TV vs. Streaming: Where Should Your Budget Go?
The TV advertising landscape has changed dramatically. Ten years ago, the decision was simple: buy spots on local broadcast stations and cable networks. Today, businesses must navigate a complex ecosystem that includes traditional TV, connected TV (CTV), over-the-top (OTT) platforms, and digital video.
So where should your advertising budget go? The answer depends on your goals, audience, and market—but here's a framework to help you decide.
Traditional TV: Still Powerful, But Evolving
Traditional broadcast and cable TV still reach massive audiences, particularly in local markets. For businesses targeting adults 45+, local news viewers, or sports fans, traditional TV delivers unmatched reach.
Advantages of Traditional TV:
Broad reach in local markets, especially among older demographics
Strong brand-building impact through sight, sound, and motion
Established measurement through Nielsen ratings
Premium content environments (local news, live sports)
Challenges of Traditional TV:
Declining viewership among younger demographics (18-44)
Less precise targeting compared to digital options
Higher minimum investment requirements
Difficult to track direct response and attribution
Ad skipping through DVR time-shifting
Streaming & OTT: The New Frontier
Connected TV and OTT advertising allows you to reach viewers on platforms like Hulu, YouTube TV, Peacock, Paramount+, and hundreds of other streaming services. This is where younger audiences have migrated, and the targeting capabilities are remarkable.
Advantages of Streaming/OTT:
Precise audience targeting (demographics, interests, behaviors, geography)
Lower minimum budgets make it accessible for local businesses
Non-skippable ad formats ensure your message is seen
Detailed performance metrics and attribution
Ability to retarget viewers who've visited your website
Reach cord-cutters and cord-nevers that traditional TV misses
Challenges of Streaming/OTT:
Fragmented landscape across many platforms
Some premium inventory (like live sports on streaming) carries high CPMs
Ad-free tiers on some platforms limit available inventory
Still maturing measurement standards
Our Recommendation: A Blended Approach
For most businesses, the optimal strategy isn't either/or—it's a strategic blend of both. Here's how we typically allocate for our clients:
Local businesses targeting broad audiences: 60% traditional TV / 40% streaming. Traditional TV still dominates for reach in local markets, while streaming fills the gaps among younger viewers.
Businesses targeting under-45 demographics: 30% traditional TV / 70% streaming. This audience has largely shifted to streaming, and the targeting capabilities make your budget work harder.
E-commerce or direct-response focused: 20% traditional TV / 80% streaming. The attribution and retargeting capabilities of streaming make it far superior for driving measurable conversions.
Making Your Budget Work Harder
Regardless of the split, here are key principles for maximizing your TV and streaming investment:
1. Invest in Quality Creative — A great ad on the wrong platform will outperform a bad ad on the right one. Don't shortchange production quality.
2. Test and Optimize — Start with a hypothesis, measure results, and adjust. Streaming platforms provide enough data to optimize in real-time.
3. Integrate with Digital — Your TV and streaming campaigns should work alongside your digital marketing. Use consistent messaging and leverage retargeting to capitalize on the awareness your video ads create.
4. Think Frequency, Not Just Reach — It takes multiple exposures to drive action. Ensure your budget is sufficient to reach your target audience multiple times, rather than spreading too thin.
The key is matching your media strategy to your specific business goals and audience. That's exactly the kind of strategic media planning we do for every client at Long Run.
