Video-on-demand (VOD) programming is a fast-dominating trend in China, bringing both opportunities as well as challenges for advertisers.
According to a recent global survey from Nielsen, 84% of Chinese respondents said that they watch VOD content, higher than the global average (65%). The majority of respondents (75%) watch VOD content at least once a week, and 40% of them watch at least once every day.
The rise of video-on-demand (VOD) programming offers more diversified content. A greater selection of programming, however, also means more competing advertising for audiences.
Consumers are inundated with an overwhelmingly high number of ads on a daily basis, 64% of respondents feel that the majority of the ads they see are for products that they have no interest in.
The majority (59%) of Chinese respondents who watch VOD say online ads displayed before, during or after VOD programming are distracting and three-fifths (60%) wish they could block all ads.
More than two-thirds (67%) of viewers say that they wish they could see only ads for products that interest them. Additionally, more than half (55%) of respondents say they don’t mind being the target of advertising if it means that they are able to view free content.
Yan Xuan, president of Nielsen Greater China, said relevant ads and brand experiences are essential for engaging with target consumers.
“Just as technology has made it easier for consumers to control the content that they watch, advertisers now also have the opportunity to reach and resonate with consumers better than ever by optimising digital advertising efficiency,” said Yan.
“For advertisers specifically, on-demand content for the consumer can translate to on-target engagement for brands if executed effectively.”