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Television Commercials are Back

by Shane O’Neill, Vice President

The past decade has seen traditional “television commercials” take a back seat to the digital realm of social media, Google Ads, and YouTube advertising. Production costs and the somewhat antiquated traditional cable buys certainly helped push advertisers to the less expensive, more data-driven digital options. It’s true that digital advertising provides additional layers of consumer targeting and also makes it easy to pivot should the need or opportunity arise. However, a big shift is starting to take place as the streaming companies are moving to ad-supported models. Platforms like HULU and YouTube have already supported what’s typically referred to as OTT (Over The Top) Advertising, and as more and more consumers move to streaming vs. traditional cable, OTT is becoming a valuable player in a marketing mix. Not only does it offer precise targeting and ad relevance, but it also allows advertisers to quantify the effectiveness of TV and optimize future campaigns. 

In early June 2021, HBO Max launched its own ad-supported subscription service. This allows consumers to select a cheaper streaming package that includes content advertising. It’s a model that will only pick up steam as streaming saturation begins to mature, and it’s only a matter of time before the others, such as Netflix join in. 

So, dust off your video lens, because what was old is now new again!

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