The media and advertising industry is faced with the challenging task of navigating through a sea of content, diverse targeting opportunities and evolving advertising formats. Brands constantly grapple with the question of where to invest their advertising efforts for the most significant impact. This article explores the key factors that drive advertising success and provides insights from recent research and studies.
Emotional engagement leads to advertising impact
Impact of premium content
In 2023, NBC Universal conducted a groundbreaking B2B TV advertising campaign in three different countries: the US, France and Spain. The research assessed the biometric engagement of viewers with various content genres, including news, sports, entertainment and events. Biometric responses, such as heartbeat and skin response, were passively measured alongside declarative feedback regarding the suitability of content for advertising.
The findings were conclusive: Emotional engagement with premium content significantly impacts advertising success. Viewers displayed high biometric responses to premium content, with engagement scores surpassing the benchmarked average, ranging from 556 to 654 compared with the 488 average across all measured content. Remarkably, the biometric response to advertising closely mirrored content engagement. This synergy between premium content and advertising, positioned brands as credible and major players, even in niche B2B markets.[1]
The impact of a premium platform
In 2022, Thinkbox, the marketing body for commercial TV in the UK, partnered with Acacia Avenue to conduct both qualitative and quantitative research. Their objective was to identify the factors driving advertising engagement on video platforms. The research involved content and ad diaries, live viewing sessions with 20 participants, and in-depth videographic interviews, focusing on three key factors: content, devices and advertising creativity.
The research yielded valuable insights:
- Ad-to-content value exchange was particularly strong on linear TV and video on demand (VOD) platforms, where viewers perceive content as worth watching ads for. By contrast, video sharing platforms, especially those featuring user-generated content, posed challenges in terms of ad value exchange. Social platforms often suffered from ad avoidance.
- Ad placement on traditional TV and VOD platforms was appreciated for the curation of brands and the separation of ad breaks. Conversely, video sharing platforms often featured ads from lesser-known brands, raising trust issues.
- In terms of targeting, viewers expected TV and VOD ads to align with content, while video sharing platforms and social networks were seen as ideal platforms for highly personalised, relevant ads.[2]
Maximising reach with other platforms
Adding reach thanks to BVOD in the UK
PwC conducted a comprehensive analysis of 1,259 TV and BVOD campaigns in the UK between July 2021 and August 2022. It cross-referenced this data with Barb BVOD viewing statistics to uncover the impact of BVOD on linear TV campaigns.
The findings indicated that BVOD added substantial reach to linear TV campaigns, with an increase of 4% for all adults, 6% for ABC1 adults, and a noteworthy 8% for adults aged 16-34. The most significant gains were observed among the “middle tier” of TV viewers, representing 28% of the BVOD audience. Key strategies for successful BVOD campaigns included longer campaign durations, using all sales houses, planning across various content genres, and focusing on large timeslots from 5pm to 12.30 am.[3]
The bottom line: What’s the best ROI driver?
The ROI of BVOD
Research conducted by Thinkbox, Gain Theory and GroupM analysed 52 brands with a collective advertising budget of over £2 billion between 2018 and 2021. This analysis compared the return on investment (ROI) of various media channels. The results were clear: TV and BVOD consistently delivered 41% and 23% more ROI than the average of all media channels. BVOD excelled in short-term effects, with 44% of its ROI occurring within three months, compared with 30% for linear TV. A combination of 25% BVOD and 75% TV within a £200,000 budget produced a 10% higher ROI in the short term. BVOD emerged as the least risky media channel in terms of ROI, with best and worst-case scenarios deviating by only +/- 20%, compared to social media’s volatile range of +/- 70%.[4]
The ROI of Addressable TV in France
Addressable TV has rapidly gained traction in France since its introduction in late 2020. In 2022, 1,300 campaigns involving 700 advertisers were aired, and the French Syndicate of TV Sales Houses (SNPTV) published notable success stories. A supermarket brand witnessed a 1% increase in store foot traffic and up to 3% additional revenue in regions with Addressable TV campaigns. A snack brand saw a 5% boost in overall sales, with an 18% increase in average spend per consumer in specific geographic areas. An automotive brand achieved a significant rise in web traffic and product page views following Addressable TV campaigns for electric vehicles that targeted individual house owners.[5]
“Addressable TV has rapidly gained traction in France since its introduction in late 2020. In 2022, 1,300 campaigns involving 700 advertisers were aired, and the French Syndicate of TV Sales Houses (SNPTV) published notable success stories.”
In a world of transformed video consumption and emerging advertising formats, success in the media and advertising industry hinges on several critical factors:
- Maximising perception KPIs by curating premium content and platforms.
- Expanding reach through strategic planning across various video types, targeting small and medium linear TV consumers.
- Selecting channels that drive incremental business results, such as local campaigns and Addressable TV.
Sources
1 NBCU Global (2023) Measuring Emotional Engagement: Content Case Study (B2B).
2 BVOD Almighty: Reach and Return, Acacia Avenue, 2022.
3 PwC UK, Barb, CFlight, Nov 2022.
4 Media Mix Navigator, Sept. 2022, EssenceMediacom / Wavemaker / Mindshare / Gain Theory.
5 SNPTV, ROITV4 March 2023.
