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What Cable Cutters Mean for Advertisers

January 31, 2017

Should the term “cable cutting” pose fear for advertisers who traditionally utilize cable TV as their primary advertising channel? The answer for now is no. People aren’t watching less video, they are simply changing where and how they watch them. Video on Demand or VOD services such as Hulu, Xfinity, and cable apps have video advertising slots in 15-30-60 second timeslots just as they are on television, allowing for relatively simple cross channel integration. One key difference is how advertisements are targeted, rather than by network, daypart, or program, 3rd party data can be overlaid to target a niche audience, which leads to more relevant advertisements and less ad waste.

It comes as no surprise that major broadcasters are now beta testing live TV streaming with VOD providers like Hulu, since ad views rose 28% YoY across all VOD devices for 2016. At MBuy, many of our clients including Cats Pride, LA Tourism, and Shedd Aquarium incorporate VOD into their multichannel advertising strategies. Click the following links to learn more about our work or to contact us directly.