Online viewers unwilling to pay to avoid ads

STRATA, a specialist in media buying and selling software, found in a survey of viewers of online content that, as online video distribution continues to grow, the majority said they would not pay a premium to avoid online video ads.

Only 18 per cent of respondents said they would pay a premium, with younger viewers slightly more inclined to pay. Of those that said they were willing to pay a premium to avoid online video ads, 54 per cent were 18-44 and 45 per cent were 45 and up. Eighty-five per cent of those 45-60 and 84 per cent of those 60+ were unwilling to pay any premium to avoid online ads.

younger audiences feel that targeted ads are more intrusive than their older counterparts. Of those that found targeted ads more invasive than non-targeted ads, 64 per cent were between the ages of 18-44 as compared to 36 per cent of those who were 45 and up.

Targeted and non-targeted ads were found to be equally invasive by a majority of those in the older demographics. Seventy-six per cent of those in the 60+ age bracket and 61 per cent of those in the 45-60 demographic found both types of video ads to be just as intrusive. Younger viewers aged 18-29 and 30-44 responded at lower rates of 52 per cent and 54 per cent, respectively.

Younger viewers also found online video ads to be more “annoying” than their parents. Within the 18-29 demographic, 43 per cent answered that online video ads are more vexing than TV ads compared to 24 per cent of those in the over 60 group.

“We continue to see strong growth in the video advertising market, and most find value in ads that are helpful or entertaining. That being said, 90 per cent percent of respondents said that ads are targeted incorrectly at least some of the time. As the industry gains a better understanding of the online video landscape, we all need to work on creating the best possible ads and effectively target the right audiences,” said Joy Baer, President of STRATA.
When asked why they would voluntarily watch an online video ad, 51 per cent said they viewed because an ad was funny. That leads all categories, which includes the ad targeting their interests (31 per cent) being and educational/informative (30 per cent).

When skipping video ads, 16 per cent of viewers said they skip because the same ad ran repeatedly. While many viewers find targeted ads nosey, 15 per cent said poor targeting was the primary reason for skipping the ad. Only 10 per cent of respondents said that ads are always or usually targeted correctly.
Seventy-seven per cent said online video ads they have seen function properly all of, or most of the time. Only 5 per cent said the ads never or rarely function.

Posted by on Jul 16 2014. Filed under Ads, Advertising, Articles, Consumer Behaviour, IPTV, OTT, Research.

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