Indian viewers showing greater appetite for personalised ads on OTT: Survey
66 percent of Indian consumers would choose lower fees in exchange for watching ads on OTT platforms, a survey by Moloco and YouGov reveals.
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Moloco, an operational machine learning (ML) and performance advertising company, together with independent research company YouGov, announced the findings of the consumer perceptions of ads on Streamers Survey 2024.
More than 1,000 consumers in India were surveyed for their perspective on advertising on streaming media platforms. More than 1,000 consumers in the US were also included in the same survey. Overall, the results signal a tipping point in consumer consumption habits as they shift from traditional TV to streaming platforms, stated the survey.
“It’s important to get the ads experience right because consumers will cancel a subscription based on the ads experience. This research is a wake-up call for many streaming media platforms to transform their approach to building an ad business,” said Dave Simon, general manager, growth initiatives, Moloco.
He added, “Consumers have a strong appetite for relevant, personalized ads that enhance the viewing experience. These ads are influencing their behavior and decision-making process. These combined trends signal the need for a more personalized approach to advertising on streamers, driven by leveraging advanced machine learning at scale.”
“Indian consumers do not mind watching that extra ad which can lower or entirely remove subscription fee to watch content - this insight got validated when this survey showed that two-thirds of Indian consumers chose lower fees in exchange for watching ads. What’s even more interesting is that approx. 80 percent of customers prefer personalized ads, which significantly influence their decision-making process," said, Siddharth Jhawar, general manager, Moloco India.
The study revealed that:
● Consumer behavior is changing as more people move away from traditional TV to use streaming media platforms, particularly on mobile devices.
○ Sixty percent of Indian consumers report that a mobile phone is the device most commonly used for personal streaming, compared with 26 percent for Smart TV, 11 percent for laptops/PCs, and three percent for tablets.
○ Thirty-four percent of Indian consumers report that they are cutting the cord with traditional TV services; an additional 27 percent are considering it but have yet to do so.
○ Sixty-six percent of Indian consumers would choose lower fees in exchange for watching ads.
● Consumers report clear preferences for ad formats that enhance the viewing experience.
o Forty-four percent of Indian consumers believe that ads that are interesting and relevant enhance the viewing experience.
o Pre- and post-roll ads are ranked most acceptable compared with mid-roll and banner or display ads.
o Banner or display ads and mid-roll ads are perceived as the most intrusive or disruptive.
● Consumers care about the ads experience. They report that personalized ads are more compelling and more likely to result in a favorable response, such as a purchase.
○ Forty-one percent of Indian consumers have canceled a subscription specifically because of the ads experience.
○ The majority of consumers in India prefer personalized ads, with 78 percent indicating a preference. Of the 78 percent total, 48 percent prefer personalized ads based on viewing habits alone and 30% prefer personalized ads based on viewing habits and personal data.
○ Ads on streaming platforms are influential in the decision-making process for product or service purchases with 83 percent reporting some level of influence.
“The ads experience is clearly important, especially with consumers not just adjusting to ads on streaming media platforms but embracing ads,” said Vanessa Khoo, senior research manager, YouGov. “In addition, this research showed that consumers find ads compelling and influential in their overall decision-making process for product purchases. This study also showed that personalized ads can actually enhance the overall viewing experience.”
