Connected TV Survey reveals expanding advertising opportunity
YuMe, a provider of digital brand advertising software and services, in conjunction with Frank N. Magid Associates, Inc., a research-based strategic consulting firm, today announced the results of an extensive survey on the future of Connected TV in the marketplace.
The study includes insight into rapidly-growing adoption rates, analysis of components in the broader Connected TV environment, and many details about Connected TV and Smart TV adopters and their preferences.
The online survey of 1,500 U.S. consumers ageed 12 and older, shows that as consumers demonstrate increasingly bullish attitudes on TV and Internet-related electronics, the movement to connect televisions to the Internet continues its steady growth.
For brands, the current survey highlights the strong consumer engagement and attractive demographics of Connected TV adopters, and positions the Connected TV ecosystem as an essential ingredient in today’s effective advertising campaign mix.
“Building on our significant existing insight into consumer behavior and preferences related to Connected TV and its environment, we’re seeing an unprecedented rate of adoption that’s providing us with the industry’s richest insights to date,” noted Mike Vorhaus, President of Magid Advisors at Frank N. Magid Associates.
“Connected TV and its ecosystem comprise a set of increasingly important channels for advertisers and major brands to effectively target a variety of viewers, and quite interestingly, in particular, younger males and ethnically diverse populations, both demographics that typically present a challenge to reach.”
Key findings include:
– Nearly half of respondents intend to replace their televisions – 45% of consumers surveyed expect to purchase a new television in the next 12 months.
– Connected TVs as the replacement – Of those consumers expecting to replace their TV with a Smart TV, 8% say they are “very likely” to purchase a Smart TV; adding to this the existing base of 11% of households with a Smart TV, total adoption nears 20 percent of homes in 2013.
– Majority of consumers prefer ad-supported content – 54 percent of consumers surveyed prefer free, ad-supported content across all screens, highlighting a continued strong opportunity for brands.
– Two-screen viewing is on the rise – 55% of respondents say that they use two screens simultaneously at least half or more of the time when they are watching TV, with laptops the most commonly used second screen (65% of respondents), followed by smartphones (49%) and tablets (24%).
– Online viewing drives better satisfaction and higher rate of future use than video on demand – Respondents are more satisfied with TV show selections online (62%) compared to their satisfaction with on demand TV show selections (50%); over the next six months, respondents expect to watch more shows online than on demand.
– Traditional remote control still preferred by consumers – Consumers surveyed say a physical remote control is the preferred interaction and navigation tool to access websites on a Smart TV (34%), while voice-activated TV control is the second most desired method (29%). Gesture control was the least preferred method (14%).
– Significant Connected TV viewer growth underway – Growth in Connected TV for long-form video viewing use has jumped from 30% to 35% in the past year. Video viewing growth is projected to grow to 42%, showing growth accelerating at 7% annually.
Survey findings reveal the Connected TV marketplace will continue to grow in value as a complement to traditional video environments. Connected TV users and potential future consumers alike view Connected TV video content as an enhancement to their current video viewing options, rather than as an outright replacement. Notably, these early and early-majority adopters continue to be avid media users across all platforms, hinting at future viewing trends for the broader population.
For more on the results of this study as well as a copy of the “Emerging Growth Opportunities for Connected TV and Advertisers” whitepaper which accompanies the study, click here.