Streaming platforms have been shown to be twice as efficient at driving business outcomes, according to a study by the Video Futures Collective (VFC), Adgile and GroupM.
The study examined $200 million in streaming and linear video ad spend over three years across key GroupM clients in automotive, FMCG, entertainment, and beverage categories, and focused on key business outcome metrics such as sales revenue, website visits, and app usage.
While video advertising across all platforms delivered strong incremental results, streaming platforms proved to be twice as efficient in achieving these outcomes. The modelling suggests driving investment in streaming video to approximately 40% of total video spend could significantly enhance overall business outcomes.
The research also highlights the benefits of diversifying spend across a range of streaming platforms. In some categories, including Automotive, website visits increased by up to 5%, simply by shifting spend across multiple streaming platforms.
Understanding the nuances within streaming is crucial and will be the focus of the next phase of this research, available in mid-2025. This phase has provided initial insights, with premium streaming platforms proving to be twice as efficient in generating business outcomes per dollar spent compared to any other platform in the total video landscape.
Toby Dewar: ‘This research empowers advertisers to make data-driven decisions about their video investments.’
“The study highlights the importance of staying ahead of audience viewing trends,” Toby Dewar, VFC steering committee member and director of customer engagement of Foxtel Media said.
“By proactively shifting investments towards streaming video, advertisers can capitalise on evolving consumer behaviour and maximise their return on investment. This research empowers advertisers to make data-driven decisions about their video investments.
The growth of platforms like Amazon Prime, Binge, ESPN, Kayo, Samsung TV Plus, SBS OnDemand, Vevo and YouTube presents a wealth of opportunities for brands to connect with their target audiences and achieve superior results.”
Melissa Hey: ‘Having deeper insights and data based in rigorous research, helps us better advise our clients on the most effective approach to media investment across platforms to achieve their objectives.’
Melissa Hey, chief investment officer of GroupM Australia, said: “What these early studies have shown is that there is huge potential for brands’ media investment to work harder and deliver improved results. We already plan for an optimal split for our clients.
“Having deeper insights and data based in rigorous research, helps us better advise our clients on the most effective approach to media investment across platforms to achieve their objectives. We look forward to the next phase of the research.”
Stu Carr, Adgile director customer insights, added: “Our research clearly demonstrates the power of video advertising to drive tangible business results. The real game-changer lies in not just shifting a greater portion of video budgets towards streaming but also understanding and optimising the unique strengths of each platform. Advertisers who take this approach can significantly amplify their impact on key metrics like engagement and sales.”
The VFC and Adgile are committed to ongoing research in this area. A second phase of the study will delve deeper into the specific drivers of impact within streaming, providing even more granular insights for advertisers.
Future research will explore the effectiveness of streaming video within the broader media landscape, comparing its performance against other channels to provide a holistic view of media investment strategy.