As the options for content consumption keep growing, consumers must decide what they will tolerate and exchange for programming. The main options for streaming services are: AVOD, advertisement-based video on demand (Hulu) and SVOD, subscription video on demand (Netflix). The difference between the two is whether viewers can watch content uninterrupted or by viewing ads. Although ads are most commonly deemed as disruptive, new research shows that ad tolerance varies per person based on what genre that person watches most and their age. With this data, advertisers can gain higher ROI on these streaming platforms when they pay attention to their target market and understand how to effectively remain in their ad-tolerance threshold without crossing a line into annoyance.
A new survey from Deloitte showed that of 2,000 U.S. consumers polled about their streaming habits, the highest advertising tolerance levels were with consumers whose most-watched types of shows were talk shows. Their ad tolerance was at 11.6 minutes per hour. The lowest ad tolerance consumers were those who watched scripted comedies and dramas, tolerated only 7.2 minutes. While consumers who watched news as their main type of show tolerated only 6.2 minutes per hour, other factors played into this data, finding Millennials have higher ad tolerance than those of the Baby Boomer generation.
Consumers are flexible when it comes to how they stream and they aren’t completely closed off to advertisements, which is good news for brands. Some are more willing to interact with ads if it means they receive reduced subscription prices or other incentives. Ads also sit well with consumers when they aren’t repetitive and are more closely targeted towards their demographic. Although SVOD reigns over AVOD, there are opportunities to shift if done correctly keeping consumers’ tolerance in mind.
For the latest ad trends and how they impact your business, contact The PM Group.
About The PM Group: The PM Group was founded in 1988. For over 30 years, the agency has continued to grow and is San Antonio’s largest advertising agency. The PM Group’s client roster spans numerous industries including automotive, CPG, entertainment and sports marketing, legal, business services, non-profit, real estate and fitness. In addition, the agency hosts an annual Charity Gala that to date has raised millions of dollars for local San Antonio area non-profit organizations in the last 15 years! In the past 5 years, The PM Group has raised both directly and indirectly over $3.5 million for these charities. It is our way of giving back to the community that we so humbly serve.