Connected TV Ads Puzzle Media Buyers21 May, 2014 By: Doug McPherson
SEATTLE – Connected TV viewing continues to rise, but media buyers are struggling to take advantage of the ad opportunities in the space.
And those opportunities are growing. In April, the Interactive Advertising Bureau (IAB) said 48 percent of U.S. digital video viewers used connected TVs to watch original digital video – nearly twice as many as the same month in 2013.
But a new study by video ad company Mixpo says less than half of U.S. digital media buyers considered buying connected TV video ad inventory when planning an online video campaign. The problem? Lack of knowledge. A full 57 percent of respondents said they didn’t know how to go about purchasing inventory.
Among those who were not buying video ad inventory on connected TVs, nearly 100 percent said they believed it was something to consider for the near future. About 25 percent who said they’d consider making connected TV video ad purchases planned to do so “now,” and more than half intended to take action sometime within the next year.
Other research on connected TV is backing up IAB’s findings. Parks Associates research says in first-quarter 2014, U.S. broadband households watched roughly three hours of online video per week on each of three platforms: mobile phone, tablet and connected TV. Connected TV viewing has rapidly climbed from 2.3 hours per week in first-quarter 2013. Mobile phone and tablet video usage have seen more modest rises.
Parks says 81 percent of U.S. broadband households watch video on a TV set, while 60 percent watch content on a computer, 31 percent watch video on a smartphone, and 28 percent watch on a tablet. The PC was the only platform to show any significant decline in video viewing in the past year.
Brett Sappington, director of research, Parks Associates, said, “Ultimately, consumers can more easily access online video options on a television than ever before. In addition to smart TVs, Blu-ray players, and game consoles, consumers are also buying streaming media players and devices, such as Google’s Chromecast. Pay-TV providers are making a strong push to extend TV Everywhere to a variety of devices.”