Australian Connected TV Landscape Is Shifting Away From Paid Subscriptions

Binge watching TV show

Integral Ad Science (IAS), today released the results of a new research report exploring ‘The Impact of Stay-at-Home Behaviours on CTV’ among Australian consumers.

According to the report, connected TV (CTV) has become mainstream in Australia with 8 in 10 consumers have access to CTV, and almost half of the Australian consumers (47 per cent ) preferring to stream video content on CTV compared to mobile, desktop, or tablets.

The report also shows that 78 per cent of consumers say they have increased their consumption of streaming content during the COVID-19 pandemic lockdown. Consumers are significantly more likely to add a free streaming service (57 per cent ) than a subscription service (49 per cent ) due to COVID-19 quarantine measures. Alongside the growth of streaming, consumers may be starting to feel subscription fatigue with 76 per cent of respondents reporting that they are willing to see ads in exchange for watching free streaming videos. The majority (62 per cent ) plan to add free video streaming services in the next 12 months.

In response to the quality and relevancy to the streaming ad placement, almost 6 out of 10 respondents said they prefer high-quality ads (ads appearing in a high-quality environment) and almost half of them indicated that the ads must be relevant to the content they are watching. Contextual suitability of ads associated with streaming content helps maintain consumer attention, more than half of Australian consumers (55 per cent ) are likely to view an ad to completion if the ad is relevant to the content they’re engaging with.

“The majority of Australian consumers are streaming content via CTV and they have a new appetite for watching ad-supported free content. This gives advertisers a real opportunity to connect with consumers via this high impact medium in the lead-up to the peak shopping season,” said Jessica Miles, ANZ Country Manager, IAS. “We expect ad spend on CTV to increase through the remainder of 2020 and we advise that Australian advertisers have a world-class fraud mitigation strategy for their CTV buys to protect their investments”.



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