Advertising racing back to TV, yes even streaming apps

Commercials are streaming back into TV, courtesy of the streaming apps that have, until now, been mostly free of commercial interruptions. Image (c) ConsumerAffairs

Cable and streaming were seen as a way to avoid ads. Not anymore!

There have been two eras when TV viewers were living in the best of all possible worlds.

One was the latter part of the 20th century when top-tier shows were broadcast on what is nostagically called Free TV. You know, all you needed was a pair of rabbit ears and enough patience to sit through a constant cavalcade of commercials interrupting those top-flight shows. 

The other was arguably the first decade or so of the 21st century, when HBO and similar cable channels were running top-flight programming without commercials. Yes, you had to pay a little bit per month but there were no ads.

So that brings us to yesterday. Cable has faded and is being replaced by streaming. No rabbit ears needed, instead it just takes $50 a month or so for internet service and the streaming channels that run endless movies and original shows, mostly without commercials. 

Of course, things change quickly and soon, just a few days ago in TV time, the streaming channels began charging monthly memberships -- $30 or so at the beginning. 

No rabbit ears needed, just dollars

And now, it's today. Major streaming channels like Paramount+ and Max are running pretty good shows with commercials. You still don't need the rabbit ears but instead, you need $50 a month or so for the Internet connection, then $30 or so for each of the many streaming channels, which may also charge $3 or more for a single episode or viewing of a movie.

So, in essence, consumers are paying more -- a lot more -- to watch an hour or two of TV in the evening. 

This has been happening in the periphery of human consciousness and many of us haven't noticed it yet. I became aware of it a night or two when I plopped down next to the dog and flipped over to Max/Paramount+ to watch the second episode of Landman, a pretty good soap opera set in the Texas Oil Patch.

I had watched the first one free of charge a few nights earlier. But this time around, it cost "$xx.xx" for the first episode and "$xx.xx" for subsequent viewings. (Yes, $xx.xx is correct. Someone at Paramount+ was too busy to type in the price so just left the x's there as a reminder to do it later. )

I hadn't seen a commercial crammed into a TV drama in years and it took me a minute to realize what had happened. I wasn't happy when I figured it out but soon found that it wasn't a surprise to people who keep track of this stuff.

Not only cheap but targetable

A little research produced the news that ads on streaming channels are now not only cheap but also targetable; you don't have to buy 20 million households if you're pushing a specialized product, like nipple covers.

Yep, I learned that Cakes Body, a nipple cover brand, is airing its first-ever streaming ads on more than 15 apps, including Max and Paramount+, according to Modern Retailing

More brands are streaming into the race and the streaming channels are rushing to accommodate them.  Paramount+ introduced ad-supported plans in 2021 while Disney+ and Netflix did the same in 2022.

In 2023, Amazon began selling ads for Thursday Night Football, and in January, it announced that Prime Video watchers would start seeing ads by default when watching content. Now, Amazon is offering more ad spots for 2025. It’s likely Amazon’s competitors will soon follow, Modern Retailing tells us.

This is great news for advertisers, since the streamers are offering lower ad rates as they "supply more inventory" (adspeak for jamming in more spots).  

For instance, Disney+ introduced its ad-supported tier in late 2022, and during the 2023 upfronts, the average cost per thousand impressions (CPM) for Disney+ ads decreased by 25%, from $38.68 to $29.04.

Of course, it's not all bad news for viewers. Some channels -- Pluto TV, Tubi and The Roku Channel -- are offering free content supported entirely by advertising. No subscription required. No per-show charges. This is fine if you're just dying to see old episodes of The Carol Burnett Show but you won't find Landman. 

Advertising "innovations"

Wherever you have ads, of course, you have the characters portrayed in Mad Men, talented but frustrated people whose lives are spent figuring out how to make ads more ubiquitous, intrusive and interactive. 

Thus, we will soon be seeing such innovations as "shoppable ads," commercials that let you buy stuff directly from the advertisements, sort of like a truncated shopping channel.

"This approach aims to create more engaging and interactive advertising experiences," one ad biz journal informs us.

Continuing in adspeak, we're told, "​These trends indicate a significant shift in the streaming industry, with advertisements becoming a common component of the viewing experience."

Those of a certain age can remember when this was a common though not necessarily beloved, component of the viewing experience. It's only fair that new generations should get to experience it.