Streaming viewers are unsatisfied with ads—but don’t want to pay more

Streaming audiences are torn between unsatisfactory ad experiences and lower-priced subscription offerings, according to an online survey conducted by The Harris Poll in October, on behalf of Ad Age. As more platforms begin adopting advertising, consumers seek greater choices in bundling and user experience.

Over half of U.S. adults subscribe to at least one streaming TV platform. On those platforms, audiences reported dissatisfaction with the ad experience. Despite streaming presenting much lighter ad loads than linear TV, three-quarters of U.S. adults said streamers feature too many commercials. On top of that, consumers are irritated by the frequency with which they see ads, with 81% of the 1,045 respondents saying they see the same ads too many times. Another 70% said they were uninterested in purchasing products advertised to them on streaming platforms.

Despite that, less than a quarter of respondents were willing to pay more for an ad-free streaming experience—subscription cost was the top consideration when purchasing a platform across most demographics.

HBO Max’s ad-supported tier costs $9.99 per month, while Paramount+ and Peacock’s cost $4.99 per month. Disney+ announced in August that its ad-tier will cost $7.99 monthly when it debuts this December and it is bringing Hulu’s ad tier up a dollar to match. Netflix’s ad-supported option will be $6.99 when it launches next month. Subscribing to all six would rack up a $42.94 bill each month.

A customizable experience has emerged as a major desire from streaming consumers, with 38% saying that platforms allowing users to bundle content from other streamers, such as Amazon Prime Video or Apple TV, were more appealing than purchasing individual subscriptions, and a third found bundled platforms preferable. Bundles were especially favored among millennial and Gen Z demographics.

The key to combating consumer dismay with ads could lie in empowering viewers with options in how ads are served to them. While the majority of adults said they wouldn’t participate with a QR code or on-screen interaction in exchange for receiving a discount, they would do so in order to receive an ad-free experience for the rest of the film or episode. This aligns with the dominant opinion that ads should be shown before programming, but not during.

Streaming viewers are also more receptive to ads that align with the content they are watching, with 60% saying they prefer to see commercials that feel authentic to the program and nearly half would like to see the stars from the show appear in the ads. 

Brands should also look to tailor their ads to the devices people are using to stream content. While the vast majority of the audience stream content through a smart TV, younger audiences also watch on their mobile devices, with 72% of Gen Z and 75% of millennials doing so, outperforming all other devices within the age group. 

Learn more about how to reach streaming audiences with the highest impact at Ad Age Next: Streaming, a day-long event gathering the top minds in media in downtown Manhattan. Hear about innovations in shoppable advertising, measurement, streaming sports and more. Register here