Research from digital brand advertising software and services provider YuMe has revealed a steady uptake of connected TV with growing monetisation opportunities.
Conducted in conjunction with Frank N Magid Associates, the online survey of 1,500 US consumers in November 2012, showed that as consumers demonstrate increasingly bullish attitudes on TV and Internet-related electronics, the movement to connect televisions to the Internet is continuing its steady growth.
Indeed nearly half (45%) of respondents intend to change their televisions in the next 12 months with connected TVs as the replacement. Of those consumers expecting to replace their TV, 8% say they are “very likely” to purchase a smart TV; adding to this the existing base of 11% of households with a smart TV, total adoption nears 20% of homes in 2013. Growth in connected TV for long-form video viewing use has jumped from 30-35% in the past year. Video viewing is projected to grow to 42%, showing growth accelerating at 7% annually.
Said to highlight a continued strong opportunity for brands, more than half (54%) of consumers prefer ad-supported content across all screens, and 55% said they use two screens simultaneously at least half or more of the time when they are watching TV, with laptops the most commonly used second screen (65% of respondents), followed by smartphones (49%) and tablets (24%). Moreover, the survey revealed that a third of the survey intend to make a smart TV purchase in order to access free ad-supported content.
YuMe found that the connected TV marketplace will continue to grow in value as a complement to traditional video environments, with users and potential future consumers alike viewing connected TV video content as an enhancement to their current video viewing options, rather than as an outright replacement. The company concluded that early and early-majority adopters continue to be avid media users across all platforms, hinting, says YuMe, at future viewing trends.
“Our earlier research clarified the advertising opportunity around connected TV, and as our customers’ actual spending choices are demonstrating to us, the connected TV opportunity has increased,” observed Ed Haslam, senior vice president of marketing, YuMe. “This new research brings to light interesting demographics at this stage in connected TV adoption, as well as underscoring the importance of running connected TV campaigns as part of a larger concerted, multiscreen campaign.”