Research: Ads powering streaming’s future in Australia
August 3, 2023
Magnite, the independent sell-side advertising company, has released the research study Streaming TV’s New Era: How Ads Are Powering Streaming’s Future in Australia.
The study finds 65 per cent of TV viewers in the country watch ad-supported streaming and the effectiveness of TV advertising, including streaming, drives a high level of trust and recall. Among ad-supported viewers, 83 per cent trust the ads they see within TV and streaming services, compared to 58 per cent of social media users who trust ads, including video ads, within social. In addition, 57 per cent of ad-supported streamers remember ads the most within TV (including streaming services).
The research finds Australian streaming audiences are leaned into streaming content, and that it captures audience attention better than social media. Some 92 per cent of ad-supported streamers view streaming content for more than 30 minutes each time they tune in and those who only watch ad-supported streaming are watching over 2 hours a day, on average. Comparatively, the majority of social media users (70 per cent) state they launch social media apps multiple times throughout the day and each session is brief, lasting just a few minutes.
“We’re witnessing a transformation of the TV landscape as ad-supported streaming viewership is achieving scale throughout Australia and almost as many consumers are watching TV shows on streaming services with ads as traditional TV,” said Juliette Stead, Head of JAPAC at Magnite. “Streaming TV’s immersive viewing environment captures viewers’ attention for longer periods than social media and wins in terms of ad attention and recall, making this an effective channel brands should be actively exploring.”
Key findings from Magnite’s study include:
- Streaming services with ads are continuing to attract new audiences – 55 per cent of non-streamers would likely use a new free or reduced-rate service with ads and 63 per cent of paid, ad-free streamers are happy to see ads in order to lower their monthly streaming service bills.
- Streaming services have become indispensable to ad-supported viewers in Australia. 77 per cent of ad-supported streamers consider streaming services a must-have in their household and 48 per cent said they are watching more streaming content than the year prior, compared to just 5 per cent who are watching less.
- Australian streamers are consuming TV content on multiple screens and exposure to brands across multiple devices drives purchasing intent. Over two-thirds (69 per cent) of ad-supported streamers are more likely to make a purchase from a brand that they engaged with across multiple devices.