Report: Consumers Show Preference for Ad-Supported Streaming

Almost two-thirds of U.S. consumers would select an ad-supported streaming option if it would save them $4 to $5 per month on a video subscription, according to Hub’s new “TV Advertising: Fact vs. Fiction” survey.

This is up significantly in just six months, Hub notes, with consumers increasingly less resistant to ads as they look for ways to save money. The question of ad load does matter, though, Hub says: all things being equal, nearly four in ten viewers would choose a streaming service over another if it had a lighter ad load.

A lighter ad load is also beneficial to brands, with Hub finding that almost 50 percent of consumers pay more attention when the breaks are shorter. A reasonable load is two standard-length ads per break. A minute is the sweet spot, whereas 90 seconds is classed as a “tipping point,” towards a break being unreasonably long.

The streamers have considerable room for growth with ad tiers, as the majority of consumers are unaware of the lower-cost ad-supported options offered by most platforms.

“As consumers begin to get hit with the double whammy of needing multiple subscriptions to get their entertainment, coupled with significant price increases, opting in for advertising becomes more appealing to them,” said Mark Loughney, senior consultant to Hub. “And as long as providers stick to reasonable ad loads, it’s a win for them and their advertisers as well.”