Key Points
- Advertisers are shifting beyond traditional ad breaks as connected TV becomes central to media strategies across Europe, according to a new report from Rakuten TV.
- The report shows 100 percent of advertisers use or plan to use connected TV, with 70 percent expecting to increase spending in the next year; alternative formats like homescreen ads are gaining traction, with 35.6 percent favoring them and investment projected to rise nearly 65 percent.
- Advertisers are prioritizing engagement metrics like attention and memorability, while 82 percent of viewers remain open to relevant, well-integrated ads.
Advertisers across Europe are increasingly looking beyond traditional video ad breaks as connected TV (CTV) matures into a core component of media buying strategies, according to new research released by Rakuten TV Enterprise.
The report, “Beyond the Break: Connecting Advertising Strategy With Viewer Experience,” was unveiled Tuesday during Rakuten TV Enterprise LIVE London, the company’s industry event for advertising, media and technology executives.
Based on research conducted among advertisers, agencies and streaming viewers across Europe, the study found growing interest in advertising formats that extend beyond standard pre-roll and mid-roll commercials. The findings suggest advertisers are placing greater emphasis on attention, memorability and viewer experience as they evaluate campaign performance.
“Connected TV advertising is entering a new phase of maturity across Europe,” Cédric Dufour, the Chief Executive Officer and President of Rakuten TV, said in a statement on Tuesday. “As the ecosystem evolves, the conversation is shifting beyond scale and reach toward attention, viewer experience and long-term effectiveness.”
According to the survey, 100 percent of advertising professionals questioned said they either currently use CTV advertising or plan to incorporate it into their media strategies. Seventy percent indicated they expect to increase CTV spending over the next year.
While traditional instream video advertising remains the most commonly used format, the report found advertisers are increasingly interested in alternative placements throughout the streaming experience.
More than one-third of respondents identified home screen advertising as their preferred format for visibility and content discovery. At the same time, Rakuten TV projects investment in home screen advertising will increase by nearly 65 percent across Europe.
The study found a disconnect between usage and perceived effectiveness of traditional video ads. While pre-roll and mid-roll commercials were used by 58 percent of respondents, only 6 percent ranked them as the most effective advertising format.
Advertisers are also placing greater emphasis on engagement metrics rather than simply measuring audience delivery: Fifty-two percent of respondents said they want better understanding of which advertising formats are most memorable, while 51 percent want deeper insight into which formats attract the most viewer attention.
The report identified creative execution and contextual relevance as two of the industry’s top priorities moving forward. Nearly half of respondents cited improved creative formats as a key driver of future growth, while 43 percent pointed to better contextual alignment between advertisements and content.
On the consumer side, Rakuten TV found viewers remain receptive to advertising when it is integrated appropriately into the streaming experience. More than 82 percent of viewers surveyed said they are open to advertising within streaming services when it feels relevant and balanced.
Rakuten TV continues expanding its business-to-business operations through Rakuten TV Enterprise, which combines the company’s content, technology and advertising businesses under a single framework.
The full report will be released on Rakuten TV Enterprises’ website on June 16.
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