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Percentage of Cord-Cutting is Higher Among 18-to-34-Year-Olds
Nearly Half of Aussies Prefer to View Ads in Exchange for Premium Content vs Paid Subscription
A growing number of Australian consumers are cutting their pay TV subscriptions as a result of the COVID-19 pandemic, according to a recent survey of 1,000 Australians by
The percentage of Australian households that use pay television services plan to cancel, put on hold or let lapse their pay TV subscriptions as a result of the pandemic:
The research also found the number of Australian cord-cutters increases to 23 percent among 18-to-34-year-olds. Consumers in this age group are highly coveted by advertisers due to their disproportionally high disposable income and brand-loyalty potential, as well as the influence they have in being trendsetters for all age groups. The shift of this age group moving away from pay TV toward new models of TV consumption such as broadcast video-on-demand (BVOD) signifies that advertisers will have to develop new strategies to reach these consumers.
“We’ve seen the pandemic accelerate consumer and media trends that would have taken years compressed into a few months. As a result, the advertising industry is going through a profound transformation that’s changing how marketers think about reaching consumers,” said
In addition, the survey shows that household budget constraints because of the pandemic are playing a major role in accelerating the cord-cutting trend. According to the survey, 28 percent of Australians who have had a loss of employment or income are planning to cancel, put on hold or let lapse their pay TV services.
The new research also provides further insights into Australians’ perspectives on ads during their viewing experience and their acceptance of ads in exchange for premium content. More than half of Australians (54 percent) watch content via a free ad-supported streaming service on a weekly basis. Nearly half of Australians (49 percent) prefer to watch TV content with free ads every other episode in order to keep receiving it for free. In addition, 46 percent of Australians are happy to watch ads if it means they can watch an episode of their favourite show for free.
While Australians look favourably at the value exchange of premium content, they also prefer less ads and place importance on ad frequency. The research shows that 45 percent of Australians get annoyed at having to watch the same ad repeated multiple times when watching streaming content; and 44 percent get annoyed by the actual number of ads played during ad breaks.
“BVOD ad experiences have improved significantly in a very short space of time, but it’s clear consumers have growing expectations of personalization and relevance,” said Bayes. “BVOD employs better data and measurement that advertisers can’t get with traditional TV. With connected TV, advertisers can achieve a new level of precision in TV buying that includes having a better understanding of the consumers they are trying to reach, and link that more directly to business performance.”
This survey for
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