Live streaming has become a powerful medium for modern content consumption. While offering viewers the chance to watch sought-after events in real time from hundreds of miles away, live streaming now offers brands unprecedented opportunities to engage these audiences through interactive advertising. Viewer expectations have shifted now that they are paying for access to platforms, and with advancements in technology impacting all areas of content consumption, they expect more targeted, personalized and immersive interactions. Broadcasters and brands are therefore working together to offer new experiences, and create opportunities to not only capture their audiences’ attention but also build lasting relationships. 

In this article, we take a closer look at a unique aspect of live streaming that has evolved in leaps and bounds: interactive advertising. 

What is interactive advertising?

Interactive advertising is a modern marketing strategy that aims to create engagement between consumers and promotional content, namely ads. Brands are eager to connect with their audiences by offering much more personalized advertising content, based on gathered data and targeted to specific viewers using artificial intelligence (AI). Compared to traditional advertising, which relies on one-way communication from the advertiser to the audience, interactive advertising fosters two-way communication and encourages active user participation.

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For example, the New York Times effectively ran an interactive advertising campaign aimed at millennials to encourage downloading their crossword app. Their ad, placed on social media, displayed a short crossword entry, referencing a show many would have watched in their youth: "Nickelodeon show whose protagonist has a football-shaped head”. Users had to interact with the ad and enter the nine-letter answer to reveal a download link for the crossword app. By combining nostalgic cultural references with fun and engaging access, the campaign successfully increased app downloads and enhanced brand connection among younger users.

Viewer engagement during live sports events

The transition of live sports broadcasting to streaming platforms marks a shift in how brands connect with audiences, as they begin to leverage the interactive capabilities of connected TV (CTV). Popular platforms such as Netflix, Amazon and Peacock have secured exclusive streaming rights to high-profile events, creating unique opportunities for advertisers to engage with viewers in real time. This type of interactive CTV advertising offers viewers several innovative experiences, such as the chance to purchase goods and merchandise related to the live content they have chosen to watch, such as team jerseys or tickets to future games, via QR codes or remote swipe features.

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Interactive advertising also allows for more communicative experiences, such as those that allow you to order food during halftime, or to celebrate wins with other fans. CTV has also made it possible to gamify ads related to the live content in question, which viewers can actively engage with. Unsurprisingly, AI has also been leveraged to enhance these experiences further, such as content recognition, which helps choose the optimal moments for ad placement, such as during pauses in play. It has also made it possible to tailor ads to viewers’ likes and habits, and dynamically adapt ad content and tone to match viewer preferences. 

The future of interactive advertising in live streaming

As technology advances even further and AI is harnessed for even greater impact, live streaming advertising will begin to take the place of traditional advertising —the results are simply too great to ignore. According to a report by Sprii, viewers spend significantly more time engaging with live shows —averaging 15 to 30 minutes— compared to the mere 54 seconds they typically spend on a website. 

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This extended viewer engagement offers huge potential for brands, and has proven to lead to greater conversion rates of 50% to 60%, surpassing a 2.5% average for traditional e-commerce. By way of example, platforms such as TikTok and Amazon Live have successfully managed to combine entertainment and shopping opportunities by incorporating commerce features directly into a live stream, therefore increasing the chances of direct viewer engagement. 

For more information on our streaming technology, or to speak to a member of our team about integrating System73 into your content delivery strategy, visit www.system73.com.