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.

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3 comments about "Ad-Supported Content Tops With Connected TV Users".
  1. Doug Garnett from Atomic Direct , August 22, 2012 at 1:05 a.m.
    These numbers seem outrageously exaggerated. Or, reflect having once interacted with an ad. I'm suspecting the economic advantage for YuMe in getting this result.
  2. Carter Mason from JTS.TV - Just The Story , August 22, 2012 at 1:05 p.m.
    Doug - I absolutely agree. Especially when it comes to short-form content. Most persons do not want to watch a 15 or 30 second ad to watch 3-7 minutes of content and repeat that over and over again. People hate advertising, and when there are enough premium channels available to pick and choose what you want without a cable subscription attached (which is quickly being made possible by connected TV devices), the anti-ad revolution will hit critical mass. Our model at JTS.TV is the exact opposite of ad-supported. JTS stands for "Just The Story" as in, No Ads, Just The Story...
  3. Carter Mason from JTS.TV - Just The Story , August 22, 2012 at 1:06 p.m.
    Oh, and our Roku channel is doing quite well ;)