By Christina Summers, Country Manager, Roku Canada
As more and more Canadian households move their entertainment time to TV streaming, including ad-supported TV (52 per cent) according to Roku Canada’s Video on Demand (VOD) Evolution Study, it opens up greater possibilitiesfor marketers and advertisers to extend their reach, gain deeper insights, better target, attain stronger measurement, and ultimately achieve a solid ROI via TV streaming.
For those looking to engage with Gen Z, who currently hold $360 billion in disposable income, and are set to become the largest cohort of consumers, the opportunities are endless. For one, they’ve been dubbed the “streaming generation.” On average, Gen Z spent five minutes more per day streaming in 2022 than in 2021. Secondly, research shows that Gen Z is an entertainment-driven generation, with bite-sized ads being more effective to capture their attention than longer ads. Gen Z also prefers content that’s relevant to their interests and a lighter-ad load than what’s available on traditional TV. With these insights in mind, here are the top trends, and ways in which marketers and advertisers can better reach this key audience.
Shifting ad consumption preferences
Most TV streamers feel there are too many ads on cable or satellite, and for Gen Zs this is even higher. Often, too many ads result in segmented viewing time or drop-off. For advertisers, that almost always puts a dent in ROI. Advertisers can easily get around this challenge by tapping into ad-supported streaming as viewers are met with a much lighter ad load compared to traditional cable. For example, during a one-hour streamed program on The Roku Channel, a streamer would see eight minutes of ads compared to linear TV’s 12 minutes of ads. This lighter ad load is preferred by many viewers – especially due to the limited, eight-second of Gen Z.
With that, advertisers can re-evaluate their creative, ensuring it’s tight, personalized, and effective within a shorter amount of time. That’s where ad formats come into play.
Ad format considerations to drive engagement
Interactive ad formats such as QR codes, personalized videos, display ads, action ads, and the “OK” button on the Roku remote, for example, make it easier for viewers to get the information they want from an ad. In fact, 76 per centof TV streamers take measurable actions after seeing TV ads. This includes Gen Zs (28 per cent) who grew up with the ease and convenience of online shopping and are more likely than other generations to immediately buy a product through an app while watching TV.
Take QR codes, for example, which made a comeback during the pandemic. They are an effective way for advertisers and marketers to share additional information through TV streaming – and TV streamers are open to it: 21 per cent will consider using QR codes from streaming TV ads in the future, showing the opportunity for advertisers and marketers to offer more information beyond the ad creative, as well as links to online shopping. Unsurprisingly, young consumers are much more open to scanning a QR code on an ad, with 30 per cent of 18 to 24-year-olds agreeing that they would consider using a QR code from TV streaming ads in the future – more so than all other age demographics.
Gen Z is also more inclined to pay attention to ads that reflect or are relevant to their mood (51 per cent) and prefer when the tone of a TV ad matches the program it’s in (40 per cent) like a comedy show with funny ads. This opens interesting opportunities for marketers and advertisers to model their creative to the type of show their target audiences are watching to better engage with their Gen Z audiences.
So.., how do we measure it all?
Knowing how to target the Gen Z audience is one thing, but ensuring you have the data to continue targeting this demographic properly is the next step. TV streaming ads offer deeper insights to traditional forms of advertising with access to third-party libraries and thousands of consumer segments across over-the-top (OTT) platforms.
With stronger engagement capabilities, and ads being more engaging to consumers in general – especially tech-savvy Gen Zs – TV streaming audiences are primed to convert more than other forms of advertising. Especially as data shows a steady increase in the number of Canadians “cord cutting” year-over-year.
With more and more Canadians shifting to TV streaming, the future of all TV advertising is streaming. Advertisers and marketers should consider these trends in format and creative when building out future campaigns for this year and beyond, especially when we see how the youngest demographic of digital natives prefers ad features that are unique to TV streaming. The opportunities for TV streaming ads are there for advertisers and marketers, and their audiences are well-prepared for the shift.
Self-serve TV Streaming ad platforms, like Roku’s OneView, enable agencies and marketers to execute full-funnel marketing strategies on the TV screen more efficiently than traditional, linear TV spots, all while reaching an increasing number of consumers through targeted advertising. In 2023, TV streaming will open a world of opportunities for advertisers, and those focused on how to best integrate within their holistic strategies are likely to reap the benefits now and in the future.
To learn more about Roku’s advertising offerings, visit: https://advertising.roku.com/en-ca
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Guest Post: The TV streaming opportunity for marketers looking to reach Gen Z
By Christina Summers, Country Manager, Roku Canada
As more and more Canadian households move their entertainment time to TV streaming, including ad-supported TV (52 per cent) according to Roku Canada’s Video on Demand (VOD) Evolution Study, it opens up greater possibilitiesfor marketers and advertisers to extend their reach, gain deeper insights, better target, attain stronger measurement, and ultimately achieve a solid ROI via TV streaming.
For those looking to engage with Gen Z, who currently hold $360 billion in disposable income, and are set to become the largest cohort of consumers, the opportunities are endless. For one, they’ve been dubbed the “streaming generation.” On average, Gen Z spent five minutes more per day streaming in 2022 than in 2021. Secondly, research shows that Gen Z is an entertainment-driven generation, with bite-sized ads being more effective to capture their attention than longer ads. Gen Z also prefers content that’s relevant to their interests and a lighter-ad load than what’s available on traditional TV. With these insights in mind, here are the top trends, and ways in which marketers and advertisers can better reach this key audience.
Shifting ad consumption preferences
Most TV streamers feel there are too many ads on cable or satellite, and for Gen Zs this is even higher. Often, too many ads result in segmented viewing time or drop-off. For advertisers, that almost always puts a dent in ROI. Advertisers can easily get around this challenge by tapping into ad-supported streaming as viewers are met with a much lighter ad load compared to traditional cable. For example, during a one-hour streamed program on The Roku Channel, a streamer would see eight minutes of ads compared to linear TV’s 12 minutes of ads. This lighter ad load is preferred by many viewers – especially due to the limited, eight-second of Gen Z.
With that, advertisers can re-evaluate their creative, ensuring it’s tight, personalized, and effective within a shorter amount of time. That’s where ad formats come into play.
Ad format considerations to drive engagement
Interactive ad formats such as QR codes, personalized videos, display ads, action ads, and the “OK” button on the Roku remote, for example, make it easier for viewers to get the information they want from an ad. In fact, 76 per centof TV streamers take measurable actions after seeing TV ads. This includes Gen Zs (28 per cent) who grew up with the ease and convenience of online shopping and are more likely than other generations to immediately buy a product through an app while watching TV.
Take QR codes, for example, which made a comeback during the pandemic. They are an effective way for advertisers and marketers to share additional information through TV streaming – and TV streamers are open to it: 21 per cent will consider using QR codes from streaming TV ads in the future, showing the opportunity for advertisers and marketers to offer more information beyond the ad creative, as well as links to online shopping. Unsurprisingly, young consumers are much more open to scanning a QR code on an ad, with 30 per cent of 18 to 24-year-olds agreeing that they would consider using a QR code from TV streaming ads in the future – more so than all other age demographics.
Gen Z is also more inclined to pay attention to ads that reflect or are relevant to their mood (51 per cent) and prefer when the tone of a TV ad matches the program it’s in (40 per cent) like a comedy show with funny ads. This opens interesting opportunities for marketers and advertisers to model their creative to the type of show their target audiences are watching to better engage with their Gen Z audiences.
So.., how do we measure it all?
Knowing how to target the Gen Z audience is one thing, but ensuring you have the data to continue targeting this demographic properly is the next step. TV streaming ads offer deeper insights to traditional forms of advertising with access to third-party libraries and thousands of consumer segments across over-the-top (OTT) platforms.
With stronger engagement capabilities, and ads being more engaging to consumers in general – especially tech-savvy Gen Zs – TV streaming audiences are primed to convert more than other forms of advertising. Especially as data shows a steady increase in the number of Canadians “cord cutting” year-over-year.
With more and more Canadians shifting to TV streaming, the future of all TV advertising is streaming. Advertisers and marketers should consider these trends in format and creative when building out future campaigns for this year and beyond, especially when we see how the youngest demographic of digital natives prefers ad features that are unique to TV streaming. The opportunities for TV streaming ads are there for advertisers and marketers, and their audiences are well-prepared for the shift.
Self-serve TV Streaming ad platforms, like Roku’s OneView, enable agencies and marketers to execute full-funnel marketing strategies on the TV screen more efficiently than traditional, linear TV spots, all while reaching an increasing number of consumers through targeted advertising. In 2023, TV streaming will open a world of opportunities for advertisers, and those focused on how to best integrate within their holistic strategies are likely to reap the benefits now and in the future.
To learn more about Roku’s advertising offerings, visit: https://advertising.roku.com/en-ca
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This entry was posted on June 12, 2023 at 8:59 am and is filed under Commentary with tags Roku. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.