According to YuMe and research firm Frank N. Magid Associates, 30% of all Internet homes have TVs connected to the Internet, and users of those sets are generally receptive to advertisements and ad-supported business models.
Almost 90% of connected TV users reported that they noticed ads on the platform, with 60% noticing pre-rolls. The majority of those users also interacted with ads and 19% of users subsequently purchased a product as a result of an ad they've seen on connected TV.
Travis Hockersmith, senior director of client strategy at YuMe, points out that “... like any nascent medium, it is difficult to find baseline information that would help advertisers make informed decisions... much (like) the early days of the internet... users weren't yet bombarded with ads... engagement and ad recall were much higher... “
59% of viewers of short-form video on connected TVs and 44% of those streaming TV shows preferred viewing 15- or 30-second ads over monthly subscription or the pay-per-view model. For movies, however, more than six in 10 users preferred either subscription or PPV models over ad-supported viewing.
Hockersmith continued, “... users of connected TVs 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... movie viewers were much more willing to accept subscription or PPV models.
The report note that game consoles were the most popular with Internet connected TVs, with 77% of connected TVs connected to a game console, 34% connected to a Blu-ray player, 28% being a smart TV with an internal internet connection and 25% hooking up a streaming device or set-top-box.
Other significant findings from the study include:
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