SPORTS ADVERTISERS AND TV STREAMING PLATFORMS can win big with IN-GAME ADS

Sports fans remember the most thrilling highlights of a game — moments that last a lifetime. Building on this emotional resonance, MAGNA Media Trials and Transmit, a market-leading technology platform offering advanced TV advertising solutions, have collaborated to explore how brands can deliver unforgettable advertising experiences alongside TV streaming live sports content.

The sports category is fiercely competitive, yet billions are still funneled into traditional avenues like standard 30-second commercial breaks and sponsorships. So, Transmit and MAGNA set out to challenge this norm by testing and quantifying a new, innovative approach – real-time sports triggers like game plays (e.g., basketball slam dunks or hard checks against the glass in hockey) or even unexpected events (like a dog running on the soccer field) – to deliver tailored experiences and harness audience attention at peak engagement.

The joint study — “Capturing the Moment: Driving Brand Impact in Sports”– demonstrates how in-game ads can seamlessly integrate with the live action, transforming the ad experience into an extension of the game itself. By enhancing the excitement and aligning with what’s happening on screen, rather than interrupting it, brands could improve their performance metrics with the sizable and engaged audiences that gravitate to live sports. Publishers gain an opportunity to differentiate with higher-performing ads, net-new demand, and a better viewer experience.

Many viewers are new to in-game ads, with less than half of those surveyed having previously seen one, and most are willing (65%) to watch the same ad repeatedly. This would allow brands to effectively build meaningful, enduring connections with sports fans, especially Gen-Z (124) and Millennials (123), who had the strongest positive sentiment toward seeing an ad again and over-indexed compared to the average (100) of all generational cohorts. As a result, advertisers could potentially reduce the number of creative iterations for live sports campaigns when deployed on streaming platforms.

Dynamic L-Bar, Picture-in-Picture, and Shoppable Ads were the three formats tested. 70% of viewers found all three formats distinctive from traditional TV ads, and brands saw as high as a 17-point increase on aided brand recall for those shown the ad versus the control group.

A deeper dive into each ad format:

Picture-in-Picture Ads: 68% of viewers felt these ads blended seamlessly with the game, maintaining the flow of the action. This format is the top driver of ad likeability. It fosters greater favorability toward the brand, encouraging potential new customers to learn more.
Shoppable Ads: These ads provide clear next steps (70%) and drive meaningful interactions with in-market audiences (21% were likely to scan the QR code after seeing the ad).
Dynamic L-Bar Ads: 75% found the ad format visually appealing, enhancing both ad and message recall.

“This is the first of many media experiments inspired by Mediahub’s Radical and Disruptive Lab to demonstrate the value of emerging platforms and canvases for our clients,” said Laurel Boyd, Chief Creative Media Officer, R+D Lab, Mediahub. “These experiments allow us to test, gain valuable insights, and build confidence in incorporating them into creative media ideation through proven results.”

What’s in it for TV publishers?

In-game ads represent a new revenue opportunity for streaming publishers. Publishers can maintain viewers’ attention through continuous play of the main event, while simultaneously monetizing ad content. And because the study found a positive correlation between ad timing and brand perception, publishers could explore creative pricing strategies related to notable moments like a home run during baseball games or a touchdown in football.

In short, in-game ad formats deliver net new revenue, higher pricing opportunities, more effective ads, and a better end viewer experience for streamers.

“Even in an era when CTV viewership is growing rapidly, traditional ad units have continued to be the norm, leaving advertisers uninspired and putting a ceiling on streamer ad monetization,” said Transmit CEO Seth Hittman. “We have the technology to create a new, in-game advertising experience that will bring new demand to streamers and higher performance for advertisers. The MAGNA study substantiates the value of this innovation, which will also benefit consumers with a better viewing experience.”

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