IPG Study Finds Roku Ads More Effective Than Linear

A study conducted by Interpublic Group’s Magna Global and IPG Media Lab with Roku found that video ads on Roku’s over-the-top platform were 67% more effective than ads on linear TV.

Campaigns for IPG clients Applebee’s, H&M, McCormick and Truvia saw bigger gains in purchase intent running ads with Roku.

The study “Under the Hood of Over-the-Top Measurement,” also found that consumers consider brands that run video ads on the Roku platform to be twice as innovative as traditional linear TV alone. Consumers found the ads to be more memorable than those on linear TV, due in part to the reduced ad load of OTT, according to the study.

Related: Over-the-Top TV Viewing Up 114% in 1Q, Conviva Says

“It’s clear that OTT offers advertisers distinct advantages over traditional TV,” says Kara Manatt, senior VP, Intelligence, Solutions & Strategy, Magna Global. “Given that OTT needs fewer exposures to generate the impact that linear TV provides at higher exposure levels, brands can run campaigns on OTT that are both more efficient and effective.”

The study also found that OTT reaches a more targeted audience and that OTT ads require less exposure than linear TV.

“Consumers are shifting their TV time from linear to OTT, making it important for marketers to also shift their ad investments,” said Scott Rosenberg, Roku GM of Platform Business. “This study demonstrates that ads on Roku deliver not only incremental reach, but also higher ROI than linear TV ads.”

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.