Singapore – A new research from Magnite has found that ad-supported streaming services deliver scale for brands and that 71% of TV viewers in Southeast Asia watch ad-supported streaming. According to the report, said trend in the streaming industry serves as a signal for the future of streaming in the region.
According to the report, ad-supported streamers are embracing content across devices, which leads to more meaningful connections with brands and influences purchasing decisions.
Around 68% of ad-supported viewers take action after seeing an ad on streaming platforms, and 94% are more likely to make a purchase from a brand they engaged with across multiple devices.
Meanwhile, ad-supported streaming audiences are highly engaged when watching streaming, which is winning viewers’ attention over social video. Around 92% of ad-supported viewers report being engaged when watching streaming content as compared to 62% of social media users who say user-generated videos on social media don’t hold their attention very long.
In an exclusive interview with MARKETECH APAC, Gavin Buxton, managing director of Asia at Magnite, he explained that in order to effectively leverage ad-supported streaming, brands should identify partners who can provide access to inventory from multiple streaming platforms at scale and support them in understanding targeting, creative and measurement opportunities.
“Streaming provides scale and reach at a level rivaling traditional TV and consumers in Southeast Asia are adopting ad-supported streaming in growing numbers. With streamers viewing content across multiple streaming platforms and devices, brands have more opportunities to increase the scale of their campaign investments to reach a growing audience of streamers across these platforms. This will enable brands to drive even greater awareness and impact,” Buxton stated.
When asked about how big is the scale of SEA’s ad-supported streaming industry, he stated that they look forward to many global streaming platforms launch their ad-supported streamers first in the region over the coming year.
“Our research establishes that streaming in the region is growing in scale, with 71% of TV viewers tuning in and 79% stating they prefer to watch free or reduced-cost content with ads versus 21% who prefer an ad-free experience. SEA was historically a free-to-air-dominant region, likely resulting in a lasting understanding of the value exchange between advertising and lower-priced or free access to premium content,” he said.
With many ad-supported streamers fully grasping the fact that streaming services have become a necessity for households in the region, Buxton expects that given this continued appetite for content, publishers and broadcasters will continue to increase investment in digital-first video content.
“While video on demand (VOD) has been the main growth driver of ad-supported streaming in the Southeast Asia region, we can expect programmatic addressable, live sports, and free ad-suppoted television (FAST) adoption to also influence the growth of ad-supported streaming in the future. With linear TV now increasingly consumed in streaming environments, this opens up the opportunity to reach addressable audiences at scale,” he said.
Buxton further added, “Consumption of live sports on streaming platforms is also experiencing growing momentum, according to our research, and we expect this upward trajectory to continue, generating more opportunities. FAST adoption has been on the rise across the US and EMEA and is now starting to gain momentum across SEA, with device manufacturers and broadcasters launching more FAST channels to cater to a variety of user interests. All of this will enable advertisers to reach audiences more effectively and at greater scale.”
When asked what advice would brands consider when placing ads on as-supported streaming platforms, he said that brands should seek out and work with providers who have an understanding of the nuances of the streaming market across the SEA region. Moreover, it is also important that partners have direct relationships with streaming platforms and can provide transparency into media planning and reporting across these platforms, as well as the programmatic capabilities to maximise scale.
“As media owners continue to invest in quality content and internet-connected device ownership increases, Southeast Asia’s streaming TV ecosystem offers significant opportunities and benefits to advertisers looking to reach highly engaged audiences across all devices. For those that are newer to streaming, now is the time to dive in and test campaigns to become more familiar with the format, while those already investing should extend these investments across multiple streaming platforms and devices to capitalize on the current growth of CTV in addition to other screens,” he concluded.
