Nearly one in four users (23%) of ad-supported OTT services said they often click on ads that they watch, and the same percentage often buy things they see advertised, according to new research from Parks Associates.
“Now, 37 million US internet households use at least one advertising-based OTT streaming service. Hybrid models, especially when AVOD or FAST are included, enable quick customer acquisition and a ‘try before you buy’ experience with the content offering. Advertisers can reach many people, and consumers can get a lot of free content,” said Alan Bullock, Senior Contributing Analyst at Parks Associates.
According to the “Ad-Based OTT: Growth in FAST and AVOD Services” report, which explores factors driving the growth of ad-based online video, profiles and compares market leaders, and assesses consumer preferences in watching ad-based content, ad-based services are benefiting from the current uncertain economic climate. Inflation and fears of recession are causing consumers to evaluate discretionary spending, and switching from legacy pay TV or subscription-based streaming services is a means of cutting costs, the study assures.
“As consumers continue to move away from traditional pay TV services, they will first seek out ways to watch the content they want in ways they are accustomed to — a relaxed, lean-back experience. Even so, ad-supported streaming services should strive to be more than simply traditional TV on the internet. This is a time for thoughtful data-justified innovation, building a better experience than the living room TV of the past could ever offer,” Bullock concluded.
Hybrid models, especially when AVOD or FAST are included, enable quick customer acquisition and a ‘try before you buy’ experience with the content offering.” Alan Bullock Senior Contributing Analyst at Parks Associates