Study: CTV continues to rise in popularity
April 4, 2023
Findings from AudienceXpress, FreeWheel’s premium video media sales house’s Streaming Video: CTV Uncovered 2023 consumer study, conducted in collaboration with independent research specialist Happydemics, reveal a growing uptake of viewing via connected TV (CTV) in the UK, Italy, France, Germany, Spain and the Netherlands (the EU6).
With 65 per cent of European viewers who have now connected their TV to the Internet, directly through Smart TVs, representing an increase of five points YOY, Smart TVs are the only connectivity device type rising across Europe. While broadcast TV content remains a dominant platform, over 51 per cent of EU6 respondents who use CTV and watch free on-demand streaming content shared that they watch these more than live TV; this trend was particularly notable among survey participants aged 15 to 34.
Furthermore, almost a half of European respondents who tune in to free streaming services on their CTV screen (43 per cent) do so every day. Connected TV is now taking centre stage for consumers; allowing them to access a wide array of platforms and services, jumping around from one to another to view their favourite entertainment.
Regarding overall consumption habits, 55 per cent of the UK CTV viewers surveyed claimed to use CTV to access SVoD, followed by 37 per cent who tune in to broadcasters’ live TV, and 35 per cent who watch BVoD channels on CTV. Broadcast TV remains king overall, though evidently, the UK CTV audiences are accessing TV-like content through a diverse mix of channels and platforms.
The study notes that more than half of those who access content via free on-demand streaming services on CTV (59 per cent) do so when they cannot find programmes they enjoy on linear TV channels. Users are still very attracted to what makes TV unique: free and professionally-produced content. Streaming and linear content are not rivals but complementary to each other.
Data remains a sensitive issue, and with the end of third-party cookies nearing, there are reasons to accelerate and regain consumer trust and ensure that their privacy is at the core of industry concerns. According to the study, almost a third (32 per cent) of UK CTV viewers have a preference for contextual ads that are informed by the content they are watching. This percentage goes up to 42 per cent among the 25-34 age group. Moreover, 57 per cent of UK CTV respondents favour one longer ad break before the content and no ads afterwards; this was especially the case for respondents aged 18 to 24 years old.
Seventy-one per cent of UK survey respondents who access content through social video aggregators on CTV feel there are too many ads on these platforms. Consequently, UK CTV viewers say they recall ads viewed on CTV screens better than ads they are exposed to on video aggregators. Improving the ad experience will help to better capture consumers’ attention. The creative will still play a big part in advertising efficiency, as well as the format and repetition, but there is also a question of adjusting to suit consumer preferences.
“Evolving viewing habits are continuing to drive the convergence of digital and linear TV, with premium video content from online video aggregators now being watched on the TV screen,” notes Stefanie Briec, Director, Head of Demand Sales UK & International for AudienceXpress. “Alongside this, the increase of hybrid streaming services on the market, which include both AVoD (ad-supported video-on-demand) and SVoD in their business models, underscores the reality that high quality, TV-like content retains the power to capture audience attention regardless of channel or platform. Moving forward, marketers require a holistic approach to TV to identify the channels that complement each other and boost the performance of their campaigns.”