Ad-financed streaming services on the rise
In the study “The State of Video & Connected TV”, the adtech company Criteo provides figures on the streaming habits and advertising preferences of users in this country. To this end, over 9,000 users worldwide were surveyed in the second quarter of 2021, including 1,000 in Germany. The respondents are consumers who own a smart TV and use paid or free streaming services. It shows that every second respondent uses more paid streaming services than before the corona pandemic. At the same time, however, 45 percent say they use more free and advertising-financed services. 57 percent would opt for an ad-financed offer in order to save money.
The streaming service Roku also comes to a similar conclusion in “The Streaming Decade” for Germany. According to this, around 40 percent of those surveyed currently use ad-financed streaming services and more than half of consumers are willing to pay for an ad-financed video-on-demand service (AVOD) if this would reduce the monthly subscription costs. For the study, Roku also interviewed around 1,000 German consumers in August.
Other studies also show that users are open to advertising in the streaming environment. According to the “Streaming Wars Report” by the US technology company Integral Ad Science (IAS), 78 percent of the German study participants are generally willing to watch advertising in order to gain access to free streaming content. In a recent study, Magnite also came to the conclusion that more than three quarters (77 percent) of the study participants would accept advertising in the streaming environment if they had to pay less or no fees for it.
It can be assumed that the number of users for AVOD services in Germany will increase in the future, because the willingness to consume advertising in the streaming environment is higher than the breakthrough of Netflix & Co. would suggest. Viewers accept advertising for the free program of their choice, as Youtube has always demonstrated on desktop and mobile. The principle of content versus advertising also works in the TV streaming environment.