57% of Consumers Want Brands to “Get Personal” on Streaming Media
Despite the often negative buzz about consumer privacy and the ubiquity of shopping and dining data, a new study revealed that most U.S. consumers (57%) prefer personalized ads to mass marketing when they’re watching streaming media.
The study was done by Moloco, a machine-learning company.
As advertising on streaming media has become more common, opportunities to reach consumers where they live, watch, and snack have proliferated. According to the Moloco announcement, connected TV (CTV) ad spending is projected to reach more than $30B this year.
According to an infographic that was part of Moloco’s release, this is how people are watching today:
As you can see consumers have moved away from traditional TV and now use streaming platforms on their Smart TVs and mobile devices. In the past, we would just go to the bathroom or make a snack when an ad came on.
The difference between “traditional” television and this new media is that consumers can easily cancel their subscriptions if they don’t like the ads that are being served to them.
In fact, 37 percent of U.S. consumers have reported canceling subscriptions because of the ad experience.
The content of the ads is just one part of viewing. The bar is now higher on ad creative and format, and consumers are expecting ads that will grab and hold their attention and make buying (if they choose to do that) easier.
According to the study’s consumers, banner or display ads and mid-roll ads are among the most “offensive” ad formats. They are perceived as disruptive and intrusive.
As AI simplifies consumer targeting, advertisers have a huge opportunity to tailor ad content and format to viewers based on prior buying behavior and preferences.
The statistics prove that most consumers are comfortable with some level of personalization, provided that a brand knows who they are, what they might want to buy, and how/when they want their advertising messages.
Brand marketers are experimenting with different forms of advertising on streaming media and need to pay close attention to what these new viewers want.
Moloco’s study also supports the fact that consumers seem to understand that paid ads are essential to keeping the cost of TV subscription services at affordable levels and, if faced with a choice, would rather see advertising than pay more for a streaming service.
Advertisers now have a huge opportunity to reach specific audiences when they are captive and should use that data to their best advantage rather than bombarding consumers on their couches with generic messages. The Moloco study can provide a sound roadmap to these brands.
