Ad tolerance grows as viewers seek affordable TV options

As more affordable, ad-supported television services emerge, consumer resistance to advertisements continues to decline, according to Hub Entertainment Research’s latest “TV Advertising: Fact vs. Fiction” report.

The survey, conducted in November 2024 among 3,000 U.S. TV viewers aged 14–74, noted shifting attitudes toward TV advertising, driven by economic concerns and the proliferation of ad-supported options.

Ad-supported video-on-demand (AVOD) services have become a popular alternative to subscription-based platforms, offering free or lower-cost access to content in exchange for ad exposure.

Platforms such as Tubi and Pluto TV have gained traction recently, particularly among budget-conscious viewers. This trend aligns with Hub’s report’s findings, which indicates that two-thirds of viewers would choose ad-supported programming if it lowers subscription costs. Even among those who previously identified as ad-intolerant, economic pressures and rising subscription prices have encouraged reconsideration of ad-supported models.

Live television, particularly in sports and news, has emerged as a strong contender for advertising engagement.

The study found that one-third of streaming time is now spent on live content, much of it integrated with commercials. Two-thirds of respondents reported finding live TV ads more tolerable compared to on-demand programming. The natural pauses in live sports and other events make ad breaks a seamless part of the viewing experience, especially for younger demographics.

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The growth of AVOD services has coincided with a shift in advertising strategies.

Hub’s research shows that viewers prefer shorter ad breaks, fewer commercials, and rewards for watching. Features such as interactive ads or product links were far less popular, highlighting the need for straightforward, unobtrusive ad experiences.

The study underscores a continued decline in ad intolerance, with even previously resistant viewers increasingly embracing ad-supported models as a trade-off for affordability.

Mark Loughney, senior consultant at Hub Research, noted that “the steady erosion of ad intolerance is a positive signal for advertisers and streaming services alike.”

As AVOD platforms continue to expand their content offerings, including live TV options, advertisers are presented with opportunities to engage viewers who are more receptive to ads, particularly in live formats.