Live streaming advertising is one of the most exciting and promising trends today. We have seen that brands are already heavily investing in this medium. In 2023, live video streaming ads will reach new heights.
Live stream ads to become mainstream
Live-streaming advertising is still in its infancy. And while there is still a long way to go before we see it in full swing, some exciting trends are already emerging, indicating what we can expect next year when this form of advertising becomes more mainstream.
Traditional forms of advertising (e.g., television commercials and billboards) have been around for decades, but they have drawbacks. Not only do they interrupt whatever you’re doing at the time—even if that’s just watching TV or reading a book—they also don’t allow much customization or interactivity with consumers. Live-streaming ads differ from these traditional methods because they can be customized on the fly based on who the viewer is; they won’t feel like an intrusion into your life. Most importantly, viewers will be able to engage directly with them!
Imagine you’ve just finished playing Fortnite for 20 minutes when suddenly an ad pops up on the screen telling you about some new Crocs shoes that match your style perfectly (and, by extension, save money). You click the ‘buy now’ banner right then and there without even thinking twice, avoiding the hassle and frustration of going into a shop to start the search for a pair of shoes. That’s engagement at its finest!
$100 billion expected investment
The live-streaming video market is growing day by day. Brands expect to invest more than $100 billion in video ads in 2023 — a vast proportion of marketers (92%) continue to value video as an essential part of their marketing strategy.
Live broadcasting is more accessible by the day, enjoying increased popularity worldwide. Brands that already have a foot in the door can connect with consumers innovatively to build stronger relationships.
Influencer marketing is a key component of live streaming. For awareness campaigns, product launches, or even lower-level conversion strategies, brands can extend their reach by collaborating with influencers with large followings and strong brand affinity.
Attention is an ad metric that correlates with effect, and more marketers are turning to this to see value for money and compare different channels.
Gen Z’s – a marketing game changer
Digital advertisers are increasingly focused on identifying new ways to connect with their target audiences and measure campaign success. It is safe to say that Generation Z is quite a challenge for marketers. As digital natives, they have redefined media consumption, which combines live social media interaction with an emphasis on video platforms. It forced brands to adapt and seek new marketing strategies and advertising channels to appeal to Gen Zers.
The spotlight on this generation is not only due to its uniqueness. Gen Z’s spending power is estimated at $360 billion. This is expected to rise in the next few years as more members of this generation are expected to join the workforce–accumulating their cash flow to $3.1 trillion.
Micro-influencers – Value for Money
73% of Twitch–the leading live streaming video platform– viewers are under 34 years of age. Advertisers invest resources in those platforms, teaming up with influencers to reach their target audiences. However, this form of communication soon seemed insufficient for advertisers. Top influencers are costly, yet many viewers rather join smaller live-streaming communities as it is more intimate. Yet micro-influencers might ask: is there money in streaming?
The live-streamers in these small communities are known as nano and micro-influencers, which will be a significant asset for brands and advertisers as they offer 20% more conversion rates than the leading influencers. This is a double advantage as reaching smaller audiences helps focus messaging and is relatively cheaper than the payments made for the top famous talents. Automated ad platforms that connect advertisers with influencers at scale will help brands focus their marketing efforts and improve their ROI.
Traditional ads are only sometimes relevant for Gen Zers. According to Bulbshare’s recent consumer behavior research, around 99% of Gen Z’s skip ads, and 63% use ad-blockers to protect their privacy and limit ads they perceive as intrusive.
Ads that do not interfere with the live stream when they appear, also known as non-intrusive or immersive ads, appear increasingly on video streams. If they are backed with a live streamer influencer’s recommendation, the value increases for all parties:
- The brand can reach its target audience without being invasive and gain more conversions.
- The viewer doesn’t feel pressured into watching something he doesn’t want.
- The influencer can increase their income.
The Advantage of Non-Intrusive Ads
One of the most effective practices of running campaigns in live streams is integrating non-intrusive ads, as they do not interrupt the live stream flow. Viewers can continue watching the gameplay or conversation as an ad is displayed. It is a massive advantage because the last thing any streamer wants is a dominant off-putting ad ruining the experience for everyone! According to recent studies, people who use ad blockers are more willing to accept non-intrusive ads. Moreover, they’re more likely to watch them all the way through—and then remember what they saw!
Further growth in live streaming is expected in 2023 as platforms grow, smart TVs become more popular, and 5G takes off. It is turning the whole live-stream industry more accessible and scalable. People can start their live videos, and with relatively small but loyal audiences, they can offer valuable marketing offers by adding non-intrusive ads to their live shows. More audiences are tuning in to watch their favorite creators and communicate with their viewing community.
The future of live-streaming advertising is bright. With more brands realizing the power of reaching their target audience through this medium, we expect to see more innovative and exciting strategies emerge in the coming year. This will help them connect with consumers in a more personal way than ever before.