DirecTV Advertising's recent report revealed long-form content is the epitome of premium entertainment. 97% of viewers consider long-form content -such as feature films, high-budget drama series, and live events- the gold standard of premium content. This type of content is valued not only for its high production quality but also for its ability to create meaningful connections among viewers, whether through shared experiences with friends and family or through the exclusivity and cultural relevance it provides.
“DirecTV has been at the forefront of entertainment and innovation for three decades. Viewer habits have certainly shifted over time, but what remains consistent is that TV and premium content offer a truly leaned-in experience that forges deep personal connections,” commented Amy Leifer, Chief Advertising Sales Officer for DirecTV Advertising. “DirecTV Advertising brings together brands with the deeply engaged audiences that matter most to them”.
The report also highlights the effectiveness of advertising within this premium content environment. Viewers are notably more receptive to ads in these settings, with 62% of them having purchased a product after first encountering it in a premium content ad. This indicates that premium content is not only influential in shaping consumer perceptions but also in driving consumer actions. The study suggests that brands gain additional appreciation when they choose to advertise within this context, as viewers recognize that such advertising helps to keep premium content accessible and affordable.
“Viewers follow good content wherever it lives, which is why it is a challenge to put a universal definition on what ‘premium’ means to consumers,” said Liz Leonard, EVP, PMX Lift. “However, we know that long-form content continues to be a vital part of advertisers’ video mix due to perceived content quality and integrity, as well as having a proven track record of driving strong engagement and business outcomes.”
Diving deeper into the audience, the report categorizes viewers into distinct segments, each with unique preferences and behaviors. For instance, the "Blockbuster Buffs," a segment characterized by their love for high-budget films and dramatic series, place great importance on the quality and exclusivity of premium content. These viewers often consume movies and sports content in the comfort of their homes, valuing the shared experience with others and the sense of connection it fosters.
Another segment, the "Stream Elites," is defined by their preference for story-driven narratives and exclusive content available on streaming platforms. These viewers are often subscribers to multiple streaming services, favoring personalized and ad-free experiences. Despite this preference, a significant 75% of Stream Elites have purchased products after seeing them advertised in premium content, highlighting the subtle but powerful influence of well-placed ads even among those who typically avoid them.
The "Live Thrill Seekers" segment is particularly drawn to the immediacy and excitement of live events. For this group, live content provides a sense of being informed and part of something special, a feeling that is amplified by the communal experience of watching events as they happen. They dedicate an average of 33 hours per week to long-form, ad-supported video content, with those in DirecTV Satellite households watching twice as much sports content compared to others. They subscribe to five to six services weekly, including 71% to AVOD, 56% to live TV, and 44% to streaming platforms, ensuring access to the latest live events.
Their engagement with premium content extends to advertising, where 73% have purchased a product they first saw advertised within this context. They appreciate ads that provide new information, aligning with their desire for content that is exciting and informative. Furthermore, 67% pay to subscribe to AVOD services, indicating a willingness to engage with ads in exchange for premium content.
These findings underscore the nuanced relationship between premium content and advertising. Different viewer segments interact with content and ads in distinct ways, shaped by their preferences for certain types of entertainment and their viewing habits. For advertisers, this highlights the importance of tailoring strategies to align with the specific desires and behaviors of each segment, ensuring that their messages resonate effectively with the intended audience.
