Free TV advertising is growing fast.
According to a new study by Nielsen, in 2017 alone, ad spend on cable, satellite and video streaming platforms topped $5 billion, with the top three players, AT&T, Comcast and Verizon, making up about $500 million.
(Full disclosure: I’m an investor in AT&&:T, which owns The CW and Hulu.)
While the total revenue from these platforms is dwarfed by that from traditional broadcast TV, there are still significant opportunities to make money from ads that aren’t on TV.
One example is an ad that features a family or a friend, which is free to the viewer.
While the ad isn’t on television, Nielsen says the average consumer would see it if they went to their local station or cable network and saw it.
Nielsen found that this ad on average cost $1.35 in 2015, compared to the $2.90 for a traditional broadcast ad.
But how do you get around this limitation?
While Nielsen says it’s possible to create ad blocks for TV networks, it says that’s a hard sell.
“This requires a conscious effort to think of different ways to leverage your audience to increase your ad revenue,” it says.
“We suggest you explore the market for your audience and engage with them in ways that will make you money.
If you’re willing to compromise on your ability to monetize your audience, you’re likely better off targeting more traditional TV channels.”
To find ways to monetise your audience on TV, you need to think about how viewers can benefit from ads they see.
To do that, Nielsen looked at three ways viewers could benefit from an ad: the viewer, advertiser and advertiser.
This means advertisers could target viewers based on a variety of factors like their age, income and geographic location.
In the past, ads on TV were typically limited to targeted groups, such as those that were younger than 18 and advertisers would use social media to identify viewers who might be interested in buying an ad.
Nielsen also found that while younger viewers may be willing to pay a premium for an ad, they often didn’t see it as worthwhile.
“Advertisers tend to view younger viewers as consumers who are buying a product and are more likely to want to know more about the product or service,” the report says.
While there’s room for innovation, Nielsen’s study indicates that while some ad formats are gaining popularity, they’re unlikely to dominate TV ad spending.
“There’s going to be a lot of experimentation, and you may see some things that may work well for a particular audience, but they’re not going to have a great chance of being adopted by everyone,” Nielsen’s Mike Piazza said.
“They’re going to need to be adapted to different audiences, and that will take time.”
But you can still monetize an audience.
Nielsen recommends using different types of media to engage viewers in an ad campaign.
For example, the company says it uses social media platforms to target viewers to specific events, which could include social media posts about a charity event or event that happens within a specific time period.
“In a way, that’s the same as a social media ad,” Piazzi said.
“What they are doing is they are looking at their audience, what’s trending, what they think might be interesting to them,” Picazza said of advertisers.
“If you have something that’s trending on Facebook, or Twitter, that could be a good ad.”