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Online TV viewers prefer dynamic advertising

Dynamic ads and viewer control (eg., the option to choose the product categories of ads you see) lead to greater sponsor recall, according to Hub’s new study, ‘TV Advertising in an OTT World'.

As consumers continue to shift more of their TV viewing online, it’s becoming more and more important for marketers to figure out the most effective way to adapt delivery of ads to online content. On the one hand, online ads give marketers more tools and flexibility to engage consumers (eg. dynamic ads, ‘click to shop’ capabilities, enabling consumers to choose the categories of ads they see). But ads also need to create a satisfying experience for viewers, because they now have ad-free options to choose from if they want to.

Hub’s new study, ‘TV Advertising in an OTT World,’ suggests that there are some clear best practices when it comes to incorporating ads into online programming.

Among those who reported seeing one to four ads in their most recent online viewing session, 34 per cent were “highly satisfied” with the viewing experience, content aside (ie. rating of nine or ten out of ten). Satisfaction was significantly lower—23 per cent–among those reporting five ads or more.

Dynamic ads and viewer control (eg., the option to choose the product categories of ads you see) lead to greater sponsor recall. For example, among those who said ads were based on product categories chosen in advance, 38 per cent recalled ad sponsors during the session—vs. just 15 per cent overall. Dynamic advertising creates greater value for advertisers but is also more appealing to consumers.

Viewers who watched authenticated TVE during their most recent session reported seeing the highest number of ads: 6.7 per session, vs. the average of five across platforms. And they were least likely to recall which brands were associated with the programme—via commercials, programme sponsorship, or product placement (19 per cent, vs. 26 per cent across all platforms).

“Media buyers are steering more dollars from linear to OTT, and sellers are trying to figure out how to best monetise their digital properties,” said Mike Haggerty, one of the study authors. “This new data illustrates that it’s not enough to just move your linear ad strategy to the internet. There are specific tactics that not only make ads in online TV more effective, but also leave viewers more satisfied. Which is critical in an environment where so many other options are available.”

“These findings show that even though consumers prefer a free, ad-supported content over a subscription model, almost four in ten say they are less likely to pay attention to ads while watching online than ads on linear TV,” said Peter Fondulas, a principal at Hub and co-author of the study. “Online, distractions are just a click away. So it’s even more important to deliver ads in a way that engages consumers. Our study shows that dynamic advertising is the most compelling way to accomplish that.”

This story also appears on IBC’s Content Everywhere.