New York, NY -July 26, 2022 – MAGNA Media Trials, in collaboration with Amazon Ads and Mediabrands Content Studio, recently revealed a new study examining the strong potential of brand-funded entertainment. The Converging Worlds of Content + Commerce explores the emerging realm of brand-funded entertainment, and how this unique format can work in sync with various shopping options to optimize the consumer shopping experience. The study proves that content is supreme when it comes to TV show viewership, and that brands should not feel held back by their category when exploring the domain of brand-funded entertainment. In addition, the study provides a framework for the ideal path from TV content to purchase, effectively more seamlessly connecting content and commerce.

The Converging Worlds of Content + Commerce shows that although there is high interest in purchasing products seen in TV shows, the current trajectory on the path to purchase can cause friction for consumers. In turn, this friction leads to frustrated consumers and a gap on the path to purchase. Forward-thinking brands should take note of these pain points and begin to think about how they can innovate in a way that would solve for this, which would have both short- and long-term positive implications for both the brand and consumers.

Brand-funded entertainment is fertile ground for exploration. Forward-thinking brands looking to optimize the consumer shopping experience should reimagine how they can synthesize their content and commerce experiences in a way that not only delights consumers but battles the long-held belief among marketers that these categories must be treated as mutually exclusive. Brand-funded entertainment is one solution that brands can leverage to bridge content and commerce. This study shows that audiences are reacting positively to brand-funded entertainment, especially among younger generations (e.g., adult Gen Z, Millennials). This positive reaction, in turn, fuels momentum for intent and purchase signals. Brands interested in bridging content and commerce should take note and decide if the brand-funded entertainment format would work for them.

“It’s a huge opportunity. Brands that are winning with today’s audiences understand that consumer brands are media brands. The opportunity to connect with consumers through content is far greater than the incidence in which consumers buy or use most brands’ products and services. If they create content that is compelling and has a direct connection to sales, it is a win-win for both the brand and audience.” – Brendan Gaul, Global Chief Content Officer, Mediabrands

“We’re entering an exciting period where there are incredible opportunities for content and commerce to come together to create a seamless and enjoyable experience for customers. The sky really is the limit for our viewers and brands when you have a modern broadcaster like Amazon Freevee that reaches a wide audience.” — Ryan Pirozzi, co-head of content and programming at Amazon Freevee.

Key Findings from The Converging Worlds of Content + Commerce include:
Content before commerce: Consumers do not differentiate if TV shows are created by a brand – what keeps them watching is the content itself. When asking consumers why they chose to watch brand-funded entertainment, 59% of respondents said they found the show ‘Fun to watch.’ Other top reasons why respondents chose to watch brand-funded entertainment was because they ‘Enjoyed the content’ (45%), and ‘Learned something new’ (34%).
Viewers are accepting of brand-funded entertainment vs. traditional commercials: Overall, consumers prefer brand-funded entertainment over the traditional TV ad format, with a higher index among those who primarily stream video content (+10%), compared to traditional pay TV viewers. Given the positive response to the brand-funded entertainment format, this is a prime opportunity for brands to weave themselves into culture, inspire motivation, and drive purchase intent among their audience.
Reimagining content to commerce experiences for customers: The existing path to purchase can cause friction for the consumer, as it relates to products seen on TV shows. Over half of the consumers surveyed said they felt frustration when trying to purchase a product seen in a TV show (52%). Frustration was especially felt among younger generations, such as adult Gen Z (+13%) and Millennials (+7%). This project has proven there is tremendous scope when it comes to reimagining the consumer experience, from brand-funded entertainment through to purchase.
The full study can be found here.

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Mediabrands Content Studio
Mediabrands Content Studio (MBCS) is part of IPG Mediabrands, the media and marketing solutions division of Interpublic Group (NYSE: IPG). MBCS is a media-fueled content practice designed to network and grow Mediabrands’ content and creative capabilities around the world. Strategically pairing new models of storytelling with Mediabrands’ global audience insights, MBCS develops and creates short – and long-form Original, Branded, Performance, and Campaign Content and provides a suite of entertainment solutions including media, talent, and production partnership development that powerfully grow brands. For more information about MBCS, please visit http://www.mbcsww.com/.

Media Contact:
Zinnia Gill
Mediabrands
VP, Global Corporate Communications
(646) 965-4271