January 3, 2024

2023 TV ADVERTISING: FACT VS FICTION – Wave 6

As more and more streaming services adopt an ad-supported model, the importance of understanding advertising’s role in the TV ecosystem – and in viewer’s subscription and viewing decisions – has never been more important.  While Netflix, Disney+, and Max work to draw subs to their new ad tiers, Amazon and AMC+ recently announced their push to ad commercials to their streams.  Soon there may be few truly ad-free streamers left – if any.

Our TV Advertising: Facts vs. Fiction study has consistently shown viewers are open to and tolerant of advertising – especially when ad loads are reasonable, when users’ bills are lower, and when they have the option to choose a premium ad-free options if they so desire.  Time and again we see consumers choosing content first – whether or not they can watch it ad-free.

In this sixth wave of TV Advertising – Fact vs. Fiction, we will continue to track use, viewing behaviors, and perceptions of ad-supported TV.  We’ll explore the interplay between advertising, cost, and content, and how they inform platform choice:

  • What advertising formats and features offer the best experiences in the minds of consumers?
  • How does advertising impact satisfaction and overall perceptions?
  • What informs ‘value’ beyond cost?
  • What is the role of content when choosing between ad-supported and ad-free platforms?
  • What impact does tiered service have on platform choice, retention, and subscriber growth?
  • How do ads fit into the consideration set of habitual service churners?
  • For services that have announced new ad-supported tiers – what has the average subscriber heard? What proportion intend to opt-in?

In the end, the goal of the study is to help TV service and content providers offer an ad experience that will maximize viewer satisfaction, engagement, and loyalty.

Source: Interviews with 3,000 US TV Viewers age 14-74

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