Samsung Ads’ ‘Global Ad Engagement’ report: free-to-access content is advertisers’ biggest trump card

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Advertising is a cornerstone of the modern digital experience. Viewers are accustomed to ads appearing on mobile applications, websites — and televisions. 

But one size does not fit all — each media channel has unique properties that need to be understood for advertising to be effective. Streaming’s sustained popularity means that advertisers looking to optimise return on investment (ROI) on their media spend should adjust their strategies to cope with multiple video-on-demand (VOD) environments, each with their own nuances. 

Samsung Ads’ new report ‘Understanding Advertising Engagement across different viewing platforms’ — developed in partnership with the research agency Verve — details advertising engagement rates across four international markets: Australia, India, Germany and the UK. It compares four streaming and linear services: 

Advertising video-on-demand (AVOD)

Free ad-supported TV (FAST) services are considered a subset of AVOD; platforms include Samsung TV Plus, Rakuten TV and Pluto TV

Broadcaster video-on-demand (BVOD)

Prominent UK examples include ITVX, All 4 and My 5 

Subscription video-on-demand (SVOD)

Disney+, Amazon Prime Video and Netflix are global SVOD services

Linear

Popular linear services include ITV1, Channel 4 and Channel 5

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The report identified free-to-access content as the most effective format for ad consumption across all markets. Consumers are becoming increasingly receptive to this value-exchange — and this is the foundation for AVOD and FAST’s growing role within television advertising strategies. 

Traditional services are being challenged

Samsung Ads’ research identified AVOD as the highest scoring streaming service for ad engagement across all four markets. Consumers were asked if they either ‘sat and watched the ad(s) in full’ or ‘sat and watched some of the ad(s)’. The collective responses to these questions were: 

India — 70%

Australia — 54%

The UK — 48%

Germany — 28%

AVOD and FAST services — up-and-coming offerings within the streaming landscape — have challenged linear’s historic dominance. And although BVOD viewers are more invested in this environment’s content as they are making a conscious decision to visit the platform, it comes at a cost. Ads’ disruption to the viewing experience is felt more keenly.

So which factors are driving engagement across the newer streaming platforms? 

Viewers accept value exchange of ads for free content

Enhanced relevance was a key characteristic behind AVOD and FAST ads performing well in terms of engagement. Ads focused on the upcoming programming unique to each service, as opposed to random shows, made them feel tailored to the individual. Ads were also perceived to be shorter and less disruptive to the viewing experience. 

AVOD and FAST ads were also acknowledged to be more exciting than their counterparts. AVOD ads scored highest for excitement across the UK (49%), Australia (34%) and Germany (28%) — with India being the only exception. 

SVOD viewers were the most engaged within the Indian market. But this demographic (73%) only marginally outperformed AVOD (70%). Trustworthiness, premium quality and reduced frequency were integral to SVOD’s success in this market. 

German consumers were least receptive to advertising across the board — and this extends to free-to-access content. Only 40% of German audiences were ‘happy’ to view these ads. This figure increases to 57%, however, when looking at Germans aged between 18 and 34. Advertisers have an opportunity to leverage FAST and AVOD platforms to forge new relationships with younger audiences. 

Changing of the guard

Samsung Ads’ report identified two core trends across UK, German and Australian consumers. Audiences were receptive to ads provided they received free-to-access content; relevance remained a powerful secondary driver across these markets. Understanding this and ensuring consumers feel they are part of an equal value exchange is the catalyst for advertisers to thrive in this ever-evolving streaming landscape. 

Antonia Faulkner is head of marketing & analytics Europe & APAC at Samsung Ads