The Future of Streaming TV, Marketing & Why Your Auto Repair Shop Should Care

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What’s your favorite show to stream these days? If you’re like most consumers, you have at least one series you’ve binged from the comfort of your couch. And what’s important to note is that television, movies, and news have all shifted platforms. How people consume media is entirely different today than it was just a few years ago.

 

Why should you care as an auto repair shop owner?

 

You need to understand consumer behavior because mass media matters to your marketing and advertising efforts. The days of paying for commercials on broadcast television are long gone. But you can’t solely rely on web-based marketing alone, either.

 

Lucky for you, we happen to be marketing coaches for tire and auto repair shops like yours. We also know a thing or two about the changing landscape of media. Today, we’re sharing important trends you should know about the future of streaming TV, consumer-preferred media, and marketing.

 

Photo by Andres  Ayrton: https://www.pexels.com/photo/focused-young-black-couple-having-lunch-and-watching-tv-on-couch-near-curious-dog-6578830/ -- couple watching television

 

Streaming TV and Marketing: Who Made Who?

If you’re not humming a little AC/DC right now, we’re probably dating ourselves. However, there’s a message behind the heavy-metal reference there.

Here’s the point.

The streaming TV boom today only exists because that’s how consumers prefer to consume their television. And the advertisers have followed suit, only fueling the industry faster. So, as the various brands race to all the new platforms with their messaging, the flow of ad money continues to grow.

Exploding Topics shares some of the latest stats:

The video streaming market is now valued at over $500 billion. And it’s expected to continue growing to over $1.9 trillion by 2030, at a CAGR (compound annual growth rate) of 19.3%.

  • 1% of all TV usage is dedicated to streaming.
  • There are approximately 1.8 billion subscriptions to video streaming services.
  • 26% of viewers admit to binge-watching at least once a week.
  • Netflix has well over 200 million subscribers worldwide.
  • Ted Lasso was the most-streamed program of 2023 (16.9 billion minutes.)

 

 

Source: Nielsen

 

 

Video Streaming User Activity

Here are some other stats supporting the mass exodus of broadcast television and traditional media channels.

  • Americans, on average, are spending 13 hours and 11 minutes using digital media every day.
  • Forbes says three hours and six minutes of that time is streaming videos.
  • Roughly 72% of Americans “love” their user experience with streaming video services, with 93% of them committing to “maintain or increase” their streaming options over the coming year, says Nielsen.

 

Photo by JESHOOTS.com: https://www.pexels.com/photo/flat-screen-television-1201996/

 

Knowing how your target auto repair customers spend their leisure time is important. It’s how you determine which channels to use in advertising to reach them. So, how can use these latest studies and stats to inform your current marketing campaigns?

It starts with an audit of your current marketing methods. If you’re still believing in the “good ol’ days of television,” you’re missing out on new customer opportunities.

 

The Good Old Days of Television

Remember the culture-defining days of television’s “Must See TV” and flurries of water cooler conversations the next day about Ross and Rachel? Back then, people didn’t just have favorite shows. They had favorite networks.

Today’s television consumption is entirely different and often referred to as the “cord-cutter” generation. Everyone’s ditching traditional TV subscriptions now in favor of streaming, online alternatives.

According to The Trade Desk, 74% of 18–34-year-olds nationwide have either ditched cable or already plan to “cut the cord.”

In comes OTT and CTV advertising, riding the wave of surging streamers.

 

Photo by John-Mark Smith: https://www.pexels.com/photo/photo-of-cup-near-flat-screen-television-2726370/

 

What is OTT and CTV?

Let’s break down definitions and channels and dive further into why your tire and auto shop needs to know about these popular formats.

  • Over-the-top (OTT) describes the process of streaming video, audio, or messaging content “over-the-top” of the internet. The most popular OTT platforms include Netflix, Hulu, Amazon Prime, HBO Max, YouTube, and Disney+.
  • Connected TV (CTV) is the term used for any TV set connected to the internet, including TV sticks, smart TVs, and gaming consoles.

 

Growth for both is off the charts as eMarketer describes. CTV programmatic ad spend is expected to reach $24.44 billion this year, which is a 23.1% growth spurt from 2023.

 

Consider the following scenarios for additional clarity on OTT/CTV:

  • If someone watches a show on Netflix using their smartphone or laptop, they’re consuming OTT content.
  • If someone watches a show on Netflix using Apple TV, they’re utilizing a CTV device to stream OTT content.
  • If someone watches a show on Netflix using their Xbox, they’re watching with a CTV device to stream OTT content.

 

Recognize, too, the different types of content:

  • AVOD “Advertising-based Video On Demand” means TV content that has ads throughout.
  • SVOD “Subscription Video on Demand” refers to channels with content behind a paywall where viewers pay to view the content, usually without ads.

 

Just like with traditional TV, ad formats can vary on streaming TV:

  • Commercials: Usually :15, :30, or :60-second videos that showcase the brand and offer with inspiration for viewers to act.
  • Product placement: Organic placement of a brand’s product or service, woven into the programming’s content.
  • Long-form ads: Demonstrations or infomercial segments that educate viewers about a particular product or service.

 

As an advertiser, you’ll want to understand these distinctions because there are implications for how your target customers will experience your ads, the formatting of your ads, and overall interactions with your ads.

 

Ad formats do vary

Typically, OTT advertising uses pre-roll ads and other video advertising shown to viewers during the video stream. CTV ads are usually positioned alongside shows or apps on the users’ connected devices.

 

Photo by Andrea Piacquadio: https://www.pexels.com/photo/woman-in-white-shirt-using-silver-macbook-3794188/

 

Viewer experiences are based on screen size

CTV is replacing the old-school, linear TV in homes and is considered a “large screen” viewing experience. Because consumers are watching their shows on CTV in a more relaxed environment, ad tolerance is typically higher than that on mobile devices.

When average viewers consume OTT ads on their desktops and mobile devices, using smaller screens, these ads tend to have lower ad recall than those on CTV. And it’s with the smaller-screen devices that many of those ads are skipped.

 

User interaction distinctions

Consumers can click on OTT ads on their mobile and desktop devices to go to your auto shop’s website or scheduling app. Alternatively, most CTV ads aren’t currently clickable, forcing marketers to use QR codes. However, many are already predicting the limited CTV interactions will change soon as the technology the CTV shoppable content expands to include other verticals. It’s leveling the playing field for OTT and CTV interactions and making one-click consumer journeys on CTV possible.

 

The Race for Streaming Television & On-Demand Dominance

The streaming service with BOTH the most subscribers (consumers) and most ad dollars (that’s you,) wins. So, the race is on for the various Media & Entertainment Companies (M&E Companies) to create award-winning shows, blockbuster movies, and bingeable series.

The streaming TV landscape is still messy and fragmented. Viewers are frustrated with seeming continuous rebrands and mergers, along with finding their shows are exclusive to one streaming service. As the major streaming media providers try to stabilize, subscriber churn continues to be a challenge for them.

Auto repair shops and other businesses looking to capture their audience’s attention with ads, can’t always find their footing either with streaming either. However, companies know that’s where their target prospects are spending their time. So, brands keep investing, almost blindly, hoping to gain some visibility and sales.

It’s certainly a wild-west ecosystem and not at all like the days of “Must See TV” ad buying anymore.

 

Photo by cottonbro studio: https://www.pexels.com/photo/netflix-on-an-imac-5082566/

 

Streaming Service Profitability Paths Are Still Forging

The good news is that while streaming TV engagement continues to adapt to consumer preferences, new paths to profitability are still forming. Streaming media service is here to stay and is likely to only improve in the coming years for both subscribers and advertisers looking to attract them.

You might recall the “Great Netflix Correction” of 2022, when prices increased and drove nearly 200,000 subscribers away in a single quarter. That was just one of many efforts Netflix made to improve profitability. It’s a lesson that taught all the platforms to focus more on programming promotion and branding as a primary revenue source.

 

Streaming Service Profit Margins are Razor-Thin Right Now

The formula right now for streaming services may not seem profitable just yet.

Escalating content creation costs (high production movies and shows,) plus high subscriber churn rates, plus low subscriber pricing, plus mediocre ad revenue, equals slim margins. As Deloitte points out, this formula projects a 25-30% loss range for M&E streaming services.

 

Photo by JESHOOTS.com: https://www.pexels.com/photo/man-holding-remote-control-1040160/

 

The Subscribe for One Show Movement

There’s another problem – viewers subscribing to a streaming service just to gain access to one program, then unsubscribing. An Ad Age-Harris survey found over half of respondents would join in this “subscribe for one show and leave” movement. The percentages are even higher for Gen Z (63%) and millennials (62%.)

 

How Today’s Streaming Platforms Rank Among Consumers

Despite frustrations, Americans are still “all in” when it comes to streaming platforms and on-demand viewing. Forbes shared 2024 streaming stats that support the idea that this type of media consumption is here to stay.

  • 99% of all US households pay for at least one streaming service.
  • $46 per month is the average subscription fee Americans pay for streaming.
  • Americans pay for 2.9 (we’ll say three) streaming subscriptions monthly.
  • Netflix still dominates with the most subscribers, about 47M ahead of Amazon Prime Video and nearly 100M ahead of Disney+.

 

Streaming Platform / Users (in millions)

 

 

Why Should Your Auto Repair Shop Care?

Whether you’re a small, family-owned auto repair shop or you have 15+ service centers in your footprint, your ad dollars need to be invested wisely. You don’t want to be chasing fads or wasting money on campaigns that don’t reach your local, target audience.

Consider taking a closer look at your current media spend. Use these latest stats and insights to inform how, when, and where you allocate those high-value ad dollars.

 

It’s time to embrace digital ad buys. Here’s why:

  • Linear TV advertising requires BIG budgets upfront.
  • CTV advertising allows you to purchase placement monthly, spreading across various campaigns.

 

  • Traditional TV offers limited data for viewership results.
  • Streaming ads come with detailed analytics for measuring ad performance.

 

  • Broadcast TV ads are a projection-based gamble on who’s watching.
  • Streaming TV provides diverse demographics data, allowing advertisers to target specific households and geographic locations.

 

Your tire and auto shop’s return on ad spend (ROAS) is just going to be better with streaming TV advertising, based on actual views and ad impressions. Additionally, they’re more accessible for all types of budgets and business sizes. Even small shops can get in on the action with TV ads. And Hulu just announced a self-service advertising platform making it even easier for anyone to leverage.

 

Steps for Buying Streaming Platform Ads

Ok, so where do you start? Launching ad campaigns on streaming TV platforms is easier than you might think. Of course, you’ll still need to develop a well-planned messaging strategy for differentiating your auto repair shop.

But the steps are fairly simple:

  • Identify your local target audience: Know your local customers’ demographics, preferences, and interests so you can choose the best-fit streaming platforms.
  • Create your ads: Using your auto repair shop’s marketing strategy, create ads that showcase your services, connection to the local community, and competitive differentiators.
  • Buy your ads: Purchase your ads on your chosen streaming platform either directly, using an automated program ad-buying tool, or with us!
  • Monitor ad performance: At month’s end, take a look at the ad campaign analytics relating to engagement and viewership to inform your next campaign.

 

Photo by Andrea Piacquadio: https://www.pexels.com/photo/happy-young-relaxed-woman-watching-tv-at-home-3768898/

 

FAQs About Mass Media Marketing & Streaming Service Television

What TV ad types are best for local and/or regional auto repair shops?

CTV is a great go-to ad type for auto repair shops. However, OTT ad buys offer more control of ads, at higher costs. To know which types of ads are best for your tire and auto shop, it truly depends on your business footprint, your ability to scale, and your budget.

OTT may be ideal for a single shop operator that’s looking for a smaller lift.

OTT with a combination of Cable may be better for a multi-location local business. Cable TV can be bought at the county/partial county level, which makes it a good solution.

OTT, Cable, and Network TV may be best for regional and/or national business. Network TV can still give a brand access to the highest volume of consumers so betting on highly watched Network TV shows and/or sports may make a lot of sense.

 

Which streaming platforms support ad buying?

As you consider which streaming platforms are best to reach your local audiences, these services feature ad-supported tiers.

  • Netflix
  • Hulu
  • Peacock
  • Sling
  • Paramount+
  • HBO Max
  • Pluto TV
  • Disney/ESPN
  • Amazon

 

Where do my ads show up when they run on streaming platforms?

Where your auto shop’s ads show up depends on the type of channel and content you select. AVOD platforms have specific ad breaks within the programs in exchange for providing free content, regardless of the device being used to access the platform.

 

Are ads on streaming platforms better for my auto repair shop?

The short answer is yes. OTT advertising offers more viewing time, enhanced targeting features, and high-value performance data. And ads on streaming can be more cost-effective than traditional TV ad buying.

 

What are the best practices for creating streaming TV ads?

You can run all the streaming media ads you can and still not get results if you do so without a strong creative and compelling messaging. Make sure your ads:

  • Introduce your brand within the first few seconds.
  • Your offer is relevant and important to your local target audience.
  • Use precise call to action messaging so viewers know what to do next.
  • Are designed with all screen sizes in mind, including large and mobile.

 

 

Photo by Terje Sollie: https://www.pexels.com/photo/person-holding-canon-dslr-camera-close-up-photo-320617/

 

Need Help with Streaming TV Ads for Auto Repair Shop?

Even if you’ve experienced success with mass media ads in the past, the landscape is always changing. The strategies that guide your advertising methods have to change, too, going where your target audiences go to consume their favorite shows.

Trust our Marketing Coaches, with expertise in media marketing for auto repair shops, to help! We can develop a red-hot strategy that aligns with your audience, budget, and scalability so you can see bottom-line results with every campaign. Contact our team, and let’s get your auto shop visible this year!

 

Learn About Conceptual Minds

As veterans of the automotive industry, the Conceptual Minds team are experts at growing car counts through effective and personable marketing. If you are unsure of your current marketing strategy and would like some guidance, contact us today.

Need help with your auto repair shop’s mass media and marketing strategy?

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