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June 5, 2022
Study Says CTV Viewers Prefer More Ads Over Lower Rates for Streaming Services
Everything You Need To Know In Less Than 50 Words
A new study from an independent research group found connected TV (CTV) customers would rather have more ads than pay more for streaming services. The study comes as more streaming services look to pivot to ad-supported models.
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A healthcare advertising technology company surveyed 2,900 LG smart TV customers in the United States and found that 64 percent of them would rather have more advertisements than paying more for streaming.
DeepIntent published the results of their study that showed a shift in how customers would rather have content delivered to them. The company’s study was done through a partnership with LG that allowed researchers to collect self-reported data from customers.
While the study claims consumers want more ads, they want those ads to be more targeted and tailored to their wants and needs. Specifically, 65 percent of those polled say those targeted ads improve their viewing experience. Furthermore, 57 percent say the ads they receive on a smart TV are more relevant to them than linear TV ads.
A new study from an independent research group found connected TV (CTV) customers would rather have more ads than pay more for streaming services.
Streaming Services Moving to Ad-Supported Tiers
Several mainstream streaming services are moving to an ad-supported model rather than raising prices for cash-strapped consumers.
Discovery+, Peacock, Paramount+, HBO Max, and Hulu are just a few services offering consumers ads instead of higher prices. The ads are targeted based on internet viewing habits and are shorter than the normal 30-second TV ad.
Hulu, in particular, offers consumers an ad-supported tier at $6.99 a month and an ad-free tier at $12.99 a month. HBO Max just started an ad-supported tier for subscribers at $9.99 a month.
Netflix May Join Ad-Supported Model Soon
But the biggest whale in the streaming sea, Netflix, has attempted to avoid ad-supported plans. That is, until now. The company’s stock prices have dropped recently after subscriber losses and concerns about growth.
The moves have pushed even Netflix to consider an ad-supported model to help stop the blood loss from subscribers leaving the service.
Netflix is reportedly working with Google and NBCUniversal to establish a system to support ads for subscribers looking to save money on the service. The New York Times says the company is already telling employees to prepare for an ad model by the end of 2022.
Company Also Believes CTV Ads Are “New Brand Battleground”
On top of their study, DeepIntent also hosted a summit to help pharmaceutical companies navigate the changing advertising world thanks to connected televisions.
“CTV is the new brand battlefield,” DeepIntent CEO Chris Paquette said in a statement. “It’s a war that will be fought with technology and data. The pharma brands who seize the opportunity to lean in, test and learn, and build relationships with innovative partners will be the best positioned to outcompete and outperform their competition.”
Source: Advanced Television
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