Roku Video Ads Are 67% More Effective Per Exposure Than Linear TV Ads, New Study Finds
April 25 2018 - 11:08AM
Business Wire
Applebee’s, H&M, McCormick and Truvia
Saw Measurable Ad Recall, Brand Lift from OTT Campaigns
Video ads on the Roku OTT platform are 67 percent more effective
per exposure at driving purchase intent than ads on broadcast and
cable television, according to a new landmark study conducted by
MAGNA, IPG Media Lab and Roku Inc. (Nasdaq:ROKU). Applebee’s,
H&M, McCormick and Truvia participated in the research.
The new study “Under the Hood of Over-the-Top Measurement,” also
found that consumers consider brands that run video ads on the Roku
platform to be twice as innovative as traditional linear TV alone.
In addition, consumers found the ads to be more memorable than
those on linear TV, due in part to the reduced ad load of OTT.
“It’s clear that OTT offers advertisers distinct advantages over
traditional TV,” says Kara Manatt, SVP, Intelligence, Solutions
& Strategy, MAGNA Global. “Given that OTT needs fewer exposures
to generate the impact that linear TV provides at higher
exposure levels, brands can run campaigns on OTT that are both more
efficient and effective.”
Other key findings:
- OTT Makes Brands Look
Innovative: Moving impressions to Roku from linear TV provides
a 32 percent increase per exposure in perception that brand has a
unique story to tell
- OTT Reaches a More Targeted
Audience: Roku offers precise targeting and reaches specific
high-value audiences, spurring larger brand lift per exposure than
linear television
- OTT Ads Require Less Exposure Than
Linear TV: To drive comparable brand lift, advertisers need 10
linear TV exposures, 7 Roku exposures, or 6.5 exposures on Roku and
linear TV together
“Consumers are shifting their TV time from linear to OTT, making
it important for marketers to also shift their ad investments,”
said Scott Rosenberg, Roku GM of Platform Business. “This study
demonstrates that ads on Roku deliver not only incremental reach,
but also higher ROI than linear TV ads.”
Methodology:
In conducting the media trial commissioned by Roku, four brands
-- Applebee’s, H&M, McCormick and Truvia -- were tracked and
measured. The Roku platform was used to identify households with
exposure to linear TV and/or OTT ads. MAGNA surveyed a total of
4,621 consumers – both those exposed to the ads, and an unexposed
control group. The survey consisted of traditional brand metrics,
such as ad recall, brand favorability, and purchase intent.
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 Roku
TV models are available around the world through direct retail
sales and licensing arrangements with TV OEMs and service
operators. The company was founded by Anthony Wood, inventor of the
DVR. Roku is headquartered in Los Gatos, Calif. U.S.A.
About MAGNA
MAGNA is the centralized IPG Mediabrands resource that develops
intelligence, investment and innovation strategies for agency teams
and clients. We utilize our insights, forecasts and strategic
relationships to provide clients with a competitive marketplace
advantage.
“Under the Hood of Over-the-Top Measurement” is the latest in
MAGNA’s suite of media trial studies. Most recently, the company
explored best practices for mobile ads in “Battle of the Mobile Ad
Formats,” 360 video ads in its “The 360 Effect” report, the use of
haptic technology in mobile video ads in its “Ads You Can Feel: The
New Mobile Ad Experience” study and the impact of viewability on
performance based campaigns in its “Pulling Back the Curtain:
Viewability + Direct Response” report.
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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version on businesswire.com: https://www.businesswire.com/news/home/20180425006114/en/
MediaIPG MediabrandsScott BerwitzGlobal Corporate
CommunicationsScott.Berwitz@mbww.comorRokuKelli GailDirector, Ad
Industry Communicationskgail@roku.com
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