The rise of AVOD in Spain: The impact of advertising on the streaming user experience

Abstract

This study examines the impact of introducing advertising into AVOD (advertising video-on-demand) streaming services on user experience in Spain. Its primary objective is to determine how users perceive in-stream advertising and which factors influence their decision to subscribe to ad-supported plans. The research adopts a qualitative approach, drawing on ad hoc data from GECA’s OTT Barometer, which surveyed a representative sample of 2,000 individuals. Findings indicate that most users regard advertising as a reasonable trade-off for accessing content at a lower price; nevertheless, younger viewers exhibit markedly greater aversion to such intrusions than other demographic groups. Preferences for ad-supported tiers differ by platform, with Prime Video receiving the highest acceptance and Netflix the lowest. While the AVOD model has been positively received overall, its long-term success will hinge on each platform’s ability to manage user experience by minimising ad intrusiveness. Strategically, leveraging Big Data emerges as crucial for optimising advertising personalisation and enhancing customer retention.