Findings
Preference for cost savings over ad-free viewing: 66% of viewers prefer saving money with ads over ad-free options (highest since 2021).
Content trumps ads for some: 35% prioritize content over ad presence.
Ad tolerance is high: 53% can tolerate some ads.
Ad aversion is low: Only 12% completely reject platforms with ads (lowest recorded).
Ad experience varies: 53% find AVOD services handle ads better than others.
Attention to ads is conditional: 35% pay attention to most ads if the load is reasonable.
Key takeaway
Viewers are increasingly tolerant of ads, especially if it means cost savings. The quality of the ad experience and reasonable ad load are critical factors in viewer acceptance.
Trend
The trend is a growing acceptance of ads in streaming services, primarily driven by the desire for more affordable viewing options.
Consumer Motivation
Cost savings is the primary motivator for accepting ads. Content quality also plays a significant role.
Driving trend
The rise of AVOD services and economic factors, such as inflation, are driving this trend.
People Referred to in the Article
US consumers ages 14-74 who watch at least one hour of TV per week
Description of Consumers/Product/Service and Age
Consumers: US TV viewers across various age groups (14-74).
Product/Service: Streaming video services with and without ads.
Conclusions
The increasing acceptance of ads signals a shift in consumer behavior. Viewers are willing to tolerate ads for more affordable streaming options, provided the ad experience is positive and the ad load is reasonable.
Implications for Brands
Prioritize ad experience: Brands need to focus on creating less intrusive and more engaging ads.
Offer ad-supported tiers: Providing lower-cost options with ads can attract price-sensitive viewers.
Balance ad load: Maintaining a reasonable ad load is essential to keep viewers engaged.
Implications for Society
Increased ad exposure: Consumers will likely be exposed to more advertising as ad-supported streaming services gain popularity.
Shift in viewing habits: This trend may lead to more viewers opting for free or lower-cost ad-supported services.
Big Trend Implied
The rise of ad-supported streaming services is changing the television landscape, forcing brands to rethink their advertising strategies and viewers to adjust their expectations.
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