As the streaming industry becomes increasingly competitive, platform
owners are turning to ad-supported streaming services as a way to
diversify their monetization strategies. Major players like Disney and
Netflix have already introduced ad-supported streaming models,
providing an opportunity for marketers and advertisers to create
campaigns that engage viewers for longer periods.
While subscription-based models have been the traditional revenue
stream for OTT and streaming companies, ad-supported streaming
services have gained in popularity and are becoming more mainstream.
These services offer a broader reach to users who are hesitant to pay
for content, making them a compelling alternative to
subscription-based models. By tapping into a wider audience, marketers
and advertisers can increase the visibility of their brands and
products, which can ultimately drive revenue growth.
Below are several factors and market insights :
Popularity of streaming services: Streaming services are
becoming increasingly popular among consumers, and as more
people cut the cord from traditional cable TV, the demand for
streaming content is only expected to increase. With this
growth, ad-supported streaming services are poised to gain
traction as a way for consumers to access content for free or at
a lower cost.
Changes in consumer behavior: As more consumers shift towards
ad-supported streaming services, advertisers will be able to use
targeted ads to reach specific audiences. This means that ads
will become more relevant and less intrusive, which is likely to
lead to a more positive user experience.
Advancements in ad targeting technologies: Advertisers are now
able to use data and analytics to target their ads more
effectively. This means that ads can be tailored to specific
demographics, interests, and behaviors, making them more
relevant to the viewer. This, in turn, makes it more likely that
viewers will engage with the ads and respond to the
Lower barriers to entry: With the advent of new technologies and
platforms, it is now easier for content creators to launch their
own ad- supported streaming services. This means that there will
be more options for consumers to choose from, which will lead to
increased competition and innovation.
A survey by Hub Entertainment Research found that 46% of US
consumers would choose an ad-supported streaming service if it
was cheaper than a subscription-based service, while only 9%
would choose a subscription-based service if it was cheaper than
an ad- supported service.
Ad-supported streaming services are also becoming more popular
with younger audiences. A survey by Deloitte found that 70% of
US millennial prefer ad-supported streaming services to paid