Advanced Television

Study: Audiences rate streamer ads higher than linear

February 2, 2023

A global study from Samsung Ads through Verve reveals that ads on ad-funded and free streaming TV (FAST) services are more likely to be watched compared to other services – a finding consistent across the UK, Germany, Australia, and India.

The global report, Understanding Advertising Engagement across different viewing platform types, compared key markets in Europe and APAC to garner a better understanding of what drives audiences to engage with advertising experiences across the TV landscape. Smart TV audiences in the UK, Germany, Australia and India were asked about their ad experiences across linear TV, FAST/AVoD, BVoD and SVoD.

The study found that ads within FAST/AVoD environments are perceived by global audiences as shorter and therefore less disruptive, contributing to their greater likelihood of being watched.

In Australia, for example, almost twice as many respondents said linear ads were too long compared to ads on FAST/AVoD (52 per cent vs 27 per cent). German respondents also felt that linear ads were too long, with 74 per cent stating this vs 59 per cent who said the same about AVoD. In the UK and India, the difference was marginal amongst platforms, with BVoD scoring slightly less well than other platforms in the UK specifically.

The study also showed that FAST/AVoD ads consistently outperformed other platforms across multiple metrics valued by advertisers. Respondents considered them to be shorter and described them as being more exciting, enjoyable and relevant.

Australians and Germans are significantly more likely to sit and watch FAST/AVoD ads in full, compared with other platforms; higher engagement is likely driven by their shorter length and relevant content. Linear ads are the least likely to be watched in full across all markets – they are considered  too long and repetitive, leaving viewers feeling disrupted and frustrated.

When asked specifically about ad characteristics such as trustworthiness and enjoyment – FAST/AVoD scored the highest across all regions – challenging some of the existing perceptions advertisers might have around the perception of advertising within FAST and AVoD environments.

A spotlight on Europe

Brits are far more likely to engage with ads across all platforms compared to German audiences. An average of 45 per cent of UK respondents engage with ads across all platforms and there is only a slight preference for FAST/AVoD (48 per cent), compared to linear (43 per cent). In Germany, however, ad engagement across platforms fell to an average of 30 per cent. There is a more significant discrepancy between audience engagement according to the different services. Only a quarter (24 per cent) of German audiences engage with the linear ad experience.

Whilst German consumers are overall less engaged with ads compared to other markets, this gap is less pronounced when comparing 18 to 34 year olds. This suggests that younger audiences have embraced new formats, such as FAST/AVOD, faster than the older generations – meaning this is a growing opportunity for advertisers.

Drivers of ad acceptability and effectiveness are consistent in the UK and Germany. Ads are more accepted if the content is free rather than the ads themselves being relevant, regardless of the content or platform, suggesting that a tangible value exchange is a key driver for audiences accepting ads.

Alex Hole, Vice President of Samsung Ads Europe, says of the report: “It’s encouraging for the whole TV landscape to see audiences engaging well with ad experiences across the spectrum of content providers. Audiences are demonstrating a growing appreciation for the value exchange received through viewing ads in order to access free content.”

Categories: Advertising, Articles, Consumer Behaviour, Research, VOD

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