The effectiveness of advertising on streaming services has never been more potent, according to new global research into viewer behaviours by Rakuten Advertising.
The reason for this optimism is two-fold, and highlights the direct returns from advertising on CTV. Firstly, the data show that viewers are purchasing searched-for items advertised on streaming services and, secondly, high proportions of viewers are now preferring streaming services over traditional TV, estimated at 41% globally.
Across the board, the majority of respondents stated they purchase or occasionally purchase the product or service they have searched for, having seen it advertised on streaming service. This ranges from 56% in the US up to a staggering 81% in Brazil. Elsewhere in Europe, Spain is only marginally lower that Brazil with 78%, while Germany and Italy boast 75% and 72% respectively; followed by the UK (69%) and France (65%)
The UK matches the 41% global figure of those preferring CTV over traditional. However, this rises to 52% in the US and 56% in Brazil, demonstrating to advertisers in these markets that CTV is ignored at their peril. In Europe, Spain tops out at 50%, with Italy and Germany coming in at 34%. Although not as high as other markets, one-in-four French viewers prefer watching streaming services.
Encouragingly for media agencies, while there’s a natural inclination to CTV preference among the youngest age groups (18-24 years-old, 25-34 years-old), these aren’t massively higher than those aged over 50. It might be expected that there’d be a significant drop-off in viewership post-Generation X, but baby boomers are as keen to stream as anyone.
“This combination of scale plus impact makes CTV an essential component of media planning,” said James Collins, SVP of Media at Rakuten Advertising. “It clearly shows why media buyers need to understand how to integrate CTV into wider media strategies and deliver a call to action that takes the brand from the TV and into the browser search bar. The figures on purchasing behaviour alone demand action, especially when considered alongside the levels of streaming as a preferred means of watching content.”