Video-on-demand users are no fans of advertising.
Two-thirds of adults have been using subscription video-on-demand services such as Netflix, according to a survey of US internet users by IBM Cloud Video. Netflix is the dominant choice among 90% of the surveyed consumers.
However, the majority (72.3%) of them do not appreciate video ads and feel that they would reduce the viewing experience.
Another 59.9% added that even targeted ads would dampen their viewing experience using streaming services.
Just 9.2% thought that personalized ads may improve the viewing experience.
The results are potentially bad news for streaming services that are turning to adverts in order to expand their revenue streams. Indeed, not every streaming service will be able to pass on ads. In addition, half of streaming services users are sharing their passwords with family members which means that some services are losing out on even more revenue.
IBM Cloud Video recommends contextually relevant ads for VOD service providers. The report states:
For example, during a female teen drama, streaming services could integrate ads from the restaurants or fashion brands featured in the episode, which would enhance the viewer experience by making the advertising and programming more cohesive. What’s more, biorhythmic data about viewer preferences based on location and time of day can similarly inform what ad to place where and when. AI technology powers these monetization opportunities by automatically identifying complex content within a video and generating metadata from it to serve contextually relevant ad placements.
The report also notes that overall consumers are looking for improved content recommendations from the VOD service providers. A whopping 44% of respondents said that recommendations rarely were applicable to what they wanted to watch.