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Magna and Roku research finds new ad formats for streaming TV outperform traditional ads 

New video ad formats in streaming TV are “twice as favourable” as traditional TV ads for consumers, according to the results of a new study from Magna Media Trials and Roku Brand Studio.

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.

Kara Manatt, EVP and managing director, intelligence solutions, Magna, commented: “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. 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.”

65% of respondents agreed that the Thematic Tagged Vignettes “taught me something new,” besting traditional spots by some 20 points, while the Roku Original Vignettes tripled return on purchase intent (+10% purchase intent for Roku Originals Vignettes vs +3% for traditional TV ads). The Watch Along ads were noted to improve top-of-mind recall (66% 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.