Nearly six months into the COVID-19 pandemic, connected TV usage of all types continues to gain a stronger foothold among consumers, with subscription services as well as free, ad-supported platforms showing gains.
A recent survey of nearly 1,800 U.S. consumers in July 2020 from Unruly, a video advertising platform, said 65% of U.S. consumers are actively seeking ad-supported, free streaming services, while 35% are not. At the same time, the survey says, 27% prefer to pay for ad-free connected TV content.
The survey also found that consumers respond better to advertising on connected TV platforms and are 71% more likely to tell a friend about a brand, 53% more likely to search for a brand, 52% more likely to buy a product and 45% more likely to visit a store or website.
eMarketer estimates that this year, 3.4% of U.S. marketers’ total ad spending ($8.8 billion) will go to connected TV, and that this will grow to 4.7% in three years ($14.12 billion).
At the same time, analysts point to the rapid growth of major low-cost subscription, advertising-free paid platforms. Disney+, which is less than a year old, has more than 60.5 million subscribers, while HBO Max, which launched just a few months ago, is at 36.3 million subscribers.According to one estimate from Macquarie Research, Disney is already seeing rapid growth, and will generate a projected $11.2 billion in revenue from all its direct-to-consumer platforms this year.