Consumers Are Warming to Ads: 69% Would Choose Ads to Save Money

Ad tolerance is growing as ad-supported streaming becomes more popular, according to Hub Entertainment Research, a market research firm focused on technology and media consumption.

Measure	Share
Don't mind watching ads as much as they used to	Two-thirds of consumers
Would choose to watch ads if it saves money	69% (an 11-point increase from 2021)

"Viewers overall are way more accepting of ads than they've ever been. Now, the other thing that I would say… is don't take advantage of them." — Mark Loughney, senior consultant, Hub Entertainment Research

Method: the latest "TV Advertising: Fact vs Fiction" report surveyed 3,000 consumers aged 16 to 74 who watch at least one hour of TV per week. Data collection completed in April 2026 and was U.S. census balanced. Broadband access was not required for inclusion.

Is this just cable again?

American households spend an average of $924 a year on recurring entertainment subscriptions, and consumers are paying 19% more for TV, music and other apps than in 2020.

This increased cost and the proliferation of ad-supported tiers together are driving interest in more cost-effective options, even if that means more ads.

As a result, there are now multiple channels where viewers watch content interspersed with ads. Sound familiar?

"The future is looking a lot more like the past of TV, with the majority of people accepting advertising in the majority of what they watch. Our advisory to anybody who's in the ad sales business or was in the streaming business is to not get to that point where we were with linear cable channels and very very long commercial breaks."

But consumption differs

Ads on streaming platforms are not consumed the same way as ads on traditional television.

• Consumers are less likely to skip an ad on a streaming service than a broadcast channel, as channel surfing isn't possible
• Despite the prevalence of second-screening, Gen Z viewers are more likely to be aware or somewhat aware of ads at 69% — 22 points higher than Gen X and boomers
• Just 9% of Gen Zers say they are not at all aware of ads when multitasking, compared to 15% of Gen X and boomers

The algorithmic tradeoff

Consumers also trust TV services with their data more than social media platforms.

Gen Z and Gen X/boomers agree that TV services are more trustworthy with personal information than social platforms at roughly the same rate — 57% and 56%.

Exposure breeds acceptance

Group	Positive on targeted ads	Negative on targeted ads
Regular social media users	40%	Under 15%
Non-social media users	14%	32%

Not all information is equal

Willingness to share with TV services for more relevant advertising:

Information	Completely or somewhat willing
Kinds of shows they watch	65%
Gender	59%
Age	57%
Social media posts	36%
Annual income	35%
AI chat history	33%

Where AI is welcome

AI's use in entertainment has proven divisive.

AI use	Positive or somewhat positive
Better ad timing and reducing ad repetition	55%
Generating trailers	37%
Personalized dynamic ads	36%
Generating commercials	34%

"AI can help with keeping the ad load more manageable. But when it comes to creative, not many people these days want to see ads created through AI tools. That's where people are still more or less drawing the line."

Practical takeaways

Don't read "ad tolerance" as "unlimited ads." Loughney's warning is exactly that — "don't take advantage of them." 69% is conditional acceptance, not a blank cheque.

Treat un-skippability as an obligation, not an advantage. Lower skip rates because channel surfing is impossible means a higher bar for ad quality — the cost of bad ads is covered in Connected Content: 80% Say a Bad Ad Is Worse Than No Ad At All.

Discard the Gen Z second-screening assumption. Gen Z is 22 points more aware of ads. Media plans built on "younger viewers are distracted" have no basis here.

Ask for viewing history before anything else. The 65% vs 33% gap is large: people will share what they watch but not their AI chat history. Consent rates fall sharply as the request list grows.

Use AI operationally, cautiously in creative. 55% positive on timing and repetition versus 34% on generating commercials — the same technology swings consumer reaction by 21 points depending on where it is applied. On labelling, see Google Rolls Out AI Content Labels.

Remember subscription inflation is what grows ad tiers. $924 a year, up 19% since 2020, is the driver — see Netflix Rewrites Its Growth Formula.