New Study from Magna and Roku Finds New Video Ad Formats in Streaming TV Are 2x More Favorable than Traditional TV Ads

Rhea-AI Summary

The recent study by MAGNA Media Trials and Roku highlights the effectiveness of innovative streaming TV ads, revealing that they drive 78% greater search intent compared to traditional TV ads. The Beyond the :30 on Streaming TV report indicates that new video ad formats are significantly more favorable, with three formats tested: Thematic Tagged Vignette, Roku Original Vignette, and Watch Alongs. Results show up to 66% top-of-mind ad recall for Watch Alongs versus 39% for traditional ads, underscoring the potential of these formats to boost brand awareness and purchase intent.

Positive

• Streaming TV ads drive 78% greater search intent versus traditional ads.
• Beyond the :30 ads show enhanced brand recall, with 66% for Watch Alongs.
• Roku Original Vignettes demonstrate a 10% increase in purchase intent.

Negative

• None.

Study finds brands that use innovative streaming TV ads drive 78 percent greater search intent compared to traditional TV ads

NEW YORK--(BUSINESS WIRE)-- MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Roku announced a new study in partnership with the Roku Brand Studio that finds new video ad formats in streaming TV are twice as favorable as traditional TV ads for consumers.

Today, marketers want to stand out in the shift to streaming. Traditional TV ads alone miss an opportunity to surprise and delight across the entire streamers’ journey outside the traditional ad break. The Beyond the :30 on Streaming TV report examines how marketers can make streaming TV ad experiences more engaging and impactful.

Three new “Beyond the :30” video ad formats were tested:

• Thematic Tagged Vignette: A 30-second animated ad where a brand celebrates streaming.
• Roku Original Vignette: A 30-second ad where a brand references the Roku Original show being streamed.
• Watch Alongs: Ad breaks where a brand sponsors discussion about the show or movie being streamed.

All three “Beyond the :30” ads posted stronger results than traditional TV ads for top-of-mind brand recall (+57% “Beyond the :30” vs. +43% traditional), brand favorability (+8% vs. +3%), and intent to search (+16% vs.+ 9%). These results illustrate the strong promise of “Beyond the :30” ads, including enhancing brand awareness and promoting purchases.

“In the current advertising environment, it is important to recognize that viewers can easily skip over advertising, but our study found they are less likely to do so if the ads are as entertaining as the programming and present a more enjoyable experience,” said Kara Manatt, EVP and managing director, intelligence solutions, MAGNA. “One of the most memorable formats for viewers is Watch Alongs, likely because the advertiser is offering the viewer added value to the show they are watching.”

Key findings from Beyond the :30 on Streaming TV include:

• Thematic Tagged Vignettes catch attention: 65% of respondents agreed that the spots “taught me something new,” besting traditional spots by some 20 points.
• Roku Original Vignettes triple return on purchase intent: +10% purchase intent for Roku Originals Vignettes vs +3% for traditional TV ads.
• Watch Alongs improve recall: 66% top-of-mind ad recall for Watch Alongs vs. 39% for traditional ads.

“Better TV storytelling for brands starts with Roku,” said Asaf Davidov, director, head of ad measurement and research at Roku. “The takeaway for marketers is clear — the key to winning the entire streamers’ journey is surprising and delighting beyond the traditional TV spot.”

The research involved multiple brands representing different verticals, including T-Mobile and Subaru. An at-home panel of 1,316 viewers was divided into randomized exposed and control groups, who watched content of their choice interspersed with streaming-specific advertising and traditional advertising. Following the content-viewing experience, viewers were surveyed to assess the impact on brand key performance indicators, or KPIs, and to learn more through consumers’ points of view.

The full study may 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 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. Roku streaming players and TV-related audio devices are available in the U.S. and in select countries through direct retail sales and licensing arrangements with service operators. Roku TV™ models are available in the U.S. and in select countries through licensing arrangements with TV OEM brands. Roku Smart Home products, including cameras, video doorbells, lighting, plugs, and more are available in the U.S. Roku is headquartered in San Jose, Calif. U.S.A.

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to trends related to TV streaming, marketing and advertising related to TV streaming; the benefits, features, and capabilities of the advertising in streaming TV; and the benefits, growth and reach of the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230119005181/en/

Sarah Saul

ssaul@roku.com

Source: Roku, Inc.

FAQ

What are the findings of Roku's recent study on streaming TV ads?

The study reveals that new streaming TV ad formats drive 78% greater search intent than traditional TV ads.

How do Roku's new ad formats compare to traditional TV ads?

Roku's new ad formats show significantly higher engagement, with 66% top-of-mind brand recall for Watch Alongs compared to 39% for traditional ads.

When was the Roku study about streaming TV ads released?

The study was released in January 2023.

What impact do Roku's streaming ads have on purchase intent?

Roku Original Vignettes yield a 10% increase in purchase intent compared to 3% for traditional TV ads.