Study: CTV driving commerce-related activities
July 26, 2023
New research from analyst firm Parks Associates shows that 51 per cent of CTV (connected TV) device owners, roughly 44 million households, engage in commerce-related activities on their TV nowadays. The most common are video-related digital purchases that leverage stored payment credentials or direct consumers to a mobile link to complete the purchase. The study of 10,000 Internet households, T-Commerce: Buying Through the TV, explores the potential of T-Commerce, or buying goods and services through the television, to generate additional revenues for video service providers.
The research study finds consumer use of ecommerce is growing across all platforms, with mobile purchasing in the lead. The research study finds the vast majority of consumers shop online, with 88 per cent of consumers in US Internet households shopping online at least once per month via a computer or mobile phone. Households that are currently heavy online shopper – households with children and those with higher income levels – are also the consumers who show most interest in T-Commerce.
“Digital purchases on TVs are common today and the foundation for future T-Commerce experiences,” said Jennifer Kent, VP, Research, Parks Associates. “This new research helps to quantify and understand consumer buying habits, purchase intentions, payment preferences, and inhibitors.”
The study assesses consumer openness to T-Commerce offerings, including the types of products and services most likely to generate sales. It explores preferred T-Commerce providers, user interfaces, and payment methods and identifies top barriers to T-Commerce activity.
Additional research:
- Nearly one in four households now watch streaming TV (online pay TV).
- Older consumers express more interest in T-Commerce features enabled by retailers and credit card companies.
- Households with children are far more likely to use the T-Commerce features tested in the survey.