We live in a new age, where TV viewers don’t flip through channels or scroll down a menu. They are prompted with a choice first… which service to launch for their viewing experience.
That reality makes the Home Screen of the smart TV incredibly important to any content partner, but particularly so for those who rely on audiences to watch the ads they stream — like AVOD apps.
This is why VIZIO has multiple opportunities to promote such content on our Home Screen. VIZIO recently reviewed the results of three different AVOD services running Home Screen promotions on the VIZIO platform to learn what strategies drove the most traffic, user acquisition, and effective cost of advertising. Here are the results:
Multiple Tactics Pay Off
Home Screen promotions of all kinds drive traffic and streams to participating AVOD services. While the topmost Hero banner on the Home Screen drives the most overall traffic, the Discover placements lower on the page deliver incremental traffic at a cost per acquisition equal to or even lower than that of the Hero placements. The takeaway: use both in conjunction to get the most bang for the buck.
Regaining/Retaining Users Is Cheaper Than Acquiring New Users
Lapsed users engage more with ads and are more likely to return to the AVOD service with encouragement from advertising. And while retaining users has a cost (particularly at the growth stage), it's far less than acquiring new subscribers. For example, we learned that it is:
43% more expensive to acquire a new subscriber than regain a lapsed subscriber
82% more expensive to acquire a new subscriber than retain an existing subscriber
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