A growing body of research continues to build the case for streaming advertising.
Streaming usage has already surpassed that of cable according to Nielsen. And Analytic Partners found these ads deliver 30% higher ROI than other marketing channels and tactics. The reason for that outsized return? TV streaming ads deliver value at every stage of the buying journey — from attracting new customers to influencing purchases.
Drilling down on a few studies that focus on various stages of the sales funnel, we can see that streaming — and Roku advertising in particular — deliver outsized performance regardless of where a person is in their path to purchase. Along with our third-party research partners, we have analyzed thousands of campaigns across every major category in the last several years, and learned that Roku accelerates the path to purchase while delivering exclusive reach to consumers who have ditched traditional TV. We also found that video creative works harder on Roku than other platforms, and that Roku ads deliver strong lifts in awareness, favorability, and purchase intent.
Let’s explore these findings.
Roku delivers audiences that have ditched traditional TV
As more people switch to streaming, audiences are abandoning traditional linear television. In fact, 47% of U.S. households have no traditional TV subscription, up from 20% at the end of 2015. To reach this young and diverse cordless audience, marketers are turning to TV streaming ads.
The strategy is paying off. A recent Roku meta-analysis of nearly 300 campaigns across a variety of categories found that streaming TV ads are a great way to reach cord cutters and "cord nevers.” For the 18-to 34-year-old demographic, we found that 92% of Roku’s reach was exclusive to linear TV.¹
A large telecommunications advertiser recently used Roku streaming ads to increase its reach. In hopes to reach 18- to 49-year-olds, this brand’s campaign delivered 5x the incremental reach with less than half the average frequency compared to the next best linear TV network.²
As people continue to abandon traditional TV, marketers will increasingly look to TV streaming ads to ensure they don’t miss out on audiences that can no longer be reached via the old methods.
Roku outperforms on brand lift for awareness, favorability, and purchase intent
There’s nothing quite like a first impression. At the top of the funnel, marketers must move the needle on brand discovery and perception — an area where Roku advertising shines with our full-screen, non-skippable, brand-safe ads.
To better understand the impact of streaming ads on upper-funnel objectives, Kantar examined hundreds of campaigns on Roku, comparing them to branding benchmarks for mobile advertising. The researcher found that ads on Roku consistently outperformed market norms for awareness, favorability, and purchase intent.³ In its analysis, streaming ads delivered:
Roku moves product, and accelerates the path to purchase
TV streaming ads on Roku influence the final — and most crucial — stage of the buying journey: purchasing. Take consumer electronics. In a study of 2,800 streamers, more than one third of adults who recall seeing ads for consumer tech on Roku went on to buy an advertised product.⁴
In fact, Roku ads influenced the entire consumer tech buying journey — from awareness to purchase. Here is a breakdown:
A recent study of Gen Z streamers found similar results, revealing that 35% of Roku users in this age group have purchased a brand or product after seeing it featured on TV streaming. It’s no wonder the ads resonate. After all, Gen Z spends more time streaming than any other generation. Almost half of this cohort (46%) watch for two hours or more each day.⁵
Roku makes video creative work harder
It’s not uncommon for people to skip TV ads or turn their attention elsewhere until they end. One study found that two-thirds don’t actively watch ads at all. Instead 64% grab their phones, 21% switch to another channel, and 15% even leave the room.
On Roku, brands can uplevel their ads to keep viewers engaged. Many have had success going “beyond the :30” — creating ads that complement the content experience and offer something valuable in exchange for viewing. In fact, we recently teamed up with MAGNA Media Trials to study three types of ads:
- 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 a discussion about the show or movie being streamed.
Consumer favorability toward these new video formats was double that of traditional TV ads. They delivered stronger results than traditional TV ads for several key metrics:
The lesson? When brands add value, consumers respond.
Every stage of the funnel
Marketers are on a constant quest to influence consumers throughout the purchase funnel.
TV streaming ads are a proven way to drive marketing performance whatever your objective — from driving awareness and brand lift, an area where TV has long been the gold standard, to conversions, where streaming has emerged as an equal to other digital channels.
But don’t take our word for it. A growing body of research, including but not limited to the studies outlined above, points to its influence at all stages of the path to purchase.
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¹ Roku Internal, Reach Insights Norm Q3’22
² Roku Internal data, Flight: Jan-March, 2022
³ Kantar Millward Brown Brand Lift Norms P3Y 22022
⁴ Roku + Lucid Technology Survey, Q4 of 2021. Sample size, 2,800+ streamers (on Roku and non-Roku devices)
⁵ Luth Research, Profiling the Gen Z Consumer, May 2022
