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How to Use Streaming and CTV Advertising to Connect with Black Audiences

CTVMedia BuyingBest Practices

Whether it’s during Black History Month in February or all year long, Black and African American consumers are a significant and growing market segment that brands, advertisers and marketers cannot afford to ignore – a segment that represents $2 trillion in buying power, according to Nielsen.

However, to successfully engage with Black consumers, it's essential to understand their unique consumption habits, preferences, and values. One of the most effective ways to reach Black consumers is through CTV and streaming advertising. In this article, we will explore how advertisers, brands, and marketers can and should use CTV and streaming advertising to communicate, reach, and advertise to Black consumers in the United States.

Strategies for Effectively Reaching Black Consumers

In addition to prioritizing inclusion in marketing and advertising efforts, there are several strategies that brands, marketers, and advertisers can use to effectively reach and engage the Black consumer market.

One effective strategy is to use targeted marketing and advertising. This means creating campaigns and advertising that are specifically tailored to the Black consumer market. For example, brands can use targeted advertising on social media platforms to reach specific segments of the Black population, such as Black millennials.

Another effective strategy is to sponsor and participate in events and initiatives that are important to the Black community. For example, brands can sponsor and participate in events such as the BET Awards and the NAACP Image Awards, which are highly visible and respected within the Black community.

Finally, brands, marketers, and advertisers can also use cause-related marketing to connect with the Black consumer market. This means creating campaigns and advertising that support a cause or issue that is important to the Black community, such as education or health and wellness.

Black Consumers and Streaming Services

Black consumers are more likely to use streaming services, such as Netflix, Hulu, and YouTube TV, and are more likely to subscribe to streaming music services, such as Spotify and Apple Music. This means that businesses can reach Black consumers through targeted advertising on streaming platforms.

According to Nielsen, streaming TV provides more authentic choices for Black viewers, and they prefer it over broadcast and cable. In July 2022, for example, time spent streaming accounted for the largest share of Black audience TV time at over 36%. Black viewers also reported streaming as their most watched platform (63%) and most relevant platform (62%).

How CTV and Streaming Advertising Can Reach Black Consumers

To effectively reach Black consumers through CTV and streaming advertising, businesses must understand and respect their unique consumption habits, preferences, and values. Here are a few tips for how businesses can effectively engage with Black consumers through CTV and streaming advertising:

Develop culturally relevant and authentic advertising: Black consumers are more likely to engage with and respond to advertising that is culturally relevant and authentic. This means that businesses must understand the cultural context and experiences of Black consumers and develop advertising campaigns that resonate with them.

Prioritize diversity and inclusivity: Black consumers are more likely to respond to advertising that is inclusive and representative of the diverse Black population. In fact, Nielsen's Attitudes on Representation on TV study found that 59% of Black viewers are more likely to buy from brands that feature someone from their identity group in advertisements, while Nielsen's Branded Content Outcomes studies show significantly higher performance for campaigns that feature Black talent.

Leverage data and targeting: CTV and streaming platforms offer businesses the ability to target specific demographics, such as Black consumers, through data-driven targeting. This allows businesses to reach Black consumers in a more targeted and effective way.

Align with their values: Black consumers tend to prioritize family, community, and social responsibility, and they value products that promote health and wellness. According to Nielsen, Black consumers tend to be more brand loyal than other consumers and are more likely to purchase products from companies that align with their values and beliefs.

The Advantages of CTV Advertising for Reaching Black Audiences

While online advertising can be targeted to specific demographics, it's limited to people who are actively browsing digital or social platforms. Plus, ad-blocking software has become increasingly popular among consumers, which can make online advertising less effective.

CTV advertising, on the other hand, reaches viewers who are watching streaming services as well as the streaming apps associated with linear networks, making it a more effective way to reach potential customers.

Streaming and CTV Advertising: A Cost-Effective Solution for Marketers

Streaming and CTV offer marketers specific capabilities that are superior to other media, such as addressable targeting, deterministic measurement, campaign flexibility and speed, performance-led optimizations, cost-effectiveness and audience engagement. And when it comes to return on investment, streaming TV delivers a 30% higher ROI than all other marketing channels, including digital video, digital display, paid search and social, according to Analytics Partners. Streaming and CTV advertising can also provide a more premium, safe environment for brands, which can help build trust and credibility with potential customers.

How CTV Advertising Complements Existing Digital and Social Strategies

Streaming and CTV advertising can be a cost-effective complement to a marketer’s existing online, social, or digital advertising strategy. By using a multichannel approach, marketers can reach potential customers through a variety of platforms, increasing the chances of their message being seen. Additionally, CTV advertising can provide measurable results, allowing advertisers to track the effectiveness of their campaigns and adjust them as needed, making the most of their advertising budget.

Simulmedia’s Unique CTV Advertising Solution for Marketers

Simulmedia’s TV+© is the only streaming TV advertising platform designed to prioritize a marketer’s needs. Here’s how we can help reach Black consumers:

  • Our technology allows us to build your audience target by who they are, how they’re watching and what they’re watching so we can confidently reach them at the most high-engagement, high-attention moments and at the most efficient cost both nationally or by county, state, DMA or region.
  • Our direct integrations with virtually every ad-supported streaming service, publisher and app – plus every linear network and channel – allows us to place your ads in premium, brand-safe environments with full transparency into where you’re running.
  • To ensure maximum results with minimal waste, we deduplicate audiences and manage frequency across ad-supported streaming services so you’re not overdelivering your message to the same viewers.
  • Our team of experts and TV veterans manage all aspects of your campaign from start to finish.
  • We provide more granular measurement of the KPIs that matter to you than you’ve ever enjoyed before while our dedicated Simulmedia team optimizes your campaign for continuous improvement throughout your flight.

Streaming and CTV Advertising: The Key to Success With Black Audiences

By developing culturally relevant and authentic advertising, prioritizing diversity and inclusivity, leveraging data and targeting, and aligning with Black consumer's values, brands and marketers can effectively connect with Black consumers through CTV and streaming platforms. It is crucial for businesses to understand the unique consumption habits, preferences and values of Black consumers to create relevant and effective campaigns. As Black consumers continue to be early adopters of technology and spend more time on streaming services, businesses that prioritize CTV and streaming advertising will be well positioned to tap into this significant and growing market segment, and to build long-lasting relationships with Black consumers.

Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.