Consumers ‘unhappy’ with the way advertising is served across variety of streaming services
Consumers are unhappy with the ‘poor ad experience’ of streamed video content in Australia, according to new findings by Stable Research.
The research, commissioned by Australian-based Switch Media and of 1000 consumers of streamed video content in Australia, found almost 46 per cent of viewers would switch off as a result of poor ad serving. A further 28 per cent said they would only tolerate poor ad insertion if the show was something they were desperate to watch, while only 8 per cent would tolerate poor ad serving.
Switch Media co-founder and CEO, Christopher Stenhouse, said while streaming services are popular around the globe, the research shows consumers are unhappy with the way advertising is served across the variety of services on offer.
“Four in 10 respondents had advertising insertion as one of their major complaints of streaming services,” Stenhouse said in a statement. “The only issue that was cause for greater complaints was buffering.
“The dissatisfaction is something we believe is a universal problem particularly where client-side ad insertion is used. With this insertion method, the latency often results in an ad being served too late or too early. The research is clear; if consumers are frustrated by the way advertising is inserted, they will switch off and, as a result, broadcasters will be forgoing significant revenue.”
The research has also found ad insertion placement is costing Over the Top (OTT) publishers of streaming services massive revenue. Meanwhile, OTT streaming services offered up by Subscription and Advertising Video on Demand (SVOD and AVOD) mean companies risk significant revenue seepage as a result of a poor advertising experience, the research suggested.
Other findings show only one-in-five consumers are opposed to advertising being shown on streamed services, with 43 per cent saying while they don’t like advertising, they tolerate it. Additionally, most consumers (61 per cent) preferred advertisers to play longer advertising as opposed to a number of shorter adverts.
Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu
Leadership resilience, startups scaling up, marketing best practices, customer insights - these are just a few of the topics we manage to explore in the latest episode of Conversations over a Cuppa with CMO featuring Craig Davis.
There’s no denying there’s been a whirlwind of response to the imminent demise of the third-party cookie from all parts of the industry. But as we’ve collectively come to better understand the implications, it’s clear this change is giving the digital advertising industry the opportunity to re-think digital marketing to support core industry use cases, while balancing consumer privacy.
The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.
Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.
Good day sir / madamWe CLOSED JOINT-STOCK COMPANY AO KAYUM NEFT OIL COMPANY is one of theleading Oil & Gas trading companies in Russi...
BARYBKIN ALEXANDER ALEXANDROVI
3-pronged marketing approach for property disruptor Brickx
Good day sir / madamWe CLOSED JOINT-STOCK COMPANY AO KAYUM NEFT OIL COMPANY is one of theleading Oil & Gas trading companies in Russi...
BARYBKIN ALEXANDER ALEXANDROVI
Oath to fully acquire Yahoo7 from Seven West Media
Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...
Ryota Miyagi
Brene Brown: What it takes to be a brave leader right now
Well said! It is high time to look into the cultural values and beliefs of the audience before serving with the ads. If it is against the...
Praveen Kumar
The X factor in multicultural media planning and buying - Digital advertising - CMO Australia
I completely agree with you. High-quality customer service only strengthens loyalty to the company and helps to increase sales and increa...
Natali
Mercer CMO: How B2B brands can achieve customer love