What Impact Does Advertising Have on User Experience?

Streaming services such as Amazon Prime Video, YouTube, Disney+, and Netflix are introducing advertisements to their free or basic tiers to generate more income to fund their original content and production costs. In the UK Netflix subscriptions increased from 4.2% of the population in 2024 to 24.7% by the end of 2023. Globally in 2020, there were approximately 1.1 billion online video streaming services subscriptions worldwide. By 2023, the number had grown to nearly 1.8 billion users with a user penetration of around 17%. As audience numbers are growing on streaming platforms, marketers would want to exploit this market to advertise their products and services.

Impact of Advertisements on User Experience

Advertising plays an important role in the economics of streaming platforms as it allows platforms to offer content without hefty subscription fees making the platform fees accessible to a broader audience. The way that advertisements are integrated into the viewing experience can significantly impact user satisfaction. Frequent, intrusive, or poorly targeted ads can disrupt the flow of content, leading to viewer frustration and potentially driving them away from the platform.

Ad Length and Frequency

Length and Frequency of advertisements are important factors that determine user satisfaction. Long advertisement breaks can test a viewer’s patience, especially those long binge-watching sessions. Excessive advertisement frequency can be a deterrent and drive viewers away from the platform. Finding a balance between advertising duration and content duration is vital.

Targeted Personalised Advertising

Streaming platforms have access to a wealth of data about their viewers from their viewing habits to their preferences. Using the data gathered enables to platform to deliver personalised advertisers that are relevant to the viewer which can then minimize the intrusion factor.

Non-Interruptive Ad Formats

Traditionally advertisements are shown during a break from the TV show or film. However, streaming platforms are now experimenting with non-interruptive ad formats such as banner ads or product placements to integrate seamlessly with the content. Using the creative approach will make advertisements a more natural and enjoyable part of the platform experience and be less intrusive.

Viewer Choice and Control

Offering viewers the option to decide what type of ads they want to watch can help tailor the experience. Additionally giving the ability to skip ads after a certain duration or opt for a brief break can be seen as giving the viewer control over when to receive ads.

Summary

As streaming platforms are introducing advertisements on their platforms, they will need to find the right balance between viewing content and advertising to ensure it does not drive customers away from the platform. By finding ways to deliver personalised experiences can ensure the ads they receive are relevant to the viewer. Integrating advertisements in a way that they become less intrusive can make the experience less frustrating and more enjoyable.