Streaming is up – in fact, it represented nearly half of the A18-34 TV viewing hours in May 2020.1 But 54% of viewers don’t know what to stream.2 Aha! At a time when sponsorships for live events and sports are limited, here is an opportunity for marketers to address a universal consumer need – content discovery. How can brands help streamers find content that interests them and what’s in it for the brand?
Roku and IPG Media Lab partnered together to investigate the effect of the Brand Experiences – ads that offer free experiences to streamers, such as promo codes to free movies, ungated TV shows/movies, and more – on purchase intent, brand equity, and consumer perceptions.
Here are the key findings:
Video ads and Brand Experiences work better together
Both ad types are persuasive but in different ways. Video ads directly communicate brand attributes and, in turn, positively impact brand favorability. Brand Experiences offer utility and free content (aka, value!) and ultimately trigger purchases. Put the two ad formats together and purchase intent is 4x greater than video advertising alone.
"Video ads and Brand Experiences together generate 4X greater purchase
intent than video advertising alone."
Streamers are satisfied with Brand Experiences and appreciate the brands that provide them
61% of streamers who engaged with Brand Experiences were more likely to notice the ad. 48% were more appreciative of the brands that provided the experience and 33% were more likely to consider buying the advertised product.
Purchase intent and positive brand perceptions increase with continued exposure to Brand Experiences
Streamers with higher frequency on Brand Experiences had higher purchase intent (75%) and brand favorability (87%). While brand favorability leveled off after two exposures, purchase intent continued to grow.
What about the actual experience? What kind of offers resonate the most? Our study dove into that, too, and found that streamers preferred high relevance (perceived and/or via genre targeting) over high value of the offer. Streamers want to feel understood.
“I strongly feel we’ll see major growth of brands incorporating relevant brand experiences in their media campaigns, particularly in the streaming space as it offers a unique and customizable advertising experience.”
EVP, Managing Partner, IPG Media Lab, and Global Chief Innovation Officer, UM
For marketers tasked with filling the hole created by declining sports and live event sponsorships, this is great news. Brand Experiences are a way for brands to engage with consumers beyond the traditional TV ad and provide real value.
For more insights on the effect of Brand Experiences on brand opinion and purchase intent, download the full study here.
The study was conducted by IPG Media Labs and commissioned by Roku in two survey phases reaching over 2,300+ respondents total. The first conducted in Q4 2019 to measure the impact of Brand Experiences in the wild from brands like Energizer and a major CPG brand, and the second in May 2020 to dive deep into consumer perceptions of brand experiences and their impact on brand opinion.
1Source: Source: Roku analysis of Nielsen data, 2020.
2 Source: IPG Media Lab and Roku study that is the subject of this blogpost; Survey Q: When you sit down to watch a TV show or a movie on your Roku, ￼how often do you know what you want to watch? Answer: “I sometimes/never/rarely know what I want to watch”