Connie Lin,
Fast Company
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Nigeria sits at Africa’s heart: Geographically, it’s nestled middle-left of the curve in the kidney bean-shaped land mass, and its economy boasts the highest GDP on the continent (nearing $450 billion in 2021). The pulse of the country beats with the pace of rapid transformation. It harbors the world’s sixth-largest population, which is also among the fastest growing, projected to surpass the United States by 2050.
It’s a country of strivers, on the verge of reinventing itself—and it has fluxed socially and culturally in recent years. But one constant anchor is the promise of the internet in delivering a better future, reveals a new report from the National Research Group (NRG), a division of global marketing firm Stagwell.
Over the summer, NRG partnered with a media agency based in Lagos, the country’s largest city, to dive deep into the Nigeria’s shifting landscape—one that, despite its position at the heart of Africa, is still a mystery to much of the Western world (if not to the East—where it has caught the eye of economic powerhouses like China, which has poured millions into Nigerian infrastructure to cement strategic trade partnerships).
The report is the first in a series focusing on high-growth emerging markets, and draws from a June-July survey of 5,000 Nigerian consumers, ages 16 to 64, whose responses were interwoven with commentary from academics and industry experts. It sketches the portrait of a country reenergized by young blood, that has lagged on technological development in many ways, but now hopes to leapfrog into the digital race.
First and foremost, it notes: Nigeria runs on mobile technology. According to the data, 92% of people in the country own a smartphone, and the device dominates as a mode of entertainment for most. Over half (55%) of all TV shows and movies are watched on smartphones, and the vast majority (83%) of gaming is played on them as well. As NRG’s content and strategy executive Kerri Norton explains to Fast Company, this is partly out of economic necessity. Some Nigerians don’t have other devices for streaming. Laptop ownership is at 70%, and desktop computer ownership is significantly lower at 16%. Less than 30% own tablets or smart TVs, and only 15% own gaming consoles.
But beyond that, mobile is a godsend for Nigerians living with the state’s still relatively poor electricity infrastructure, says Samuel Odusami of SBI Media, the Nigeria-based agency that served as NRG’s local partner on the ground. “Because [Nigerians] don’t have access to uninterrupted power 24/7, mobile technology has become their savior,” says Odusami, adding that power-bank businesses have boomed in Nigeria, helping many stay wired to the internet for longer, on the road or at home, when the grid is down.
Consequently, the often-slow speed of internet is viewed as the biggest tech problem in the market, one that many hope the 5G revolution will solve. Nearly 70% of those surveyed are aware of the impending 5G rollout, and 81% of Nigerians believe it will “transform my country for the better.” In rural and low-income communities, where internet connections are spottiest, many believe 5G offers a chance to “catch up,” as faster streaming translates into more business productivity, the report notes.
“It’s a democratization of access across all socioeconomic classes,” says Anas Ghazi, Stagwell’s chief strategy officer. “It’s allowed for an entrepreneur mindset, as Nigeria [pursues] its largest revenue generation in the next five years.”
That entrepreneurial spirit of capitalism and “hustle culture” has long reigned in Nigeria, even as unemployment rates increased and the economy struggled. But now, it’s being supercharged by Nigeria’s largest population of youth in the world—skewing the country’s median age to just 18 years old—who have seized upon the internet as a way out of the well. “It’s a window of opportunity for young people,” says Odusami, who cites a rising generation of so-called skitmakers as proof.
Nigerian skitmakers create social media content, but they do it without the popular influencer luxuries—studios to shoot videos, or pricy tools for animation—choosing to invest only in a high-end smartphone, perhaps an iPhone or Samsung Galaxy, to stitch together content for YouTube, TikTok, and other platforms.
The goal is to go viral, and many have flocked to try. The country now has a nest of creators numbering in the thousands—including some with millions of views, says Odusami—who have used their success as a springboard to start full-fledged production companies, even in the mainstream movie industry. Collectively, skitmaker startups employ close to 5,200 people, he says. Among the most prominent is Mr Macaroni, who broke through with YouTube comedy and now tours the world promoting Nigerian issues.
For those who don’t strike it big, skitmaking might be just one of many enterprises. “Even people with 9 to 5 jobs have what we call ‘side hustles,’” says Odusami. “In Nigeria, you can’t [support] a family without multiple streams of income.” They might start blogs or YouTube channels, or they might start a business that has nothing to do with social media—but the internet remains a through line. Learning to code, or leveraging e-commerce to sell Nigerian cuisine in foreign countries, are among the examples he cites.
But despite the hustle, Nigerians still feel “behind” on tech development, NRG’s report finds. Only one in three survey respondents said their country was currently “very innovative,” compared to over half of respondents in India, which served as a pseudo-control group for the study.
According to Odusami, Nigerians hope the grind can help bridge the gap. “They are hungry to feed themselves,” he says. “Hungry to make a name, hungry to become financially independent.”
As businesses grew, Nigerians needed a way to accept payments globally—something that wasn’t possible with PayPal, Google Pay, or other legacy platforms. That ignited a boom in enthusiasm for cryptocurrencies and blockchain technology, one that has dwarfed awareness of crypto in the United States. In Nigeria, 90% responded that they were aware and knowledgeable about cryptocurrencies, while 71% said the same for the blockchain and 59% for NFTs. (In a November 2021 Pew Research report, only 24% of Americans said they had heard “a lot” about crypto.)
“Now you have businesses who accept payments in crypto, in stablecoins like USDC and Binance Coin,” says Odusami. But even as people began to adopt crypto for everyday goods like groceries and taxi rides, the Nigerian government’s central bank in 2021 began to restrict Bitcoin services in the country. According to a recent joint report from the Organisation for Economic Co-Operation and Development (OECD) and the United Nations, the crackdown crippled “millions of young Nigerians” who were making money from crypto trading. However, the report also suggested that some found a way to “lawfully bypass these restrictions and continue the business.” The same month, crypto exchange KuCoin reported that 33 million Nigerians had owned or traded crypto in the last half year.
According to Odusami, 20 to 30 global crypto exchanges have a presence in Nigeria and are actively targeting Nigerian customers—including Binance, which is a client of SBI Media in five African countries.
Meanwhile, the hustle has moved onto the blockchain. Odusami cites the story of a Nigerian man who created his own NFT project from photos of drummers at a traditional Nigerian wedding ceremony—a cultural rite beloved not just in dance, but also as a musical retelling of the betrotheds’ mothers and fathers through the years. The man made a killing—and returned to the ceremonial village to give the drummers 70% of the proceeds.
According to the survey, Silicon Valley Big Tech companies (including social media) wield tremendous influence in Nigeria, with their command of the culture second only to religious institutions. It tops that of colleges and universities, as well as the government, and both Hollywood and Nollywood.
It’s perhaps no surprise that giants of crypto and social media—which have speckled reputations in the States—are viewed much more positively in Nigeria, because, as Norton explains, the impact of both technologies within the country has been overwhelmingly positive. It offers freedom of entrepreneurship and liberation from circumstances, a lifeline that keeps Nigerians afloat, and working, and connecting with the rest of the world. It might even have the power to combat corrupt governments and state overreach.
But Nigeria is young, and it will still have to fight for its place in a competitive world. “Nigeria is on the map to grow significantly over the next 10, 15, even 5 years,” says Norton. “They want to be where the future is.”
So, it hustles on.
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NRG Releases Whitepaper, “The Power of Brand Fandom: 5 Things to Know Right Now”
NEW YORK, Oct. 31, 2022 /PRNewswire/ — Research from Stagwell‘s (NASDAQ: STGW) National Research Group (NRG), a global insights leader at the intersection of technology, content, and culture, shows more people are fans of brands, products, and services in the same way they love sports and celebrities. NRG introduced its “Brand Fandom” research focus at Advertising Week, beginning a series that will unpack the journey to fandom across key categories and audiences. The research will explore the pathways for brands to successfully build and activate a fan community and understand the modern-day fan ecosystem.
NRG’s Brand Fandom showed up in a myriad of ways this month:
“This first piece of research shows how brand fandom serves as a tool of self-expression, intricately linking brands to consumer identities. It should signal to brands that interactions with customers have to be dialogues, nurturing people’s experiences and engendering a sense of shared belonging,” said NRG EVP, Brand Strategy & Innovation Fotoulla Damaskos. “Our choices as consumers are on full display right now – we can wield power against the brands that fail us, or passionately champion those we believe in. Where these choices fall can mean the difference between having customers or having fans who bring commitment, advocacy and long-term brand growth.”
“The way I move about the world – how I approach the fast-paced work of brand marketing, to the even faster-paced world of fatherhood – I’ve done through the lens of authenticity and grit, qualities I adopted from my fandom for Harley-Davidson motorcycle culture,” said Stagwell EVP, CMO Ryan Linder. “My identity continues to be reinforced by a kaleidoscope of brands I’m personally invested in, proof that the influence of brands can manifest across so many aspects of our lives.”
Data used in this report comes from a study of 1,018 US consumers, ages 18 to 65, conducted in October 2022–representative of the national population in terms of age, gender and ethnicity.
National Research Group is a leading global insights and strategy firm at the intersection of entertainment and technology. Rooted in four decades of industry expertise, the world’s leading marketers turn to us for insights into growth and strategy for any content, anywhere, on any device. Working at the confluence of content, culture and technology, NRG offers insights for bold storytellers everywhere. To learn more, please visit www.nationalresearchgroup.com, and follow us on LinkedIn and Instagram.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
Stagwell’s fastest-growing network transforms for the convergence of creative, media, and commerce.
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Harris Brand Platform
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In August 2021, Old Navy launched BODEQUALITY, a campaign that expanded their clothing line to serve women sizes 00-30. Inventory mismanagement resulted in financial losses; however, Harris Brand Platform data shows that this “failure” comes with a silver lining:
Download our case study to discover how consumers responded to Old Navy’s BODEQUALITY campaign, and how this “failure” also did the brand some good.
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By: Ray Day
We wanted to share our latest consumer and business insights, based on research from The Harris Poll, a Stagwell agency.
Among the highlights of wave 139 (fielded Oct. 21-Oct. 23) in our weekly consumer sentiment tracking:
Today, 89% of Americans are concerned about the economy, inflation and jobs – the same high level as last week.
How stressed are Americans, and what’s causing it? The answers are clear in the 2022 Stress in America survey we conducted with the American Psychological Association.
As we continue tracking return-to-office requirements, a majority of employees still say they will jump jobs if forced back to the office full-time. Yet the numbers of workers resisting return-to-office are much lower than three months ago, based on our survey with USA Today.
Nearly half of U.S. consumers consider input from influencers when purchasing a product or service – especially younger people, according to our survey with AdAge.
Beats by Dre, Jersey Mike’s Subs, Planned Parenthood, Lenovo and New Balance are doing the right things to capture the attention of Gen Z, according to the latest Ad Age-Harris Poll Gen Z brand tracker, a ranking of brands gaining the most attention from Gen Z members ages 18-24 in the third quarter.
In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:
As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.
Thank you.
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Missed Advertising Week New York this week? We distill the biggest brand takeaways on brand fandom, political advertising, and media channel transformations below. Follow Stagwell on LinkedIn to keep up with the insights.
Fifty-seven percent of consumers consider themselves a fan of a brand or product – higher than sports (48%), movies (52%), celebrities (54%), or online influencers/personalities (37%).
The brands that take a holistic stake in consumers’ lives will drive loyalty, affinity, and advocacy–and not just in the moment. Fandom is not a fad or a flash in the pan; 2 in 5 brand fans have been fans for over 10 years. Focus on helping consumers develop their personalities through your brand by delivering marketing, events and experiences, and content that gives them a platform to express that personality.
“Fandom is critical in the luxury space. Luxury is no longer defined as the most expensive thing –it’s defined by insider knowledge. We’re seeing a dispersion of brands being considered ‘wealth’ and ‘luxury,’ and price point alone won’t keep you in that luxury equity space. It’s important to have fan bases that really think of your brand as luxury.” – Neda Whitney, SVP, Head of Marketing, Americas, Christie’s
Brands will feel the effect of political messaging as political advertisers spend a record $3 billion in the last three weeks of the election alone.
Many ads will tell Americans they’re poorer than ever because of inflation, for example – how will brands push back and get consumers to continue spending? Brands can no longer afford to be apolitical but risk looking too performative if they don’t back up their positions with actions. Lyft decided to foreground its identity as a transportation company when deciding to act, and as a result, it has provided ride services for voting, vaccines, and reproductive rights.
“We saw in 2016 that so many people chose not to vote because they didn’t have access to transportation. So we asked ourselves: how can we make an impact there? We created a voter access program and saw its immediate impact in 2020. It’s about looking at the issues consumers care about and our services. It’s our job to listen – to talk to elected officials and let them know we can come in as a partner to solve some of the issues our consumers care about.” – Heather Foster, Head of Government Affairs, Lyft
This cycle will be the first many realize media buys are not driving impact because of mistargeting. Many voters in battleground districts no longer have traditional television – but there’s a disconnect between ad spending and consumption, with most dollars still going to broadcast. Brands need to get more comfortable shifting the media mix and taking risks with bourgeoning digital channels.
“The idea that there’s the TV generation and then there’s the kids – it’s an antiquated view. The fact is cord cutting is mainstream – now the majority of the population – and the idea that we can say we have a TV strategy and a different digital strategy is fraught with disaster. As we iterate, brands need to think about messaging across the full funnel, and know that TV and streaming work really well together because it allows us to do that. The future will be integrated streaming and linear in a really incremental fashion.” – Ashwin Navin, CEO SambaTV
When you start treating it like programmatic or digital it becomes a valuable tool in the funnel. Driving consumer engagement and social amplification through use of the OOH medium. (The Harris Poll found TikTok and other social media platforms are a major source of OOH ad visibility: 82% of TikTok users report frequently noticing OOH ads in content in their feeds, with nearly identical impact reported by Facebook and Instagram users.) And don’t sleep on the innovation underway here: location-based insights, shared AR capabilities, and more are all letting advertisers do more at scale. Embrace the underlying technology capabilities of Out of Home as a resilient pillar of your media plan for 2023.
”Out of home isn’t changing – the strategy is. Media is the new experiential and Out of Home is where people are. The technology that sits behind Out of Home is driving a different strategy lens, a different creative lens, and a different content lens.” – Brad Simms, CEO, GALE Partners.
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Epicenter Experience is Stagwell Marketing Cloud’s 3rd Acquisition in 2022, Adding Mobile and Location Data to its Evolving Data and Insights Stack
NEW YORK and BOSTON, Oct. 19, 2022 /PRNewswire/ — Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, has acquired Epicenter Experience (Epicenter), an enterprise software company that leverages mobile and location data to map and sequence complex consumer behavior patterns. Epicenter will become part of the Stagwell Marketing Cloud (SMC), a proprietary suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) products built for in-house marketing teams.
“We have strong momentum building around the Stagwell Marketing Cloud’s insights and analytics capabilities, and we’re excited to add Epicenter’s location-focused platform as another supplement to our data stack,” said Stagwell Chairman and CEO Mark Penn. “With this AI-powered technology, we can deliver more comprehensive data intelligence to brands, helping them more effectively drive customer acquisition and retention goals.”
“With The People Platform we’ve built a tool that provides contextual awareness and behavioral understanding on a granular level, providing our clients with a connective tissue that they’ve come to view as a ‘currency service.’ We look forward to enhancing the SMC with this technology that can be applied within any industry,” said Epicenter Experience CEO and Co-founder Paul Krasinski. “Through these direct-from-consumer learnings we empower our customers across retail, healthcare, consumer goods, sports, entertainment and more to create more valuable, more personalized connections to their audiences at scale.”
SMC has been actively investing in emerging technologies and data-focused platforms as part of its strategy to serve in-house teams with transformative marketing technology capabilities. This is the SMC’s third acquisition in the second half of 2022, following Apollo Program in July and Maru Group in October. Epicenter will continue to be led by its current leadership team including Co-founders CEO Paul Krasinski and CFO Lynne Lipinsky.
Terms of the deal were not disclosed.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
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By: Ray Day
As always, if helpful, we would be happy to provide more info on any of these data or insights. Please do not hesitate to reach out.
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SMC’s second acquisition integrates SaaS platform linking global behavioral, transactional and attitudinal data
Maru brings new, global capabilities to SMC. Maru’s SaaS solution, HUB, is a fully scalable survey platform that allows in-house marketers to analyze behavioral, transactional, and attitudinal data all in one place. With tens of millions of survey completes processed a year, the Maru/HUB platform manages research from ad-hoc studies to global trackers. Partnerships with 14 vetted sample partners worldwide allow Maru to connect clients with expertly profiled respondents.
“Stagwell is pleased to add this sophisticated ‘research as a service’ partner,” said Mark Penn, chairman, and CEO, Stagwell. “Maru will be a great addition to our Stagwell Marketing Cloud and round out our research offering from full-service analytical to do it yourself. Maru is research built for enterprise scale but in simple, convenient and affordable ways.”
“From full service to self-service, SMC believes marketers need to integrate connected technologies to stay ahead and drive business growth in the modern digital economy. This acquisition demonstrates our commitment to that belief,” said Elspeth Rollert, chief marketing officer, SMC. “We pride ourselves on a commitment to entrepreneurs like Ged Parton who are building the future of connected brand ecosystems, and we’re thrilled to have the Maru Group team join SMC.”
Maru strengthens SMC’s global, blue-chip client list and presence including Buenos Aires, Chicago, London, Los Angeles, New York, San Francisco, Southampton, Toronto, and Vancouver.
“Maru’s suite provides real-time access to insight and results, bringing into one ecosystem adaptive interpretation of behavioral, transactional, and attitudinal consumer data,” said Ged Parton, CEO, Maru Group. “By joining SMC, we’re scaling our services to some of the fastest-growing brands worldwide and translating our belief that understanding the intersection between behavior and emotion is critical to establishing the strongest possible consumer connection to drive better business results.”
Maru joins SMC as its second acquisition amid an accelerated focus on technology-based marketing innovation from parent company Stagwell. In July 2022, SMC acquired Apollo Program.
SMC’s leadership team is growing with the appointment of former Accenture Applied Intelligence Practice lead Mansoor Basha as chief technology officer. Mansoor joins Matthew Lochner, managing director; Abe Geiger, chief product officer; and Elspeth Rollert, chief marketing officer.
Products across the suite are picking up momentum, too, as marketing professionals race to integrate technology. In August 2022, ARound – a shared augmented reality solution for live events – launched in partnership with the Minnesota Twins, bringing the world’s first stadium-level shared A.R. experience to life. Further, PRophet, Stagwell’s AI-powered tool for predicting the success of media pitches, has launched “2.0” enhanced by partnerships with PeakMetrics, Podchaser, and The Harris Poll.
Stephens Inc. served as advisor to Maru Group. Terms of the deal were not disclosed.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
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By Mark Penn
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Quick, tell me when your state’s primary was. Odds are, most Americans can’t.
Seems like democracy is much threatened these days, and yet no one seems to care much about voting in the most important elections in the country – the primary elections. While turnout has surged in general elections, up to 67% in the last presidential race, it has gone nowhere in primary elections, with most getting between 20% and 40% of voters to the polls. But there are simple reforms that could go a long way toward fixing the primary problem.
As more and more of the country is one-party territory, these primary elections really determine who governs in America and sets the ideological makeup of our leaders. Alexandria Ocasio-Cortez, one of the most outspoken members of Congress and a leader of the “squad,” was elected with fewer than 17,000 votes in a Congressional district that has nearly 700,000 people. She was able to win by mobilizing a small number of activists while the average voter was sleeping. Turnout among eligible Democrats in that key race was 13%, similar to many primaries across the country. Even in this year’s hotly contested primary for squad member Ilhan Omar, only 27% of the voters turned out.
Not only are primaries scattered over 20-odd dates from March to September, but the big money flows to partisan efforts that operate under the guise of being nonpartisan. Many nonprofit civic groups today are just taxpayer-funded partisan efforts to register voters in favorable areas or redistrict for the benefit of one party. Former Democrat Attorney General Eric Holder’s National Redistricting Foundation uses litigation to challenge gerrymandering, but seemingly only where it hurts Democrats. Youth registration–focused Rock the Vote claims to be nonpartisan, but its president released a statement explicitly lamenting Trump’s 2016 victory. Donors simply care more about who wins rather than about making the process more open, fair, and democratic, letting the chips fall where they may.
In a slew of swing-state Senate primaries in May 2022 for elections that will likely determine control of Congress, well under half of eligible voters participated. While an estimated 60% of eligible Georgians voted in the January 2021 runoffs that won the Democrats the Senate, just 27% participated in the May 2022 primary for one of those seats. Herschel Walker won the Republican nomination by receiving 800,000 votes in a state of 7 million active voters. In Ohio, only 20% of eligible voters participated in the Senate primary in which J.D. Vance cleared the Republican field. In both Georgia and Ohio, voters can participate in any party’s primary.
Things were only slightly better in Pennsylvania’s Senate primary, where 32% of eligible Democrats and 39% of eligible Republicans chose progressive John Fetterman and Dr. Mehmet Oz, respectively, over more moderate alternatives in a state that is divided quite evenly.
And these are the turnout numbers in high profile races. An abysmal 13% came out to the New York Democratic primary for governor, where Andrew Cuomo’s replacement Kathy Hochul ran for her first full term.
Low primary turnout facilitates the rise of more extreme candidates who could not otherwise be elected by a full constituency. Those who vote in primaries, especially on the right, are more strongly partisan and ideological than other Americans, according to the Brookings Institute’s 2018 Primaries Project.
Less well-known but still powerful positions like district attorney are especially vulnerable to activist candidates in a low-turnout environment. For years, left-wing billionaire George Soros has quietly given millions to “reform-minded” DA candidates, including new Manhattan District Attorney Alvin Bragg. Now in charge of the criminal justice system of the nation’s largest city, Bragg won his office last year in an eight-way Democratic primary that attracted just 250,000 voters, or 29% of the eligible population.
Nonpartisan primaries in which all candidates run on the same ballot may encourage moderation, but they have not solved the turnout problem so far. In Alaska, Senator Lisa Murkowski, the only Republican who voted to convict Trump of impeachment and is facing reelection this year, has survived a Trump-backed challenger so far only because the open primary allowed them both to advance to the general election. Yet just 26% of eligible Alaskans participated. Similarly, the only two Republican representatives who voted to impeach Trump and have survived their 2022 GOP primaries both did so in top-two systems, where the ballot includes all candidates regardless of party. Yet turnout was still low – 19% in California Congressman David Valadao’s district and 37% in Washington Congressman Dan Newhouse’s.
So with all of the hullabaloo over every single placement of a drop box, there is no outcry about how American democracy has been undermined with confusing, little-known primary schedules that favor activists on both sides.
To fix these problems we need to take some urgent steps. First, we need to shine light on this low participation and information as a problem. Second, we should deny tax deductibility status to nonprofits that are carrying out one-party agendas and encourage the growth of nonprofits that want high voter participation in all elections by all voters. Third, we need to set three or four regional primary days in which groups of states all hold their primaries at the same time to cut down on all the confusion of 20 or more possible dates. Further complicating this are Democratic campaigns to meddle with the primary process by deliberately providing tens of millions of dollars to extreme candidates they oppose and hope will be easier to defeat in the general election. Though unlikely to be banned outright, this practice further undermines the primary process, and hopefully the parties will agree to end it in the name of a fair democracy.
More extreme candidates are increasingly winning political office across every level of the country well before Election Day, with the input of just a fraction of eligible voters. If calls for higher turnout are really about strengthening democracy, primaries deserve a lot more focus. The current trend of Americans flocking to general election polls but not primary ones suggests that those calls for turnout are more about partisanship than participation.
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Natalie Oganesyan
Yahoo! Entertainment
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Nearly half of current Netflix subscribers (46%) would consider a shift to the platform’s ad-supported model once it’s available, according to a survey of 1,300 current users conducted by Samba TV and Harris X. The data collected also showcases that those willing to make the move tend to skew older and make less per capita, with Gen Z respondents being the least interested (at 38%) in making the switch.
As previously reported this month, the embattled streamer has plans to launch its ad-supported pricing tier in November, ahead of competitor Disney+’s own ad-supported model debut in December. Additional details on pricing have not yet been announced, but TechCrunch estimates that the cost could fall between $7 to $9. (Currently, basic Netflix plans are $9.99 a month, with standard and premium pricing at $15.99 and $19.99, respectively.) Despite mixed opinions on the matter, the data gathered by Samba TV and Harris X indicate that the tier will not present a risk to the company.
Roughly half of Netflix users (45%) said they would consider switching to a tier discounted by half of what they currently pay as long as ads totaled five minutes or less per hour. More than half (51%) would deliberate the shift should the service be free (an unlikely scenario).
A further breakdown by age and income illuminated that a majority of Boomers (52%) and almost half of Millennials (48%) would be interesting in shifting to the ad tier, whereas Gen Z, who have more or less grown up on ad-free streaming, are less inclined to do so. Additionally, a majority of those making under $75,000 expressed an interest in moving to the tier as opposed to less than half (42%) of those making over that amount.
The ad tier also opens up the avenue for Netflix to bring in more subscribers; nine out of 10 non-users already report watching ad-supported streaming content, with 1 out of 3 of them being under 35, according to a survey of 1,200 non-subscribers.
“The exciting value proposition from Netflix’s upcoming ad model lies in the possibility it offers to bring in net new or lapsed subscribers,” Samba TV CEO and co-founder Ashwin Navin said in a statement. “9 out of 10 adults who do not currently have a Netflix subscription watch other ad-supported content today, indicating these audiences have no aversion to watching ads in exchange for free or reduced price content and are prime candidates to turn to Netflix’s new ad-supporter tier.”
In all, Samba TV’s survey with the Harris polling firm collected data from over 2,500 U.S. adults from Aug. 29 through Sept. 1. The sampling margin of error of the poll is plus or minus 2.0 percentage points. The results reflect a nationally representative sample of U.S. adults, with results weighted for age by gender, region, race/ethnicity and income where necessary to align them with their actual proportions in the population.
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