YuMe, a provider of digital brand advertising software and services, in conjunction with Frank N. Magid Associates, a research-based strategic consulting firm, has unveiled the results of an extensive survey on the future of connected TV in the marketplace.
This online survey of 1,500 US consumers ages 12 and older in November 2012, 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.
“Building on our significant existing insight into consumer behaviour 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.”
Survey Insights Include:
• Nearly half of respondents intend to replace their televisions – 45 per cent 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 per cent say they are “very likely” to purchase a Smart TV; adding to this the existing base of 11 per cent of households with a Smart TV, total adoption nears 20 per cent of homes in 2013.
• Majority of consumers prefer ad-supported content – 54 per cent 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 per cent 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 per cent of respondents), followed by smartphones (49 per cent) and tablets (24 per cent).
• 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 per cent) compared to their satisfaction with on demand TV show selections (50 per cent); 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 per cent), while voice-activated TV control is the second most desired method (29 per cent). Gesture control was the least preferred method (14 per cent).
• Significant Connected TV viewer growth underway – Growth in Connected TV for long-form video viewing use has jumped from 30 to 35 per cent in the past year. Video viewing growth is projected to grow to 42 per cent, showing growth accelerating at 7 per cent annually.
• One-third make a Smart TV purchase in order to access free ad-supported content.
• Application and short-form video viewing is typically discovered post-purchase, providing advertisers with additional opportunities to reach consumers.
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.
“Our earlier research clarified the advertising opportunity around connected TV, and as our customers’ actual spending choices are demonstrating to us, the connected TV opportunity has increased,” noted Ed Haslam, Senior Vice President of Marketing, YuMe. “This new research brings to light interesting demographics at this stage in connected TV adoption, as well as underscoring the importance of running connected TV campaigns as part of a larger concerted, multi-screen campaign.”