Gen Z is more tolerant of ads, but it’s about more than just money
Gen Z is more tolerant of ads, but it’s about more than just money
New data from Hub Research sheds light on which type of ads younger viewers prefer, and why they tend to be more accepting of commercials.
It’s safe to say that nobody loves having to watch TV and movies with commercial interruptions. In an ideal world, all streaming would come without advertising altogether, but since that isn’t going to happen any time soon, customers have to decide on an individual basis just how willing they are to put up with ads. New data from Hub Research suggests that Gen Z viewers are actually quite willing to watch ads… at the right price. However, the research indicates that price isn’t the only factor leading to higher ad tolerance among such young audiences.
Key Details:
- General acceptance: Hard intolerance for ads has shrunk since 2021.
- Look to the children: Gen Z viewers are more likely to trade more ads for a lower price.
- Distraction factor: Younger audiences are more likely to be using another device while ads are playing.
Hub’s “TV Advertising: Fact vs. Fiction” report shows that fewer and fewer viewers are taking a hard line against advertising in streaming these days. Sixty-nine percent of respondents now say they would accept ads if it meant saving $4 to $5 per month on streaming services, up from 58% in June 2021.
The data also shows that only 11% of respondents say they will never accept ads with streaming under any circumstances, the lowest point in the last five years. Eighty-nine percent of viewers said they could tolerate at least a certain number of ads, depending on the circumstances.
Hub also found that younger viewers are the most likely group to accept a higher ad frequency on a streaming service in exchange for even lower prices. The data showed that 39% of Gen X and Boomer viewers (aged 46 to 74) said they would not choose a plan that showed twice as many ads, no matter how much money they could save by doing so.
That number drops to just 18% among Gen Z (aged 16 to 29) respondents. Furthermore, 20% of Gen Z viewers say they’d accept a plan with twice as many commercials if it meant they could pay just $5 per month for it. Indeed, 21% of Gen Zers say they would pay as much as $8 per month for a streaming plan that packed in that many ads.
Clearly, the correlation between ad tolerance and pricing remains strong. A 2025 survey showed how willing viewers were to watch commercials for a lower price, and that remains the case in 2026. But why are younger viewers so much more willing to accept a high ad load for a lower price?
Hub’s numbers show that it’s not just about price; in fact, in some cases, it has to do with the fact that the viewers aren’t actually watching the TV closely enough when ads come on in the first place. Gen Z audiences are much more likely to be listening to an ad but not watching it, and are also far more apt to be using another device, such as their phone, during an ad break.
This means that either their attention isn’t focused on the show or movie they are watching in the first place, or that the commercials are a welcome break, providing them an opportunity to check their phones and social media.
Those numbers reveal a key reason that younger viewers are likely to be more tolerant of ads: their attention is elsewhere during ad breaks anyway. Gen Z viewers who grew up having a phone to scroll when bored are naturally more likely than Gen X or Boomer audiences to turn to their second screen when a commercial break begins.
The data could serve as motivation for streaming services to begin crafting more effective ads for younger viewers. But a better strategy might be to try to reach viewers with second-screen advertising that’s relevant to the content they’re watching on the screen, if possible.
Ad agencies and streamers will certainly try. Hub’s data makes it clear that viewers are continuing to be more accepting of advertisements if it means a lower price, but reveals that Gen Z’s ad tolerance may be in large part due to the fact that its members aren’t paying attention during commercials in the first place.
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