Streaming TV ads gain in viewer acceptance, survey finds

Most consumers have accepted that paying less for streaming services means having to sit through ads. Only 13% of consumers are opposed to ad tiers in streaming, down from 36% in 2022, according to new research from consumer data company Disqo. Streaming may appear to be an established medium to the average consumer, but it is still a young market for advertisers. The new findings come as Netflix, Disney+ and now Amazon have introduced ad tiers for their programming, charging viewers less for ad-supported subscriptions versus the ad-free ones they were used to. Today, Amazon’s Prime Video entered the streaming ad tier faceoff with potentially industry-disrupting force. And while ad buyers expressed frustrations with its out-of-touch timing for entering the market, there’s no question among them that it will bring the scale and capabilities necessary to sway brands toward streaming-first TV strategies. That’s where the disconnect lies in accelerating the so-called streaming wars: consumers are rapidly shifting away from linear TV, but advertisers haven’t been quite as quick to formulate campaigns around streaming capabilities. Efforts are being made to get brands on board with new formats native to digital video platforms, but time is of the essence if streamers want to sway consumers to accept advertising on their platforms. Check out the latest Ad Age events and award programs The majority of U.S. adults, 88%, have at least one streaming subscription, according to Disqo. The survey of nearly 18,000 U.S. adults found that 51% of respondents felt positively about subscribing to a streaming ad tier, while 37% were still forming their opinion. While the cost of an ad-supported subscription versus one that’s ad-free was the top consideration among consumers, a large number also listed personalization and interactivity among priority elements for making ads in streaming tolerable (outside of table stakes needs such as controlled ad load and frequency). New ad strategies Streamers have been investing in capabilities such as shoppable ads and AI tech that will match advertisers with appropriate content, but many marketers still approach streaming as incremental to their TV strategies, porting campaigns from linear rather than curating marketing specifically for streaming. And the value of adopting streaming-first strategies will only grow as more viewership leaves linear TV for streaming and CTV, where these developing ad formats are possible. A third of current cable subscribers plan to cancel their service this year, according to Disqo. Comcast lost 390,000 cable TV customers during the fourth quarter. Respondents to Disqo’s survey suggested that streamers have better curation of advertising for users as well as more desirable placement of ad breaks in library content that was made to be ad-free. One surveyed consumer suggested that streamers allow the user to either block or note a lack of interest in an ad or brand they don’t feel is relevant. And given the economic pressure on consumers, cost may be enough for ad tiers to grow by default, particularly as streamers are tightening their belts on password sharing—a push Netflix credited in part for the strength of its fourth-quarter results. Per Disqo, 30% of U.S. adults use a shared streaming subscription, naturally showing the highest share among the youngest generations. More: Amazon Prime Video offers incentives for its new ad tier Streamers may also find the scale needed by advertisers through bundling, a trend that has already been growing as platforms partner up with each other as well as other types of services. Overall, 41% of viewers told Disqo they subscribe to bundles. More specifically, 48% subscribe to small pairings of apps, such as Disney’s Disney+/Hulu/ESPN+ bundle, while 26% take advantage of packages through third-party providers such as Verizon or Comcast. Disqo’s survey is evidence that habits are still forming in the quickly evolving streaming space, and at a time when cost-friendly subscriptions have never been a higher priority. Time for platforms and brands to test and learn may be short, as the first streamers to crack the advertising model at scale with consumers will likely be the winners of the streaming wars.

Streaming TV ads gain in viewer acceptance, survey finds

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