TV advertising.

 

COST OF PLACING ADS ON STREAMING SERVICES

The cost of streaming TV advertising varies based on platform, audience size, and ad format, with average CPM rates typically ranging from $20 to $60. Premium platforms may charge higher rates, but streaming advertising has become more accessible overall.

Simpli.fi’s ZTV (ZIP Code Streaming TV) tool stands out, with CPMs averaging in the mid-to-low teens, significantly below industry averages. In 2024, our platform’s CPM is averaging $12.80, making Simpli.fi a top choice for media buyers seeking affordable, high-impact streaming solutions. This combination of cost-effectiveness and precise targeting delivers exceptional ROI for advertisers.

MAXIMIZE RELEVANCE AND MULTIPLY RESULTS WITH SIMPLI.FI

Streaming TV advertising represents an exceptional opportunity for brands to connect with engaged audiences and drive measurable outcomes. Whether you’re new to advertising on streaming services or looking to enhance your current efforts, Simpli.fi provides the tools and expertise to deliver unmatched results.

Ready to elevate your campaigns? Follow us on social media for more advertising insights, explore expert blogs on driving foot traffic and ROI, or take action now by filling out the form below, contacting your Simpli.fi representative, or emailing us at hi@simpli.fi—let’s turn your next campaign into a streaming success!

 
 

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