Streaming TV: Advertisers' new go-to for engaged viewers

Streaming television is transforming India’s advertising landscape, offering a premium platform that enhances brand recall, fosters trust, and drives consumer purchase decisions. This was the central finding of a new study, ‘Why streaming TV is a must-buy’, conducted by Magnite, an independent sell-side advertising company.

The study provides crucial insights for Indian advertisers and marketers navigating a competitive and evolving digital ecosystem. Gavin Buxton, managing director, Asia at Magnite, explained the context, “The combination of increased internet access coupled with smart TV adoption is powering the rapid growth of India’s streaming TV audience. Our latest research highlights that advertising in streaming’s premium environment yields significantly better results than other digital formats.”

India’s media consumption patterns are rapidly shifting towards ad-supported streaming platforms, driven by increased smart TV penetration and affordable data plans. According to Magnite’s findings, streaming TV is now a primary channel for advertisers seeking measurable outcomes in an environment that fosters attentive and engaged viewing.

Commenting on the implications Prabhvir Sahmey, senior director for ad sales, India at Samsung Ads, said, “Amid the shift in consumer viewing habits, advertisers have valuable opportunities to plan their campaigns around premium streaming TV inventory. Streaming platforms that consistently deliver an exceptional user experience and compelling content will retain subscribers and stand out in a crowded landscape.”

The research was conducted by Magnite in collaboration with MediaScience, a media research and measurement company. It included audience testing across five major global markets—India, the US, the UK, Brazil, and Japan. In India, the study was conducted on mobile devices, comparing a popular streaming TV service with a leading video-sharing platform (VSP).

Participants were exposed to ads during natural ad breaks or as pre-roll while watching TV shows or videos on their personal devices. Surveys conducted immediately after the viewing sessions captured attitudinal responses and behaviours, enabling a comparative analysis of streaming TV and VSP viewers.

The study revealed that ads on streaming TV platforms are more memorable than those on video-sharing platforms. Streaming TV ads produced an 11% higher rate of unaided recall when shown multiple times. This boost in memory recall was linked to increased purchase behaviour, with 32% of Indian streaming TV viewers reporting they often buy products after seeing their ads.

The cognitive processes underlying ad recall—encoding, storage, and retrieval—were more effective in streaming TV environments. Ads shown on streaming TV were better encoded into memory, stored as recognisable information, and later retrieved by viewers during unaided recall.

Streaming TV’s premium content, comprising 100% high-quality, professionally produced material, stood in contrast to video-sharing platforms, where 92% of content is non-premium. This distinction matters because premium content encourages focused, deliberate viewing.

The study found that 86% of streaming TV viewers paid attention to the ads they watched, highlighting the effectiveness of advertising in environments where content and context align with audience expectations.

Another notable finding was the trust and credibility associated with brands advertising on streaming TV platforms. Approximately 86% of respondents felt that streaming TV ads enhanced a brand’s credibility, while 88% expressed trust in the brands they saw advertised in this medium. This trust factor was linked to higher consumer loyalty and the likelihood of future purchases.

The findings underscore the importance of integrating streaming TV into advertising strategies in India. As consumer habits shift towards ad-supported platforms, streaming TV provides a way for brands to connect with highly engaged audiences. The combination of attentive viewers, premium content, and superior ad recall offers a compelling case for investment in this channel.

The insights also point to the need for careful campaign planning. Advertisers must ensure their messaging aligns with the premium nature of the content. Sahmey emphasised the value of leveraging streaming TV inventory to maximise campaign outcomes in a changing landscape.

Streaming TV also provides advanced measurability compared to traditional television. Advertisers can leverage real-time analytics, first-party data, and precise targeting to refine campaigns. These capabilities make streaming TV a hybrid solution that combines television’s broad reach with the precision of digital advertising.

During high-stakes periods such as festive seasons or sporting events, the ability to adapt campaigns based on performance metrics could prove invaluable for brands aiming to capture market share.

While streaming TV presents significant opportunities, the medium comes with challenges. As the market becomes saturated with ad-supported platforms, maintaining relevance and avoiding overexposure will be critical. Advertisers must balance frequency with quality to ensure their messages resonate without alienating audiences.

Additionally, the competition among streaming platforms to retain subscribers places pressure on them to maintain high content standards. For advertisers, this means aligning with platforms that prioritise user experience and engagement.

Streaming TV is emerging as a pivotal channel for advertisers in India. Magnite’s research highlights its advantages in driving ad recall, trust, and purchase intent, making it a strategic priority for brands aiming to stay ahead in a competitive market.

As the digital landscape evolves, integrating streaming TV into broader media strategies will likely become essential for agencies and marketers seeking to navigate India’s dynamic consumer environment. With its unique blend of premium content and measurable outcomes, streaming TV is positioned to play a central role in shaping the future of advertising in India.