Connected TV presents big opportunity for brandsThursday, March 5th, 2020
Valassis Research Finds Connected TV Presents Big Opportunity for Brands
- Almost Half of Consumers Perceive Ads on Streaming TV as More Relevant Than Traditional TV
LIVONIA, Mich. — Valassis, the leader in marketing technology and consumer engagement, today shared new research on connected TV (CTV) and consumers’ use of streaming TV services. With nearly three-fourths of consumers subscribed to at least one streaming TV service, this research will help brands and marketers understand consumer behavior in order to plan effective, engaging campaigns.
Based on responses from 1,000 U.S. consumers, the survey reveals almost half (49%) agree that advertisements on streaming TV are more relevant to them than traditional TV ads. Young consumers (ages 25-34) particularly believe this, with 69% agreeing on the relevancy of CTV ads. Additionally, 53% of consumers use their mobile device or tablet to shop while watching TV on a streaming service, with this number rising to 74% among parents.
These insights – combined with the finding that consumers are more inclined to research or purchase a product/service they see on streaming TV than traditional cable TV (52%) – present a great opportunity for brands to capture the attention of tuned-in consumers. The findings are especially important during an event-packed year with elections and major sporting events creating increased competition and costs for traditional TV.
“As the cord-cutting phenomenon accelerates, consumers are shifting from traditional cable TV to the on-demand experience of CTV and over-the-top (OTT) media services at rapid rates,” said Jay Webster, executive senior vice president, product & engineering, Valassis. “With CTV, brands can reach the TV-watching audience by interests, in-market signals, and location with digital precision. Our data clearly shows the opportunity to capture this market, which continues to grow for brands. What’s fascinating is a majority of consumers – 52% to be exact – are more likely to make a purchase based on a CTV ad than a traditional TV ad, and it is even higher for parents. So the consumer is not only choosing to be in this environment, but is also receptive to brand messages in this advertising channel.”
Additional insights from the Valassis research include:
- Consumers embrace streaming TV services (70%).
- 56% of consumers have cable and streaming TV service(s), while 14% only have streaming TV service(s) and 21% only have cable.
- 72% of parents have cable and streaming TV, with 83% of parents subscribing to streaming TV services overall.
- 28% of 18- to 24-year-olds only have streaming TV.
- The more, the merrier: Future purchases are planned for new streaming TV services.
- 35% plan to purchase new streaming TV services within the next year, and 21% more note they are considering it.
- 56% of parents have plans to purchase new streaming TV services in the coming year.
- A significant amount of time is spent with streaming TV services.
- 34% of consumers watch 1-3 hours of streaming TV per day.
- 20% watch 3-5 hours per day.
- 13% watch more than 5 hours per day.
- Short and entertaining ads are most desirable.
- 37% of consumers noted the maximum length of non-skippable ads they would watch without it taking away from their streaming TV experience is 15 seconds or less.
- Another 24% noted they are OK with 30-second ads, while only 12% and 9% said they are OK with 60-second and 90-second ads, respectively.