IMF Business School · Masters in Marketing and Digital Communication Become a professional with the best school to study digital marketing in person or online Master in Digital Marketing Management – UPF-BSM Acquire specialized knowledge to manage the digital marketing of your organization. It was a few weeks ago when I installed Pluto TV, the VoD service with ads recently arrived in Spain, on the connected stick that I use to access online content on television. The service had announced the app for my type of stick, I was curious to see what the platform was like beyond what I had snooped in the browser version and it was free (and without having to register via email, something that in these subscription fatigue times are appreciated). The user experience is quite similar to how it could be to watch TV in the app of a premium TV service, although that is without the content found in that type of service. Pluto TV is, in the end, free and for that reason, or that is what it feels like to jump through its channels and watch its content on demand, it is the paradise of the trash can. There is a channel that continuously broadcasts episodes of Curro Jiménez and another that has Ana y los 7 in loop , contents that you end up associating with those that were served by local television at the time because they were cheap and available.
From time to time I go back in to browse their offer, more for the professional interest of knowing what is going on in the streaming and advertising market, than for real interest. I never got to see any content on the platform in its entirety. I have simply zapped and more zapped, with a slightly longer pause on the SpongeBob channel , while I wonder what real audience the service will have and if it will manage to retain an audience that already has a lot of content – and a lot of desirable content – in other services (paid, yes, but they have the series that everyone is talking about).
In the United States, the platform is doing quite well (although there its content offering is broader: in Europe they are still in the process of development and they still plan to incorporate more channels). In summer, the service pointed out that they had doubled their audiences in two years and that the coronavirus crisis had helped boost the service. Still, I can’t help but wonder how they are going to build audience loyalty without the hook of highly desirable content.
The closing of Quibi is a perfect example that, no matter how much product you offer and how many benefits you sell, you can only connect with the audience if you offer new, differentiated content that you really want to see. Pluto TV is not the only platform in Spain that is trying to get an egg in the AVoD market. So does Rakuten TV, which serves movies and documentaries with ads. The company launched itself into this niche, as Jacinto Roca, CEO of Rakuten TV, explains to El País , because they saw that “although the AVOD model did not have a strong presence in Europe, it worked very well in markets such as the US”. Some payment platforms, like Movistar +, make their users see ads just before starting the content. What the viewers expect And do viewers want to see the content that AVoD, video on demand with built-in advertising, offers right now?
A British study , prepared by Integral Ad Science (IAS), has just concluded that consumers are receptive to streaming with ads and are more than willing to watch it, but also that they are not willing to accept anything. “There is no use having free access platforms supported by advertising if the programs they offer fail to attract the audience,” insists Francisco Palma, general director of Contrapunto BBDO, in the article in El País . Only if these platforms have their own “quality” content will they be able to engage audiences that are already highly saturated in terms of supply. Advertisers are more or less captured: the players of the Spanish industry themselves recognize – as stated in this article – that reaching audiences with traditional channels is more complicated now than before. Therefore, the new alternatives are positioned as more relevant. Ads that do work In addition, viewers accept the content with advertising and advertising, but do not want any type of advertisement, as shown, for its part, the data of the British study. 83% of those surveyed assure that they are willing and ready to view content – free, of course – with ads. 56% say they plan to do it in the next twelve months.
Why do they do it? Basically, it’s just one more sign of subscription fatigue. 78% of those surveyed have Netflix, 53% Prime Video and 39% Disney +. Viewers do not want to bear the cost of more services (30% believe, in fact, that they are already paying too much to access the services they already have). At the same time, however, the fact that it is ad-free is what attracts them the most about VoD compared to conventional television, so advertising breaks must be manageable and surrounded by something that is interesting. 54% of those surveyed indicate that they would see an ad until the end if it is relevant in relation to the content they are viewing. Therefore, consumers are receptive to advertising and streaming with ads, because it avoids them paying for one more service, but as long as what is offered meets certain standards.