Over the last decade, video-on demand services have exploded in popularity. In the UK, 53% of households are subscribed to at least one streaming service. Not only has VOD changed the way people watch TV, it has also changed how companies advertise their products. Should VOD advertising be a key part of every company’s advertising and marketing strategy in 2022?

What is video-on demand?

Video-on demand allows users to access videos at any time, without the constraints of a traditional broadcasting schedule. Whereas traditional television broadcasts were restricted to certain times, VOD can be accessed by the user whenever they wish.

In the UK, prominent VOD services include BBC iPlayer, ITV Hub, All4, Sky Go, Now TV, Netflix, Amazon Prime, Apple TV, and Disney+. Social media apps like YouTube and Facebook also provide video on demand services, but with a different focus from traditional broadcasters and the big streaming giants.

The advantages of VOD advertising

As opposed to traditional TV advertising which targets a broad audience, VOD allows advertisers to target a smaller, more defined group of people. With the help of an AVOD advertising agency, advertisers can determine where best to place their adverts to effectively reach their target audience.

Another key advantage of VOD advertising is that VOD is not just restricted to TVs like traditional broadcasting. VOD can encompass a wide array of devices, from smart TVs to home PCs and smartphones to tablets. This means that advertisers can tailor their adverts to suit each format. For example, when advertising is shown to someone watching a stream via their web browser on a laptop, the advertiser can include a link directly to their product or service, instead of just displaying the URL on screen, thereby increasing conversion rates.

Drawbacks

While VOD advertising could be beneficial to many businesses looking to market their products or services to a wider audience, there are some potential drawbacks. Although VOD advertising can be a cheaper way of reaching consumers, the additional targeting options mean that without sufficient research on target audience demographics, an advertiser’s message may not be reaching the right people.

In addition, while VOD services are evidently very popular, they are not available to 100 per cent of the public. Certain demographics may predominantly use traditional broadcasting for their viewing habits, such as older generations or people in areas that lack fast internet connectivity, and if these people are in an advertiser’s target audience, then they may not be able to effectively reach them via VOD advertising alone.

How important is VOD advertising?

Ultimately, the importance of VOD advertising vs traditional TV advertising depends largely on the target audience. VOD tends to be more popular among younger audiences– typically aged between 18-35. If an advertiser’s target audience includes these people, VOD could produce a significantly improved ROI compared to traditional broadcast advertising. However, older audiences often still predominantly prefer traditional linear broadcast TV, and so if they are the target audience, then VOD may not be the best option.

Will VOD advertising replace traditional broadcast advertising?

Ultimately, with VOD services becoming increasingly popular with users of all demographics, it is a good idea for companies to include it in their advertising strategy. However, for those looking to reach the widest possible audience, technology adoption still has a few years to go before it will completely replace broadcast advertising.

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