Study: If The Content’s Free, Aussies Will Watch Ads

A new study has found that Australians engage best with ads delivered to them on ad-supported streaming services, compared to other platform types like linear TV or paid subscription services. Over half (54 per cent) of Australians surveyed said they watch ads on ad-supported services either in part or full, whereas this figure doesn’t exceed 40 per cent on any other TV platform types included in the study.

The report commissioned by Samsung Ads Australia, the advertising division of Samsung Electronics, was in partnership with global market research agency Verve. Surveying a panel of 700 Smart TV users in Australia, the research aimed to uncover advertising engagement across various TV platforms, including linear TV, advertising supported video on demand (AVOD), broadcaster video on demand (BVOD), and subscription based video on demand (SVOD), which some services of are set to introduce ads as part of some subscription tiers.

Emotional reaction to TV advertising

According to the research, Australian Smart TV audiences responded more positively to ads on AVOD services than any other type of TV platform included in the study, with more than a third of Aussies considering them to be more enjoyable (39 per cent), exciting (34 per cent) and trustworthy (38 per cent). For all other TV platforms, less than a third of audiences attributed any of these emotions towards advertising.

Short & sharp

Short ads that offer minimal disruption to the viewing experience are more common on AVOD services than other TV platforms, and Australians prefer this format when watching TV. One male, aged 54, surveyed said that “adverts on normal TV are too long”, another explained that ads on AVOD services have “better quality products on offer”, indicating that these ads are more personalised and a more relevant experience is being delivered.

The study participants said that they may be more likely to take action in response to advertising in AVOD than any other TV platforms.

Going full funnel?

More than a third of Australian Smart TV audiences surveyed (34 per cent) said they were likely to take action whilst watching an ad on an AVOD service, with only 27 per cent stating the same for SVOD, 26 per cent for BVOD and 25 per cent for linear.

It is key for advertisers to understand the variances across platforms so that ads can be delivered to the most appropriate audiences in the right moments when they are more engaged and willing to take action in response to advertising.

Relevancy is key

The relevancy of ads was a significant factor in how willing Aussies are to accept advertising on TV services. When asked whether they considered ads to be relevant, audiences felt ads delivered to them across all TV platform types perform similarly in terms of relevancy.

Some 30 per cent of Aussies surveyed said they felt the ads delivered to them across platforms were relevant – in particular, the ads on SVOD (32 per cent) and AVOD (31 per cent) services were slightly more likely to be considered relevant.

In the Australian market it is particularly critical for advertisers and publishers to optimise the ad experience, owing to the fact that currently 57 per cent of Australians surveyed said they are happy to pay a small fee to access ad-free content. This indicates further frustration with the ad experience currently, and the vast opportunity for it to be improved.

Alex Spurzem, general manager, Samsung Ads Australia, said of the report: “The Australian audience is a discerning group for advertisers to engage with. In such an environment, it’s critical that advertisers are well equipped with key insights on how audiences want to engage across different TV platforms.

“Short, sharp and relevant ads will help drive a positive association, which is particularly critical as more platforms introduce advertising tiers into their services. It is interesting to note that AVOD is so well received comparatively, showing that it is rife with opportunity for Australian advertisers.”

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