With a greater number of lower-cost ad-supported TV sources available, TV viewers’ resistance to ads continues to wane. The results of Hub’s semi-annual “TV Advertising: Fact vs. Fiction” survey indicated most consumers prefer to watch TV ads in exchange for lower subscription costs, particularly those who remain concerned about the economy and potential inflation.
Most viewers prefer TV with ads if it saves money on subscriptions, even for those who say they are ad-intolerant. A full two-thirds of viewers say they would prefer to watch content with ads if it brings down the cost of a TV subscription.
Notably, there has been a growing preference for ads over the past three years among people who say they cannot tolerate ads. As viewers add more TV services, and those services increase prices, lower cost alternatives are persuading consumers who dislike ads to consider ad-supported content.
With many FASTs and AVODs now offering live TV options, especially in news and sports, consumers are finding more options for live viewing. Although streaming services are still mainly used for on-demand viewing, one third of viewers’ time is spent with live streaming.
Since a great deal of live TV content is formatted for commercial breaks, two-thirds of viewers find advertising more tolerable than in on-demand programming. Moreover, the positive sentiment toward live TV ad breaks is even more prevalent among younger viewers.
Ad breaks in live TV give many viewers a welcome break in the programming. For live sports in particular, ads are seen as part of the regular rhythm of the action. The positive reaction to ads in live TV subsequently leads to greater attention to the ad breaks, compared to on-demand programming.
According to Hub, rewards for watching ads would be a top driver of attention, but lighter ad loads are also important. When asked a series of questions about characteristics of ads that would garner more of their attention, viewers were most likely to cite rewards for viewing. The next three most-cited drivers of attention were all associated with fewer ads however: shorter ad breaks, shorter ad length, and single ad per break. Although many streaming services provide countdown clocks or ad counters, fewer viewers agreed those features earned more of their attention during ad breaks.
Among the lowest ranked ad break features were those that required viewer participation: games, interactive ads, or product links. Pause ads, another common practice among streaming services, also scored low on attracting viewers’ attention.
As more TV services have introduced ad-supported offerings, viewers are acclimating to that reality and embracing it. The number of consumers who say they are intolerant of TV advertising continues to decline. What is particularly noteworthy is the viewers who say they cannot tolerate ads are the ones who are coming around to accepting ads for lower subscription costs.
There is no secret to providing the best ad experience. Relevant, interesting ads presented in shorter breaks with fewer commercials are the path to attracting viewers’ attention. Promotions and rewards for viewing can be an additional way to garner interest. On the other hand, asking viewers to interact or play games with advertising is a non-starter for most viewers.
“Over the past three years, it’s clear most viewers prefer watching ads if they can save on TV subscriptions. More recently, we’re seeing that even the most ad-intolerant consumers are deciding the trade-off of watching ads for lower costs is worthwhile,” said Mark Loughney, Hub Research Senior Consultant. “There is plenty of good news here for streaming services and their advertisers. Most consumers think the amount of advertising is reasonable, especially in live viewing. As streamers add more live content, especially sports, advertisers will have greater opportunities to reach more viewers who are paying full attention to their messages,” he concluded.
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