Study: Connected TVs in 30% of Internet Homes | BROADCASTING & CABLE
By GEORGE WINSLOW
One of the most detailed studies undertaken on connected TVs to date has found that about 30% of all Internet homes have TVs connected to the Internet and that users of those TVs are generally receptive to advertisements and ad-supported business models.
The results are from a survey of 736 connected TV owners and users done in May and June of 2012. Digital advertising software and services provider YuMe commissioned consulting and research firm Frank N. Magid Associates, Inc. to conduct.
“The basis for the study was that connected TV has become hot topic in industry but like any nascent medium it is difficult to find baseline information that would help advertisers make informed decisions,” noted Travis Hockersmith, senior director of client strategy at YuMe in an interview.
One key finding, Hockersmith noted was the opportunities for advertisers on the platforms. Almost 90% of connected TV users reported that they noticed ads on the platform, particularly pre-roll ads, with 60% noticing pre-rolls.
The majority of those users also interacted with ads and nearly one-fifth of users (19%) subsequently purchased a product as a result of an ad they’ve seen on connected TV.
“It reminds me very much of the early days of the internet, when users weren’t yet bombarded with ads and engagement and ad recall were much higher,” he said.
Users of connected TVs also seemed willing to watch ads in exchange for getting free content. “For TV length content, they would rather see ads than pay for the content,” he noted. In contrast movie viewers were much more willing to accept subscription or PPV models.
Overall, 59% of viewers of short-form video on connected TVs and 44% of those streaming TV shows preferred viewing 15-30 second ads over monthly subscription or the pay-per-view model. For movies, however, more than 6 in 10 users preferred either subscription or PPV models over ad-supported viewing.
Read the full article at Broadcasting & Cable.