Almost half (49%) of households are now willing to accept ads for a cheaper streaming service, according to Kantar’s latest Entertainment on Demand (EoD) data and analysis.
In the three months to June 2024, AVOD (ad-supported video on demand) increased by 10% quarter-on-quarter and FAST (free ad-supported streaming TV) grew by 6%.
Specific content remains the primary driver of new service adoption, underscoring the importance of a regular slate of high-quality offerings.
Bridgerton on Netflix was the most enjoyed title in Q2 2024, followed by Fallout on Prime Video.
Both discovery+ and Apple TV+ have been the fastest-growing paid VOD services in the first six months of 2024, with Discovery+ leading in Q2 2024, ahead of the broadcaster’s extensive coverage of the Paris Olympics.
After a soft first quarter, Prime Video rebounded to achieve the highest share of paid VoD subscriptions in Q2 2024.
Ad-supported services accounted for 47% of all new services adopted in Q2 2024.
Andrew Skerratt, Global Insights Director at Kantar, said: “It’s clear that ads provide streaming services with opportunities to diversify their revenue streams while catering to diverse audience preferences, with the tiered approach providing flexibility for consumers. However, the impact of ads on the viewer’s experience cannot be understated.
“Currently, only 22% of people enjoy the ads they see on streaming services, and less than a quarter find them relevant. Nearly one in three want more tailored ads, and with only 20% linking a streaming ad to a purchase of a new product or service, there’s plenty of potential for marketers to improve their return on investment.”
Among the major streamers, Discovery+ has delivered a superior ad experience, setting the benchmark for viewer satisfaction and engagement. Ads on Discovery+ are notably more effective than those on other platforms, with viewers appreciating the balance in the number of commercials and the length of ad breaks.
The Kantar survey covers the United States, Australia, Great Britain, Germany, Spain, and France.
