Advanced Television

Research: 23% AVoD users engage with ads

November 15, 2022

Research from Parks Associates finds nearly one in four users (23 per cent) of ad-supported OTT services said they often click on ads that they watch, and the same percentage (23 per cent) often buy things they see advertised. The research report, Ad-Based OTT: Growth in FAST and AVOD Services, explores factors driving the growth of ad-based online video, profiles and compares market leaders, and assesses consumer preferences in watching ad-based content.

“Now, 37 million US Internet households use at least one advertising-based OTT streaming service,” said Alan Bullock, Sr. Contributing Analyst, Parks Associates. “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.”

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.

“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,” Bullock said. “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.”

Categories: Ads, Advertising, Broadcast, Consumer Behaviour, Headline, Markets, OTT, OTT, Research

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