American Airlines Teams with Rovi to Effectively Drive Brand Awareness and Action through Connected TV Advertising
Campaign Results Part of Latest Rovi Study on Connected TV Advertising, Owners, and Device Usage in the UK
Santa Clara, Calif. - 6/6/2013 - Rovi Corporation (NASDAQ: ROVI), driving digital entertainment innovation, today released the latest findings from its comprehensive connected TV advertising study conducted in the United Kingdom with Decipher Media Research*. The latest results reinforce the ability of Rovi advanced advertising to positively affect brand awareness and engagement. Consumers exposed to ads on the platform, including an advert for American Airlines placed by leading media planning and buying agency, Universal McCann Manchester, expressed significantly high rates of brand favorability, awareness of key brand statements, and purchase intent as compared to a non-exposed control group. In addition to studying advertising effectiveness, the study also provided new data on connected TV owners and their device usage.
Titled The New American, the American Airlines advanced advertising campaign appeared on a range of connected TVs and Blu-ray Disc players from leading manufacturers including Panasonic, Samsung, Sony and Toshiba. The campaign involved interactive banners strategically placed within the connected TV interface including key positions in entertainment search areas. These interactive banners led consumers to a dedicated American Airlines branded destination where they could view video content.
As highlighted in the results of the American Airlines campaign, consumers are significantly more likely to be favourable towards the brand when they are exposed to advertising on the platform as compared to a non-exposed control group. In the case of American Airlines, the brand achieved an increase in brand favourability of 254%. Advanced advertising on connected TVs also appears to be a successful way to increase brand association; during the campaign, American Airlines saw a 308% lift in association with key brand statements.
It also appears households are becoming more familiar with their connected TVs, with respondents indicating the connected platform is used on a more frequent basis and accessed by more household members. Representing a 10% increase over the previous quarter, 49% of respondents indicated they use the connected platform once a week or more, and 84% indicated that connected functions are accessed by more than one user in the home - an increase of 23%.
As with previous study findings, the results in the first quarter seem to reinforce that connected TVs represent a tremendous opportunity for advertisers to engage consumers. Awareness of advertising on connected TV platforms continues to increase with 55% of respondents in Q1 2013 claiming they have noticed advertising – an increase of 14% from Q4 2012. In addition, 1 in 10 claimed to have also clicked on the advertising, an increase of 8% since last quarter. Connected TV advertising also appears to inspire action, with 1 in 4 respondents exposed to advertising on the platform claiming to have watched the video featured and 19% claiming they went on to purchase the advertised product. Word-of-mouth was also popular with 16% claiming to have talked to someone about the brand after seeing the advertising.
Additional Select Study Findings:
• Video on Demand (VOD) is becoming an integral part of connected TVs and this now represents the most prominent reason for purchasing a connected TV with almost 1 in 2 claiming that they purchased their TV to get access to VOD on the bigger screen.
• Households are becoming multi-device households and online usage has now caught up with TV viewing as connected households spent 3.6 hours online at home as well as watching TV. Most TV viewing still takes place in a social setting with over 3 in 4 at least frequently watching TV with others.
• Connected TV owners are heavy device users and 93% of those also owning a tablet indicate they use it as a second screen while watching TV.
• Connected TVs are becoming more innovative and consumers are expecting more of them as well. Now, 2 in 5 connected TV owners would use a product which is good at recommending TV shows they would like to watch – an uplift of 59% from last quarter. TV viewing is also becoming a social experience with almost 3 in 4 always talking to others while watching TV.
• While premium video content apps remain popular and frequently used, user-generated content is being accessed more often with monthly usage of YouTube and Facebook each increasing, respectively, by about 20% quarter-over-quarter in Q1 2013.
• Connected TV users appear convinced of its benefits with 52% using the platform to catch up on missed episodes. Content discovery remains one of the main reasons for accessing the connected TV platform – 35% use the connected TV platform when looking for a programme but don’t know where to find it.
• The ‘smart’ functions of connected TVs have a positive effect on consumers’ entertainment experience with 62% indicating they are more satisfied with their TV because of these advanced features. In addition, 70% of connected TV owners are also likely to recommend the platform to others.
“The results of the latest study are clear. Not only are connected TVs quickly moving into the mainstream, but advanced advertising on the platform has arrived and is delivering meaningful results for premium household brands such as American Airlines,” said Jeff Siegel, senior vice president, sales and marketing, Worldwide Advertising, Rovi Corporation.
Consistent with other campaigns tested on the platform, American also increased purchase-intent rates, with the likelihood to book a flight on American Airlines more than four times higher amongst the exposed group compared to the non-exposed control group.
“Triple digit lifts certainly make you sit up and take notice. We’re delighted by the results of the campaign for American Airlines and, more broadly, the opportunities that advanced advertising on connected devices can afford our clients,” said Richard Johnston, Head of TV for Universal McCann Manchester. “Rovi Advertising streamlined the on-boarding process and provides us the key placements as well as the functionality needed to creatively engage consumers at a point of high receptivity.”
Steve Davis, American Airlines Marketing Director EMEA added, “Consumer entertainment viewing habits are clearly evolving and moving to more platforms and devices. We are pleased to be teaming up with innovators like Rovi to help us use these new consumer touch points to increase brand awareness and a greater understanding of ‘The new American Airlines’ among our key target audiences.”
As well as providing additional insights into connected TV advertising, the study provided updated metrics on owner demographics and device usage for the first quarter 2013. When compared with previous results, the findings suggest the market for connected TVs is maturing rapidly.
The audience for connected TVs is shifting, with females now – for the first time since Rovi and Decipher began polling the market in 2011 – representing the largest portion of owners at 55%. As highlighted in the table below that compares data from the third quarter of 2012 with the first quarter of 2013, owners of connected TVs now represent a far more balanced range of age groups with a decrease in 25-34 year olds and an increase in older viewers.