Roku, MAGNA and IPG Media Lab Study Reveals Advertisers Benefit 4X From Brand Experiences That Help Consumers Find Free Content

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A new study released by MAGNA, Roku, Inc. 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.

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“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%).

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“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.”

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