Moloco, a leader in operational machine learning (ML) and performance advertising, together with leading independent research company YouGov, announced the findings of the Consumer Perceptions of Ads on Streamers Survey 2024. More than 1,000 consumers in the U.S. were surveyed for their perspective on advertising on streaming media platforms. Overall, the results signal a tipping point in consumer consumption habits as they shift from traditional TV to streaming platforms. In October 2023, EMARKETER projected that Connected TV (CTV) ad spend will reach $30.10 billion in 2024. This shift provides advertisers with a massive opportunity to focus on creating a tighter connection between ads shown and outcomes driven by embracing personalized ads and innovative ad formats.
“It’s important to get the ads experience right because consumers will cancel a subscription based on the ads experience. This research is a wake-up call for many streaming media platforms to transform their approach to building an ad business,” said Dave Simon, General Manager, Growth Initiatives, Moloco. “Consumers have a strong appetite for relevant, personalized ads that enhance the viewing experience. These ads are influencing their behavior and decision-making process. These combined trends signal the need for a more personalized approach to advertising on streamers, driven by leveraging advanced machine learning at scale.”
The study revealed that:
- Consumer behavior is changing as more people move away from traditional TV to use streaming media platforms, particularly on Smart TVs and mobile devices.
- 55% of U.S. consumers report that a Smart TV is the device most commonly used for personal streaming, compared with 24% for mobile devices, 13% for laptops/PCs, and 7% for tablets.
- 42% of U.S. consumers report that they are cutting the cord with traditional TV services; an additional 22% are considering it but have yet to do so.
- More than 60% of U.S. consumers would choose lower fees in exchange for watching ads.
- Consumers report clear preferences for ad formats that enhance the viewing experience.
- 26% of U.S. consumers believe that ads that are interesting and relevant enhance the viewing experience.
- Pre- and post-roll ads are ranked most acceptable compared with mid-roll and banner or display ads.
- Banner or display ads and mid-roll ads are perceived as the most intrusive or disruptive.
- Consumers care about the ads experience. They report that ads are influential and that personalized ads are preferable.
- 37% of U.S. consumers have canceled a subscription specifically because of the ads experience.
- The majority of U.S. consumers prefer personalized ads, with 57% indicating a preference. Of the 57% total, 37% prefer personalized ads based on viewing habits alone and 20% prefer personalized ads based on viewing habits and personal data.
- Ads on streaming platforms are influential in the decision-making process for product or service purchases with 45% reporting some level of influence.
“The ads experience is clearly important, especially with consumers not just adjusting to ads on streaming media platforms but embracing ads,” said Vanessa Khoo, Senior Research Manager, YouGov. “In addition, this research showed that consumers find ads compelling and influential in their overall decision-making process for product purchases. This study also showed that personalized ads can actually enhance the overall viewing experience.”
Methodology:
This survey was conducted online in the United States by YouGov and focused on consumers who watch video content at least once a month, including streaming content. 1,027 respondents participated in the 10-minute online survey from January 19, 2024 – February 5, 2024.
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