How to
OTT Advertising: 7 Strategies You Must Execute
9 min read
Linear TV Advertising: Why it is failing?
If you’re wondering why traditional linear TV advertising doesn’t seem as impactful as it once did, this blog is for you.
Or
If you’re noticing how more brands are moving towards on-demand streaming and away from classic TV ads.
Or
You may have considered the growing role of targeted, data-driven ads and how they reshape advertising.
Every brand wants to reach its audience where they are, but shifting viewer habits have made it even more challenging for linear TV.
You, me, and every marketer know that the advertising world is evolving fast.
But here’s the big question not everyone asks—how do you navigate this shift, and where should your ad dollars go to see the best results?
In this blog, we’ll show you:
🌟 Why linear TV advertising is struggling to keep up with the times.
🌟 The core reasons behind the shift from traditional TV to digital and OTT ads.
🌟 Key insights on reaching today’s fragmented audiences effectively.
🌟 The best alternative platform to connect with your target audience and more.
Dive in to uncover the future of advertising and find out how to stay ahead of the curve.
Understanding Linear TV Advertising
It’s essential to grasp the fundamentals of linear TV advertising that define its core value and role in brand marketing.
Whether you're new to advertising or an industry veteran, understanding the core elements of linear TV and its historical influence can help you see why it's been so impactful.
Let’s dive into the basics of linear TV advertising and how it’s evolved over the years.
What Is Linear TV Advertising?
Linear TV advertising has long been a cornerstone of brand outreach.
It involves scheduling commercials at specific times and reaching audiences through traditional cable and satellite channels.
For decades, brands have used this structure to ensure maximum visibility among TV viewers, who typically tune in at predictable times.
The Historical Impact of Linear TV on Brand Marketing
Linear TV advertising shaped marketing by delivering massive reach and establishing iconic brand moments.
Decades ago, watching a commercial break during a popular show meant shared experiences across households, giving brands unmatched audience engagement.
Why It Matters?
Linear TV helped set the foundation for modern advertising, creating memorable brand connections and giving advertisers reliable, large-scale reach.
Its legacy lives on today, even as digital platforms and streaming reshape the landscape.
Key Reasons Behind the Decline of Linear TV Advertising
As viewers shift their preferences and technology evolve, linear TV advertising faces new challenges.
From changing viewer behaviors to advancements in digital targeting, let’s explore why linear TV ads struggle to keep their once-dominant place in advertising.
1. Changing Viewer Behavior
With the rise of on-demand streaming services, viewers prioritize flexibility, ad-free content, and recommendations that align with their preferences.
- Popular Streaming Services: Platforms like Netflix, Hulu, and Disney+ allow viewers to watch what they want, when they want, without interruptions from ads.
- Preference for Ad-Free Experiences: Many viewers now choose streaming plans that eliminate ads, decreasing exposure to traditional commercials.
These changes in viewing habits reduce the impact of linear TV ads, as audiences spend more time on on-demand content than scheduled programming.
2. Shift to Digital Advertising
The precision and flexibility of digital advertising make it an attractive alternative to traditional TV ads.
- Targeting Precision: Programmatic ads allow brands to reach specific demographics and personalize ads, something linear TV struggles to match.
- Social Media and Influencer Impact: Digital platforms have paved the way for social media and influencer marketing, giving brands a cost-effective way to reach highly engaged audiences.
Brands like Pepsi and Coca-Cola are reallocating budgets from TV to digital to maximize reach and engagement, demonstrating a clear shift in the industry.
3. Technological Advancements
The emergence of OTT (over-the-top) and CTV (connected TV) has opened up new avenues for advertisers to reach audiences more directly.
- Growth of OTT and CTV: These platforms allow brands to connect with cord-cutters who no longer rely on traditional TV.
- Ad-Tech and AI Innovation: Advanced technologies like AI-driven targeting and real-time data analysis offer greater control and insights for ad campaigns, outpacing the capabilities of traditional TV advertising.
These advancements provide advertisers with more efficient ways to reach their audiences, pushing linear TV further down the list.
4. Decline in Viewership and Engagement
Linear TV viewership continues to drop, particularly among younger audiences who favor digital platforms.
- Lower Viewership Among Key Demographics: Data shows that younger generations watch less traditional TV and opt for digital alternatives.
- Reduced Engagement: With fewer viewers, linear TV ads struggle to generate the same level of engagement, reducing their effectiveness.
This decline in engagement means that brands investing in linear TV see diminishing returns, making digital and streaming platforms a more appealing choice for their ad spend.
Industry Insights: What the Decline Means for Marketers
Here are key insights on how marketers view the decline of linear TV advertising:
- Cost-Effectiveness Concerns: Linear TV ads often struggle to match the ROI of digital and OTT ads, where real-time metrics enable precise performance tracking and optimization.
- Brand Adaptation: Major brands are reallocating budgets to digital, OTT, and CTV, achieving better engagement and reach. Many brands have embraced digital and hybrid ad strategies.
- Challenges for Niche Markets: Industries like local retail and certain FMCGs still depend on linear TV but face high costs and limited reach as viewership declines, posing a growing risk to ROI.
The Future of Linear TV Advertising
Here are key future trends to watch in linear TV advertising:
- Projected Trends: Linear TV is expected to play a more minor, targeted role in the ad mix. It may still hold value in reaching specific demographics, particularly older audiences or markets less reliant on digital media.
- Necessary Changes to Compete: To stay relevant, linear TV must adopt innovative formats, explore hybrid ad models, and leverage cross-channel campaigns. Improved targeting through advanced metrics could also enhance its performance.
- Multi-Screen Strategies: As audiences shift between devices, linear TV can be integrated into multi-screen campaigns to capture attention across platforms. Successful examples show TV as a support channel, amplifying the impact of digital and mobile ad efforts.
Exploring Alternatives to Linear TV Advertising
With the shift from traditional linear TV, connected TV (CTV), OTT, and programmatic advertising offer new avenues to reach audiences more effectively.
Vibe is a TV advertising platform enabling brands to launch targeted ads on major streaming apps and channels, reaching audiences precisely in minutes.
Here’s how Vibe can be a better platform for brands and businesses looking to leverage digital TV advertising:
Connected TV (CTV) and OTT Advertising
CTV and OTT platforms have transformed TV advertising, allowing brands to reach a digital-native audience who’ve moved away from traditional cable.
- Benefits and Targeting: Unlike linear TV, CTV and OTT ads use advanced targeting capabilities, reaching cord-cutters and mobile-savvy audiences. Advertisers can tap into detailed demographic and behavioral data to display ads relevant to viewers.
- Vibe’s Advantage: Vibe simplifies TV advertising for businesses of all sizes, offering a 5-minute setup to display ads on over 500 streaming apps and channels, from sports to local news. Vibe’s real-time performance tracking and nationwide reach of 120 million households make it easier for businesses to engage their target audience precisely.
- Case Studies: Brands using CTV and OTT through Vibe have seen notable returns. For example, using Vibe's streamlined targeting and easy-to-use platform, Hoodsly saw a 409% ROAS using Vibe's Programmatic CTV Ads.
Programmatic Advertising
Programmatic ad buying automates the purchase of digital ad space, using data-driven insights to enhance targeting and improve ad performance.
- Flexibility and Reach: Unlike linear TV, programmatic ads offer flexibility with real-time analytics, adjusting ad placements based on viewer engagement. This ensures that ads are seen by the right people at optimal times.
- Vibe’s Programmatic Edge: Vibe’s platform allows businesses to harness programmatic advertising on streaming platforms, accessing data-rich insights and audience-targeting capabilities without the complexity of traditional TV.
Vibe makes TV advertising accessible and effective, with features that allow brands to run, track, and optimize campaigns effortlessly.
Conclusion
Is it worth investing in linear TV advertising?
Linear TV advertising faces substantial challenges due to shifting viewer preferences, the rise of digital and programmatic ad options, and declining engagement among younger demographics.
Despite its struggles, linear TV can still offer value for specific audiences, such as older demographics or localized markets that have yet to fully adopt digital alternatives.
Marketers should weigh the declining ROI and limitations of linear TV against the precision and flexibility of digital advertising.
Embracing a balanced ad strategy can help reach diverse audience segments effectively.
To maximize reach, combining traditional and modern platforms like CTV and programmatic ads can bridge the gap, ensuring engagement across multiple screens.
Here’s why Vibe can be your next best move:
- Advanced Targeting Capabilities: Deep audience insights drive higher engagement and better conversions.
- Cross-Platform Reach: Run ads across Roku, Samsung TV, and more to ensure maximum visibility.
- Real-Time Optimization: Monitor performance and adjust quickly with A/B testing for better results.
Transitioning to a hybrid strategy could lead to more targeted, measurable, and effective advertising campaigns. Vibe is here to help you make the leap.
Embrace a smarter, more targeted approach and see for yourself—Explore Vibe today!
