At Roku, we are dedicated to understanding the streamer’s journey. How do streamers browse TV options? When are they most receptive to ads? Which ad formats resonate the most? Answering these questions helps us create better experiences for streamers and guide advertisers towards the most impactful opportunities.
In pursuit of these insights, we recently collaborated with MAGNA to survey over 2,500 TV streamers about their viewing habits.¹ Our findings reveal big opportunities for advertisers to aid streamers in navigating the fragmented TV viewing landscape by enhancing content discovery at scale.
Here are three key takeaways from the survey.
1. The streamer’s journey starts with exploration
After powering up their devices, 44% of streamers spend time browsing content options before making a selection, according to the study. Even more striking, half of these individuals had already decided what to watch. This suggests that browsing is an ingrained behavior, akin to scrolling through a smartphone.
One reason browsing has become such a mainstay of the streaming experience is that the fragmented nature of streaming has created hurdles to users searching for desired content. Nearly three in four streamers say they experience difficulties in selecting content — such as having to switch between multiple services, lacking subscriptions to services that have desired content, and managing the overwhelming number of available streaming services. This scenario has spurred "subscription hopping," with 86% of streamers having dropped at least one service in 2023. On average, streamers added four new services and discontinued four services over the course of the year.
Take action: The challenge of finding content gives advertisers an opportunity to simplify the streamer's journey. Our research indicates that over half of all streamers are highly interested in features like watchlists, personalized content hubs, and free trials to new services. Advertisers can leverage this by guiding streamers to content they will love.
For instance, Coca-Cola’s sponsorship of an All Things Food content destination, which aggregates culinary content across streaming services, showcases how brands can enhance content discoverability. By promoting this experience on the home screen and in other key locations along the streaming journey, Coca-Cola helped solve a consumer problem by helping streamers easily find their favorite food shows and discover new ones.
2. The start of the streaming journey is prime time for ads
Our survey found that streamers are more receptive to pre-roll ads and homepage ads than to product placements within content or ads during breaks. A significant 73% of streamers start their viewing experience in a positive mood, which positions advertisers advantageously with an audience that is more open to engaging with their messages. Indeed, streamers in a positive mood are more likely to find ads attention-grabbing (50%) and enjoyable (44%) compared to those in a negative mood (37% and 30%, respectively).
Before the apps, before the shows, before they choose what to watch, and before they start watching, U.S. households with an estimated 120 million people go to Roku’s home screen.² By programming during these ‘lead-in’ experiences you can help audiences solve the paradox of choice and help viewers find delight TV again.
Take action: Maximize brand impact by placing ads where they are most likely to resonate—before the programming begins. Focus on home screen ads and pre-roll ads on popular content to capture attention before people start streaming. Additionally, incorporate your brand into the Roku City screensaver that appears during streaming breaks. That approach has proved successful for brands like Lego, and Carnival Cruise Line.
3. The journey is better with a guide
Finding desired content quickly is a significant concern for TV streamers. In fact, the TV interface is now the most powerful medium for content discovery. Our survey revealed that streamers are more likely to discover new content through a streaming service’s homepage (2.8x) or a trending playlist (3.8x) than from a word-of-mouth recommendation.
Take action: Remove friction from the browsing journey by sponsoring targeted playlists, such as a collection of free movies or a Sports Zone. For example, ViX offered a branded entertainment playlist on the Roku Channel to celebrate Hispanic Heritage Month featuring ad-free original content, telenovelas, talk shows, and soccer.
“We are excited to partner with MAGNA to uncover consumer behaviors throughout the streamer’s journey," says Jordan Rost, head of ad marketing, Roku. “Streamers are seeking ways to reduce friction and enhance content discovery during their browsing journey, and brands that help address these needs have a real opportunity to drive awareness and action at key moments.”
Want to learn more about the streamer’s journey? Read the full study here.
¹ Data was captured from more than 2,500 US viewers over the age of 18 through surveys (offered in either English or Spanish) and media consumption diaries/logs.
² Q4 2023
