The effectiveness of streaming TV for reaching, engaging, and influencing consumers is under scrutiny in a new report from research company GfK. Two comprehensive studies GfK completed for TVB so far this year, Media Comparisons and The Purchase Funnel, aimed to understand media usage in the US and the influence of different media platforms on consumers’ purchase decisions.
Respondents in the Media Comparisons Study mirrored 2020 Census data, providing a clear picture of national media habits. Meanwhile, The Purchase Funnel Study concentrated on consumers in key advertising sectors. Both studies included questions on traditional linear TV and streaming usage, allowing TVB to compare the effectiveness of ad-supported streaming platforms to linear television.
The studies found that linear TV outperforms ad-supported streaming platforms in reach, engagement, and influence on consumers.
One of the primary takeaways is that linear TV continues to outperform ad-supported streaming in terms of reach, suggesting a larger audience tunes into traditional television.
Further, consumers tend to spend more time with linear TV compared to ad-supported streaming, implying a higher engagement rate with the former. This is reflected in the significantly higher exposure to ads on linear TV than on streaming platforms, bolstering its position as a preferred advertising medium.
Interestingly, the effectiveness of ads on streaming platforms was called into question. Among those exposed to ads on these platforms, a staggering 90% expressed that the advertisements did not significantly contribute to building awareness of a product or service.
Moreover, linear TV stands out as the primary influencer at all stages of the purchase funnel, dwarfing the influence of ad-supported streaming platforms. This indicates that when it comes to steering the consumer’s decision-making process, linear TV continues to hold sway.
These insights are not restricted to a specific sector but extend across major consumer categories. In each case, linear TV has proven to be a more potent influence than ad-supported streaming platforms.
These findings suggest that traditional linear TV still holds considerable power in shaping consumer behavior and decision-making.
