Consumers Open to Targeted Ads on Their Terms, Says Infillion

Ad-supported streaming services are gaining a larger share of consumers' wallets in connected TV, but consumers’ attitudes toward commercials that air during programming vary and are sometimes contradictory, a July report from Infillion shows.

Infillion considers streaming consumers central to the future of advertising because they're likely to try new streaming ad features. A December survey of 2,500 respondents showed many consumers would like to interact with ads and have more control over them in the streaming space.

About 57% of consumers want the option to switch from one ad to another within five seconds of an ad’s start, the report said; the same percentage want an option to “bank” ads and watch them at their convenience. Forty-nine percent want to be able to give a thumbs-up rating to show an ad was relevant, and 43% want to be able to hit a button allowing them to explore the brand later. Four in 10 showed interest in getting more information via QR code and unlocking visuals with a phone camera; 39% want to be able to pause an ad so they can buy a product with their phone, it said.

Most consumers watch the commercials that air while they’re streaming shows, but they’re “not completely paying attention,” said the report. About a third of consumers surveyed said they always or usually watch ads, 28% sometimes watch, but 61% multitask when commercials come on, it said. About 39% mute ads, while over half have a conversation or get up and go to another room, they said.

Repetition is a primary gripe among consumers, with 73% saying they see the same ads over and over; the same percentage said they prefer that ads aren’t targeted, feeling it’s better to be exposed to ads from any brand, the report said. Two-thirds think targeting is “creepy,” and 63% said ads during streaming are “invasive,” though 52% said ads based on online shopping for products not yet purchased are “helpful,” and half said commercials tailored to viewers’ interests are good. Nearly half felt that online and streaming ads accurately reflected their interests.

As brands become more attentive to balancing the “personalization vs. privacy paradox,” consumers will be more open to engage with ads built for them, the report said. For now, they’re still reluctant to provide certain types of personal information, a challenge for advertisers. Some 55% of respondents felt they had a “great deal” of control over data collected about them, and 52% felt they benefited from it. Half felt ads should be somewhat or completely targeted.

Over 60% of consumers were comfortable sharing gender, age, interests and ethnicity when setting up a user profile for a streaming TV channel, but they were less comfortable sharing household income (43%), professional status (48%) and travel behavior (48%). About 35% said they would consider electronics purchases as a result of targeted ads vs. 40% for food and 26% for automotive and alcohol.

Asked whether they would prefer ad slots in a range of one- or two-minute "ad stories" to eight 15-second ads, about a third of respondents indicated no preference for the various ad lengths, indicating users are “indifferent” about length, the report said. Some 29% chose the longer ads, including two 60-second ads from different brands.

About 64% of streamers said entertaining commercials are worth watching; 62% for ads that are funny, relevant and have offers or discounts, Infillion said. Celebrity ads didn’t carry as much weight, at 43%, behind emotional ads at 44%.