How brand-funded entertainment is reshaping the content to commerce experience for viewers

• For the viewer perspective, we surveyed a nationally representative, opt-in panel of 1,024 individuals between the ages of 18 to 54 who told us about their TV consumption and shopping habits. From these responses, we were able to understand the existing path to purchase, as well as develop a framework for the ideal path to purchase for viewers.
• To assess the effectiveness of brand-funded entertainment compared to standard TV ads, we utilized an online survey (n=451) and an in-lab media experience (n=90) among opt-in participants ranging in age from 18 to 54. This enabled us to focus on both conscious and subconscious responses to branding and whether brand-funded entertainment influenced brand metrics and KPIs.

With the findings from this study, we were able to discern the impact these formats have on the consumer experience in a world where the boundaries of brands, content and commerce continue to blur. Here are some of our key findings.

We found that consumers do not differentiate between TV programmes that are created by a brand (like LEGO Masters) and those that are not. What keeps them watching is the content itself. When asking consumers why they chose to watch brand-funded entertainment, 59% of respondents said they found the programme “fun to watch.”

Other top reasons why respondents chose to watch brand-funded entertainment was because they “enjoyed the content” (45%) and “learned something new” (34%).

We found that few members of this audience were deterred by the fact that a brand created the programme; interestingly, brand involvement in content creation elevated esteem for both the brand (66%) and show (67%) from the respondents’ perspective.

Audiences are paying attention to brand-funded entertainment programmes. When comparing the two formats, we found viewer engagement as measured by EEG normative score in a voluntary, opt-in study to be higher for those who watched brand-funded entertainment (51.1) versus traditional TV ads (47.0)².

Although we found that traditional TV ads fared better on product attention, brand-funded entertainment inspired motivation (i.e. information processing), which is a key indicator for purchase intent among consumers. This trend was observed to be 7% higher amongst viewers who viewed brand-funded entertainment compared to those who saw standard TV ads.

Additionally, brand-funded entertainment programmes excelled at elevating consumer perceptions of brand authenticity (+5% than standard TV ads). Further, we saw a lift in both purchase intent (+9% than standard TV ads) and search intent (+21% than standard TV ads) among potential new customers that viewed the brand-funded entertainment content.

Audiences are naturally inspired to purchase by what they see on TV. This desire is only accentuated when viewing content that sparks interest.

From our respondents, we learned that TV content initiates the desire to purchase products seen on programmes. While watching TV programmes, 63% of our respondents reported wanting to purchase a product they saw either every single time or sometimes. This urge was most felt by younger generations such as adult Gen Z and Millennials, with adult Gen Z leading the way (+20% when compared to the respondent average).

Often, the desire to purchase products from TV content leads to actual purchases. Overall, 54% of our respondents said that they had purchased products they saw on TV programmes. Generation-wise, we found Millennials to be most prone to purchasing (+9%), followed by adult Gen Z. Even though the existing path to purchase from TV ads can at times be cumbersome, we found that consumers still find ways to get what they need albeit with friction.

Audiences of TV content are being inspired to purchase; however, the ability to arrive at the purchase point is not as seamless as it could be. Expediting the path to purchase is critical, especially as it relates to low-cost and mid-cost products and services.

Among our respondents, 34% desired to purchase low-cost products (food, home cleaning supplies, etc.) immediately. The desire to purchase immediately for mid-cost products (clothing, games, etc.) was similar at 29%. We found that despite the higher price tag (cars, insurance, etc.), audiences still want to have the ability to research the product or service immediately (33%).

Frustration was common among our respondents, who reported difficulty in finding products they saw on TV programmes. Over half of the respondents we surveyed reported feeling frustrated either all the time (19%) or sometimes (33%) when trying to purchase these products. This sense of frustration was most felt by younger generations, such as adult Gen Z (+13%) and Millennials (+7%).

Although there is high interest in purchasing products seen in TV programmes, the current trajectory on the path to purchase can be fraught with friction. In turn, this friction leads to frustrated consumers and a leaking pipeline for brands.

Forward-thinking brands should take note of these pain points and begin to think about how they can innovate in a way that would solve for this, which would have short- and long-term positive implications for both the brand and consumer.

The overlap of content and commerce is fertile ground for exploration and this growing cross-section is already present across Amazon. Examples range from the Amazon Freevee Original Play-Doh Squished, a fast-paced family competition series inspired by the popular toy brand, to Amazon Live, the shoppable live video experience that reaches customers engaged on Amazon.com.

Brands looking to optimise the consumer shopping experience have the chance to re-imagine how they can synthesise their content and commerce experiences in a way that not only delights consumers but challenges the long-held belief that these categories must be treated as mutually exclusive.

The insights referenced in this post are gathered from “The Converging Worlds of Content + Commerce” published by MAGNA and Amazon Ads (US, 2022). To learn more, click here to read the full study (English only).