Utilizing Streaming Churn: Insights for Advertisers to Engage Savvy Switchers
In the past 12 months, over 90% of American adults have indulged in watching content on a video streaming service according to MRI-Simmons' Cord Evolution Study, November 2024. With 67% of these streamers using 10 or fewer streaming services among the hundreds of services available, it's clear that viewers are discerning about their choices. Interestingly, 38% of streamers plan to subscribe to a new service in the next 6 months, while 34% are ready to cut ties with one or more of their current subscriptions. This fluidity in streaming habits presents a golden opportunity for advertisers to capture the attention of a highly engaged audience.
Full seasons, timely releases, and perks are preferred (at an affordable rate)
Streamers are smart consumers. Among the 88 million planning to subscribe to a new service in the next 6 months, 87% consider the cost before committing. 89% of streamers who are planning to cut a service take cost into consideration, indicating price is slightly more important to this group. This cost-conscious mindset means that advertisers can appeal to streamers by highlighting value and affordability in their campaigns.
Moreover, perks and rewards are powerful retention tools, with 67% of total streamers more likely to maintain a subscription if it includes added benefits such as points, sweepstakes, free shipping, or coupons. Like price, perks are important for streamers looking to get a new service, at 78% (Index to total streamers: 117). Advertisers can leverage this desire for deals by offering exclusive rewards through streaming platforms, enhancing their appeal.
The binge-watching culture is alive and well, with 84% of churning streamers (both those planning to add and planning to cut) preferring to have an entire season of a show released at once. However, regarding content coming from TV networks, over 70% prefer to follow the show as it airs instead of waiting for the season, streaming new episodes the next day. These behaviors offer advertisers unique opportunities to both create campaigns that span multiple episodes, keeping their brand top-of-mind as viewers devour their favorite series, and align with the latest content drops.
Diverse and inclusive content matters
The value of diverse content types cannot be overstated. Over 4 in 5 total streamers (83%) believe that having movies available on streaming services shortly after their theatrical release enhances the service's value. 74% and 72% find shows from broadcast and cable networks, respectively, to be valuable additions; however, 70% of streamers (and 76% of streamers looking for a new service) favor exclusive original shows over traditional TV content. Advertisers can tap into this preference by aligning their messages with popular original series, ensuring they reach a captivated audience. Streamers’ broad content preferences provide advertisers with numerous touchpoints to connect.
When it comes to the actual programming content, 63% of streamers who are likely to get a new service like streaming live sports (114), and 65% wish it was easier to find their favorite sports and teams on streaming (124) revealing an opportunity for programmers. Meanwhile, 66% of these streamers appreciate content that addresses issues important to racially diverse communities (122), reflecting a growing demand for inclusive and representative programming and ads. Family-friendly content is also crucial for 39% of streamers looking to add a service (128), and 43% express a desire for more Spanish language content (154), underscoring the importance of creating a safe viewing experience for all ages and the call for greater linguistic diversity in streaming offerings. By understanding and responding to these preferences, advertisers can craft more effective and resonant campaigns that truly engage these savvy streaming switchers.
Streamers who cycle through streaming services are a prime target for activation due to their dynamic and engaged viewing habits. Their selective nature, preference for exclusive content, and appreciation for added perks make them highly receptive to targeted advertising. By understanding and leveraging these behaviors and preferences, advertisers can effectively reach and engage this valuable audience. The streaming revolution is here, and with it comes a wealth of opportunities for savvy marketers.
Through MRI-Simmons' activation solution, ACT, marketers can leverage trusted and nationally representative data to target and reach American streamers likely to add or cut a service in the next 6 months. Curate your audience with over 60,000 consumer elements: 1000+ attitudes and opinions, 6500+ brands in 1000+ product categories; and 90+ proprietary segments. Then, activate your audiences via the DMP, DSP, SSP, MVPD, or programmer of your choice.
Source: 2024 November Cord Evolution (SU24 USA).
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