OTT Measurement: 8 Metrics & Benchmarks to Track Success
by The MNTN Team
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Since launching in mid-2020, Peacock — NBCUniversal’s foray into the streaming platform revolution — has become one of the most popular services on offer, thanks in large part to its immense selection of content. In addition to a trove of on-demand episodes and exclusives, the platform also features live sports and events, as well as 50 live TV channels.
Nevertheless, like many streaming services, Peacock offers different subscription tiers, which include “Premium” and “Premium Plus.” With a name like Peacock Premium, many consumers assume that their experience would be ad-free, but it doesn’t hurt to ask: Does Peacock Premium have commercials?
The one-word answer to that question is yes. To get more specific Peacock advertising, we’ll need to take a quick dive into the platform’s history.
Originally, Peacock offered a completely free ad-supported tier, which only required users to create an account to start watching. While users who signed up at launch still have access to their free-with-ads accounts to this day, Peacock stopped offering the specific tier to new adopters in early 2023; today, its entry-level subscription option is Peacock Premium, which has ads and costs $5.99 per month.
Despite the change, Peacock continues to grow in popularity, and even then, it appears that most consumers don’t mind the ads; according to Forbes, two-thirds of consumers will never skip an ad if it is about a product or service they are interested in. Nevertheless, researchers found that 64% of customers believe online commercials should be one minute or less.
The bottom line is this: If advertisers present relevant and concise marketing content, their audiences won’t mind too much; in fact, they might just be intrigued enough to learn more.
A common misconception regarding streaming services is that accessing ad-free content is a consumer’s top priority when signing up. In actuality, their motivation appears to be multifaceted; other factors that make streaming appealing include the following:
Cost savings seem to be an important part of consumers’ decision-making process when deciding whether to sign up for an ad-free or ad-supported service. According to Statista, two-thirds of consumers would opt-in for ads if it meant saving $4 to $5 per month.
Peacock Premium, at the time of this writing, is $6 cheaper per month than its ad-free counterpart, Premium Plus.
Therefore, the answer to the question, “Why does Peacock Premium have ads?” is simple: Peacock includes a lower cost ad-supported tier to appeal to a continuously growing audience segment that prefers this option. (The “Premium” in the name simply notes that you’re paying a subscription fee for this tier, compared to legacy free subscribers.) The additional advertising revenue funds Peacock’s extensive library of content and operational costs.
The easiest way to get rid of ads on Peacock is to upgrade to a Premium Plus subscription.
Peacock Premium, as described earlier, is the ad-supported version of the streaming service. It costs subscribers $5.99 per month and includes films, TV shows, live sports and events, NBC and Bravo shows, and more than 50 “Always-On” channels.
Premium Plus, on the other hand, costs $11.99 per month, but it includes a few extra perks, such as the ability to download and watch select titles offline, as well as access to your local NBC station. That said, certain programming will still feature ads, such as a few shows and newly released movies, as well as most live sporting events.
If you want to save a few bucks on your Connected TV streaming service, opting for Peacock’s ad-supported subscription tier is a great option. You’ll just learn about new products and services in between your favorite programs. Since streaming ads use more precise targeting than traditional TV ads, the content is more likely to align with your interests, too.
For advertisers, Peacock ads offer a great way to get your brand featured alongside premium content. By powering your streaming ads with a dynamic ad management platform like MNTN, you’ll gain timely, relevant insights about content performance. You can use MNTN to segment your audiences, target specific demographics, and get more bang for your advertising buck.
Perhaps the greatest benefit that streaming service ads offer advertisers is that Performance TV solutions, like MNTN, are revolutionizing how advertisers connect with customers.
By leveraging data-driven strategies and precise targeting, these Connected TV platforms enhance the effectiveness of TV advertising; you can track performance, adjust campaigns on the fly, and ensure your messages are reaching the right audience, wherever they may be streaming, at the right stage of their journeys.
Peacock ads, like any streaming ads, ought to be viewed as a tool, one that can unlock great benefits for consumers and advertisers alike. With that in mind, if you want to explore the advertising opportunities offered by Peacock and other similar streaming services, MNTN can help. Our performance marketing platform includes a robust reporting suite, creative solutions to make your ads more impactful, automation functionality, and a premium inventory of advertising slots on Peacock and other top streaming services. Book a demo today to learn more.
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