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consider taking up this package .
The most appealing feature of
SAVoD propositions are often the
lower price tier . Existing SAVoD
subscribers of other services
already recognise these benefits ,
with 41 % of NOW UK subscribers
claiming they think the SAVoD
tier offers ‘ great value for money ’
compared to 35 % of those on the
ad-free tier which is an extra £ 5
a month .
However , careful
consideration of how each
platform positions their new
SAVoD proposition , during their
launch , will be important in
driving value perceptions , says
MTM . Consumers perceptions
around value for money will be
impacted by more than just the
reduced price point . Careful
planning around aspects such
as communicating a clear
market proposition , content
promotion plan and establishing
an easy user experience will
also play a key role in driving
value for money perceptions ,
to aid customer acquisition and
retention .
Encouraging acquisition and retention :
1 . Supporting an easy
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Subscription TV suffering
Across Samsung Smart TVs in
Europe , ad-supported video on
demand ( AVoD ) services ’ share
of streaming hours per TV screen
has increased 5 percentage
points since the beginning of
the year . This is an ongoing
indication of the evolving way in
which audiences are accessing
content . As the cost of living
rises across the world , and free
streamed television offerings
improve , the appeal of free ad
supported content is growing .
In the same period , audience
time viewing subscriptionbased
video on demand ( SVoD )
decreased by 5 percentage
points . This suggests that
streaming audiences are
migrating from SVoD to AVoD
platforms . As such , streaming
services – not least Netflix
and Disney + – are beginning
to recognise the value that
ad-supported formats can drive
for their business models as
customers look to cut costs but
want to maintain choice in their
TV ecosystem .
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UK , SVoD and AVoD are leading the charge in reach . When looking at the percentage of Samsung Smart TVs that viewed each type of streaming in H1 2022 , 80 % of TVs in the UK streamed on SVoD services and 76 % streamed on AVoD .
According to the report , consumers clearly increasingly recognise viewing ads in exchange for quality free content as an acceptable value exchange . This is supported by recent research undertaken with Verve on behalf of Samsung Ads , whereby over two in three consumers felt it acceptable to watch adverts in exchange for free content , providing the ads shown are relevant .
The growing appetite for free content in exchange for ads is producing new sub genres of the format . Free ad supported TV ( FAST ), which combines both linear and VoD experience in one place , is a rapidly growing subset of the content form .
When comparing H1 2021 vs H1 2022 , monthly FAST active users increased by 9 %, as average monthly hours spent
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ecosystem of Smart TVs increased by 21 %, spending on average 2 hours a day in streaming environments . This growing streamer subset is driven by both the growth of Samsung Smart TV ownership and audiences using those TVs increasingly choosing to stream .
During lockdown-affected years , time spent streaming overtook linear for the first time . Almost two years on , streaming has still been able to maintain a small lead over linear . More than half ( 53 %) of total TV time was spent in streaming environments vs 52 % in H1 2021 .
“ Excitingly , the streaming landscape is going through another period of great change ; AVoD ’ s growth continues as more audiences take up streaming , at the same time as the cost of living has tightened budgets ,” notes Alex Hole , vice president of Samsung Ads Europe . “ Streaming habits picked up during lockdowns have for the most part stuck , resulting in a growing arena for publishers and advertisers to reach audiences in the TV ecosystem .
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experience |
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Reducing steps to access any |
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new SAVoD service will be hugely |
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influential . How easy will it be |
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to switch between tiers ? A less |
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strict lock-in process could allow |
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for subscribers to trial different |
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models and find the right fit , |
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especially immediately after |
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launch . |
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2 . Having a clear content |
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proposition |
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Customers need to be clear about |
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the content on offer and price |
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point of the SAVoD tier . Clear |
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communication via marketing is |
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vital for acquisition prospects , and
delivering upon these promises will
help maintain trust and encourage
retention among subscribers .
3 . Remaining fresh and fun
Finally , building excitement
towards any product launch is
key ! People buy emotively , so both
exciting and delighting customers
through continuous innovation and
personalisation , especially of ad
content , will be important .
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The findings come from
Samsung Ads ’ latest report ,
Behind the Screens : Decoding the
Streaming Landscape , looking
at Samsung Smart TV data from
five EU countries : UK , Italy , Spain ,
France , and Germany ( EU5 ). The
report is built from Samsung Ads ’
unique first party ACR data from its
millions of Samsung Smart TVs in
the region , offering insight into the
habits of the modern TV viewer .
Among streaming types in the
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on the format increased 19 %. FAST services are perceived by audiences as simple to use services that complement existing mixes of streaming services , without the burden of extra costs .
Viewers are showing incredible demand for streaming services – in H1 of 2022 alone , Samsung Smart TVs in EU5 saw 4.9 billion app launches . In this period , the number of streamers across its
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These streaming audiences are tech-savvy consumers , using their TVs in new ways , and they ’ re an important cohort to reach and better understand . With Netflix and Disney + set to introduce ad-tier options to their platforms in the near future , the lines are being blurred between VoD types – and this provides even more opportunities for advertisers to engage with the ever-growing subset of streaming TV watchers .” |
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EUROMEDIA 19 |