What do consumers really think about ads on streaming platforms?
Hard data for a rose drinking generation
We often discuss the value of a positive ad experience on TV, but we rarely examine the hard data to truly understand consumer opinions.
Last month, I kicked off an exciting consumer opinion-tracking project with the brilliant Megan Daniels at MX8, and now we have our initial findings.
Some survey results met my expectations, but others were real eye-openers. On average, ad-supported streaming service users have 5.1 streaming services and 3.4 ad-supported ones. Interestingly, younger viewers (under 24) are less likely to use ad-supported services, likely drawn to Netflix and Disney's content.
I was also intrigued to see African American audiences over-indexing on streaming services, especially ad-supported ones. While streaming might not be the best way to reach the 18-24 audience, it’s fantastic for the 25+ group, particularly ethnic minorities.
Despite high awareness, fewer than half of Netflix and Disney subscribers opt for the ad-supported tier. Most of the other tiered platforms have more than 50% opting for ads. Is that because they started with ads or because they’ve improved the experience?
When it came to the ad experience, it was no surprise that consumers favored skippable ads, even on TV, but grumbled about long ad breaks on platforms that support skippable ads. Of course, they want to have their cake and eat it.
Surprisingly, most consumers found ad breaks "about right" in length, with YouTube being the only platform deemed "too long." Relevance is also a major factor, with top-ranked streaming services noted for having more relevant ads. Peacock and the Roku Channel got marked down for having too many ads and less relevant content.
So, who offers the best ad experience? Netflix tops the list, followed by Amazon Prime Video and Hulu. At the bottom, we had Crackle, Watchfree+, and Xumo.
Once we gather a few more waves of data, I’m going to turn this into a monthly tracker as a fully syndicated service. The ultimate goal here is to enhance the ad experience for consumers while making it profitable for advertisers and media owners.
If you're interested in the data from the first wave or want to discuss the insights further, please get in touch!
Finally, if you’re there, I’ll see on the beach at Cannes next week, watching the latest and greatest ad supported streaming, of course…
