NEW YORK – September 10, 2020 – A new study released today by MAGNA, Roku, Inc. (NASDAQ: ROKU) and IPG Media Lab, “Valuing the Value Exchange,” demonstrates how marketers can use brand experiences that aide TV streaming content discovery while sponsorships for live events and sports are limited. The study reveals video ads and brand experiences together generate 4X greater purchase intent than video advertising alone.
The study investigated how consumers feel about brand experiences on TV streaming that support content discovery, and how advertisers can assess and measure impact. Brand experiences are ads that offer free experiences to streamers, such as promo codes to free movies, ungated TV shows/movies, and more.
“The most important benefit of brand experiences is being able to give something back to individuals by offering them real utility and the study found this to be mutually beneficial for both consumers and brands,” said Kara Manatt, SVP, Group Director, Intelligence Solutions, MAGNA. “In the end, relevance is king. We found that it was more critical for a brand to deliver a content offer that consumers deemed relevant than to deliver a deeper discount offer that the consumer found irrelevant. We also found that diversifying ad types and serving both video and brand experience ads contributed to significant branding impact.”
Of note, the study found brand experiences felt less intrusive than most video ads, provided greater differentiation from traditional advertising, and seemed more fun. Key findings include:
- Offer Relevance Is More Important Than Offer Value: 60% of those surveyed in May 2020 were more likely to take advantage of a brand experience when the offer was relevant, and more relevant offers also served as a catalyst for driving more positive brand opinions.
- Brand Experiences Build Brand Equity: 61% of streamers who reported interacting with a brand experience were more likely to notice the ad; 48% were more appreciative of brands who served the brand experiences; 33% were more likely to consider buying the advertised product.
- Video Ads and Brand Experiences Are Better Together: The results of the study indicate video ads communicate brand attributes leading to improved opinions, while brand experiences offer utility and free content, and ultimately, trigger purchases. The impact was amplified by an additional 4X when both ad types worked together.
- Branded Experience Frequency Delivers Purchase Intent and Positive Perceptions Quickly: Streamers with more frequency on branded experiences reported higher purchase intent (75%) and brand favorability (87%).
“Based on previous studies, we know that consumers tend to respond more favorably to personalized ads that cater to their interests. Offering up curated brand experiences alongside content discovery is a huge opportunity for brands looking to reach new audiences and convert them to longtime customers. 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” said Chad Stoller, EVP, Managing Partner, IPG Media Lab, and Global Chief Innovation Officer, UM.
“The growth in TV streaming has become a CMO-level priority,” said Dan Robbins, VP of Ad Marketing & Partners Solutions, Roku. “Marketers can go beyond the video ad to engage with streamers and use branded experiences to drive more brand affinity, purchase consideration and intent. Media plans that miss this opportunity only give brands one piece of the puzzle.”
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.
About Roku, Inc.
Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. RokuTV™ models and Roku streaming players are available in select countries around the world through direct retail sales and licensing arrangements with TV brands and service operators. Roku audio products are available in the U.S. through direct retail sales. Roku is headquartered in San Jose, Calif. U.S.A.
Roku is a registered trademark of Roku, Inc. in the U.S. and in other countries. Trade names, trademarks and service marks of other companies appearing in this press release are the property of their respective holders.
MAGNA is the centralized IPG Mediabrands resource that provides strategic investment and media intelligence for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.
MAGNA harnesses the aggregate power of all IPG media investments to develop go-to-market strategies, designing unique partnerships to drive maximum value for our clients. MAGNA has set the industry standard for more than 60 years by predicting the future of media value. We publish more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.
MAGNA infuses the organization with knowledge that empowers better decision-making. We are a team of experts across five key competencies who support IPG cross-functional teams through: Partnership, Enablement, Accountability and Connectivity. Follow us on Twitter @MAGNAGLOBAL.
About IPG Media Lab
Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.
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Director, Global Corporate Communications