41% prefer streaming TV over traditional, pointing advertisers towards CTV

Research from Rakuten Advertising reveals the importance of context when connecting with your audience to improve recall, resonance and ROI.

Despite streaming services being a relatively young sector, research from Rakuten Advertising has shown that it is rivalling traditional TV broadcast platforms when it comes to the effectiveness of advertising.

Globally an average of 41% of viewers stated they prefer watching streaming TV services more than traditional TV.

This is down to ‘The Three Rs’, the research says:

  • Brand recall on streaming services is equivalent to traditional TV;

  • Adverts on streaming services are resonating with viewers;

  • Return on investment – viewers are buying what they see.

Recall: six in 10 viewers recall ads after seeing on CTV 

Broadcasting is a long-standing, and successful, model for traditional TV advertising – with widespread exposure driving awareness and recall.

The data shows that broadcast strategies must now be built alongside those of narrowcasting, using connected TV’s (CTV) ability to hone in on audiences’ mindset while consuming content.

Globally, an average of 60% of viewers stated they can correctly identify an ad 24 hours after seeing it on CTV.

Resonance is key

This effectiveness – and recall – is founded on adverts resonating with the mindset viewers are in while watching streaming services. Globally, 42% agreed this is the case.

Return on investment 

This combination is driving tangible returns on advertising investment – viewers are acting upon what they’re seeing advertised and clicking ‘buy’.

Globally, 71% of respondents stated they purchase or occasionally purchase the product or service having seen it advertised on streaming services. 

“These findings demonstrate why advertising across streaming TV platforms should be part of a successful media strategy,” said James Collins, SVP, Media Network, Rakuten Advertising. 

“When inventory is bought with context at the heart, it resonates more and drives better recall – and better propensity to purchase. This context-based approach is only possible through understanding the mood the viewer is in, something unique to streaming TV. This is a key reason why it has caught up with traditional TV platforms when it comes to recall in such a comparatively short space of time.”