Study: Brands’ perception boosted by OTT ads
July 13, 2023
According to findings from a new report, Is TV just TV?, by Samsung Ads and Verve, brands that advertise on streaming platforms are perceived to be five times more modern and five times more innovative when compared to brands that advertise in non-streaming environments. These figures jumped to eight times and six times, respectively, for respondents aged 18-34.
Respondents also perceived brands advertising on streaming as three times more relevant, premium and unique than those brand ads seen in non-streaming environments. For the younger demographic – 18-34 year olds – this jumped to five times more.
The study compares key markets in Europe and Asia Pacific better to understand the latest perceptions and habits around watching TV. This includes the importance of quality content, preferences between platform types, and methods of discovery.
Quality of content improving on free services
Almost two thirds (64 per cent) of those surveyed agree that content is improving on free streaming services, resulting in 78 per cent of viewers watching free streaming alongside their SVoD (paid subscription video on demand) services. Spanish viewers hold free streaming in the highest regard across all the countries studied, with 70 per cent agreeing that content on free streaming services is improving, followed by the UK (64 per cent) and Germany (63 per cent).
This change in perception could be attributed to the increased focus on and investment in global content acquisition from these free streamers. According to a recent Digital TV Research report, global FAST revenues for TV series and movies will reach $18 billion (€16.1bn) in 2028, triple from $6 billion in 2022, with an increasing part of this investment set to come from Europe and Asia-Pacific.
Further growth in viewership
Subscription (SVoD) and free streaming (FAST/AVoD) viewership is also due to increase more than any other channel or service, including non-streaming, in the next 12 months, growing 45 per cent and 30 per cent respectively, according to respondents.
This suggests that despite reports showing that new paid subscriptions to streaming services are down, that time spent on existing services will increase.
Spain is set for the biggest surge in subscription (53 per cent) and free streaming (42 per cent) viewership in the next 12 months, with Spaniards holding free streaming in the highest regard. The UK certainly won’t be exempt from these increases: 39 per cent of TV viewers are expecting to watch more SVoD and 26 per cent are expecting to watch more free streaming content. Significant SVoD growth is also expected in Germany (45 per cent) and Australia (44 per cent) while non-streaming TV is likely to experience the lowest increase in viewership across all markets (26 per cent).
Smart TVs are a key driver of streaming growth
Smart TV capabilities are a key driver of streaming growth, and a key factor influencing TV purchase is screen size and sound quality. Easy access to video streaming apps is now the most important Smart TV feature for 39 per cent of respondents. A quarter (23 per cent) of viewers go straight to their favourite streaming service when turning the TV on, double the number of viewers (12 per cent) who go to their favourite channel.
Viewers care for content, not format
Viewers’ reasons for watching either scheduled TV or on-demand aren’t clear cut, and are often driven by content rather than format. 60 per cent use streaming services if there is a programme they’re looking forward to watching – 55 per cent tune into scheduled TV for the same reason. Similarly a third (36 per cent) are just as happy to dip into regular TV as on demand services when they need inspiration for something to watch.
Brits have the lowest patience when it comes to finding something to watch with 43 per cent getting frustrated after just a few minutes, closely followed by 37 per cent of Aussies.
“It’s clear that content rather than platform plays a significant part in what viewers watch and where,” notes Alex Hole, Vice President of Samsung Ads Europe. “Ultimately, to the viewer, TV is just TV. It is exciting to see that the perception of ad-funded streaming has risen, solidifying its place in the TV experience. Already seen as a significant opportunity for advertisers, this shows the potential of this channel is accelerating – where high quality content goes, attention follows.”