Akoo, the world’s largest social music television network, has released results of the first major “Advertising Effectiveness” study in the rapidly emerging social TV space. The study was conducted by media research firm Arbitron and included Akoo advertisers in the categories of gaming consoles, quick-service restaurants, consumer electronics retail, movie studios, and mobile broadband service providers.

Among the study’s major findings: traditional 30-second TV commercials, when integrated within an interactive, social TV programming environment, often outperform broadcast TV equivalents in brand metrics such as recall, consideration, and purchase intent.

The study results come at time when converged Internet-connected HDTVs, social media apps, smart phones, and Wi-Fi enabled mobile devices are profoundly changing how people experience broadcast and IP-based television programming – both in-home and out-of-home. Many leading industry observers also predict 2010 will be the year that “social” becomes a ubiquitous experience spanning all screens and ultimately transforming the broadcast TV model.

As a result of new technology, commercial avoidance, and the exodus of younger demographics, a McKinsey & Company study concluded that traditional TV advertising in 2010 would be one-third as effective as in 1990.

“The Akoo study validates that a social TV environment delivers younger, more engaged, and higher quality audiences,” said Niko Drakoulis, Akoo CEO.

“These factors increase the effectiveness of traditional television advertising dramatically.”

According to certified Arbitron audience measurement research, 64.5 million monthly viewers currently watch Akoo programming and advertising in 53 top markets across 30 U.S. states. Akoo’s patented technology allows the company to deliver major label music videos and original programming to a national audience, while enabling viewers in each location to participate in the local programming experience. Viewers can select programming, via SMS text message request or Akoo’s mobile application, and share it on the network, free and on-demand.
Highlights from the study include the following:

Purchase Intent

64% of viewers who recalled a QSR’s premium coffee TV spots on Akoo are planning to buy the QSR’s premium coffee. Further, 23% of viewers did not know that the QSR was serving a line of premium coffees prior to seeing the TV spots on Akoo.

84% of viewers who saw a movie trailer on Akoo were more interested in seeing the movie, with 64% “a lot more interested.”

52% of viewers who recalled seeing TV ads for a game console on Akoo said they were more interested in purchasing the game console as a result.


Favorability and Consideration

After seeing a mobile broadband service provider’s TV ad on Akoo, 79% of viewers were more likely to consider trying the company’s newly launched service.

76% of viewers were unaware they could text a consumer electronics retailer for gift advice prior to seeing the TV ad on Akoo. However, after seeing the TV ad on Akoo, 27% of viewers were more likely to use the service for gift advice.

63% of viewers said that seeing a TV ad for a game console on Akoo improved their opinion of the game console.


Unaided and Brand Aided Recall

Unaided recall was measured up to 25%.

Brand aided recall was measured up to 60%.

Average brand aided recall was 43% across all advertisers.


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