Advertisers should take advantage of the large audiences flocking to ad-supported streaming services, a new study from Verizon Media and Publicis Media said.
The study, called capitalizing on the CTV Opportunity," said that while more people are streaming overall, frustration with subscription based services, many of which are ad free, is likely to drive viewers to AVOD and that advertisers should be ready to adjust their spending accordingly.
Streaming subscriptions grew 48% in the fourth quarter of 2020, compared to the third quarter, according to internal data from Verizon Media, which is in the process of being sold by Verizon to Apollo Global.
But while 71% of consumers point to premium SVOD as their current “go to” service. The Verizon-Publicis survey said subscription fatigue and overload is pushing cost-conscious consumers from SVOD to AVOD.
Streamers are using an average of five streaming services, but they’re not necessarily happy because watching TV has become complicated. In a survey 76% of consumers said no one streaming service has it all, 45% said they were using too many services for TV content and 48% of streamers worry about how much they’re spending on these services and are sharing passwords to help manage expenses.
The frustration with SVOD is making AVOD a more attractive option for viewers.
The Verizon-Publicis survey found that three in five TV viewers were more aware of AVOD than they were a few years ago. More than half said they were interested in ad supported services. Among those using paid ad free streaming services 83% said they were willing to try an ad-supported service to save money.
When asked why they’re looking at AVOD, 45% of viewers said the service is free, so why not try it and 43% said the AVOD they tried was good quality for a free service. Content was a smaller factor than avoiding more fees. Just 23% said the AVOD services they looked at feature really high quality shows and movies.
Bottom line for Verizon and Publicis is that consumers are turning to myriad streaming connected TV options and the best way o take advantage of that is through an integrated platform that can drive performance and integration for advertisers and deliver a better ad experience for customers and viewers.
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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