Connected TV

71% of CTV Viewers Prefer an Ad-Supported Subscription Model

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71% of CTV Viewers Prefer an Ad-Supported Subscription Model

3 Min Read

The number of cord-cutters continues to rise every year, so much so that marketers are more or less required to include Connected TV in their marketing mixes. In their newly released Future of TV Report, The Trade Desk reveals that many viewers drop their cable subscriptions in order to save money. According to the report, consumers don’t want to spend too much on their subscriptions – 51% even say they won’t pay more than $20 per month. So it comes as no surprise when the research also revealed 71% of CTV viewers prefer ad-supported subscription models, and only 14% said they were willing to pay a premium for an ad-free experience. And with more publishers looking to follow in the footsteps of Hulu, Peacock, and CBS by adding ad-supported options to their streaming offerings, there is more inventory than ever for advertisers to utilize on CTV. 

The Trade Desk report shows strong indicators that the exchange of ads versus subscription price has a very different value on Connected TV advertising platforms than on linear TV. Unlike with traditional TV ads, where the ads shown tend to detract from the viewing experience, ads on CTV can be specifically targeted to consumers. This means that viewers are served ads that are likely to appeal to them. And considering that 40% of those surveyed by the Trade Desk expressed that they prefer ads that are tailored to their interests, this is no small feature. With the powerful combination of targeting and measurement capabilities available when advertising on Connected TV, this is a channel smart marketers should be looking to utilize in the new year.

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