80% Indians ready to pay a small fee to access ad-free experience: Study

A new global study from Samsung Ads brought out in partnership with research company Verve reveals that ads on ad-funded and free streaming TV (FAST) services are more likely to be watched compared to other services – a finding consistent across India, the UK, Germany, and Australia.

The global study, titled Understanding Advertising Engagement across different viewing platform types, compared key markets in Europe and APAC to garner a better understanding of what drives audiences to engage with advertising experiences across the TV landscape. Smart TV audiences in the UK, Germany, Australia and India were asked about their ad experiences across linear TV, FAST/ AVOD, BVOD and SVOD.

The study found that ads within FAST/ AVOD environments are perceived by global audiences as shorter and therefore less disruptive, contributing to their greater likelihood of being watched.

In Australia, for example, almost twice as many respondents said linear ads were too long compared to ads on FAST/ AVOD (52% vs 27%). German respondents also felt that linear ads were too long, with 74% stating this vis-a-vis 59% who said the same about AVOD. In the UK and India, the difference was marginal amongst platforms, with BVOD scoring slightly less well than other platforms in the UK specifically.

The study also showed that FAST/ AVOD ads consistently outperformed other platforms across multiple metrics valued by advertisers. Respondents considered them to be shorter and described them as being more exciting, enjoyable and relevant.

Australians and Germans are significantly more likely to sit and watch FAST/ AVOD ads in full, compared with other platforms; higher engagement is likely driven by their shorter length and relevant content. Linear ads are the least likely to be watched in full across all markets – they are considered  too long and repetitive, leaving viewers feeling disrupted and frustrated.

When asked specifically about ad characteristics such as trustworthiness and enjoyment – FAST/ AVOD scored the highest across all regions – challenging some of the existing perceptions advertisers might have around the perception of advertising within FAST and AVOD environments.

A spotlight on India

Indian audiences show a high level of ad engagement across the TV landscape. Almost 80% of the Indian audience are happy to pay a small fee in order to access an ad-free experience, indicating viewer frustration when facing ads in high-paying SVOD settings – a format which is only in its infancy in other markets. AVOD/ FAST levels of engagement score consistently at 70% of respondents engaging with ads in this setting. The linear ad experience, however, only engages 65% of respondents.

As with the other regions surveyed, the most significant factor driving Indian audiences to watch ads is if they receive free content in exchange. Four out of five Indians (81%) claimed to be happy to watch ads if this was the case. Similarly, Indian audiences are very willing (80%) to watch ads that are relevant to them.

Commenting on the report, Prabhvir Sahmey, Senior Director, Samsung Ads India, “The Indian audience demonstrates a mature understanding of the value exchange of viewing ads in return for accessing free content. This is particularly interesting to observe in comparison to other regions across the world. Delivering premium ad experiences to the Indian audience is, therefore, critical, and can be done through leveraging the insight gathered from reports such as this.”