Advertising on Video-On-Demand (VOD) Service may find a More Engaged Audience than on TV

Deciding where and whom to target is a fundamental challenge advertisers face on a daily basis. This has become increasingly difficult today as we consume more content on non-traditional platforms and live an on-demand lifestyle, subscribing to services like Netflix, Hulu, and Amazon Prime. To satisfy this need, TV providers have been expanding their Video-On-Demand (VOD) offerings. But is there value in advertising on VOD in conjunction with linear TV? Ipsos Connect conducted a study on behalf of Music Choice to find out.

As part of the study, Music Choice partnered with a well-known toy brand that was advertising on linear TV on a series of popular children’s networks and on Music Choice VOD. The study measured ad recall and other brand success metrics among 6- to 11-year-old girls who had had the potential to be exposed to the brand’s advertisements on linear TV only and on a combination of linear TV and Music Choice VOD (“TV/VOD”), as determined with an “opportunity to see” methodology.

The overall results showed that those who also watched Music Choice VOD were a more engaged audience. The TV/VOD audience was significantly more likely to be watching TV three or more hours per day (35% vs. 19% TV only) and more likely to be watching the children’s networks on linear TV as well.

Additionally, after being exposed to the toy brand’s commercial, TV/VOD respondents were significantly more likely to recall the ad (52% vs. 30% TV only), report intending to purchase the brand’s product after seeing the ad (80% vs. 56% TV only), and talk about the brand with family and friends (78% vs. 44% TV only). They were also more likely to take valuable actions like visiting the brand’s website (56% vs. 29% TV only) and searching for the product online (32% vs. 16% TV only).

“This research showed that kids who are consuming content on Music Choice VOD are generally watching more television and that this engaged audience responded better to the test advertising,” said Thomas Spinelli, Vice President of Ipsos Connect. “Advertisers and media planners should take note that Music Choice VOD was able to reach kids and parents in a way that truly complemented linear TV advertising.”

Christina Tancredi, COO of Music Choice, stated: “We have always seen On Demand as a ‘lean forward’ environment for viewers that provides advertisers with a fully engaged audience. The Ipsos results show how powerful our platform can be for kids as well as parents.”

“These results suggest that a combination of linear TV and VOD has potential to enhance advertising delivery in other contexts too. We hope to study that more deeply,” added Spinelli.