Overlay ads key to capture audience attention on connected TV | Media Analysis | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
A study by MAGNA Media Trials and GumGum has found that in an increasingly crowded connected TV (CTV) universe, overlay ads are four times more memorable than video ads and drive 72% more savings for advertisers.
Overlay ads 5May2022
The Breaking Through: Moving Beyond the Commercial Break on CTV report from the research firm and the provider of contextual intelligence technology took a deep dive into how brands can stand out on CTV.

It found that fundamentally CTV was not immune to ad attention challenges: 70% of those in the 18-54 age range report almost always avoiding video ads on CTV.

The study set out to test overlay ads on CTV to see how they stack up to traditional video ads since overlay ads offer more inventory, don’t disrupt playback and can be delivered in a contextually relevant environment. A key finding of the study was that the nature of overlay ads results in a more fruitful ad experience for those most attentive, and in-market for the product. Among those who recalled the brand and were in-market for the advertised product, over 41% found the ad interesting as well as over 41% felt the ad was context-appropriate.

The study also said that brands should consider leveraging overlay ads as an additional touchpoint when advertising on CTV. The study noted that overlay ads appear within the video content itself opposed to the typical ad experience where the ad is placed during a break in content. They capture audience attention, making for memorable ad experiences with a lower fiscal and time investment. The study also found finds that overlay ads were four times more memorable than video ads and could drive 72% more savings for advertisers.

In addition, overlay ads helped people feel less bombarded by ads and have a lower production cost and time. They allowed for a perceived lower ad frequency, which people take notice of, and they are also more cost-effective and take less time to produce.

Ad frequency fatigue was found to be creeping up on CTV with almost two-thirds of the study perceiving an increase in the number of ads shown per show. Higher frequency of CTV ads was especially apparent to younger generations: 71% of those in the 18-24 age range felt ad frequency on CTV isn’t going away any time soon.

Yet overlay ads did drive better brand perception. They led to a +5% increase in brand favourability, +4% increase in purchase intent and +8% felt the brand is thoughtful. Snipe overlay ads formats led to more persuasion: +35% brand favourability, +22% search intent and +22% purchase intent.

A key recommendation of the study is that brands should continue innovating to new formats on CTV as concerns about video wear out and increasing ad frequency mount.

“Overlay ads offer an innovative solution for brands concerned about video ad wear-out and attention fatigue,” noted Kara Manatt, Intelligence Solutions, MAGNA commenting on the Breaking Through: Moving Beyond the Commercial Break on CTV report. “Overlay EVP ads are more memorable than video ads, they cost less, and take less production time to make.”

“How we’ve been advertising to people simply just doesn’t work anymore. People have second screens, skip buttons, and are just conditioned to avoiding ads when possible,” added Phil Schraeder, CEO, GumGum. “Creating new ad formats, like an overlay ad, gives advertisers the opportunity to connect with people where they are at and in a way that doesn’t disrupt what they are there to do - enhancing the overall experience for them and boosting brand recall and favourability for advertisers.”