For a more effective digital marketing campaign, place ads on streaming platforms to get Millennial and Gen Z appeal.
In an evolving marketing industry, the effectiveness of certain advertising platforms is a a fiercely debated topic. The jury is still out on radio and TV, but digital marketing is taking over. However, video and music streaming services have quickly risen to dominate entertainment consumption by younger demographics, with platforms like Spotify, Twitch, Hulu, and Netflix seeing the most success.
For example, Spotify’s Initial Public Offering became one of the most anticipated and successful financial events of the decade. “Spotify’s current [market] cap of $26.4 billion makes it more valuable than CBS, Twitter, Snap, Sprint, Dish Network and Viacom. Spotify is the No. 1 global music streaming provider with an estimated 42% worldwide market share in 2016.”
That 42% market share has given Spotify a total of 157 million active users from 65 countries. Research shoes that of those 157 million, 72% are Millennials or younger.
Twitch is a similarly successful case study and while not publicly traded is owned by Amazon. As mentioned in a previous blog on the topic, Twitch services 15 million daily users with millions of hours watched per year. Their audience is almost entirely millennials (over 70%) with younger generations catching up.
It almost seems cliche to imply that Netflix is a tech giant, so let us focus on the numbers. The platform now services almost 120 million people worldwide and reached new peaks by adding 8 million subscribers in the last fiscal quarter of 2017. Netflix currently does not host ads on their platform, but industry experts predict that it will eventually be integrated to support ads. Major advertisers are putting on pressure to make this happen and there is little doubt that Netflix can continue to pass on the large sum of estimated profits by doing so.
What makes these platforms so valuable for celebrity marketing is the potential for authenticity and fluidity in marketing execution. Many musicians, gamers and celebrities are already features on the platforms, so it makes sense to utilize them where their fan base is strongest.
A small but passionate audience can be more effective than a larger one. Streaming platforms give direct access to audiences with impressions nearly every second. It does not make sense to gamble all your budget on digital marketing with streaming platforms, but there is not better way to reach coveted younger demographics and take advantage of future trends in entertainment.
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