Campaign India Team
Jul 04, 2024

Indian consumers show greater appetite for personalised ads on streaming media services

A report by Moloco and YouGov found that 41% of Indian consumers have cancelled a subscription because of the ads experience.

Banner or display ads and mid-roll ads are perceived as the most intrusive or disruptive. Image caption: Pixabay.
Banner or display ads and mid-roll ads are perceived as the most intrusive or disruptive. Image caption: Pixabay.

Ads on streaming platforms are influential in the decision-making process for product or service purchases. Eighty-three percent of respondents of the ‘Consumer perceptions of ads on streamers survey 2024’ reported some level of influence. Personalised ads are more compelling and more likely to result in a favourable response, such as a purchase. Meanwhile, 66% of Indian consumers would choose lower fees in exchange for watching ads.

The survey was conducted by Moloco, a provider of operational machine learning (ML) and performance advertising, together with independent research company YouGov. More than 1,000 consumers in India and the US, respectively, were asked about their perspective on advertising on streaming media platforms.

Dave Simon, general manager for growth initiatives at Moloco.

Overall, the results signal a tipping point in consumer consumption habits as they shift from traditional TV to streaming platforms. Dave Simon, general manager for growth initiatives at Moloco pointed out that it is important to get the ads experience right because consumers will cancel a subscription based on the ads experience. He called the research a wake-up call for many streaming media platforms to transform their approach to building an ad business.

“Consumers have a strong appetite for relevant, personalised ads that enhance the viewing experience. These ads are influencing their behaviour and decision-making process. These combined trends signal the need for a more personalised approach to advertising on streamers, driven by leveraging advanced machine learning at scale,” Simon added.

Incidentally, Indian consumers do not mind watching that extra ad, which can lower or entirely remove subscription fee to watch content. This insight got validated when the survey showed that two-thirds of Indian consumers chose lower fees in exchange for watching ads.

“What’s even more interesting is that approximately 80% of customers prefer personalised ads, which significantly influence their decision-making process,” said Siddharth Jhawar, general manager of Moloco India.

Siddharth Jhawar, general manager, Moloco India.

The survey shows that consumers care about the ads experience. 41% of Indian consumers have cancelled a subscription specifically because of the ads experience.

The majority of consumers in India prefer personalised ads in the survey, with 78% indicating a preference. Of the 78% total, 48% prefer personalised ads based on viewing habits alone and 30% prefer personalised ads based on viewing habits and personal data.

“The ads experience is clearly important, especially with consumers not just adjusting to ads on streaming media platforms but embracing ads,” said Vanessa Khoo, senior research manager of YouGov. “In addition, this research showed that consumers find ads compelling and influential in their overall decision-making process for product purchases. This study also showed that personalised ads can actually enhance the overall viewing experience.”

Consumers report clear preferences for ad formats that enhance the viewing experience. 44% of Indian consumers believe that ads that are interesting and relevant enhance the viewing experience.

Pre- and post-roll ads are ranked most acceptable compared with mid-roll and banner or display ads. Banner or display ads and mid-roll ads are perceived as the most intrusive or disruptive.

Consumer behaviour is also changing as more people move away from traditional TV to use streaming media platforms, particularly on mobile devices. 34% of Indian consumers report that they are cutting the cord with traditional TV services; an additional 27% are considering it but have yet to do so.

Source:
Campaign India

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