With all of the changes in media consumption habits, especially the rise of streaming, how can advertisers continue to reach audiences? Will more consumers be willing to tolerate commercials in order to save money? Does it make a difference if the ads are more personalized (ex: the addressable TV trend)? Should all streaming services offer an advertising-supported tier for a lower cost? Limit: 15 responses
Hannah Berkel
ReplyDeleteAs media consumption changes with the increase of streaming, advertisers must find ways to keep up. Hulu is the blueprint that advertisers and platforms should follow. Hulu has strong network partnerships with Fox and ABC, their ad supported tier is only $5.99 a month, and “60% of Hulu advertisers are not advertising on any other ad-supported OTT platforms” (Krizelman). Their model is popular and has been working for years now. A recent study found that, “twice as many consumers prefer tiered subscriptions with an ad-free option and a free or less expensive ad-supported option” (Chorpenning). The same report stated that for HBO Max, 40% of current subscribers would consider switching to the ad-supported tier and that 25% of non-subscribers would consider signing up. Advertisers need to take advantage of this and put their efforts into advertisements on streaming platforms that have ad-based tiers. These numbers suggest that consumers are willing to tolerate commercials in order to save money, but I do not think that pre-existing platforms should introduce ads if they do not already have them on their platform. Like we discussed in class, Netflix has never had an ad-based tier, and although their prices are increasing, I do not think that they should add an ad-based tier. Personally, I would not want ads on Netflix. If they were to add them, I think that the type of advertisement would matter. If there were ads throughout programs, that would ruin the appeal of Netflix. If it were banner ads on the site or a couple of ads before the program starts, this would be less irritating and disruptive.
There is one main concern I have with the thought that people are cutting out cable and trading it in for streaming services. If people choose to subscribe to multiple streaming services each month, and subscription prices continue to increase, eventually prices may be comparable to what people were paying for cable. I know that when my house switched from cable to streaming it was because the prices for cable were too high, and the fact that streaming sites like Netflix and Hulu had ad-free options was appealing. I think that platforms having tiered payment options is smart because people may want to subscribe to multiple sites, but to keep costs down they could opt for the cheaper ad-supported levels.
As far as addressable TV advertising is concerned, I had not heard of this type of advertising before. In looking it up, I found that it is similar to targeted advertising and that it focuses on delivering ads to specific audiences (“What”). I think that this is definitely a smart way to do advertising. Personally, I know that I see the same ads over and over again on Hulu, and a lot of the time they do not pertain to me or my interests. I think that addressable ads would make a lot of sense and be more valuable despite them being more costly because they will be reaching their targeted audience and hopefully advertisers will see the returns they are looking for. Of course this brings up the issue of privacy and whether people would feel comfortable with this kind of advertising, but it would be beneficial to the companies who are advertising.
Works Cited
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Krizelman, Todd. “What Hulu's AVOD Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
“What Is Addressable TV? Is It Right For Your Brand?: USIM.” Media Planning & Buying Agency, www.theusim.com/blog/archive/what-is-addressable-tv-why-and-how-should-you-buy-it/.
Lilly Davidson
ReplyDeleteWith a change in media consumption, and an increase in streaming, advertisements are looking for a way to continue reaching audiences. One place they can look is streaming services. It is becoming very common for ads to find a home on streaming platforms. With streaming being a very popular way for people to consume media, it would make sense for ads to latch on in order to reach audiences. Several platforms are offering cheaper ad-supported tiers for consumers to purchase, including Hulu, HBO Max, Paramount+, and Peacock. This begs the question, do consumers actually want ads? And, as it turns out, consumers are actually looking for ad-supported tiers in order to save money due to the amount of different streaming services available. According to a study from the National Research Group and Roku, “70 percent [of respondents] said they were willing to pay for an AVOD service if it meant monthly subscription costs would be lower” (Chan). Not only that, but even non-subscribers are looking to more affordable ad-supported services. According to the article, “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions,” “40% of current subs would consider switching to the ad-supported tier. But a quarter of target non-subscribers would consider signing up.” This not only reinforces the fact that subscribers are looking for ad-supported tiers, but also shows that people who are not already subscribed to certain streaming services are willing to purchase the platform if it offers a cheaper tier with ads.
Now that we know people are looking for ads in order to save money, it makes us wonder what types of ads they want to see. Would it be better to have personalized ads for viewers or to just keep it general? I think personalized ads, while more challenging and costly, may be better, especially on streaming services. I personally find ads that I am interested in to be easier to watch and less frustrating when interrupting my show. In cases like Hulu, where ads can stack up to be 90 seconds or more, watching customized ads can make the time go faster. However, this is just my preference. According to a Deloitte survey, “only one-tenth of respondents strongly preferred ads to be tailored, while two-thirds did not want customized messages or were indifferent” (Lee et al.). Overall, it looks as though the majority don’t mind general ads.
Then it comes down to whether all streaming services should provide an ad-supported tier. Personally, I think streaming services should offer a cheaper tier with ads or make deals with other companies to bundle certain services. I have Hulu only because Spotify has a bundling partnership with Hulu and Showtime as a student discount. I think it is both beneficial to the company and the consumer. With more people looking for cheaper services, companies will find an increase in subscribers. And more people will be able to save money.
Works Cited
Chan, J. Clara. “Consumers Don't Mind Ads If They Get Lower Streaming Subscription Prices, Study Says.” The Hollywood Reporter, The Hollywood Reporter, 9 Sept. 2021, https://www.hollywoodreporter.com/business/digital/roku-nrg-streaming-study-avod-1235010154/.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Lee, et al. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Many people around the country have decided to cut out cable television and subscribe to multiple streaming platforms. In fact, “According to the new study, almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option” (Chorpenning). Netflix, one of the first streaming platforms, never had ad supported services. Other streaming platforms such as Hulu, have implemented ad supported services. Hulu has a tiered model, where people can pay more to have no advertisements, but there is also a cheaper option to have advertisements. In the same study, they found that 40% of HBOMax’s subscribers would consider switching to an ad-supported tier (Chorpenning). These numbers are promising for advertisers. They should put their main focus into advertising on streaming services. Consumers are spending money on having multiple streaming platforms, rather than a cable subscription. People are willing to sit through advertising commercials to save money on their multiple subscriptions. Advertising also allows for streaming platforms to generate more revenue for their company. Advertisers now have to find a way to target consumers with the transition from cable to streaming services.
ReplyDeleteAdvertisers have to adapt their advertising strategy on streaming platforms. According to a study from Deloitte, “…only one tenth of respondents strongly preferred ads to be tailored, while two thirds did not want customized messages or were indifferent” (Lee and Evans). These numbers show that most people don’t want tailored commercials. Advertisers now have to find a creative way to target consumers. Maker’s Mark is sponsoring a bourbon infused talk show on Roku (Craft and Poggi). I think advertisers have to shift away from having traditional commercial breaks, to having sponsored shows or interactive advertisements. This will keep the consumer engaged with advertisements. I think advertisers can connect with different shows to sponsor shows or have a short video advertisement series. I think if advertisers made their content like a ‘show’, people would sit through the advertisements.
Personally, I think all streaming platforms should have a tiered subscription model. This allows for people to have the freedom to determine if they want to pay more to have no advertisements or pay less to have advertisements. People are spending tons of money on streaming platforms and the numbers show that people are willing to save money to sit through commercial breaks. Typically, people are subscribing to multiple platforms, and they might want to save money by watching advertisements. Advertising also allows for extra revenue for streaming platforms. Netflix is surrounded by other competitors now, and they need to find a way to drive extra revenue. I think Netflix should have a tiered subscription model. Although the company is known for not having advertisements, people may want to subscribe to an ad-supported option to save money. I would be willing to save some money by sitting through advertisements. However, I think advertisers need to shift away from having a traditional commercial to having a more creative and engaging advertisement experience.
Works Cited
DeleteChorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Craft, Evan, and Jeanine Poggi. “The Streaming Wars-Everything Marketers Should Know.” Ad Age, 21 Oct. 2021, https://adage.com/article/marketing-news-strategy/streaming-wars-everything-marketers-should-know/2362826.
Evans, Andrew, and Paul Lee. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Talya Castonguay
ReplyDeleteWith the newfound dominance of streaming services in the entertainment industry, advertising has become a challenge, and companies are finding it harder to reach audiences. In an article by The Wall Street Journal they speak about advertisers hoping to expand addressable tv advertising, to extend their reach (Lee). Expanding addressable tv advertising would make it so that viewers would come across more advertising they might enjoy seeing or be interested in. Because of that, it’s more likely that they would not see the ads as an inconvenience. However, due to the fact that more and more people every day are switching over to exclusive streaming service packages, addressable advertising is more of a challenge, as most streaming services don’t have advertising on their platforms (Netflix, Disney+, etc.).
Because of the lack of in-platform advertising, that brings us to the question of whether or not subscribers would be willing to watch more ads in order to pay a smaller monthly subscription fee, or have an option for tiered subscriptions. According to an article on The Streamable, consumers would in fact watch more ads in order to pay less. After doing a survey it was discovered that only 28% of viewers would be willing to pay full price for a subscription in order to have no ads, while 36% would be willing to pay no money at all and watch many ads, and the final 36% would like the option of tiered subscriptions for both ad and ad-free options (Chorpenning).
After looking at results from this survey, it might be smart for streaming services to consider adding tiers to their platforms and allow their subscribers to choose the plan they have, and instead of limiting the content they watch (which is what some services already do), their plan determines how many ads they watch throughout the content they consume. Either way, streaming services will get money through both the subscriptions as well as the payment from the companies that want to pay for ad slots.
I personally think that streaming services should consider product placement as a new means for advertising rather than switch to tiered subscription options. While in theory it seems like a good idea that would be successful, it could be very detrimental to many services, because of the fact that many of these platforms already have millions of subscribers, and if they were to switch to tiered advertising, it begs the question, what happens to those subscribers? Do they pay more if the tier for ad-free is higher than the previous subscription price? Do they now have to watch several ads in their content even if they already had an account that was ad-free? This could cause many people to find themselves frustrated and upset with the platform, which could lead to a drop in numbers for the platforms.
DeleteIt’s because of this that I believe product placement is the smartest option for them. According to an article on The Conversation, the amount of money advertisers are spending on product placements increased 14% between 2020 and 2021 (Fossen). Product placement allows for consumers to view a product/brand for its intended use as well as the purpose the product serves. Switching to this method means that services will not have to change their current methods, but will still be able to make money off of advertisements, and different brands can pay different amounts depending on how much they want their products featured.
Works Cited
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Fossen, Beth. “The Science of Product Placements – and Why Some Work Better than Others.” The Conversation, 10 Sept. 2021, https://theconversation.com/the-science-of-product-placements-and-why-some-work-better-than-others-165435.
Lee, Paul. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Advertisers have an extremely hard time keeping up with the ever-evolving way we watch tv and movies. People aren’t restricted to watching 5 channels anymore like the 60s or having to sit through commercials because they can pay for a premium subscription. Reaching audiences is a very hard task but working with streaming services strategically can help the advertisement world continue to flourish. In the Wall Street Journal article titled Addressable TV Ads: Targeting for reach it says “They will likely be reluctant to spend heavily on addressable technology until they perceive that they can combine this data with equally robust and trusted data for all other devices and services on which their ads are shown”(Addressable TV Ads: Targeting for Reach)".This means that since streaming is still relatively new to the world of advertisement the advertising data that was used for broadcasting is trusted, but not for streaming. Companies aren’t gonna wanna pay an astronomical amount of money for advertising because of the reluctance of how it’s gonna benefit the individual company.
ReplyDeleteWith more and, more streaming services using ads viewers may not tolerate ads. Netflix for example has no ads on their streaming service and has no intentions of using ads. Even though the price of Netflix has gone up a lot in the past few years people are still willing to pay to not be inconvenienced. But since ads have been around for years, a lot of people are willing to save money and deal with ads. “But there are many who will choose ad-supported TV if it saves money or lets them watch a show they can’t watch somewhere else. Tiered plans give viewers control of their experience(Chorpenning)”. It’s based on the individual and how the individual feels about watching TV with ads. It is also about having ads that are geared towards the consumer. Hulu has ads where you can pick the ad experience you want to have to make it more interactive. Ads can be very informative and if more streaming services can have you choose what ads you want to see more people may switch from the premium plan. Making ads more personalized is important for the user. Say a consumer is looking to buy a car, having more ads geared towards carfax, or carvanna commercials will better suit the consumer. Hulu with ads costs about six dollars as opposed to premium which is nearly twelve dollars. If the content of the ads is individualized, consumers wouldn't mind paying for the lesser version. But also within this bundles are very important too. If consumers are getting deals for a bundle like Hulu and Disney plus and ads are dropped it may be more enticing for the consumer to pick the experience with the bundles. Making it hard for other competitors to compete. But still, a lot of consumers just don’t want ads. A study done by Morning consults states that “A plurality of U.S. adults (44 percent) said there are too many ads on streaming services, while 69 percent said they’re repetitive and 64 percent think they’re invasive(Shevenock)”. In a nutshell, this data describes there is a lot of consumers that do not like ads regardless of if you're personalizing them fit consumers needs or not.
Work Cited:
ReplyDelete“Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Shevenock, Sarah, and Alyssa Meyers . “Consumers Think Streaming Ads Are Repetitive and Invasive. the Industry Says It's Fixing It.” Morning Consult, 2 Feb. 2022, https://morningconsult.com/2021/10/18/ad-tech-streaming-services-poll/.
Sarah Lefkowitz
ReplyDeleteThousands of people have done away with cable, and turned to streaming only. With the loss of cable, comes the loss of advertising. Or does it mean that? Jon Giegengack, Principal at Hub Entertainment Research said, “But there are many who will choose ad-supported TV if it saves money or lets them watch a show they can’t watch somewhere else. Tiered plans give viewers control of their experience” (Chorpenning). Advertisers can reach audiences that choose to subscribe to ad-supported content. When streaming services have tiered plans, consumers can make their experience what they want it to be; either paying more for no ads, or saving money and watching the ads. “...almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option” (Chorpenning). People are okay with commercials since they get to spend less money, or in the same cases, no money, for content. This gives advertisers a space to advertise on streaming. As cable numbers go down, more and more advertisers will switch to streaming services.
“According to one Deloitte survey, only one-tenth of respondents strongly preferred ads to be tailored, while two-thirds did not want customized messages or were indifferent” (Lee, et al). These statistics from Deloitte, show that not many people seem to care about tailored ads being on their content. Due to this, advertisers need to reach consumers in different ways. One way they could do this is through interactive advertisements. That way, the consumer is engaged with the ad, instead of checking their phone or looking away during it.
Sarah Lefkowitz cont.
DeletePersonally, I do think streaming services should offer advertising-supported tiers. This allows for people to choose where they want to spend more/less money. For example, someone may choose to get an ad-supported subscription to Hulu, because they already pay full price for someone without the ad support, Netflix. Consumers are paying a higher premium for no ads, but not everyone wants to do that, nor can afford to do that. People are really not opposed to paying less money just to tolerate ads. “Of the nearly 3,000 respondents surveyed between the ages of 18 and 70 who watch at least five hours of TV per week, 70 percent said they were willing to pay for an AVOD service if it meant monthly subscription costs would be lower, the study found. Twenty-five percent of respondents also said they added an ad-supported paid subscription in the past year, while nearly a third of respondents said they added a new ad-supported free streaming service to their entertainment diets” (Chan). If people are willing to pay for it, streaming services should offer it. Personally, I would rather pay more for no ads just because I feel like they ruin the moment, but clearly these statistics show that many people don’t agree with me. All services should offer different tiers, because they can reach different consumers with different budgets. Those who want to save money can, and those who want no ads during their content can get no ads.
Chan, J. “Consumers Don't Mind Ads If They Get Lower Streaming Subscription Prices, Study Says.” The Hollywood Reporter, The Hollywood Reporter, 9 Sept. 2021, https://www.hollywoodreporter.com/business/digital/roku-nrg-streaming-study-avod-1235010154/.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Lee, Paul, et al. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Nicole Clemons
ReplyDeleteWith the rise of streaming many advertisers are looking for a way to keep up and reach audiences. Many streaming services are in heavy competition due to many people cutting the cord on cable in preference for streaming services. Many consumers rely on streaming services for the cheaper prices, convenience, and uninterrupted binge-watching. Netflix is the only streaming platform that does not have an advertisements option. While many of the other platforms are using bundles like Disney+, Hulu is the only platform that has a tier structure. Hulu has an ad supported tier which is cheaper than its other tiers at only $5.99 per month. This may seem like they would lose money due to other platforms being more expensive, but that is not the case. “They make up the revenue because CTV is very attractive to advertisers today given its popularity among consumers. Hulu has been able to take advantage of this trend with major brands. Our platform found top advertisers on Hulu during February 2021 include DraftKings, Samsung, Mercari Mobile App, Verizon, Kia, Taco Bell, TMobile, TurboTax, HelloFresh and Geico” (Krizelman). Hulu has partnered with Disney+ one of the top streaming platforms increasing their original programming.
As far as tolerating commercials it depends on the person some people may not have a problem watching the commercials. “Hulu’s consumers prefer the ad-supported tier over the ad-free tier” (Chorpenning). I personally could not deal with the commercials on a streaming platform which I think is due to Netflix. My family has had Netflix for years it was the first streaming platform we had. So, obviously we all got use to watching shows and movies without commercials. Eventually we added Hulu and used the ad tier to see if we liked it. I hated watching a show and an ad would pop up during the middle, it ruined the whole thing in my opinion: “ a poll of more than 2,000 consumers. About 48% of Gen Zers and 46% of Millennials would rather pay than sit through advertisements on streaming video services”(Mullen). You’re at such a good part in the episode and the screen pauses and an ad comes on, we did not use that tier for long we paid more money and upgraded to the ad free version.
Nicole Clemons cont
DeleteEven if the ads were personalized, I would still have trouble wanting to keep the advertised tier of a streaming platform. I also think it would be difficult for a streaming service to cater ads to personal preference like apps do. We see a lot of ads already on social media, and websites that are catered to our preferences if you have to see ads, I think it would be nice to have a variety rather than the same ads you see daily: “Extending the reach of advertising that is novel and unanticipated rather than contextualized and expected will likely be addressable TV advertising’s most effective use”(Lee).
I think it will benefit all streaming services to have an ad supported tier to cater to those who don’t mind ads and want to save money. I also think it is a great way to get consumers to join the platform if you like the content but not the ads you can change your subscription to one without ads.
Work Cited
Mullen, Caitlin. “Https://Www.bizjournals.com/Bizwomen/News/Latest-News/2021/04/Younger-Consumers-Willing-to-Pay-to-Avoid-Ads-on-S.html?Page=All.” Younger Consumers Willing to Pay to Avoid Ads on Streaming Services, 27 Apr. 2021, https://www.bizjournals.com/bizwomen/news/latest-news/2021/04/younger-consumers-willing-to-pay-to-avoid-ads-on-s.html?page=all.
Chorpenning, Aubrey. Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Krizelman, Todd. “What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, https://digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Lee, Paul. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
ReplyDelete(Sydney Lunder 1)
Media consumption has drastically changed, especially within the last few years. Consumer habits are completely altered, and no one has the desire to watch live tv. According to an article posted by USA Today titled “Has COVID destroyed our attention spans?” many Americans have lost interest in the things that once occupied them for hours. As stated: "COVID led to many people experiencing cognitive overload, whereby our brains become short-circuited due to being inundated with information our brains are trying to process," says Crystal Burwell, director of outpatient services for Newport Healthcare Atlanta. "The external stimuli and nature of the environment play a major role in attention spans and building emotional resilience to combat COVID fatigue”(Oliver 1). The writer also interviewed people from different careers and was able to decipher a consensus. Everyone feels that they are no longer to sit still and pay attention to one task at a time in the same way they used to.
During this pandemic streaming services saw a spike in usage, and many new services emerged. However, it became challenging to navigate pricing and advertisements, and it is still up for debate which pricing method is the most successful. There are subscriptions like Netflix that are somewhat high in price but offer no advertisements and an interruption-free viewing. And there are services like Hulu that offer different tiers based on the viewers preferences that range in price and offer cheaper services in exchange for ad breaks. According to an article titled “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions” from a website called The Streamable data suggests that subscribers of HBO Max in particular felt that they would be much more inclined to keep the platform if they switched to the ad-tier format. Other research in this article showed that 48% of people in this study would prefer to watch for free and see ads, and 19% would pay lower fees and watch limited ads, and only 33% preferred to pay a higher subscription fee with no advertisements. Based on this article it can be concluded that the best move for major streaming platforms is to switch to a tier format with ads, and allow the viewers to decided how much they want to pay for different plans.
(Sydney Lunder 2)
ReplyDeleteThe question remains however, do viewers prefer personalized ads? Or would they rather just suffer through whatever the platform has chosen for them. Based on the article “Addressable TV Ads: Targeting for Reach” from The Wall Street Journal, there seems to be no definitive answer yet. However based on reading this article, and being a consumer, I believe that the ad experience is not important. This article goes into depth regarding how expensive advertisements are, and how much research and effort and funding goes into trying to personalize ads for each viewer. For example the author states that “The cost of creating a TV ad likely needs to fall to enable more advertisers to participate. Addressable technology enables companies to experiment with smaller campaigns reaching selected audiences, an approach well suited to smaller advertisers and larger companies new to advertising. But besides buying media, advertisers need to pay to create the content” (Wall Street Journal 3). This quote describes just how tedious and costly it is to design advertisements and make them appear on the screen of the intended audience. As a viewer I have never watch an advertisement during a tv show on a streaming service and felt inclined to buy it, and I normally don’t even pay the ad any attention. As stated previously though, our attention spans has gone down significantly. And it is not worth the time, production, expenses, and effort to push these personalized ads out onto platforms where the viewer is not paying attention.
Work Cited:
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Oliver, David. “Has Covid Destroyed Our Attention Spans?” USA Today, Gannett Satellite Information Network, 22 Dec. 2021, https://www.usatoday.com/story/life/health-wellness/2021/12/22/covid-attention-span-exhaustion/8926439002/.
“Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
It is very crucial in this day in age that advertisers are able to keep up with the changes in media consumption habits. Particularly at the start of the pandemic, there has been a rise in competition, especially between streaming platforms. Since the pandemic is coming to a close end, what will be the future of streaming and social media consumption now?
ReplyDeleteMost streaming services are ad-free now, but according to the article by Todd Krizelman on Hulu’s success, “with an ad-supported model, consumers are less likely to cut a platform when reviewing their entertainment budget”. Hulu’s subscription with ads is at $5.99 per month, making is very attractive for consumers (Krizelman). The next issue that advertisers may run into is the appeal of the advertisements. This means that consumers will be more likely to keep their subscription if the ads are appealing to them. Hulu has had very engaging advertisers recently such as DraftKings, Samsung, Mercari Mobile App, Verizon, Kia, Taco Bell, T-Mobile, TurboTax, HelloFresh, and Geico (Krizelman). In the long run I think that more streaming services will become AVOD and take the route of Hulu seeing how well they are doing.
It all comes down to whether the consumer really cares about advertisements or not. Some people really cannot stand ads, so they are willing to go the extra mile to pay more. In my opinion (being a cheap individual), the obvious option would be to subscribe to the ad-supported tier. In a study for HBO Max asking whether subscribers would switch to the ad-supported tier, or if non-subscribers would consider signing up for it, about 40% of current subscribers considered switching while only 27% of non-subscribers considered signing up for it (Chorpenning). Personally, if I were to have my own subscription and not be on my family’s, I would switch to the ad-supported subscription in order to save a little bit of money each month, but that’s also because I have a little patience with commercials. “‘It’s true that some TV viewers will do almost anything, including paying a premium to avoid ads. But there are many who will choose ad-supported TV if it saves money or lets them watch a show they can’t watch somewhere else’ Jon Giegengack, Principal at Hub Entertainment Research said” (Chorpenning).
For social media, like TikTok, the audience’s awareness gap is getting smaller, so for their new social shopping feature they need to make sure the first five seconds are crucial to capture the consumer’s attention (Clapp). Generation Z’s attention span has reduced to 7 minutes, as I learned in class the other day. This means advertisers need to come up with advertisements that will grab social media user’s attention very quick. It is said that brands that use hashtag challenges effectively can expect an impact on offline behavior as well (Clapp). Advertisers need to become more creative fast with these rapidly changing trends.
DeleteAds that are catered to us is very helpful, because this will cause the user to go on the app more, not minding the ads. For me, I have clicked on multiple ads on TikTok and Instagram because it was specially catered to my interests. For streaming services like Hulu, it’s a bit harder because the viewer is more focused on watching the show than the advertisement. In my opinion, it is necessary for all streaming services to provide an advertising-supported tier for a lower cost, especially for people that are trying to save money. The industry can’t expect everyone to be able to pay for an ad-free subscription, there has to be options that fit everyone’s needs.
Works Cited
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid
Subscriptions.” The Streamable, The Streamable, 26 July 2021,
thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Clapp, Rob. “Covid-19 Causes Digital Consumption to Rise by over 30%, Forming New and
Lasting Consumer Habits: WARC.” WARC An Ascential Company, 30 Apr. 2021,
https://www.warc.com/newsandopinion/opinion/covid-19-causes-digital-consumption-to-rise-by-over-30-forming-new-and-lasting-consumer-habits/en-gb/4209.
Krizelman, Todd. “What Hulu's AVOD Success Story Tells Us.” Digital Content Next, 9 Apr.
2021, digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Michael McGurrin
ReplyDeleteFor a decade the technology in our world has become a part of our life. Media consumption has changed all across the world since the pandemic, including the uprising of streaming services. COVID helped speed the process because everyone was inside their rooms all day for a few months. COVID has influenced people to change from cable tv to streaming services. Streaming services are cheaper and more convenient for people to use anywhere and anytime they choose. However, there are a lot of streaming platforms with so much competition. It has made it more difficult for advertising due to all the diversity and fights for subscribers. You do have services that don’t have any advertisements like Netflix. However, that is a huge revenue loss for the company. The thought of not having to worry about ads draws in many consumers. However, streaming services have found ways to attract more subscribers and get advertisements to their consumers. The most effective way streaming services have gained subscribers is through tier options. According to a study from Hub Entertainment Research, “almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option” (Chorpenning). Many services have been using the tier method and letting people choose how much they want to pay. This gives people flexibility on how much they would have to pay every month. For example, “HBO Max launched an ad-supported tier at $9.99 per month, saving subscribers $5 per month compared to the ad-free version. Hulu’s consumers prefer the ad-supported tier over the ad-free tier” (Chorpenning).
Another crucial part of advertising should be the services using personalized ads. It is understandable some people see it as an invasion of privacy. Technology has expanded to the point where a company can see whatever someone else is looking up. However, it has become one of the most critical aspects of advertising. According to Hulu’s vice president Jeremy Helfand, he claims “you have to put the viewer first, and there is a tremendous opportunity to do that in streaming television” (Steinberg). You want to give the consumer what they want to stay on the service. If you continually give consumers ads they don’t want to see, they will not be as happy with the service. That is why you see an issue with cable tv ads. According to Deloitte Global, they ”expect major advertisers to value addressable advertising more for its ability to extend reach” (Lee). This is expected to draw about $7.5 billion worldwide for the company in 2022. That is why it is fair to say that personalized ads are the best way to target consumers. Also, it is better if a company uses a tier-based service to accommodate several people across the globe.
"Addressable TV ADS: Targeting for Reach." The Wall Street Journal. Dow Jones & Company, 04 Jan. 2022. Web. 08 Feb. 2022.
Chorpenning, Aubrey. "New Study: Consumers Prefer Ad-supported Streaming Tiers to Paid Subscriptions." The Streamable. The Streamable, 26 July 2021. Web. 08 Feb. 2022.
Steinberg, Brian. "TV Fans Stream Video to Escape Ads. Madison Avenue Is Racing to Catch up." Variety. Variety, 05 June 2019. Web. 08 Feb. 2022.
Television is a huge medium, and I like having cable because there’s a large variety of things to watch. But ads are shown 24/7 which annoys me when watching television. I feel like there are so many ads when watching a show, and that they drag at times. I get impatient and change the channel, or I record shows, so that I can fast forward through the ads. But at times I feel like there aren’t many things to watch on television either. It’s the same shows…MTV has Ridiculousness playing all day, E has Keeping up with the Kardashians, and Food Network has all the same cooking shows on etc. But I do like cable for the news, sports, and shows because they aren’t always shown on streaming platforms. Sometimes you must subscribe to a certain channel on that streaming platform to watch that show.
ReplyDeleteBut I do think a lot of people turned to streaming platforms since the pandemic happened. Streaming platforms are very affordable compared to cable, and some people are choosing to cut cable: According to “Streaming TV Advertising: What You Need to Know” We are now seeing the rise of the “cord-cutter” generation, with swathes of people replacing their traditional TV subscriptions in favor of online, streaming alternatives. This is especially the case amongst young people with 74% of 18-34-year-olds in the U.S having either never had cable, already cut the cord, or plan to cut the cord in the future. Some have labeled this the death of television, however, this is a massive exaggeration and we should see the advent of streaming as a natural evolution in television’s history (Burns). I think with technology constantly advancing and being able to have everything on our phones contributes to cord cutting. Today you can get basically all streaming platforms on your phone. It makes it easier having a small tv that can go with you everywhere, allowing you to have access to content. Also, my mom has mentioned cord cutting since we have a couple streaming services, but the whole rest of the house disagrees with it.
I think it’s good that consumers can choose whether they want ads on streaming platforms or not. Because maybe they don’t want ads, or it’s more affordable for them with ads. I think Hulu does a great job with this: According to the new study, almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option. 19% of consumers surveyed chose the service with limited ads (fewer than live TV), while 36% selected the tiered service” (Chorpenning). Hulu offers a plan with adds for $6.99 a month and a plan for $12.99 a month without ads. Netflix doesn’t have an option for ads, but they’ve never had ads which sets them apart from other streaming services. Also, by Hulu partnering with other companies, they’ve been making a lot of money, “It’s not just the tiered model that set Hulu up for success, Hulu has also made a number of strategic and competitive partnerships to take on other streaming giants. Of note, in 2019, Disney acquired 21st Century Fox, which included the 30% stake Fox had in Hulu, giving them a 60% stake. This meant investment in original programming increased significantly” (Krizelman).
Netflix is my favorite streaming platform, and my family has had it since CD’s were sent through the mail. I think if Netflix made ads option it would ruin the platform and cause them to lose subscribers possibly. Like why would people want ads all the sudden after all these years? I think it’s nice being able to watch shows/movies with no interruptions of an irrelevant ad. I think Netflix should stay the way it is, and it’s already the top streaming service.
Overall, I don’t think television will ever die, because there’s still plenty of older people who aren’t familiar with technology. But I do think streaming platforms will continue to grow, and that people will continue to pay for a certain quality of streaming platforms.
Works Cited
ReplyDeleteBurns, Cam. “Streaming TV Advertising: What You Need to Know.” Shuttlerock Blog, https://blog.shuttlerock.com/streaming-tv-advertising-what-you-need-to-know.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
“What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, https://digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Kallie Purdue
ReplyDeleteAs media consumption has changed significantly in the last couple of years and with the Pandemic’s push for online streaming, it is crucial that advertisers must find ways to continue to pull viewers in. Hulu has had major success within its free ad-supported tier and innovative partnerships. It was found that “with an ad-supported model consumers are less likely to cut a platform” when evaluating their monthly spending on entertainment streaming (Krizelman). Hulu’s structure is competitive and largely successful with an ad-supported model offered at just $5.99 a month (Krizelman). Having an ad-supported model is becoming a beneficial option within streaming, as a recent study found that “twice as many consumers prefer tiered subscription services that offer a paid, as-free option and a free or less expensive ad-supported option” (Chorpenning). Consumers like the ability to choose what tier works best for their family and situation. This study shows that there is a niche of consumers who are likely to tolerate ads to save money and it is up to advertisers to capitalize on this information and create content suited for these types of consumers. Advertisers need to take advantage of this shift and focus on advertisements on ad-based systems within streaming.
Since Hulu has acquired so much success through their tiered pricing systems, I think it would be smart for other streaming services to consider including these ad-supported systems within their pricing structures. Even if an ad-supported tier does not bring in a huge amount of revenue or new consumers, I think it is smart to have it as an option. Tier priced systems with ads allow for the consumer to buy multiple streaming services rather than just one and most customers like having different options to choose from. On the other hand, Netflix has acquired success largely for not having an ad-supported version and this is definitely something to consider. Since Netflix is known for not having ads and being one of the only services that has this model, it may hurt them if they begin to list it as an option. They only way I think it could work in Netflix’s favor is if they displayed the reason for the new package. Advertising the ad-supported version as a bundle with another company or offering it just to students (because they are more likely to purchase the cheaper version).
Addressable Tv advertising is a concept that makes sense to me. Targeting consumer’s interest in order to provide them with more valued commercials and advertisements. Though this concept seems like it would be valuable, Deloitte is now expecting “major advertisers to value addressable advertising more for its ability to extend reach than for its capability to differentiate messages by household or individual viewer” (Dow and Jones Company). The reach of viewers is becoming more important than the catered content. In addition, it was found that viewers really only pay attention to 30 second window commercials and often that is not enough time to deliver a properly content catered commercial (Ciccarelli). 30 seconds is just enough time to build interest and create surprise for the viewer without boring them before it's over (Ciccarelli).
“Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
DeleteChorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
David Ciccarelli November 9, et al. “What Is the Most Effective Length for a TV Commercial?” Voices, 16 Jan. 2022, https://www.voices.com/blog/effective_length_for_tv_commercials/.
Krizelman, Todd. “What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, https://digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Shannon Flaherty
ReplyDeleteWith all of the changes in media consumption habits, especially the rise of streaming, advertisers can continue to reach audiences through over-the-top advertising (OTT). OTT advertising is direct to the audience over the internet, so it can happen via streaming platforms. By “going over the top, [this] allows media companies (and advertisers) freedom of movement without pre-planned broadcast schedules or geographic limitations” (Johnson). Streaming is too important of a resource, considering how many consumers are utilizing streaming services, and even multiple services sometimes, “Streaming video advertising provides an effective connection between a brand and an interested consumer through the trinity of sight, sound, and motion” (Johnson). Streaming video advertisements are unique and can even be catered directly to the consumer. Through capturing the attention on the screen, while simultaneously engaging the ears with varying volume, and consuming the audience with movement on the screens. Consumers will be willing to tolerate commercials in order to save money because that’s what a lot of consumers have already been doing. “According to Nielsen, a third of U.S. streaming households use a AVOD service today, and that viewership is only going to continue to grow this year” (Krizelman).
Shannon Flaherty p.2
ReplyDeletePlatforms with cheaper and free ad-supported options are coming out on top (Krizelman). All streaming services should offer an advertising-supported tier for a lower cost because “almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option an a free or less expensive ad-supported option” (Chorpenning). Addressable TV trends, or when ads are more personalized, definitely make a difference. These ads can be “aspirational rather than functional”, for instance showing a couple with a new baby a sports car and not a minivan (Lee). Now more than ever, targeted ads are frequenting social media platforms and even sneaking into streaming platforms. While sometimes creepy, it can also be persuasive to certain consumers who might’ve been debating buying something on an internet site. Overall, advertising is going to be very important for all streaming platforms, even for those who don’t have tiered options (yet), in order to bring in ad revenue and keep bringing in new subscribers as well as continuing to generate income.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Johnson, Tara. “What Is Ott Advertising: A Breakdown of over-the-Top Ads.” Tinuiti, 18 Jan. 2022, https://tinuiti.com/blog/ott-over-the-top-ads/ott-advertising-guide/.
Krizelman, Todd. “What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, https://digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Lee, Paul “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Johnny Marquardt Blog #2 pt.1
ReplyDeleteStreaming services are at an all time high, as big-time television companies are creating their own services for streaming users’ favorite shows. Big name shows are being pulled off distributors such as Netflix and Hulu and are put on their own services. One of the biggest examples of this was when NBC pulled ‘The Office’ off Netflix and eventually added it to their new service, Peacock. There are two routes these new services can take, following the Streaming giants; Do they include ads like Hulu? Or make their money strictly off subscriptions like Netflix? And if they pick ads, should they be personalized?
For starters, I think that the idea of a tier system for a NEW streaming service is a great idea. This will help bring in more paying customers to the service. According to The Streamable, “According to the new study, almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option. 19% of consumers surveyed chose the service with limited ads (fewer than live TV), while 36% selected the tiered service” (Chorpenning). Overtime services become more and more expensive so there is that demographic that will choose the cheaper option and are willing to sit through commercials. It doesn’t matter to the streaming service; they’ll make money regardless. They’ll shove as many ads as possible into a show or movie before it becomes unbearable to users. Hulu even uses a system of ads that lets you pick which ads you want to see, to make it feel slightly more personable. Now, there’s the concept of making ads more personable per household. I find this idea like surfing the web. You’ll go on one website looking at a product and when you move onto another website, you find that prior product in the ads. According to the Wall Street Journal it states, “In 2022 and subsequent years, the number of platforms that could show addressable TV ads should rise steadily. More ad-funded VOD platforms will launch, TV hardware vendors are likely to increasingly sell space on their home screens as a means of generating recurring revenue, and more social media platforms may create apps specifically for TV” (Lee, Evans). I think this will scare people away from using a service, because they will feel that their privacy has been breached. This may not be the case for everyone, but there is that chance of scaring away customers by making ads more personable.
Johnny Marquardt Blog #2 Pt.2
DeleteWith the idea of tiered services more common though, what about services like Netflix who don’t use Ads, should they begin to use ads? Well, to be honest, no. According to CNBC, A new study found 23% of respondents would likely drop their Netflix subscriptions if the service added advertising without lowering prices. The study follows speculation from advertising and media executives that Netflix may eventually have to bring advertising onto its platform” (Feiner). Netflix has been going without Ads for so long, it seems like they would lose more money with a tier option than without. Netflix is still riding along with the big names, even as a distributor. They make enough money that the idea of a tierlist or an ad service is unnecessary. So when it comes to newer upcoming services, include a tier option. Those services like Netflix who have stuck with no ads, needs to stay with no ads.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Feiner, Lauren. “Netflix Could Lose Almost a Quarter of Its Subscribers If It Started Running Ads, Study Shows.” CNBC, CNBC, 5 July 2019, https://www.cnbc.com/2019/07/05/netflix-users-dont-want-ads-23percent-would-consider-canceling-report.html.
Lee, Paul, and Andrew Evans. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Ryan Crowley - Question 2
ReplyDeleteWhile advertisers are usually ready for a curveball, the past few years of media consumption has still thrown everyone for a loop. Today’s methods of media consumption are not the same as yesterday’s, and we are definitely not slowing down. Subsequently, many media giants are working to create their own self-contained platforms and services. This closes a lot of gaps for advertisers to work their way in, and this new landscape will force them to be creative. Thankfully, all of these companies still need money so advertising isn’t going anywhere, but it will surely look different as we approach new media. One of the best ways advertisers can continue to reach consumers is by changing the types of ads they are releasing. On almost every media platform today, the main form of ads are disruptive videos. These come before, during or after your video or show and can be unskippable. While we’ve come to expect some form of ads during our experience, these ads are particularly annoying to users and make the brand feel like a nuisance. Users may not mind ads but they don’t want to be distracted, and advertisers can find more creative placements like banner ads on homepages and clickable summaries of the show/service on display. Advertisers also need to hone in more on direct advertising methods through these streaming platforms like messaging, email lists and more. Needless to say, another main emphasis of advertisers today should be social media, with a focus on TikTok. These ads are more integrated and feel like less of a chore to get through. Everyone likes to save money, and that is not going to change. Therefore, consumers will continue to tolerate ads just like we always have, as long as it’s not always pausing my darn video! There is more to advertising than video and those who get a grip on that will succeed. Advertisers are also torn in the sense of personalized ads. Personalized ads are a much more expensive endeavor with more resources required, but they have shown themselves to be more accepted. An ad is not necessarily a nuisance if it shows me a tutorial for a skill I’m learning or a clothing brand I like. If the ad is showing something my friends are interested in as well, then I will probably send it their way too. Not only should advertisers make this change for the people, but for themselves to get their money’s worth. Another important part of this new landscape will be making tiers that support everyone. I’m shocked that not every streaming service has joined this wave, as it is not only more efficient, but also for the fact that everyone should have a chance to enjoy content. People who pay more should definitely receive more, but only appealing to one financial group is a very dangerous business strategy. Added tiers would benefit both the platform and the advertisers, but more than anything it would benefit users that can finally recommend shows to their friends who are strapped for cash. While these streaming services do have to make these big investments back, I believe you will always catch more flies with honey, and that means being accessible to as many as possible. Advertising is not going anywhere, and users will never escape it fully nor should we. But, it is certainly changing in a lot of big ways, so the winners will continue to be those who adapt.
Works Cited
ReplyDeleteChorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Collective Measures, and Bailey Chancellor. “The Growth of Ad-Supported Streaming during COVID-19.” Collective Measures, https://www.collectivemeasures.com/insights/growth-of-ad-supported-streaming-during-covid.
“Lexis®.” Lexis® - Sign In | LexisNexis, https://advance.lexis.com/document?crid=271de833-417c-46ca-ad53-8dbf5c02bfef&pddocfullpath=%2Fshared%2Fdocument%2Fnews%2Furn%3AcontentItem%3A64C0-8NB1-JC8H-T1X3-00000-00&pdsourcegroupingtype=&pdcontentcomponentid=7907&pdmfid=1516831&pdisurlapi=true.
“What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, https://digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Linear television’s data is declining and their advertisers are going with it. The rise of streaming services has changed media consumption habits. Consumers are now paying to remove ads from their entertainment viewing experience. Advertisers are trying to discover new ways to reach their consumers as the one size fits all ad is no longer in style. (Lynch) Advertising companies are trying to maximize their streaming audience revenue. Media conglomerates should be looking at Hulu as they’re offering tiered options to subscribers. Hulu gives consumers the option to pay a cheaper subscription with ads included. Doing this lets their audience decide how they want to budget their entertainment finances. In Aubrey Chorpenning’s article, she discusses the advantages of having a tiered structure as, “almost twice as many consumers prefer tiered subscription services that offer a paid, ad-free option and a free or less expensive ad-supported option. 19% of consumers surveyed chose the service with limited ads (fewer than live TV), while 36% selected the tiered service.” (Chorpenning) If more streaming services chose to offer the tiered structure, advertising sales would rise. However, giving the audience that power, subscribers could still choose the more expensive option of not seeing the ads. The AVOD method has shown to be a success with companies such as Hulu. Chorpenning continues to advise, “Taking advantage of ad-supported tiers is a good way for consumers to save a little bit of money wherever they can while still subscribing to all of their favorite streaming services.” Another way for subscribers to save money and view more content is by bundling their platforms. Hulu again is successfully doing this by partnering with Spotify to create a bundle. This bundle gives users a discounted combination of two main platforms that they can now engage with. Krizelman’s article on Hulu’s success continues with, “now is the time for streamers to open an ad-supported tier, develop strong partnerships and differentiate their content offerings.” (Krizelman) Companies should be adapting the AVOD method as well as bundling with other companies to attract a larger subscriber revenue as well as, for advertisers to gain engagement.
ReplyDeleteTargeted ads are the best way for advertisers to reach out to their audience. Consumer Reports says, “Its an old cliche in the tech world that if you’re not a customer, you’re a product. When it comes to targeted ads on a smart TV, you’re both.” (Germain) Using personalized ads, consumers are more likely to engage and be willing to have these interrupted moments during their view time. Another way for advertisers to reach their audience with personalized tracking would be through social media. Using the algorithm, companies can advertise products to viewers with promoted content. Content creators can have sponsors to share a product with their followers. The audience will be engaged by listening to the influencer’s opinion. Advertisers have recently been using the addressable TV method. This is a more recent development of television advertising. Similar to targeted ads, this method allows marketers to display ads to specific households during linear scheduled television. In the case of subscribers choosing an ad-free plan, product placement would be a major way to still reach the audience. Using product placement would allow viewers to notice the product. This is an opportunity for advertisers to keep a product in a series and it will always be viewed by a consumer. Linear television is declining viewership with the growth of streaming services. Most of these services do not use ads when viewing their content. The AVOD method needs to be adapted for advertisers to reach out to their audience. If these services choose not to use this method, product placement will be the next best option. Advertisers also have other alternative ways to display their products if not on linear television.
Works cited
DeleteChorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.
Germain, Thomas. “Targeted Ads Have Come to Your TV.” Consumer Reports, 30 Aug. 2021, www.consumerreports.org/advertising-marketing/targeted-ads-have-come-to-your-tv-a2176040919/.
Lee, Paul, et al. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
“What Hulu's Avod Success Story Tells Us.” Digital Content Next, 9 Apr. 2021, digitalcontentnext.org/blog/2021/04/13/what-hulus-avod-success-story-tells-us/.
Kimberlyn Bouley
Delete- not sure how to delete and repost!
Amanda Perlin Question 2
ReplyDeleteMedia consumption remained largely unchanged throughout time periods. People still got their news and entertainment through various forms of media, including the TV. With all the changes in media consumption habits, especially the rise of streaming, advertisers can continue to reach audiences by showing a study that indicates that 60% of consumers would prefer a service that offers both a paid and ad-free option, “19% of consumers surveyed chose the service with limited ads (fewer than live TV), while 36% selected the tiered service.” (Chorpenning). Despite the hype, addressable TV advertising is still considered promising. The rapid growth in digital ad revenues has raised the bar even higher. In the Wall Street Journal: Targeting for Reach they say, “For addressable TV ads to thrive, advertiser access to the market should be rationalized to minimize the number of commercial negotiations required to place ads across more platforms”. (Wallstreet Journal). Since streaming is still in its early stages, the data used for advertising is not yet reliable. Despite the challenges of reaching audiences, working with streaming services can still help advertisers reach their goals. According to a new study, most TV viewers are not interested in avoiding commercials. They also tend to watch them if they get a lower price for Netflix. In the article, Viewers Willing to Tolerate Ads, even on Netflix, “Hub Entertainment Research’s TV Advertising: Fact vs. Fiction report finds that on 17% of consumers said they can’t tolerate advertising and would never sign up for a TV service that has commercials. A whopping 57% said they can tolerate some ads and another 26% said that if the content is interesting, it doesn’t matter whether or not there are ads.” (Lafayette). Although most people can tolerate the commercials, some people can’t handle them. For me, I would never watch ads on a streaming platform like Netflix due to their price. “More affordable ad-supported services also appeal to non-subscribers.” (Chorpenning). The rise of streaming services was widely attributed to the pandemic. However, it became difficult to determine which method was more successful. The key reason why people pay more for streaming services is due to their lack of interest in advertisements. I personally don’t mind ads because they sometimes catch my attention, or I just go on my phone until it’s over. Some people don’t have the patience to sit through an ad and want to continue their show with no distractions. It's good that consumers can choose not to buy ads on streaming platforms. It saves them money and it's more convenient for them. Wallstreet Journal: Targeting for Reach states that; “The cost of creating a TV ad likely needs to fall to enable more advertisers to participate.” (Wall Street Journal). The ability to extend the reach of advertising beyond traditional media will be the most effective way of addressing the challenges of ad tech.
Lee, et al. “Addressable TV ADS: Targeting for Reach.” The Wall Street Journal, Dow Jones & Company, 4 Jan. 2022, https://deloitte.wsj.com/articles/addressable-tv-ads-targeting-for-reach-01641310928.
Lafayette, Jon. “Viewers Willing to Tolerate Ads, Even on Netflix, Hub Study Finds.” Broadcasting Cable, Broadcasting+Cable, 25 June 2021, https://www.nexttv.com/news/viewers-willing-to-tolerate-ads-even-on-netflix-hub-study-finds.
Chorpenning, Aubrey. “New Study: Consumers Prefer Ad-Supported Streaming Tiers to Paid Subscriptions.” The Streamable, The Streamable, 26 July 2021, https://thestreamable.com/news/new-study-consumers-prefer-ad-supported-streaming-tiers.