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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

Wednesday, April 25, 2018 8:16 am PDT
"This study demonstrates that ads on Roku deliver not only incremental reach, but also higher ROI than linear TV ads."

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. 

About Roku, Inc.
Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku streaming players and Roku TV models are available around the world through direct retail sales and licensing arrangements with TV OEMs and service operators. The company was founded by Anthony Wood, inventor of the DVR. Roku is headquartered in Los Gatos, Calif. U.S.A.

About MAGNA
MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.

“Under the Hood of Over-the-Top Measurement” is the latest in MAGNA’s suite of media trial studies. Most recently, the company explored best practices for mobile ads in “Battle of the Mobile Ad Formats,” 360 video ads in its “The 360 Effect” report, the use of haptic technology in mobile video ads in its “Ads You Can Feel: The New Mobile Ad Experience” study and the impact of viewability on performance based campaigns in its “Pulling Back the Curtain: Viewability + Direct Response” report.

About IPG Media Lab
Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.

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Contact:

Scott Berwitz
Global Corporate Communications, IPG Mediabrands
Scott.Berwitz@mbww.com

Kelli Gail
Director, Ad Industry Communications, Roku
kgail@roku.com

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