Horizon Media has released a study that provides insight into Canadians’ opinions, perceptions and preferences about ad-tiers and streaming platforms. The “Advertising in Video Streaming Platforms” report is based on a survey of 1,004 Canadians conducted from March 14 to 26.
The study found that Canadians prioritize ad-free experiences and when subscribed to a platform with spots, they prefer relevant and innovative ads targeted to a specific audience. Thirty-nine percent of respondents say they subscribe to ad-free streaming services, while 36% opt for those with spots. Another 26% say they subscribe to both services. About 80% prefer to pay extra for an ad-free viewing experience, according to the report.
Netflix remains the streaming service of choice, especially among Gen Z-ers. However, the service is not the first option for those living in Atlantic Canada, where Amazon’s Prime Video leads the way. Overall, 73% subscribe to Netflix, 61% to Prime, 35% to Disney+, 22% to Crave and 14% to Apple.
Simon Ross, VP of strategy and insights at Horizon Media Canada, says, “Netflix obviously resonates with that younger Gen Z and Millennial audience and Netflix and Prime are really going to have a stranglehold on those audiences as we move forward. If you want to reach those younger demos, then Netflix is definitely going to be the place to reach those audiences. Netflix and Prime are where the scale is right now and as an advertiser you want to have those targeted opportunities.”
Gen Z is the most likely to subscribe to ad-free services, while Boomers are the most likely to subscribe to ad-supported platforms. Younger audiences trust ad-free platforms more than older ones. In terms of advertising levels, Gen Z is the most likely to want ad free tiers (89%), followed by Millennials (85%) and Gen X (77%).
The research also revealed that 78% of Canadians have never taken any action after seeing an ad on a streaming platform. Around 84% are dissatisfied or unsure with the variety of ads they see and 50% consider ads to be too frequent. Some 72% of younger people find streaming advertising intrusive, while 62% of seniors don’t think ads during streaming are intrusive to the experience.
But the picture changes when it comes to costs. Respondents of all ages said they seek affordability and are open to ad-free tiers to save money, including Boomers. Affordability also drives interest in cheaper ad-supported tiers, but there is a strong demand for premium ad-free options. Half of the respondents are likely to cancel a subscription if the price exceeds what they consider fair (the average maximum monthly subscription price is $12.00).
The report also showed that Canadians choose streaming platforms based on their reputation. Overall, 54% said this was important to them when deciding on a platform.
Variety and exclusivity of content are also crucial when it comes to choosing a platform and upgrade the tier. Canadians want platforms that offer diverse voices and local content, according to the study. Around 53% highlight the importance of Canadian-created content on streaming platforms, 64% believe streaming platforms do a good job of representing diverse voices in their content, and 61% believe the current content offering in the country could be better.
Ross says, “When we look at content, Canadians still want that breadth and depth of content in their streaming services. They want Canadian content as well and if they’re not getting it, they’re not getting value for money. Then they’re going to turn against that subscription platform. It’s really on the streaming platform to make sure that they’re updating their content and the breadth and the depth of the content they’re carrying on their platforms.”
Consumers of all generations are also upset by the lack of targeted advertising on their preferred streaming platform. The need for tailored messaging is further highlighted when looking by province, with Ontarians being the most likely to find targeted ads on streamers relevant.
Gen Z and Millennials, especially, want tailored ads, targeted to their specific interests. They also want ads to be skippable but prefer limited interruptions in their viewing experience. In general, all respondents prefer skippable ads, limited interruptions and attractive placements. Some 72% like the ability to skip ads, while 58% like platforms with limited ad interruptions.
Ross says there’s no middle ground at the moment. “Deep down, no one really wants to be targeted with an ad on streaming platforms so if you’re going to target them with an ad, make the ad as engaging and innovative as you possibly can.”
He cautions advertisers not to forget about older Canadians. “Older demos 55-plus are still tolerant of ads. They’ve had a lifetime of being targeted with ads and are used to being targeted with ads. While the platforms are not as scalable for these audiences, they still represent opportunities. If you’re going to put an ad in front of them in linear channels, extend those buys into OTT channels because 55-plus audiences expect to be targeted with ads.”
With files from Patti Summerfield
