Brits will take ads - but at a price - as streaming soars

The explosion of streaming platforms and the availability of diverse content have led to a major shift in the way UK households watch TV, with over eight in ten (83%) Brits dedicating up to two hours a day to streaming content and more and more willing to watch ads to do so.

According to new research by The Trade Desk, this represents an increase from seven in ten (72%), with even the prospect of ads in exchange for free streaming content growing in popularity; nearly two-thirds (63%) of Brits are open to ads and 60% subscribing to up to three streaming services.

The report, Connected TV: The Big Picture, is based on the views of 2,589 UK consumers quizzed by YouGov, and reveals that, as more viewers continue to shift their viewing habits to content on connected TV (CTV), there are opportunities for brands to reach viewers at the right place and the right time.

Flexibility and content availability are key factors driving the popularity of streaming services, with three-quarters (74%) of respondents valuing the ability to watch on-demand content on CTV and 61% appreciating the variety of available content.

However, amid current cost-of-living challenges, half (48%) of Brits cite cost as a primary reason for unsubscribing from streaming channels. Additionally, rising costs are also compelling viewers to seek ad-supported alternatives. This presents a significant opportunity for advertisers to leverage ad-supported streaming services to reach engaged and receptive audiences.

While more than half of respondents are open to ads in exchange for free streaming services, two-fifths (41%) of Brits say they are open to ads if they can access a cheaper platform, highlighting the growing acceptance of ad-supported content as a means to access free and affordable streaming services.

However, consumers are selective about the type of ads they are open to, with two-thirds (68%) wanting fewer ads overall and 56% wanting shorter ad breaks.

Trade Desk senior director of inventory and partnerships EMEA Patrick Morrell said: “Content and choice are driving the demand for streaming services, but the cost associated with these is making people rethink how many platforms they subscribe to.

“The appetite for advertising shows that consumers are happy to view ads in order to continue having access to high quality TV content. Advertisers now find themselves presented with an opportunity to engage new audiences on connected TV and across devices.

“To ensure a positive ad experience, brands have to leverage data-driven media buying, which offers more relevant ads for viewers. Only then can brands create meaningful connections with their audiences and ensure they are reaching the hearts and minds of consumers.”