As streaming video services have raised subscription prices and rolled out lowercost ad-supported tiers , more consumers are expressing their preference for watching ads to save money , according to the results of Hub Entertainment Research ’ s TV Advertising : Fact vs Fiction survey , which suggests that the trend of consumers opting for ads is not abating .
Most viewers will choose lower cost subscriptions with ads over ad-free streaming : Nearly two-thirds of consumers say they would choose an ad-supported option if it saves them $ 4 (€ 3.67 ) to $ 5 per month on a video subscription . That figure is significantly higher than just six months ago .
Resistance to ads is softening : Over the past year , more consumers who call themselves intolerant toward ads are saying they would in fact opt for an ad-supported
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service to save money .
But – consumers ’ tolerance for advertising is not unlimited : All things being equal , nearly four in 10 viewers would choose a streaming service over another if it had a lighter ad load .
And – lower ad loads benefit advertisers : Almost half of consumers pay more attention when the breaks are shorter . And when a streaming service has a more reasonable ad load , its advertisers are seen as higher quality .
It is clear that two standard length ads per break is a reasonable amount of advertising : Most viewers consider ad breaks reasonable if they are one minute or shorter . Ninety seconds is the tipping point where most viewers no longer consider a break reasonable .
There is still considerable opportunity for streamers
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to grow their ad-supported tiers : The majority of consumers are unaware of the lower-cost ad-supported options offered by most streaming services .
Consumer acceptance of advertising in streaming video continues to increase , and there is still potential for growth of ad-supported offerings : Over the past two years , the Hub TV Advertising : Fact vs . Fiction survey has consistently shown that a majority of viewers prefer an ad-supported video subscription if it costs less than ad-free . And in the latest wave , that proportion is significantly higher than it was as recently as June of 2023 .
Not only is there widespread acceptance of advertising in streaming video , there is still opportunity to sign up new subscribers . Most consumers are not aware that services such as Netflix , Disney +, and Max have introduced lower cost ad-supported tiers .
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Aggressive marketing of the less expensive options can attract viewers who have not yet subscribed to a service because of perceived high cost .
And for advertisers , streaming video currently provides a better environment for their messages than traditional linear TV . The lower ad loads on most services are generally within the boundaries of what viewers consider reasonable . As a result , they are paying more attention to the ads , and thinking more positively about the brands .
“ As consumers begin to get hit with the double whammy of needing multiple subscriptions to get their entertainment , coupled with significant price increases , opting in for advertising becomes more appealing to them ,” commented Mark Loughney , senior consultant to Hub . “ And as long as providers stick to reasonable ad loads , it ’ s a win for them and their advertisers as well .”
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EUROMEDIA 15 |