Ad-supported plans: advantages and disadvantages compared to premium subscriptions

Pay more for a complete experience, or stick with the basics at a low (or free) cost? This is the dilemma that many streaming services, apps, and digital tools bring with them. If you're currently facing this dilemma, it's a good idea to understand what ad-supported plans are and their benefits. Advantages and disadvantages compared to premium subscriptions.

Ad-supported plans vs. premium subscriptions: Which is best for you?

Is it worth subscribing to the premium version, or is it better to continue taking advantage of the ad-supported plans? This question has crossed our minds hundreds of times, judging by the sheer number of digital services available. They come in all shapes and sizes, from streaming platforms like Netflix to digital tools like Microsoft 365. To pay or not to pay? What's best for you?

Before delving into the advantages and disadvantages of each, it's worth clarifying what ad-supported plans are. These allow access to content or features on a platform. for free or at a reduced costIn exchange for what? In exchange for viewing advertising, which can take at least three forms:

• Pre-roll or mid-roll: Appears before or during content playback, as occurs on Netflix or Spotify.
• Banners or pop-ups: Pop-up ads in the user interface.
• Personalized advertising, that is, based on your browsing and consumption habits.

Many plans with ads are completely free: you enjoy the basic features without paying anything. Such is the case of Duolingo , the popular language app, which offers free access to its courses (with limited features) in exchange for viewing ads. Other plans include ads. They require a minimum payment to access the basics, with the option to upgrade your experience if you pay more (Netflix uses this method).

What do companies gain by offering ad-supported plans?

Clearly, premium subscriptions are a win-win situation: companies get paid, and users enjoy a complete experience. But what do these companies gain by offering ad-supported, or even free, plans? In the digital world, not everything is about money.; companies also gain:

• Massive number of usersThe strategy is simple: free sells. By offering a free product, companies can quickly build a massive user base. With a paid model, it would take much longer and be more difficult to achieve the same popularity.
• advertising revenueIf an app is very popular, other companies and services will want to advertise there. The unit profit is small, but multiplied by millions of users, it becomes a steady stream of revenue.
• Potential premium usersWhat you can't pay for with money, you pay for with time. If the user isn't willing to wait for the ad to end, they can opt for a better alternative. Every ad is a reminder that such an alternative exists.

Advantages and disadvantages of ad-supported plans and premium versions

So there's no need to worry about the companies: it's a win-win situation for them. But what about the user? What's best for them? Let's now talk about ad-supported plans and their advantages and disadvantages compared to premium subscriptions. To a large extent, the decision depends on four factors: budget, frequency of use, need for features and privacy.

Advantages of ad-supported plans

Ad-supported, or freemium, plans are the perfect bait. They eliminate the biggest barrier to entry: priceFor the user, this offers significant benefits that are hard to ignore:

• Free or low-cost access: Allows you to enjoy services that would otherwise be out of reach. Students, people on a budget, or casual users find these plans an ideal solution.
• Try it without obligationThese plans serve as an infinite trial period. You can explore the app or service without feeling like you're wasting money on a subscription.
• Greater inclusionAd-supported plans level the playing field in a world where access to information and digital tools is crucial. Anyone with an internet connection can educate themselves, entertain themselves, or create content.

Advantages of premium versions

On the other hand, there are premium subscriptions with the promise of a more polished and exclusive digital experienceThose who can afford this consumption model enjoy clear advantages:

• Clean and uninterrupted experienceWatching a series, listening to music, or learning a language without interruptions is a luxury that, once experienced, is hard to give up.
• Access to the best of the best: Streaming in 4K, lossless audio, comprehensive catalogs, advanced features, offline service, more storage, personalized support, improved performance… the best of the best.
• More privacy: Since you're paying with cash, the service stops collecting your data (relatively) because it doesn't need to show you personalized ads.

Disadvantages of ad-supported plans

Now let's look at the other side of the coin. Ad-supported plans have drawbacks… They are designed this way to encourage the user to paySome services are less annoying than others in this regard, but the disadvantages are always present:

• Interrupted experience: Watching or listening to multiple ads is not only distracting, but also consumes valuable seconds.
• lower qualitySome platforms limit video or audio quality, download speed, storage capacity, and available features. On Netflix, for example, you don't have access to the full catalog of movies and series.
• Less privacy: You don't pay with money, but with the data the service may collect about you.

Disadvantages of paid versions

But premium subscriptions also have their drawbacks, believe it or not. This is mainly for those who do not use the service as much as they should., because they're paying for it. The most notable disadvantages are:

• Cumulative costIf you add multiple subscriptions, the monthly cost can be significant. As of this writing, the combined cost of paying for subscription plans for Netflix, Disney+, Apple TV+, and Google Drive amounts to over €53 per month. For someone living alone, this could be too much.
• long term commitmentIf you pay for a subscription, you're stuck with that service. If you later realize it's not a good fit, you could lose the experience or lose some of your money.
• Higher expectationsIf the service fails, stops offering quality content, or offers poor support, it could cause more stress than satisfaction.

Conclusions? Budget aside, The main factor is the frequency and intensity of useIf you need the most advanced features or are a power user, paying is the best option. If, on the other hand, you watch one movie a month or use a service occasionally, an ad-supported plan is more than enough.