US SVOD, AVOD spending to flourish in post-Covid world | Media Analysis | Business | News | Rapid TV News
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Research from Tremor Video and Unruly has found that a year after the Covid pandemic first began, as many as 83% of consumers plan to either maintain or increase their current spend levels with no sign of a corresponding drop in the rates of TV engagement.
TremorVideo 4May2021
The 2021 Consumer Insights Report from the programmatic video firm and ad platform investigated how consumers are feeling about the future—including their attitudes regarding shopping, traveling, dining and TV viewing—now that more than a year has passed since the Covid-19 pandemic first surfaced. Conducted in March 2021 and with a sample of 893 US consumers, the research revealed that 56% of consumers felt optimistic about the year ahead and 60% predicted a return toward normality within the year.

Although the research suggested that consumers were eager to resume their pre-Covid activities, their enthusiasm for this return to more normal lifestyles does not necessarily mean that their rates of TV engagement will decline as a result. In fact, most consumers were found to be likely to engage with connected TV (CTV) at comparable or higher rates as the pandemic dissipates. Tremor Video and Unruly’s recently released CTV Advertiser Insights Report also reflected how advertisers are increasingly using CTV as an effective platform to reach relevant consumers and encourage them to embrace these desired buying behaviours through advertising.

Over the next six months, 86% of consumers plan to watch live TV at the same or increased rates, 88% plan to watch the same or higher amounts of TV via paid streaming (SVOD), and 81% plan to maintain or increase their viewing of TV via free streaming (AVOD).

Since March 2020, TV viewing has spiked considerably, with 61% of consumers saying they have watched more TV than before the outbreak of the pandemic. In addition, over the next six months, increased engagement with both paid and free TV streaming is set to be most pronounced among younger age demos (18-44s) and higher income ($100,000 or more, annually) demos.

“After a long period of being homebound, consumers are feeling positive about the future, as they look to resume activities like dining out, travelling and in-store shopping, all of which should give advertisers a renewed sense of confidence in the months ahead,” said Terence Scroope, VP of media insights and analytics, Tremor Video commenting on the findings of the report. “In parallel, our study suggests that consumers plan to increase their time with CTV content, reinforcing just how essential the medium will continue to be for advertisers as they look to fine-tune their 2021 media strategies.”