Brands are rushing to capitalize on ad-free streaming hits that draw young audiences, but experts warn that hopping on the bandwagon may not be the best strategy.
While dozens of products found their way into season three of Netflix’s “Stranger Things,” the jury is still out on whether tie-ins with streaming video hits can generally spur the kind of brand recognition that sponsoring marketers seek. Nevertheless, several forces are likely to continue to drive interest in streaming product placements.
The growth in streaming video platforms has expanded advertising opportunities outside of traditional channels like TV. Streaming continues to pick up traction with cord-cutting, ad-averse Gen Zers, which has prompted brands interested in reaching the elusive demographic to consider Netflix and other subscription services that don’t typically run ads.
“If not daily, at least three to four times a week, we are getting new brands approaching us about SVOD [streaming video on demand] opportunities,” Stacy Jones, CEO of Hollywood Branded, told Marketing Dive. “It’s a massively eager world of brand marketers right now.”
Keeping up with streaming
SVOD and over-the-top (OTT) streaming are growing faster than cable TV. But because many streaming platforms are ad-free, product placements, brand integrations and co-promotions are a bigger focus.
“If not daily, at least three to four times a week, we are getting new brands approaching us about SVOD opportunities.”
CEO, Hollywood Branded