Can Streaming Channels Ads Create Opportunities For Brands?

It used to be that when the adverts came on television, it was a signal to get up and put the kettle on. 

Power stations even used copies of the Radio Times so they could predict when electricity demand would increase, known as a TV pickup. 

Advertising was part of UK television culture, but sadly, the production quality and storytelling were not as slick and exciting as it is today. 

Commercial breaks were certainly not multimillion-dollar viral hits like Super Bowl ads or well-crafted emotional masterpieces like the John Lewis Christmas adverts. 

From the late 2000s, many viewers switched to streaming platforms like Netflix, which offer a huge catalogue of on-demand shows. For a monthly fee, subscribers could avoid the adverts and binge-watch their favourite series uninterrupted. 

When did television advertising start?

Advertising has been part of the viewer experience on television since the 1950s, when commercial channels were licensed for the first time in the UK. 

Terrestrial channels up until that point were all public service broadcasting, namely the BBC. ITV launched its television channel and featured its first commercial in 1955, for Gibbs SR toothpaste. 

The adverts were poorly produced, with bad lighting, scripting and acting. They were also longer and definitely not entertaining, often simply replicating a print advertisement in a live-action format. 

Funds from advertising revenue went into supporting commercial channels and producing new television programmes, whereas the BBC was supported by the public’s licence fees.

When did television streaming begin?

Technological advances in video compression and wider broadband internet adoption opened the window for a new way to deliver entertainment. Combined with a public appetite for instant access to content, television streaming was born.

Streaming was possible over the internet in the late 90s with Microsoft’s RealPlayer application, and YouTube started video streaming in 2005.

But it was the launch of Netflix’s video-on-demand service in 2007, a replacement for its DVD-by-post service, that changed the landscape of television forever. 

Video-on-demand platforms provided a subscription alternative to terrestrial and cable. Viewers could watch what they wanted when they wanted, and there were no ads

Today, streaming accounts for 38 per cent of all global television, an impressive statistic for such a relatively short period in existence.

Why are there adverts on streaming platforms?

Over the past few years, the focus for streaming behemoths has shifted from measuring the number of subscribers to making more profit. 

As operating costs increase for streaming platforms, new ways to maintain and increase revenue need to be found. One way was to increase prices, and the other was to introduce advertising. 

Echoing the cable and commercial terrestrial model means more income for platforms and, in theory, better investment in television production. 

Netflix introduced a new, cheaper subscription tier with advertising in 2022, the Basic with Ads package. They were followed shortly after by Disney+. 

Advertising started appearing on Amazon Prime Video services in 2024, with subscribers asked to pay more to get rid of them. 

Thrown into this mix is free ad-supported streaming TV (FAST), which provides an alternative to paid subscriptions. Examples include Roku, Tubi, Pluto TV and Amazon FreeVee, which all use advertising to support programming.

These channels tend to show classic television series and films, which are cheaper to license. Added to the shortage of original content is the poor quality of some of the advertising, which is reminiscent of stilted, poorly produced commercials of the 1950s. 

Premium subscribers to streaming companies can still pay to avoid the ads, but that may change as budgets tighten and executives squeeze more profit from customers.

How can brands take advantage of more advertising?

In 2026, more TV commercials than ever before can be found on streaming channels, some tailored specifically to the viewer using advanced algorithms and AI.

With streaming services still growing and expected to be worth $139 billion globally by 2027, there are opportunities to be had in advertising. 

Advertising costs for streaming channels tend to be much lower than traditional cable or terrestrial slots. It also offers the opportunity to reach specific target audiences through data and behavioural targeting. 

Utilising a combination of formats – such as shoppable ads for instant purchases, ads that show on the screen while the programme is paused and bookend ads – can increase reach.

However, the content has to be engaging and appealing to the audience, no matter if it is short, 5-10 second or longer form with impactful storytelling. 

The importance of production quality for TV commercials cannot be understated. Professional-looking, polished advertising can improve brand trust and audience retention, and associate the brand with positive sentiments.

Using a TV advert production company can help create an advert that viewers won’t forget and avoid the pitfalls of those early ITV commercials. It can ensure that when your advert comes on, the viewers won’t leave the room to avoid it.