There has been a lot of speculation that the quick rise in subscription TV has slowly dwindled the reach and power of classical TV advertising. However, according to new research by YouGov an international market research firm, the traditional TV advertising industry is still very much alive despite the growing popularity of subscription on demand services (SVOD).
The Broadcast to Narrowcast report interviewed 2, 315 UK consumers who fell into three categories: those that watch exclusively through SVOD, those who only use paid TV providers and those that use Freeview and Freesat.
A key findings from the study was that while the subscription providers for consumers favourite shows had increased, the number of ads viewed in the TV networks had not decrease all that much. Even the viewers who now watch their content only through SVOD were still viewing a significant number of TV ads. In addition to this, 45% of exclusively SVOD viewers still remember seeing adverts in the programmes they have watched in the last week, while 30% didn’t remember seeing any.
“People watch TV in different ways but it doesn’t necessarily follow that the number of people watching traditional television has fallen that much,” Stephen Harmston, head of YouGov Reports, said. “These broadcasters and their advertisers need to be realistic but not panicked about the challenge to them from subscription video on demand providers.
“While the likes of Now TV and Netflix inevitably siphon off some viewers some of the time, they are not taking most the traditional broadcasters’ viewers most of the time.”
Other findings from the study included:
Commercial terrestrial TV still plays a big role in consumer viewing habits, including SVOD-only users. 51% had watched Channel 4, for instance, through the channel’s app in the past 30 days.
53% of Freeview/Freesat viewers and 45% of Paid TV-only viewers watch two or more episodes in a single sitting. Unsurprisingly, this number rises to 77% for subscription-only users.
Binge watching does not seem to have massively impacted the likelihood of a viewer seeing advertising. 28% of those watching two episodes in a row and 27% of those watching three in a row remember seeing ads.