{"id":16822,"date":"2022-11-10T18:00:32","date_gmt":"2022-11-10T18:00:32","guid":{"rendered":"https:\/\/www.searchenginejournal.com\/netflix-ads\/470664\/"},"modified":"2022-11-10T18:00:32","modified_gmt":"2022-11-10T18:00:32","slug":"new-netflix-ads-tier-comes-with-an-unpredictable-price-via-sejournal-brookeosmundson","status":"publish","type":"post","link":"https:\/\/marketingnewsbox.com\/?p=16822","title":{"rendered":"New Netflix Ads Tier Comes With An Unpredictable Price via @sejournal, @brookeosmundson"},"content":{"rendered":"

The opinions expressed within this story are solely the author\u2019s and do not reflect the views and beliefs of Search Engine Journal or its affiliates.<\/span><\/i><\/p>\n

With the looming economic challenges, consumers are scrounging everywhere to save money.<\/span><\/p>\n

After receiving consumer pushback from raising its subscription prices, Netflix rolled out its newest tier: Basic with Ads, in November 2022.<\/span><\/p>\n

The ads tier subscription is $6.99 per month \u2013 almost 55% lower per month than its Standard subscription.<\/span><\/p>\n

While the monthly cost is lower for consumers, the newest tier comes with hidden price tags.<\/span><\/p>\n

Unpredictable Ad Timing<\/b><\/h2>\n

In the new Netflix Basic with Ads tier, users can expect around 4-5 minutes of ads per hour.<\/p>\n

How is this comparable to other Connected TV<\/a> subscriptions?<\/p>\n

\"AImage credit: Table created by the author, November 2022. Sources of information are linked in the image.<\/em><\/span>\"A<\/div>\n

While the amount of ad time per hour for Netflix is comparable to other streaming services, the lingering issue is when<\/strong> an ad will show. Ad timings are unpredictable, which interrupts the user experience.<\/p>\n

The video content for ads is about what you expect compared to other streaming services. But the same issue is at hand \u2013 when<\/strong> will this show up in a user\u2019s watching experience on Netflix?<\/p>\n

According to Jay Peters<\/a> from  The Verge<\/a>, a user\u2019s ad experience varies dramatically between types of content consumed:<\/p>\n

\"AnImage credit: Jay Peters, TheVerge.com<\/em><\/span>\"An<\/div>\n

As you can see from this example, the amount of ads, as well as the placement of ads, is inconsistent, which leads to believe that Netflix is testing to find the best engagement for not only users but advertisers.<\/p>\n

Specific Titles Come With A Premium Price<\/b><\/h2>\n

The second nuance with Netflix Basic with Ads tier comes from what shows and movies are offered at this level.<\/p>\n

Similar to the unpredictable ad experience, the available titles on the Basic tier seems extremely scattered without a rhyme or reason.<\/p>\n

The restriction shouldn\u2019t come as a surprise to users, as Netflix announced<\/a> this back in July.<\/p>\n

Titles that aren\u2019t available for Basic users will show a red padlock, indicating that it is restricted.<\/p>\n

The red padlock seems to be a passive \u201cCall to Action\u201d because users can click on the padlocked title, which takes them to an upgrade screen.<\/p>\n

I theorize that Netflix\u2019s subscriber strategy is to entice new users to the service or get previous subscribers to come back at a Basic price level. This can help grow and scale their subscriber numbers after tumbling since increasing prices.<\/p>\n

Once a user is in, restricting titles that may be a \u201cmust have\u201d for users attempts to show users the value of upgrading.<\/p>\n

How Can Advertisers Forecast Connected TV Engagement?<\/b><\/h2>\n

Connected TV ads aren\u2019t new to consumers. Brands spent over $400 million<\/a> in ads on Hulu alone in 2021.<\/p>\n

In economic uncertainty, consumers may be willing to sacrifice their viewing experience to include ads while trying to save money. But if the viewing experience dwindles, consumers may be less inclined to engage with Connected TV ads.<\/p>\n

While it\u2019s too early to tell about Netflix Basic with Ads, a common gripe from consumers on other streaming services is the lack of variety<\/a> in ads.<\/p>\n

Back in 2021, Morning Consult conducted a poll<\/a> to consumers about their experience with streaming services ads. According to the survey:<\/p>\n