Samba TV Report Highlights AVOD Growth Opportunity

Advertisers should be embracing VOD and FAST platforms in their bid to reach younger and more diverse audiences, over half of which are not watching traditional cable TV, per Samba TV’s latest State of Viewership report.

The analytics firm took a deep dive into trends across 45 billion hours of linear and streaming during the first half of 2023 for its report.

“Ad-supported video presents a major growth opportunity,” said Ashwin Navin, CEO and co-founder and Samba TV. “The data clearly shows that consumers are embracing lower-cost, ad-supported streaming options that leverage advanced targeting to deliver maximum value for advertisers. As audiences shift to streaming, smart advertisers are optimizing frequency and measuring impact to reach the right consumers efficiently.”

Traditional linear reach has remained steady, Samba TV found, while streaming continues to increase. In fact, average daily reach of linear television increased slightly during the first half of 2023, being used by 57 million U.S. homes. Samba TV, however, doesn’t expect to see major gains as news and sports shift to OTT, which was used by 96 million homes in the period. Both OTT and linear consumption peaked in January, boosted by live sports, before slipping again in February.

Samba TV also found a strong link between binge-watching and audience retention. More than 70 percent of U.S. adults say they are binge-watchers, and 47 percent of homes watched a whole season of a top bulk-release show within the first five days. Netflix and Disney+ were the top two platforms in audience stickiness, but most of the steamers saw increases in retention. Netflix posted the largest gains in households watching multiple programs with a 19 percent increase from the last half, followed by Paramount+ at 14 percent.

The report also found that while drama makes up just 8 percent of the programming spend at the global streamers, it accounted for more than 50 percent of the top 50 shows in the first half. Over a quarter of the most-watched shows were thrillers and comedies, the first and third largest portions of original content spend respectively. Crime and docu-style programming came in fourth and fifth.

The rollout of AVOD tiers has meant users are now accessing three or four services as opposed to one or two. As of this year, one in four premium SVOD subs were ad-supported. Younger audiences are embracing AVOD and FAST services; 65 percent of millennials would consider subscribing to a discounted streaming service if it meant watching ads, while 32 percent subscribe to FAST services.

One in three streamers are already using FAST services, Samba TV indicates, with that number expected to rise as consumers look to cut subscription costs.

“Streaming leaders have responded to consumer demand for greater choice and flexibility,” Navin said. “Customizable, ad-supported tiers allow viewers to access desirable content on their own terms. Our insights reveal a strong correlation between binge-watching and subscriber retention. Live sports streaming will further accelerate industry growth. The future lies in using data to give consumers affordable options while delivering shareholder value.”