Ad-Supported Content Tops With Connected TV Users
Connected TV advertising proponents will appreciate this bit of research: Connected TV consumers prefer ad-supported content to paid, ad-free content.
A new survey pushes the idea that connected TVs will be a major opportunity for TV advertisers, per research done by Frank N. Magid Associates, commissioned by digital advertising company YuMe. Connected TVs are growing, and 30% of Internet-connected households have some form of connected TV, the survey notes.
Some 60% prefer 15-second to 30-second ads over a monthly subscription or the pay-per-view model for short-form video. Forty-four percent feel the same way when it comes to streaming TV shows.
Data also shows that nearly 90% of connected TV users notice ads on the digital platform, with the majority of pre-roll ads -- 57% -- noticed by users. Nearly 70% of connected TV users are likely to interact with a relevant ad, and nearly 20% purchased the product mentioned in the ad.
Connected TV users streamed movies the most -- at 31%, with TV shows from the Internet at 29%. Next came some short-form content (26%), streamed a bit more frequently than they viewed TV shows on networks (24%).
Mike Vorhaus, president of Magid Advisors at Frank N. Magid Associates, stated: "Advertisers and major brands will appreciate the rich findings for what is arguably the most explosive platform for video distribution and video advertising over the next several years."
The survey came from 736 connected TV owners and users in May and June of 2012.