As a new or small streaming TV provider, generating revenue through video ads is both an opportunity and a challenge. While established platforms attract advertisers with ease, smaller players face hurdles like minimum viewership requirements, high setup costs for ad management, and the difficulty of securing advertisers when starting out. However, with the right strategies, you can successfully attract and sell ads while growing your platform.

Overcoming Common Challenges for Small Streaming Providers

1. Minimum Viewership Requirements

Most video ad exchanges require streaming providers to meet minimum viewership thresholds before they can start serving ads. For new or small providers, this can feel like a catch-22—without ads, it’s hard to fund growth, but without growth, it’s hard to attract ads.

Solution: Partner with larger streaming platforms or content aggregators. These companies allow smaller providers to join their networks, combining viewership statistics across multiple providers to meet ad exchange thresholds. While they often take a percentage of your ad revenue, this trade-off can be worthwhile, as it provides access to a larger pool of advertisers and simplifies ad implementation.

Pro Tip: Choose aggregators that align with your content genre and audience demographics to maximize your ad revenue potential.

2. Content Versioning with Embedded Ads

If you’re not ready to invest in sophisticated ad management systems, start by embedding ads directly into your content. This involves editing ads into your video programming, creating multiple versions of shows or episodes featuring different ads.

Benefits of This Approach:

• Bypasses the need for expensive ad management software in the early stages.
• Allows you to deliver ads even with a small audience.
• Offers advertisers guaranteed visibility.

Recommendations:

• Use automated video editing tools to streamline the process and reduce manual work.
• Create a rotation schedule to ensure a fresh variety of ads across your content library.

3. Direct Ad Sales for Higher Revenue

While ad networks are convenient, direct ad sales give you more control over your ad inventory, pricing, and partnerships. This approach is especially effective if you have a niche audience that appeals to specific brands.

Steps to Implement Direct Ad Sales:

1. Hire Independent Ad Sales Agents: Invest in sales expertise to connect with potential advertisers. These agents can negotiate deals and bring in high-value advertisers.
2. Start with Free (Comp) Ads: Offer complimentary ad placements for 1-3 months to build relationships with advertisers. During this time, focus on showcasing the value of your platform by providing detailed viewing and engagement reports.
3. Promote Advertised Content: Run targeted campaigns to drive traffic to videos with advertiser content. Increased visibility boosts ad performance and builds advertiser confidence.
4. Convert Free Advertisers to Paid Partners: Once advertisers see the results, they’ll be more inclined to continue as paying clients.

Tools to Use:

• Basic ad management plugins or platforms to monitor performance.
• Analytics tools that track engagement metrics such as click-through rates (CTR) and video completion rates.

Additional Tips for Success

• Leverage Social Media: Promote your platform and its advertisers through social media to reach a broader audience. Consider using teaser clips and behind-the-scenes content to create buzz.
• Focus on Niche Markets: Advertisers are often willing to pay a premium to reach a highly targeted audience. Identify your niche and market it to advertisers looking for specific demographics.
• Track Trends: Stay informed about ad trends, such as the growing popularity of interactive video ads, to provide cutting-edge solutions for advertisers.

Final Thoughts

Building a successful ad revenue stream as a new or small streaming TV provider requires strategic planning and consistent effort. By addressing common challenges with creative solutions like content versioning, partnering with aggregators, and pursuing direct ad sales, you can overcome barriers and attract advertisers. Focus on building strong relationships, providing value to advertisers, and continually optimizing your platform for growth.