Connected-TV Survey Finds Short-Form Video and Streamed-TV-Show Viewers Prefer Ad-Supported Content Over Subscription or Pay-Per-View Model — Report Offers Insights Into Users, Behaviors and Marketing Opportunities for Brands

YuMe, a provider of digital brand advertising software and services, in conjunction with Frank N. Magid Associates, a research-based strategic consulting firm, recently announced the results of an extensive survey on connected-TV users, behaviors, preferences and advertising opportunities. The online survey of 736 connected-TV owners and users was conducted in May and June of 2012 and shows that connected-TV users represent a significant advertising opportunity for brands looking to generate awareness and interactions. The survey offers the industry’s most comprehensive and insightful picture of connected TV users to date.

"We now have tremendous insight into consumer behaviors and preferences as they relate to connected TV at an unprecedented level of detail," said Mike Vorhaus, president of Magid Advisors at Frank N. Magid Associates, in a news release. "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."

Among the top survey insights:

  • Nearly 90 percent of connected-TV users notice ads on the platform, particularly pre-roll; the majority of those users choose to interact with the ads; and nearly one fifth of those subsequently purchase the product.
  • For streamed short-form content and TV shows, connected-TV consumers strongly prefer ad-supported content to paid, ad-free content.

Transformative Advertising Opportunity

Survey findings reveal tremendous new advertising opportunities for brands, with conclusive research supporting how connected TV elevates brand awareness and drives greater audience engagement. For short-form and streaming-TV shows in particular, connected-TV consumers actually prefer ad-supported content to paid, ad-free content. Among the survey findings:

  • 30 percent of Internet-connected households have some form of connected TV
  • Short-form video (59 percent) and streaming TV show (44 percent) consumers on connected TVs prefer 15-30 second ads over monthly subscription or the pay-per-view model
  • Nearly 90 percent of connected TV users (87 percent) say they notice ads on the platform
  • The majority of ads noticed by these users are pre-roll (57 percent)
  • Nearly 70 percent of connected-TV users (66 percent) are likely to interact with a relevant ad
  • Nearly 20 percent actually purchased the product mentioned in the ad

Additional Findings Include:

  • Connected TV consumers are young, skew male, and are ethnically and racially diverse.
  • Families of two or more make up 93 percent of connected-TV households.
  • On a multiple times per week basis, users streamed more short-form content (26 percent) more frequently than they viewed TV shows on networks (24 percent), and nearly as often as viewing TV streamed from the Internet (29 percent) and streamed movies (31 percent).
  • Professionally produced full-length and short-form videos not on TV and cable are surging in popularity, with 67 percent of respondents saying they watch these. This rapid rise of this final category — the "mid-tail" content — will be one to watch in the coming months and years.
  • While Netflix is an overwhelmingly popular app, survey results also show that connected-TV users do not want advertisements interfering with their viewing experience once it has begun. In order to reach consumers in this environment, ad units like YuMe’s "First Impression" which appear prior to the feature film, prove compelling for advertisers.

"This study confirms that connected TV represents a tremendous advertising opportunity for brands looking to generate consumer awareness and meaningful interactions," said Ed Haslam, senior vice president of marketing at YuMe, in the release. "In particular, the growth of short-form video content, and the willingness, even interest, of consumers to view advertising to view the content, speaks volumes about the opportunity here. For longer-form content, the study helps validate opportunities for ad units such as YuMe’s First Impression, which enables brands to engage with their target audience before the user disappears into ad-free content, such as feature-length films from Netflix."

Get a copy of the white paper here.

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