UK Audiences Are Open to Ads – What Opportunities Does This Represent

Without sounding dramatic, we're entering a new era of content viewing in the UK. As the TV landscape matures-playing catch up with the U.S.- new content providers are entering the streaming world and we're seeing a continued rise in content consumption.

For UK consumers, the average number of video services (e.g., Netflix, Freevee, Sky) used is now 6.5, with an average spend of £74.83 on entertainment bills. And as the cost of living continues to spiral upwards across the nation, it's perhaps unsurprising that free content is increasingly popular.

TiVo's latest UK Video Trends Report highlights the growing affection for AVOD and FAST services as part of the entertainment mix- the majority of UK adults (55%) are open to watching ads if it enables free content access and a fair proportion (43%) are already using free, ad-supported content services.

Naturally, this ad-tolerance presents appetising monetisation opportunities for businesses, but only if they approach ads the right way.

Just how ad-tolerant is the UK?

According to our data, quite. Almost three quarters (74%) of UK adults consider themselves at least ad-tolerant. Or to put it another way, three times as many are tolerant of ads than adverse to them. While ad-tolerance has fallen slightly in the last year, a possible explanation is the increased adoption of free content leaving ads more front of mind. And the truth is, it's highly unlikely anyone will ever want ads.

The report also finds that more than a third (37%) of all UK SVOD users subscribe to one or more ad-supported tier. And half (50%) say they're accustomed to having ads play when watching video. On the other hand, 30% of the UK audience are still willing to pay to reduce or eliminate advertisements- but even that's declined year-on-year (falling from 32%).

For those seeking a deeper dive, all the stats are in the report. But the message is clear: acceptance of ads for entertainment content in return is creating a ripe environment for monetisation in the UK.

Getting your monetisation strategy right

But while we've shown that the UK can be open-minded when it comes to viewing ads on smart TVs, what viewers are adverse to is a poor ad experience.

Too many smart TV interfaces hinder the user experience- bombarding users with irrelevant ads, which in today's landscape won't cut it. To be successful, OEMs, advertisers and content service providers need a flexible, independent media platform. One that can amplify a message with targeted data-driven advertising, seamlessly integrated into the user interface.

It's not rocket science, but it does rely on a partner with a deep understanding of audience demographics, behaviours and preferences- in terms of content and how they are advertised to. Plus, the ability to track, analyse and gain actionable insight to optimise ad content to maximise ROI and audience satisfaction.

Effective monetisation is a balancing act. It relies on a hyper-personalised approach which enhances viewer satisfaction, but also maximises ad engagement and impact. When done right, ads in today's TV landscape can be a win for audiences and businesses. And it's a whole lot easier when you take big tech biases out of the equation.