It’s time to buy TV the way you watch TV. That means buying more TV streaming ad inventory, but what’s the best way to do that for your brand?
In this whitepaper, we’ll show how shifting budgets from traditional linear TV to Roku could impact total audience reach for advertisers in three different industries. We’ll also demonstrate how that potential total audience reach has changed over time and at different investment levels. By the time you’ve finished, we think you’ll reach the same conclusion many advertisers have reached: shifting to TV streaming allows you to reach more of your audience than traditional linear TV can by itself, and that this incremental reach opportunity is growing every quarter.
2020 created formidable challenges for video investment teams and brands. Traditional linear TV viewing decreased. TV streaming viewing increased. Upfronts commitments diminished as more money migrated to the scatter market. Direct response inventory became scarcer and often more expensive.
In addition, according to an analysis of Q1 2020 Nielsen data, on traditional linear TV, 20% of the typical Adult 18-49 audience received 80% of targeted campaign impressions. This created a one-two punch: one in five were likely to be over-exposed, while four out of five were likely to be under-exposed.1
Roku helps advertisers extend their audience reach as people migrate from traditional linear TV to TV streaming.
As the chart below demonstrates, according to an analysis of Roku benchmark data from Q1 2020, 83% of Roku’s average campaign reach among Adults 18-49 could not be reached on broadcast or cable networks. By comparison, according to a Roku analysis of Nielsen data, on average just 4% and 1% of broadcast and cable network campaign reach, respectively, was unique.2
Source: Broadcast and cable data from Roku analysis of Nielsen data, Q1 2020 Roku Reach Insights benchmarks
This explains why using TV streaming and traditional linear TV together is so common; in Q4 2020 alone, 326 advertisers bought TV streaming inventory with Roku and traditional linear TV. That represents a 20% increase over Q3 2020.3
Roku’s ability to deliver a unique and incremental audience is a product of three things:
We analyzed the traditional linear TV campaigns of three brands – one in retail, automotive, and financial services – to project the potential incremental audience reach the brands could have achieved across their campaigns had they shifted budget to TV streaming with Roku while keeping total campaign budgets flat in 2020. As you will see, Roku’s potential to deliver incremental reach increased throughout the year as Roku’s audience grew.8 We expect the amount of incremental audience reach available to advertisers through Roku to increase in 2021 as viewers watch more TV streaming content and less traditional linear TV.
The data below comes from Roku Activation Insights. This tool provides a what-if simulation that estimates potential reach in cross-media campaigns. It does this by estimating the reach impact of shifting a portion of advertiser budget from traditional linear TV to the Roku Audience Network and then evaluating the total incremental reach such a campaign shift could achieve.
To help orient you, here’s how we calculate the metrics you’ll see in these charts:
In Q1 2020, a 10% shift in budget to Roku could have led to 3.8% incremental reach for this retailer. By Q4 2020, that same 10% shift in budget to Roku could have led to a 14.4% increase in total reach.
In Q1 2020, a 10% shift in budget to Roku could have led to 0.9% incremental reach for this automotive brand. By Q4 2020, that same 10% shift in budget to Roku could have led to an 8.6% increase in total reach.
In Q1 2020, a 10% shift in budget to Roku could have led to 0.8% incremental reach for this financial services brand. By Q4 2020, that same 10% shift in budget to Roku could have led to a 12.1% increase in total reach.
Source: Roku Activation Insights 2020
If you’re wondering how to maximize audience reach and determine the right budget to shift to TV streaming, we’re help to help. Simply contact us to get a free appraisal of your current efforts along with recommendations on how to reach more even customers.
1 Roku Analysis of Nielsen data, Q1 ’20, A18-49, Top 5 Broadcast & ESPN, AMC, USA, Fox News, TBS
2 Broadcast and cable data from Roku analysis of Nielsen data, Q1 2020 Roku Reach Insights benchmarks
3 Roku Advertising internal reporting, 3/27/21.
4 Roku Cord Cutting Study, 2020.
5 Hypothesis Group, April 2021.
6 NPD Weekly Retail Tracking Service
7 Account reach data sourced from the Roku platform, April 2021.
8 Combining actual traditional linear TV reach and Roku potential reach may not add up to the incremental reach number shown in each example because reach shift up or down is calculated using percentage changes in actual linear TV reach from the relevant campaign and the total potential reach of Roku, the audience sizes of which differ. These are illustrative examples based on three advertisers; individual brand results may vary.