When seeing a message or ad for something that interested them or that they were planning to purchase, 71% of connected TV users report having taken an action as a result of the ad (e.g., by clicking on the ad to learn more), and 19% say they have purchased the product mentioned in the ad, according to [pdf] an August 2012 report from YuMe. Of 7 possible actions identified, the most common was visiting the website mentioned in the ad, by 30% of viewers.
Other actions taken by these viewers included: looking for information about the product (26%); looking for a product to purchase in a store or online (also 26%); liking or following a brand or product (25%); considering purchasing the product mentioned in the ad (also at 25%); selecting or clicking on the ad to learn more (23%); sharing information about the product or brand with others (21%); and telling someone else about the information in the ad (also 21%).
Viewers Likely to Interact With Ads In Various Ways
Close to 7 in 10 connected TV viewers also say they are likely to to interact with ads they see that contain something of interest or that they were planning to purchase. The largest proportion of viewers say they are likely to like or follow the brand or product featured in the ad (32%), while many report being likely to press a button on the remote for more information on the screen (26%), press a button on the remote to see a website on screen with more information (24%), use the remote to see a longer version of the commercial with more information and visuals about the item advertised (23%), share information about a product or brand with others (21%), and use the remote to request more information via email (20%).
Connected TV households represent a fast-growing consumer base. 38% of all US households now have at least one TV set connected to the internet via a video game system, a Blu-ray player, and Apple TV or Roku set-top box, and/or the TV set itself, up 21% from 30% in 2011, and up almost 60% from 24% in 2010, according to an April 2012 report from the Leichtman Research Group (LRG). But only 4% of all households were connected solely through an internet-enabled TV set. Video game systems were most common, with 28% of all households owning a system connected to the Internet.
The YuMe report finds that the number of households connecting their TV screens to the internet represents 30% of internet-connected households. Among these connected TV viewers, 77% use game consoles, while 34% use Blu-ray players and 28% use Smart TVs.
PreRolls Lead In Ad Encounters
Details from “The Who, What, When, Where, Why, and How of Connected TV & Advertising” indicate that a resounding 9 in 10 connected TV viewers notice ads when watching content. When asked how they encounter ads, 57% of connected TV viewers reported seeing ads that appear before a video, TV show or movie starts. Following are: ads that appear during the video, show or movie (50%); graphic or image ads appearing elsewhere on a website while watching video on the site (36%); and graphic or image ads superimposed on a video (31%).
Connected Viewers Prefer Ad Supported Content
60% of connected TV consumers prefer free ad-supported content to paid content. However, while it is the preferred payment model for both short-form video and streaming TV, but is not so for streaming movies. Indeed, when it comes to short-form video, viewers are almost three times as likely to prefer 15-30 second ads as monthly subscriptions or pay-per-view. For streaming TV, the gap is much narrower, though the order of preference remains the same. But for streaming movies, monthly subscriptions are slightly preferred over 15-30 second ads, with pay-per-view trailing.
- Only 7% of connected TV viewers live alone. Overall, connected TV consumers: skew young, with a median age of 34; tend to be male (58% are men); and are diverse, with 44% being non-white.
- Asked which content they streamed at least several times per week, viewers cited TV shows that air on networks first (68%), followed by movies that air on networks (58%), TV streamed from the internet (54%), and movies streamed from the internet (54%).
- 81% of respondents reported watching professionally-produced full-length and short-form videos not available on TV and cable.
About The Data: YuMe engaged Frank N. Magid Associates to develop custom research. Data was collected between May 24 and June 4, 2012 from an online survey of viewers. The survey was conducted from a sample group of 736 connected TV consumers about their experiences with internet-based video and content displayed on a TV screen. The viewers (18 to 54 years of age) use internet video or content on a TV screen connected to the internet via game consoles and Blu-ray players, as well as streaming devices directly connected to the internet such (e.g., Roku, Apple TV).