SVOD rapidly becomes the norm as addressable TV ads grow | Media Analysis | Business
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Research from addressable TV provider Finecast has revealed the new changing face of the television market demonstrating heightened consumer engagement from addressable TV ads and that TV is a unique, trusted channel, with exciting new opportunities through video-on-demand.
Finecast thinkingbox 30Sep2020
The Thinking Inside the Box study was conducted in collaboration with research and insight firm DRG, and was designed to understand both the viewer and the industry’s perceptions of the changing nature of TV and the opportunities it enables for advertisers. It used a series of viewer ethnographic studies, a neuroscientific experiment, viewer workshops and consumer surveys, as well as interviews with advertising industry leaders.

The research found that TV is a unique, trusted channel, offering a place to connect with consumers through storytelling and exciting new opportunities through video on demand. Three-quarters of viewers considered broadcast video-on-demand (BVOD) to be high quality content, and 85% said they will always have a TV in their house. However, findings also showed that definitions of TV are changing, with 60% of viewers feeling their perceptions towards what TV is have changed over the past five years, with 74% including BVOD in their classification, and 53% considering SVOD content as TV now.

Among viewers of the platforms, TV, specifically BVOD, is seen a high-quality source of content amongst users (74%), compared with online video, which only 57% see as high quality amongst users.

Despite viewers being increasingly subjected to personalised advertising online, the report also established that consumers are more likely to engage with relevant TV ads with a third explicitly stating they would be more likely to view TV ads if they were relevant to them and liked addressable ads almost four times as much in the neuroscience study.

This said Finecast demonstrated the potential for addressable TV as brands and advertisers recognise how it enhances TV advertising by extending the reach potential to market different messages to relevant audiences. An additional growth area is how addressable can also enable brands to advertise on TV for the first time by experimenting with focused strategic investments that target specific audience segments or geo-locations.

To understand viewers’ responses to addressable TV advertising at a subconscious level, a neuroscientific study was also conducted. Measuring engagement through a combination of physiological markers and explicit and implicit behavioural measures, the research looked at how viewers psychologically process TV advertising. It found that people remembered ads more accurately and exhibited greater external focus when watching TV ads on a big screen compared with smaller, handheld devices.

“It’s clear from the results of our Thinking Inside the Box research project that television is a powerful medium that will always have a place in the home,” said Finecast UK managing director Harry Harcus. “Both at a conscious and subconscious level, addressable TV advertising has the potential to positively impact viewers, but it needs to be done correctly. TV is an opportunity to tell a story, and the expectation from consumers is that it should be relevant to them too. Our research demonstrates that by marrying compelling creative with addressable capabilities, it’s possible to engage with a range of consumers in a variety of contexts and emotive viewing states through TV.”