The take up of advertising-supported subscriptions to streaming platforms has been faster than expected, according to data from Samsung Ads.
There are more than 3.4 million Samsung Smart TV's active in Australia, giving the company a unique insight into the viewing habits of consumers.
With 80% of Australian households owning a smart TV and 8.6 million Australians streaming daily, Samsung TVs now account for 71% of viewing time in its households, with linear TV making up 29%.
And for the first time, ad-supported streaming has overtaken linear TV in Samsung homes, with 31% of streaming time being ad-supported.
Alex Spurzem, managing director of Samsung Ads Southeast Asia and Oceania, brought the data to the Video Future Collective (VFC), a think tank addressing challenges in the Australian digital video and streaming sectors, as part of its research.
“Agencies were asking us for evidence that streaming was working and justifications for why it made sense to lean more into streaming advertising,” he said.
“It was clear streaming had found more uptake than many in the industry realised, and maybe in some cases more than people were ready to acknowledge.”
Spurzem said this data likely wasn't limited to just Samsung Smart TV's, and as such, there was an interesting trend that has the potential to change the digital and streaming advertising landscape.
“These are only a couple of data points, but I think there’s a trend line through them. In the next few years we expect to see a new era where streaming becomes the baseline for television advertising,” he said.
“I think it will be turned on its head, and planning for streaming will be the norm while linear television will be used for incremental reach.
“If you look at the budgets that the Australian advertising industry puts into television advertising, it is a bit lopsided when you see these figures."
But Spurzem said he believes that figure will adjust over time as the sector becomes more aware of the shifting streaming landscape.
The VFC aims to help advertisers maximise this growing ad supported streaming audience.
One way to achieve this is by keeping the industry abreast of key trends, especially with existing uncertainty around the best use of Total TV advertising.
For example, Samsung Ads and Nielsen found that a 70/30 split between linear and streaming TV ads led to positive results across various industries and demographics.
Another VFC study, in partnership with Adgile and GroupM, analysed $200 million in video ad spend over three years. The research showed that allocating 40% of video budgets to streaming ads is optimal for campaign performance.
The results of the project, which includes analysing key metrics such as audience reach and budget allocation, is expected to help influence future advertising strategies.
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