With the current financial climate appearing more uncertain amid the global pandemic, consumers are becoming increasingly receptive to ad-supported video streaming.
In a new study of the UK, France, Germany, Italy, Spain and the Netherlands from Raktuen Advertising, 60% of respondents said that they would sign up to an AVOD service such as ViacomCBS-owned Pluto TV.
However, only 37% said that they are currently aware of such platforms. Almost a fifth (18%) of respondents said that they predicted their usage of AVOD services will increase in the next month due to the coronavirus lockdown.
Over a quarter (26%) said that they would be interested in streaming major sports events on an AVOD service – surpassing interest in all other streaming options including pay-per-view and subscription-based services.
For those consumers that watch major sporting events, 26% said they would be interested in streaming them on an AVOD service when this was described to them, placing this ahead of all other streaming options, including pay-per-view and monthly subscription services.
Frugality pays for AVOD
The growing interest in AVODs is contributed to a focus on financial situations, with 35% saying that frugality has made them more receptive to ad-supported content.
Of the 4,500 adults surveyed, 38% said that they are currently spending three or more hours a day watching video-on-demand services. VOD services were the second most popular way of consuming video content, with 30% saying it was their preferred method of viewing. It was second to linear TV (48%) and ahead of video sites (11%) and social media (10%) – though the later two are expected to increase in interest as the lockdown continues.
Anthony Capano, managing director, International, at Rakuten Advertising said: “Giving consumers the opportunity to access premium, quality content for free, as well as enabling brands to advertise in a sensitive and relevant manner, is a necessary evolution of TV now and beyond the COVID-19 crisis.
“With over 50% of people globally watching more streaming services, we can create a sense of escapism through entertainment. Brands have the opportunity to be part of this great content and connect with consumers via AVOD platforms at this time.”