Press Release: More Streamers Prefer Local Over National Ads According to New Survey

ZypMedia
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By ZypMedia
April 09, 2019

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Free-Ad Supported Streaming Services Offer New Opportunities for Local Advertisers

SAN FRANCISCO, April 9, 2019 /PRNewswire/ -- When consumers flip on their TVs, they aren't always just streaming their favorite content on a single platform. Increasingly, many consumers are tapping into the array of streaming services. According to a new survey of over 2,000 U.S. adults conducted online by The Harris Poll on behalf of ZypMedia, the local-first, AI-powered enterprise software platform that manages all digital advertising offerings for media and broadcast companies, nearly half are tuning into local (i.e. NewsOn, CBSLocal) or free, ad-supported (i.e. Pluto TV, XUMO and Roku) streaming services to watch their favorite TV shows and movies, at 47 percent and 46 percent respectively.

Consumers ages 18-44 are more likely to watch local and free, or ad-supported streaming services than those age 45+

  Ever Watch Local
Streaming Services
Ever Watch Free, Ad-Supported Services
Total (all ages surveyed) 47% 46%

Men are more likely than women to watch this type of content (50% vs. 42%)
Ages 18-34 63% 62%
Ages 35-44 57% 55%
Cord Cutters*
of all ages
57% 67%

 

Millennials Prefer Local Ads vs. National Ads

When it comes to consumers that watch free, or ad-supported streaming TV, 62 percent of consumers that have a preference between watching local or national commercials, prefer local ads. That number is slightly more, at 68 percent for consumers that watch local streaming services. This is particularly true for millennials (defined as ages 18-34) who watch free, or ad-supported over-the-top (OTT) streaming services. They prefer local ads more than consumers ages 55+.

"While SVODs like Netflix and HULU garner much of the world's attention, free, ad-supported and local streaming services are becoming powerful platforms for brands to make an impact in local markets around the country," said Aman Sareen, Co-Founder and Chief Executive Officer, ZypMedia. "Millennials are particularly responsive to local advertising messages, making ad-supported OTT a valuable channel." 

Cord Cutters and Cord Shavers are Still Receptive to Commercials

According to the survey, 30 percent of U.S. adults are "cord cutters – they used to watch cable or satellite TV but now watch all content via streaming services – while even more (37 percent) are "cord shavers" and watch both. Yet even cord cutters are still receptive to commercials, more than half (52 percent) indicated that they don't mind watching them, and 47 percent of cord shavers also agree.

In addition, more than half (51 percent) of consumers that ever watch free, ad-supported streaming services agree that the commercials that they see on streaming services are more relevant than the commercials they see on cable TV.

Sareen concluded, "With the rich targeting capabilities that OTT provides, local advertisers can now tap into this growing audience, many of which are cutting the cord, in favor of streaming."

Survey Methodology:
This survey was conducted online within the United States by The Harris Poll on behalf of ZypMedia from March 11-13, 2019 among 2,043 U.S. adults ages 18 and older, among whom 241 are cord cutters (used to watch cable or satellite but now only watch streaming) and 681 are cord shavers (watch both cable TV and use subscription or free, ad-supported streaming services). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

About ZypMedia

ZypMedia (zypmedia.com) is at the cross section of technology and media. Its enterprise software is leveraged by local media companies to navigate the digital shift profitably. The company has built a comprehensive advertising platform – from the ground up – specifically for some of the nation's largest broadcasters and media companies to plan, buy, execute, and manage programmatic campaigns for their local clients across all digital channels, including over-the-top (OTT).

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ZypMedia

ZypMedia is the programmatic advanced TV platform for local media companies connecting advertisers with their local audiences across all screens.
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