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February 27, 2024
How long?
3-4 minutes


THE DEVIL’S IN THE DATA: WHY AGENCIES NEED TO CRUNCH THE NUMBERS

Insights beat preconceived narratives about TV-streaming behaviour. Samsung Ads
Europe’s Matt Bryan reveals why


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“Our greatest glory is not in never falling, but in rising every time we fall.” 

Confucius’ stance on adversity - and his belief that you can take pride in
coming through tough times - should strike a chord with any agency that has
navigated the media landscape of the past few years, especially the increasingly
complex TV sector. 

This has been a period punctuated by turbulence. But despite doom-and-gloom
stories running amok, the latest industry news indicates there’s light at the
end of the tunnel. Budgets are at their strongest level in a decade, according
to the IPA’s latest Bellwether Report, and the Advertising Association and WARC
predict a return to adspend growth is on the horizon for TV in 2024. 

Yet 2024 still promises to be a tough sell. We’re living in an efficiency-first
economy. Streaming subscriptions were regularly touted as one of the first
things on the chopping block. But there’s a marked disconnect between what
streamers say and what they actually do. Kantar identified that 19.8 million
British households subscribed to at least one SVOD (subscription video on
demand) service in Q3 2023, compared to 19.3 million in the previous quarter.

Budgets are continuing to be scrutinised and ROI is still the top priority for
many marketers. For those in TV planning, what used to be a relatively simple
buy is now more complex. Lines between streaming categories and  app acronyms -
such as AVOD (advertising-based video on demand), SVOD,  and BVOD (broadcaster
video on demand) - have become blurred, thanks in no small part to streaming
platforms such as Netflix, Disney and Amazon Prime introducing ad offerings. 

In this fractured landscape, with more ad-enabled streaming platforms than ever
before, planners need to consider the full TV ecosystem - across both linear and
streaming - to reach their complete TV audience. And if they want to overcome
the challenge of understanding target audience crossover between apps (and how
this complements traditional linear audiences), they need to do what they’ve
always done: rely on the most accurate data. 

But there’s a caveat to this long-held rule. To paraphrase the esteemed
economist John Maynard Keynes, when the facts change - you need to change your
mind. 

This is true of streaming behaviours: constantly changing, they dictate that our
plans must change with them. 

Actions speak louder than words

Saving money moved to the top of priorities for consumers during the
cost-of-living crisis - but VOD subscriptions didn’t find themselves in the
firing line. 

Streaming platforms weren’t ensnared by the rumour mill. Netflix’s decision to
clamp down on password sharing was questioned initially. But its end-of-year
results showed the platform gained almost 30 million subscribers in 2023. 

It’s not difficult to see why TV users have been reluctant to walk away.
Streaming is entrenched in their daily habits. In 2023, 84% of the UK Samsung TV
universe was streaming, reflecting an 11% year-on-year increase. 

The devil is in the details - and the data. Evolving behaviours are nothing new
in the world of TV users. Case in point, Samsung Ads also reported that the
average Samsung TV owner spends 57% of their time in streaming environments,
compared to 43% for linear. The challenge for TV planners is clear: how can they
know when viewers change, and how can they plan against these behaviours? 

Tapping into streamer-specific data can be the catalyst for effectively
analysing advertising performance and optimising budget allocation. Samsung Ads’
wealth of information around screen time and app usage allows agencies to base
their strategies on tangible insights, rather than preconceived narratives. 

One common misconception is that TV viewers have a favourite app or platform
that they always go to, because it gives them the most variety. While this is
the story for 21% of UK TV users who visit the same app every time they turn on
their TV - it’s not the full picture. 

Some viewers might go straight to the current programme that they are binge
watching for their dedicated TV time. On the other hand, some might habitually
switch to their preferred news programme at the same time every evening. We also
found that more than half of our UK TV users use five or more apps when they
switch on their TV. 

So what’s the narrative, or the data, that planners should be following? That
streamers are loyal to one app, or many? The bottom line remains the same.
Streaming audiences aren’t one big, homogenous group. Every user has their own
unique nuances and preferences - this will forever be the one constant in a
continuously shifting landscape. The onus is on planners to adapt to a less
broad-strokes approach to TV, and replace this with a renewed focus on
data-driven activities. 

Going with the (behavioural) flow

Agencies would do well to take inspiration from Confucius’ words of wisdom. A
bump in the road (in this case, prolonged economic turbulence) can throw even
the best-laid plans into disarray. But this shouldn’t deter planners from trying
to crack the world of television advertising. 

TV strategies have always been rooted in data. However, it’s the agencies that
evolve with the times and integrate new, up-to-date data sets that will weather
any storm - regardless of which way the streamer winds blow. 

Do you want to learn more about app-based streaming trends and how consumer
behaviours vary across different video-on-demand platforms? Download Samsung
Ads’ latest report, Anatomy of a Streamer, and kickstart your agency’s
data-driven strategy.

Matt Bryan is director of analytics & insights at Samsung Ads Europe


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