Advanced Television

Research: Lockdown boosts AVoD appeal

May 5, 2020

The majority of consumers would watch targeted adverts to be able to access video content for free, according to research from advertising technology and consumer insights provider Rakuten Advertising.

The research, conducted among more than 4,500 adults in the UK, France, Germany, Italy, Spain and the Netherlands, showed that 38 per cent of UK consumers are spending three or more hours a day watching VoD services, with the average household signing up to at least two VoD services while on lockdown.

The study also found that 40 per cent of UK consumers expect their viewing of video community sites, such as YouTube, TikTok and Twitch, to increase in the next month.

The hidden power of AVoD

With access to theatre, pubs and cinemas prohibited, and sporting events cancelled across the 2020 calendar, consumers are finding themselves at home seeking escapism. This is reflected in the popularity of VoD services. Some 30 per cent of respondents said they use VoD services to consume video content, placing these second only to traditional linear TV viewing (48 per cent), and well ahead of video sites (11 per cent) and social media (10 per cent).

Ad-supported VoD (AVoD) allows consumers to watch VoD content for free with adverts. The findings show many consumers are interested in AVoD but may not yet be fully aware of it. In the UK, 60 per cent of consumers say they are likely to sign up to an AVoD service, although only 37 per cent said they are currently aware of AVoD offerings. Eighteen per cent of UK consumers believe their use of AVoD services will increase in the next month due to the Covid-19 pandemic.

For those consumers that watch major sporting events, 26 per cent said they would be interested in streaming them on an AVoD service when this was described to them, placing this ahead of all other streaming options, including pay-per-view and monthly subscription services.

“Giving consumers the opportunity to access premium, quality content for free, as well as enabling brands to advertise in a sensitive and relevant manner, is a necessary evolution of TV now and beyond the Covid-19 crisis,” notes Anthony Capano, Managing Director, International, at Rakuten Advertising.

A huge untapped opportunity yet to be realised

As a result of consumers staying at home, people’s interactions with brands have changed; consumers are looking for brands to communicate authentically at this time.

A key driver of this attitude is that many consumers’ financial situations have been affected dramatically by the pandemic (35 per cent). Consumers believe the brands that emotionally understand their customers are the ones that will have success after the crisis (26 per cent).

Some 45 per cent of UK respondents say ads that are funny, engaging, or entertaining will increase their likeliness of using an AVoD service, while 28 per cent of respondents said relevant ads based on individual viewing habits or shopping behaviour will encourage their decision to use the AVoD service.

“With over 50 per cent of people globally watching more streaming services, we can create a sense of escapism through entertainment,” suggests Capano. “Brands have the opportunity to be part of this great content and connect with consumers via AVoD platforms at this time.”

“Advertising alongside content that captivates people’s attention can help brands build positive relationships with consumers. Whether it’s demonstrating empathy or showing support to local communities, brands can use advertising to demonstrate responsibility.”

The reality of our situation in the ‘new normal’

“The change to our daily routines, workspaces and connections with those we hold dearest calls now more than ever for global kindness,” says Capano. “Consumers are looking for brands to be considerate and caring, both as employers and in how they treat their customers.”

“Consumers are also looking for video content without wanting to sacrifice the viewing experience to irrelevant or insensitive ads. As long as the messaging of advertising strikes the right tone, AVoD helps brands successfully meet people’s need for escapism during challenging times and creates a new way to engage with audiences,” he concludes.


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