When do you Zap: The Effects of Ad Spacing in Streaming Media

Abstract

Free ad-supported video-on-demand (AVOD) platforms are expanding rapidly, yet their success depends on balancing advertising intensity with viewer retention. We examine how pod spacing—the amount of uninterrupted program content between consecutive ad breaks—affects two distinct forms of viewer disengagement: ad zapping (immediate avoidance during ads) and content zapping (delayed avoidance during program content after ads). Using large-scale viewing data from Hulu’s free service and a control-function instrumental-variable framework with Hausman-style instruments, we estimate the causal effects of pod spacing on both behaviors. We find a U-shaped relationship: increasing spacing from short to moderate levels sharply reduces ad zapping but only modestly reduces content zapping, while further increases beyond moderate levels raise both. The results reveal an operational trade-off zone (13–21 minutes) in which ad zapping decreases while content zapping increases. Importantly, content zapping remains materially elevated compared to ad zapping across the operational range of pod spacing. In addition, greater spacing also increases the likelihood of continuing the title (TV show or movie) in subsequent sessions, indicating spillover benefits for long-term engagement. The magnitude and timing of these effects vary with viewing progression and title familiarity, highlighting how contextual factors moderate spacing effects. Overall, these findings position pod spacing as a key operations–marketing lever linking ad intensity to both immediate and delayed forms of viewer disengagement, as well as downstream retention.

Keywords: Streaming Platforms, Ad Spacing, Zapping, Casual Inference, Hausman Instruments

JEL Classification: M31, M37, C36