When they first began, a large part of the appeal of streaming services was the absence of commercials. But now that a number of free streaming options have entered the landscape, that content has to be paid for somehow, so ads are creeping back in. The good news? They’re more appealing.
According to research from advertising and marketing analysis agency Valassis, 49% of viewers say ads that appear on streaming services are more relevant than ads on traditional television. And if you extract just the younger viewers, a whopping 69% say streaming ads are more appealing.
Of course, there may be an actual reason behind this. A large portion of viewers watch streaming TV on the same device they use to browse the web and social media. And you can be assured that there are company quietly collecting your data while you do so, in turn providing that data to streaming companies so they can serve up appropriate ads. And, streaming ads can be a lot more specifically targeted.
When you combine the fact that almost 75% of consumers are subscribed to at least one streaming service, there’s a lot of opportunity there for brands to push their products. And it’s probably not going to slow down, at least according to Jay Webster, the executive senior vice president, product and engineering of Valassis.
“As the cord-cutting phenomenon accelerates, consumers are shifting from traditional cable TV to the on-demand experience,” he said. Now, “brands can reach the TV-watching audience by interests, in-market signals, and location with digital precision.” He added that over half of the people who responded to his company’s survey said they would be more likely to purchase a product recommended from a streaming service than one promoted on regular TV.
This study was conducted in January of 2020.