Ad-Free TV is not the panacea it was once considered to be. As ‘subscription fatigue’ is compounded by rising inflation, viewers are increasingly turning to FASTs and AVODs, and providers are increasingly adding ad-supported, lower-cost tiers.
In previous waves of this study, we’ve consistently seen that ad-supported options remain attractive to a broad base of viewers. More than half would choose an ad-supported platform if it meant saving $5 a month. What’s more, nearly half of so-called “ad-intolerants” use FASTs and AVODs, and 1 in 4 would choose an ad-supported tier over a higher-cost ad-free option. When ads are delivered effectively, viewers can actually be more satisfied with the overall viewing experience—and feel more loyal to the service—than viewers of ad-free content.
In this fourth wave of TV Advertising – Fact vs. Fiction, we will continue to track use, viewing behaviors, and perceptions when it comes to ad-supported TV. We’ll explore the interplay between advertising, cost, and content, and how they inform platform choice:
- What advertising formats and features offer the best experiences in the minds of consumers?
- How does advertising impact satisfaction and perceptions of value?
- What is the role of content when choosing between ad-supported and ad-free platforms? How does original and exclusive content inform consideration?
- What impact does tiered service have on platform choice, retention, and subscriber growth?
In the end, the goal of the study is to help TV service and content providers offer an ad experience that will maximize viewer satisfaction, engagement, and loyalty.
Source: Interviews with 3,001 US consumers age 14-74, who watch at least 1 hour of TV per week.