While connected TV (CTV) ownership is not an unfamiliar sight among Singaporeans with 87% of an Unruly survey respondents saying they own CTV-capable devices, many are now mulling the idea of reducing the the amount they actually pay for TV services.
According to the study, 34% of respondents would rather switch to free, ad-supported services, followed by reducing streaming subscriptions, cancelling cable subscription, and purchasing fewer on-demand content.
The survey found that 77% of respondents preferred to watch their favourite TV show free with ads, than paid without ads.
Almost half (43%) of the respondents are currently using free, ad-supported TV services, as compared to 58% who have paid for subscription services.
COVID-19 has also increased the number of CTV users, with 57% of them trying out new ad-supported services, of which 81% said they will continue using the services. However, the quality of ads is one of the key decisions if they would continue using the service. The Unruly survey found that besides variety and quality of content, the number and/or quality of ads affect 34% of respondents' decision.
CTV ads that are doing well
The survey showed that CTV ads that are more relevant-targeting and have greater personalisation perform better than the TV average in Singapore. Compared to the average TV viewer in Singapore, after seeing an ad on TV, ad-supported CTV users in Singapore are:
- 13% more likely to tell a friend about a brand;
- 14% more likely to buy a product;
- 6% more likely to visit a store or website;
- 7% more likely to search for a brand;
- 9% more likely to have an improved opinion of the brand.
Among the users of ad-supported services, 40% found ads memorable if they are brands the users have searched for, while many found it memorable when the ad matches the topic (39%) and tone (36%) of the content they are currently consuming as well. Some other memorable factors also include the ad matching the users' mood and interest, and if the ad feature relatable people.
Rebecca Waring, global VP of insights and solutions at Unruly said: "Singapore consumers’ pivot to CTV is an opportunity for brands to reach audiences at scale in a highly targeted, personalised way that has, until now, not been possible."
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Global OTT set to grow
Meanwhile, earlier this year it was predicted that the over-the-top (OTT) video market will surpass US$200 billion by 2024, with 90% of that value fueled by subscription and advertising revenue, according to a report by global tech market advisory firm, ABI Research.
New services such as Disney+ and Apple TV+, coupled with aggressive pricing and packaging will continue to push the subscription video on demand market to new heights. The report said subscriptions in the Asia Pacific region, particularly, have over the years, grown significantly, driven by key services such as iQIYI/Baidu, Tencent, Youku Tudou/Alibaba Group in China, and increasing opportunities in India.
However, quality content aside, there will be a point when the growth starts to plateau in subscription services as content costs continue to escalate. Streaming solution providers will then need to extend their reach to the price sensitive segment. In an earlier article written by MARKETING-INTERACTIVE, experts said this will trigger the "freemium" model where access will be ad-supported, unlocking programmatic ad-buying on a wider scale.
As such, conventional broadcasters getting into the streaming war need to build their platforms with the ability to trade their ad-inventory via programmatic as well as make a mental shift towards CPM or CPV type pricing models
(Photo courtesy: 123RF)
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