10 characteristics of Connected TV owners (and why advertisers should care)
The TV landscape is undergoing a tectonic shift as viewers transition from traditional devices to connected platforms, impacting the ways in which these tech-savvy and social consumers perceive and interact with video content. As a result, there are huge implications for TV ad campaign strategies, as Jon Hewson, advertising director EMEA for Rovi Corporation explains…
Connected TV platforms are impacting the ways consumers perceive and interact with video content, resulting in significant implications for TV ad campaign strategies, according to a whitepaper released by Rovi Corporation in November of last year.
The whitepaper, produced in conjunction with industry analyst firm Parks Associates, presents new insights on connected TV viewers globally and serves as a guide for understanding smart TV household growth, content and ad engagement levels, and the rising role of search and discovery in effective TV advertising campaigns.
This year, the number of connected TV households will reach critical mass in Western Europe. Parks Associates forecasts that in 2013, smart TVs will be present in 32% of all Western European TV homes with this number increasing to over 54% by 2016.
Overall, Rovi’s research into the connected TV viewer suggests that connected TV users in the UK are tech-savvy, social and engage with online content as well as dual-screen viewing more than the average UK household.
Connected TV platforms provide the opportunity for users to download apps such as BBC iPlayer and ITV Player, and also provide recommendations for the discovery of new TV shows. Additionally, they enable users to search for existing shows and connect to other viewers online, thus enhancing their “traditional” TV viewing.
Connected TV platforms can positively impact content engagement with the most common two-screening activity identified by users as searching online for information based on content they had seen on TV. At the same time, connected viewers are also highly engaged with advertisements.
According to the whitepaper research, they are exceptionally receptive to ads displayed in interactive program guides (IPGs), connected TV environments, and listings applications. Viewers notice and remember ads shown on the connected platform, and they often perceive ad content as valuable extensions of the video-viewing experience.
Based on these recent studies, the research provides a profile of connected TV consumers and their TV and online consumption, frequency of dual-screen viewing and TV apps, usage of the platform and purchase intention, among others.
Rovi is continuing its research into the connected TV household, in partnership with Decipher Media Research, and this combined data sheds light on key characteristics of connected TV owners.
Below are 10 key characteristics of connected TV users in the UK, which may offer insight to help advertisers gain a clearer picture of how connected TV viewing reaches and impacts consumers.
1. Connected TV owners in the UK are young and successful. Nearly 40% are upper-middle class and over 70% closely follow the latest developments in new technology. These connected consumers are seven times more likely to own a tablet than the average U.K. consumer.
2. Connected TV users in the UK are technologically savvy and like to keep up with the latest developments in new technology. 73% think that technology products have made TV more convenient and three in five use technology to make the television experience more enjoyable.
3. Connected households are more likely to have a Pay TV subscription although free-to-air only households are on the rise. Broadband speeds in these households are also 1.3 times higher than the average UK household.
4. Connected TV households spend more time online (1.8x higher) than the average UK household, contributing to their status as super-consumers. Of the connected TV owners in the UK, 55% access connected TV content on a regular basis. Most TV viewing still takes place in a social setting with at least 73% frequently watching TV with others.
5. Dual-screen viewing is a common characteristic of connected users in the UK. Tablet owners have the highest incidence, with 91% of connected tablet owners using their tablet while watching TV.
6. Content discovery remains one of the main reasons for users accessing the connected TV platform and 38% use the platform when they don’t know exactly what to watch. TV listings are an integral part of content discovery and 55% ‘always’ check them for information about TV shows they would like to watch.
7. Connected TV users positively respond to ads on the platform. In one Rovi study, the data suggests an 86% uplift in brand association with key advertisers among users exposed to connected TV advertising campaigns compared to the non-exposed group (Connected TV Advertising Field Study U.K., Phase 2, 2012). Also, in the study, 68% recalled a connected TV interactive banner ad and 33% responded to the ad by immediately investigating the product.
The below chart highlights the ad response triggers among UK connected TV owners in this particular study including 27% of users who actually purchased the product.
8. Connected TV users are more favorable towards the brand on the connected platform. In our most recent study, users were more likely to be favourable towards the brand when they noticed advertising on the connected platform compared to those who didn’t (23% higher favourability). In addition, users were more likely to engage with key brand statements when they noticed advertising on the platform compared to those who didn’t (40% higher brand association).
9. Connected TV users positively engage with the brand. In this same study, users who notice advertising on the platform had a higher intent to purchase the advertised products when compared to those who didn’t (36% higher purchase intent).
10. Connected TV users are looking for an advanced entertainment experience on their terms. 70% of respondents want to be able to watch their TV shows whenever, wherever they want.
The TV landscape is undergoing a tectonic shift as viewers transition from traditional devices to connected platforms. Brand advertisers that proactively develop strategies utilising this important new platform can discover immense opportunities to engage with viewers and immerse them in a one-of-a-kind brand experience.
The full white paper titled Connected TV Environments: The Next Iteration of TV Advertising is available for download.