Rovi: Connected TV market maturing
June 6, 2013
A Rovi study has provided updated metrics on connected TV owner demographics and usage for the first quarter 2013. When compared with previous results, the findings suggest the market for connected TVs is maturing rapidly.
The audience for connected TVs is shifting, with females now – for the first time since Rovi and Decipher began polling the market in 2011 – representing the largest portion of owners at 55 per cent. Owners of connected TVs now represent a far more balanced range of age groups with a decrease in 25-34 year olds and an increase in older viewers.
It also appears households are becoming more familiar with their connected TVs, with respondents indicating the connected platform is used on a more frequent basis and accessed by more household members. Representing a 10 per cent increase over the previous quarter, 49 per cent of respondents indicated they use the connected platform once a week or more, and 84 per cent indicated that connected functions are accessed by more than one user in the home – an increase of 23 per cent.
As with previous study findings, the results in the first quarter seem to reinforce that connected TVs represent a tremendous opportunity for advertisers to engage consumers. Awareness of advertising on connected TV platforms continues to increase with 55 per cent of respondents in Q1 2013 claiming they have noticed advertising – an increase of 14 per cent from Q4 2012. In addition, 1 in 10 claimed to have also clicked on the advertising, an increase of 8 per cent since last quarter. Connected TV advertising also appears to inspire action, with 1 in 4 respondents exposed to advertising on the platform claiming to have watched the video featured and 19 per cent claiming they went on to purchase the advertised product. Word-of-mouth was also popular with 16 per cent claiming to have talked to someone about the brand after seeing the advertising.
Additional findings include:
-VoD is becoming an integral part of connected TVs and this now represents the most prominent reason for purchasing a connected TV with almost 1 in 2 claiming that they purchased their TV to get access to VOD on the bigger screen.
– Households are becoming multi-device households and online usage has now caught up with TV viewing as connected households spent 3.6 hours online at home as well as watching TV. Most TV viewing still takes place in a social setting with over 3 in 4 at least frequently watching TV with others.
– Connected TV owners are heavy device users and 93 per cent of those also owning a tablet indicate they use it as a second screen while watching TV.
– Connected TVs are becoming more innovative and consumers are expecting more of them as well. Now, 2 in 5 connected TV owners would use a product which is good at recommending TV shows they would like to watch – an uplift of 59 per cent from last quarter. TV viewing is also becoming a social experience with almost 3 in 4 always talking to others while watching TV.
– While premium video content apps remain popular and frequently used, user-generated content is being accessed more often with monthly usage of YouTube and Facebook each increasing, respectively, by about 20 per cent quarter-over-quarter in Q1 2013.
– Connected TV users appear convinced of its benefits with 52 per cent using the platform to catch up on missed episodes. Content discovery remains one of the main reasons for accessing the connected TV platform – 35 per cent use the connected TV platform when looking for a programme but don’t know where to find it.
– The ‘smart’ functions of connected TVs have a positive effect on consumers’ entertainment experience with 62 per cent indicating they are more satisfied with their TV because of these advanced features. In addition, 70 per cent of connected TV owners are also likely to recommend the platform to others.
“The results of the latest study are clear. Not only are connected TVs quickly moving into the mainstream, but advanced advertising on the platform has arrived and is delivering meaningful results for premium household brands such as American Airlines,” said Jeff Siegel, senior vice president, sales and marketing, Worldwide Advertising, Rovi Corporation.