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    Research Digest

    A Majority of Streamers Find Value in Advertising

    Abstract

    • A majority of streamers view ads as a discovery tool, introducing them to new products.
    • 48% of streamers are willing to watch ads to reduce the cost of viewing quality content.
    • Streaming ad breaks can be optimized. Viewers are looking for relevant ads, as well as features like countdown clocks to track how many ads are left within the break.

    From finding new products to accessing premium content, viewers often have a positive attitude towards streaming ads.

    Ads have gotten a bad rap. From pop-up ads to blaring interruptions during your online workout video, misplaced ads can be a negative experience. However, when surveyed by Magnite, over half of TV watchers who watch at least 7 hours of TV noted that they had found a new product thanks to a streaming ad. Within the same survey, a notable amount said that they were willing to watch ads in exchange for quality content and that TV ads are an essential part of the TV watching experience. 

    Magnite’s survey shows the value of streaming ads, not just to publishers and advertisers, but also to viewers. Ads are a discoverability tool, introducing viewers to new products and something that many people consider a part of the overall viewing experience. Rather than being an interruption, it’s an integral part of watching a show, according to over 40% of people who were surveyed.

    Additionally, many don’t mind the ads when they are getting something in exchange for watching them–in this case, access to content. Many streaming services offer a free or reduced-cost ad-supported tier. According to a survey done by Forrester in December, 43% of people who are subscribed to streaming services are concerned about how much they are spending. Ad-supported tiers offer relief from this financial pressure and allow viewers to subscribe to multiple services.

    Key Features Can Enhance a Viewer’s Perception of an Ad Break

    Not all ad breaks are created equal, however. Viewers have their preferences about how ads are integrated into their content. When surveyed about delivered ads, 60% noted they were satisfied when the ads were customized to them. Surveys have shown viewers are actually willing to watch more ads if they are relevant to them. 

    Another key feature is a countdown clock during ads. A majority of viewers noted that this is a key feature, allowing them to know how much longer until their content returns. Streaming channels can introduce ads to viewers and maintain user satisfaction, as long as they are mindful of the overall experience for the viewer.

    Conclusion

    Many streamers want ads in their viewing experience, either as a discovery tool to find new products, or to reduce the overall subscription cost. Streaming services can take note of key features that increase satisfaction, such as countdown clocks and creative frequency to ensure that ad breaks are as enjoyable as possible for those using their service.

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