Less ads means better advertising, says Foxtel and Nature study

Foxtel has released new research in conjunction with strategic insights consultancy Nature, that shows subscription watching delivers a more engaged audience than non-subscription.

The study involved qualitative and quantitative research and implicit behavioural measurement of over 3,000 Australians.

According to Foxtel, the research establishes a comprehensive definition of viewing engagement: “It was critical to us to start that journey to add weight to metrics like engagement and attention, which are commonly discussed but not commonly used,” said Foxtel Media CEO Mark Frain.

Foxtel Media CEO Mark Frain.

The research found that audiences watching Foxtel are 27% more engaged than those watching non-subscription television.

“It reinforced what we are doing is providing a more rich and engaging platform for customers,” added Frain. “Any platform that is running significantly less advertising would deliver better advertising outcomes.”

The research also found that more engaging advertising formats drive greater ad recall (up to 11%) for advertising partners and that the lower ad loads on Foxtel translated to more positively engaged audiences. This in turn led to higher levels of advertising recall and better communications of brand messaging. Foxtel’s ad structure format broadcasts 33% fewer minutes of advertising per hour.

“We are constantly looking at ad loads on different platforms and different models as Foxtel continues on its streaming journey,” Frain told Mumbrella. “We will continually review ad loads across all platforms and see if there is a more efficient way to structure it.”

Complementary data to the study from personal finance app Humaniti found that Foxtel subscribers spent on average nearly 50% more than non-Foxtel subscribers across 17 different categories.

According to Frain, this shows that Foxtel not only has the target audience, but that the audience is likely to purchase.

“The propensity to purchase is significantly higher on the Foxtel platform,” said Frain.“I think it [the research] starts a reappraisal for advertisers. I think any client that can find a platform or channel that is so rich in target customers and customers that are going to spend a lot more on target products, I think you will see the way and the order in which things are planned will change.”

Nature’s Sydney office managing director and partner James Jayesuria added: “It’s not just about who they are – it’s about how they interact with the category.”

As to whether there would be any changes to the advertisements on Foxtel as a result of this new research, Frain said that Foxtel would continue to tread very carefully.

“We have to maintain that quality experience that the research has just proved that we have,” he said. “The expectations of customers are different on streaming platforms.”


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