Roku video ads more effective than linear TV ads

Roku Video Ads Are 67% More Effective Per Exposure Than Linear TV Ads, New Study Finds
Applebee’s, H&M, McCormick and Truvia Saw Measurable Ad Recall, Brand Lift from OTT Campaigns

SAN FRANCISCO — 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.