Streaming TV and Sponsored TV campaigns enable advertisers to engage with audiences across their shopping and entertainment journeys, with many brands already achieving success through these channels. Leveraging the right technology to launch and manage video campaigns can significantly optimize reach, making it a game-changer for brands.
According to Insider Intelligence, over 115 million households are projected to own streaming devices this year, highlighting the vast potential audience for Sponsored TV ads. Leveraging Amazon for these placements amplifies the benefits with additional inventory, data, and reporting capabilities, making it a valuable opportunity for advertisers.
In this article, we’ll explore the distinctions between Streaming TV Ads and Sponsored TV Ads, diving into the unique advantages each offers to enhance your brand’s marketing efforts.
Differences between Streaming TV Ads and Sponsored TV Ads
Both Streaming TV Ads and Sponsored TV Ads offer valuable opportunities for advertisers to expand their reach and engage new audiences. However, the choice between the two depends on various factors such as advertiser experience, budgets, and campaign objectives. Let’s explore the differences between the two options.
Streaming TV Ads
Accessing inventory data is a crucial distinction between Sponsored TV and Streaming TV. Streaming TV campaigns are exclusive to the Amazon DSP, requiring advertisers to be approved to run ADSP campaigns to launch Streaming TV campaigns. While there is some overlap between the two, Streaming TV offers broader inventory options. The flexibility in Streaming TV campaigns offers advertisers in-depth control and customization options, empowering them to tailor their campaigns to specific goals and audience preferences.
Sponsored TV Ads
Sponsored TV offers a user-friendly setup accessible to any advertiser already running ads through Amazon Advertising, making it an ideal starting point for brands new to video advertising. With its intuitive interface and seamless integration with Sponsored Ads campaigns, Sponsored TV simplifies the process of launching video ads, particularly for those already familiar with Sponsored Ads.
Streaming TV Spotlight
Amazon’s Streaming TV offers advertisers significant value by enabling them to reach highly relevant new customers at the beginning of their purchasing journey. With access to Amazon’s rich first-party audience data and extensive inventory via ADSP and Sponsored TV, advertisers can drive significant growth over time. Moreover, Streaming TV campaigns can be measured and optimized using Amazon Marketing Cloud (AMC), providing insights into their impact across the entire customer journey through multi-touch attribution models. This robust analytics capability distinguishes STV from linear TV advertising, empowering advertisers to make data-supported strategic decisions that optimize campaign performance and inform future initiatives.
With 52% of Americans having already cut the cord by the end of 2023, the value of STV is poised to increase further. With a 21% surge in video content consumption year over year, and individuals spending over 6 hours daily on digital video, the demand for STV continues to rise. Unlike linear TV, STV offers accessibility, affordability, and agility, enabling marketers of all sizes to optimize campaigns post-launch. This flexibility allows for real-time adjustments to audience targeting, bids, budgets, and more, fostering continuous testing, learning, and refinement throughout the campaign lifecycle.
Success metrics for video campaigns, particularly in STV, often differ from other advertising tactics. Impressions are crucial for STV as they drive broader brand or product awareness, while New to Brand measurement is vital for assessing reach among new customers. Video Completion Rate is a key KPI, indicating the effectiveness of creative content. With AMC, event-based measurement reveals the impact of video campaigns along the customer journey, supported by multi-touch attribution models for comprehensive analysis. Additionally, Streaming TV signals on AMC offer insights like custom attribution, path to conversion, and incremental reach analysis, enhancing campaign performance evaluation.
Sponsored TV Spotlight
In the traditional funnel, Sponsored TV serves as a top-of-funnel strategy for boosting brand awareness and reaching new audiences. STV through the Amazon DSP offers greater control over audience segments and may be suitable for advertisers active on Sponsored Brands and Sponsored Display, utilizing other video ad products, or investing in brand building through Amazon Store and Posts. Strong presence outside of Amazon and aspirations to enhance brand notoriety ahead of key tentpole events are also positive indicators of readiness.
Advertisers without DSP campaign experience or limited budgets can access similar inventory through Sponsored TV. Using the Ads Console Campaign builder, advertisers benefit from a user-friendly interface, no budget minimums, and straightforward targeting options. The Sponsored TV experience is designed to drive performance leveraging Amazon’s vast shopping and entertainment signals, reaching millions of customers worldwide. Advertisers can explore new relevant audiences based on billions of unique shopping and streaming signals, with targeting options including Amazon retail taxonomy and content interests such as Comedy, Lifestyle, or Video Games, similar to Sponsored Display.
Much like Streaming TV, Sponsored TV signals on AMC provide valuable insights such as custom attribution, path to conversion, and incremental reach analysis. These insights significantly enhance the evaluation of campaign performance, allowing advertisers to refine their strategies and optimize their advertising efforts effectively.
Building Creative Assets
When creating creative content, brands must prioritize understanding their target audience. With numerous media vying for attention, customized videos tailored to the ideal customer stand out. Keep it simple, ensure the product is prominently featured, and communicate the message clearly. Additionally, embrace a culture of testing and learning, recognizing that what works for one brand, product, or audience may not work for another.
Balancing visuals, music, and purposeful on-screen text is crucial in video content creation. Limiting voiceover or dialogue to only one-third of the video’s length will ensure the message is conveyed effectively, even on mute. According to Amazon’s data, videos following this guideline experienced a 27% higher average detail page view rate compared to those with excessive voiceover. Incorporating live talent for at least 9 seconds can also enhance engagement, with videos featuring people on screen seeing a 13% higher average direct page view rate. Lastly, ending with a 4-second end card featuring the brand logo helps anchor the message, leading to higher engagement rates, such as an 11% increase in average detail page view rate for 15-second videos and an 18% increase in average branded search rate for 30-second videos.
Conclusion
Streaming TV and Sponsored TV campaigns represent new avenues for advertisers looking to effectively engage audiences through their shopping and entertainment journeys. With many brands already reaping the benefits of these channels, leveraging the right technology to manage video campaigns can substantially amplify reach and impact. With projections of a significant rise in streaming device ownership, the potential audience for Streaming TV ads is immense. By 2025, EMarketer forecasts that US adults will dedicate an additional hour to watching digital video compared to traditional TV, with connected TV usage outpacing growth rates seen in mobile and desktop platforms. Pairing this with Amazon’s platform further enhances the value proposition, offering expanded inventory and insightful data analytics. Whether opting for Streaming TV Ads or Sponsored TV Ads, brands have valuable opportunities to expand their reach and connect with new audiences. By carefully considering factors like experience, budget, and campaign objectives, advertisers can harness the full potential of these advertising channels to achieve their marketing goals effectively.
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