Impact of advertising within premium streaming content

New Delhi: Magnite, the sell-side advertising company, unveiled its latest research study, “Why Streaming TV Is a Must-Buy.” 

The research examines the impact of advertising within premium streaming content in India, revealing that ads in this environment enhance ad recall, cultivate greater trust, and drive greater purchase intent.

“The combination of increased internet access coupled with Smart TV adoption is powering the rapid growth of India’s streaming TV audience,” said Gavin Buxton, Managing Director, Asia at Magnite. “Our latest research highlights that advertising in streaming’s premium environment yields significantly better results than other digital formats. As streaming TV viewers in India increasingly opt for ad-supported content, advertisers who focus on integrating streaming into their media strategies have a unique chance to reach highly attentive audiences in a premium environment.”

“As the Indian market continues to embrace ad-supported streaming, Magnite’s research findings demonstrate that advertising on streaming platforms drives powerful results compared to other digital channels,” said Prabhvir Sahmey, Senior Director, Ad Sales, India at Samsung Ads. “Amid the shift in consumer viewing habits, advertisers have valuable opportunities to plan their campaigns around premium streaming TV inventory. Streaming platforms that can consistently deliver an exceptional user experience, along with compelling content that meets the standards viewers have come to expect, will be able to retain subscribers and stand out in a crowded landscape.”

Key findings from Magnite’s study include:

• Ads on streaming TV are more memorable and impact purchase behaviours. Compared to video-sharing platforms (VSPs), streaming TV boasts higher rates of ad recall, producing an 11% higher rate of unaided recall when an ad is shown more than once. This influences purchasing decisions, with 32% of streaming TV viewers agreeing they often purchase a product after seeing an ad.
• The premium nature of streaming TV correlates with positive brand outcomes. While 100% of streaming TV is premium content, nearly all (92% of VSP viewers spend most of their time watching non-premium content. Premium content consumption encourages focused and deliberate viewing, resulting in a highly engaged audience, 86% of whom pay attention to the ads they see in this setting.
• Streaming TV’s premium environment boosts credibility and trust, helping brands win consumer loyalty. Nearly all of those surveyed (86%) feel ads on streaming TV platforms enhance a brand’s credibility and 88% report that they trust the brands they see on streaming TV. This blend of credibility and trust positively influences the likelihood of consumers making future purchases. 

Methodology

Magnite partnered with MediaScience, a global leader in media research and measurement. 

The study consisted of audience testing in a simulated viewing experience, where participants added Streaming TV and Video Sharing Platform (VSP) apps to their personal devices. Each participant watched content (TV shows and videos) and was exposed to ads appearing in naturally occurring ad breaks or as pre-roll. The panel was immediately surveyed after the viewing session to capture attitudinal responses. This two-factor research design provides a multidimensional view of Streaming TV and VSP viewers and points to differences between post-exposure behaviours and their effects on advertiser outcomes.