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Consumers Prefer Ad-Supported Content, Survey Says

29 Aug, 2012 By: Doug McPherson

REDWOOD CITY, Calif. – A new survey has found that for streamed short-form content and TV shows, connected TV consumers strongly prefer ad-supported content to paid, ad-free content.

The survey, conducted by YuMe, a digital brand advertising software and services company, along with the consulting firm, Frank N. Magid Associates Inc., goes on to say that nearly 90 percent of connected TV users notice ads on the platform, particularly pre-roll, and that most of the users choose to interact with the ads. What’s more, nearly 20 percent of those end up buying the product.

Mike Vorhaus, president of Magid Advisors at Frank N. Magid Associates, says the survey findings reveal new advertising opportunities for brands, with conclusive research supporting how connected TV elevates brand awareness and drives greater audience engagement.

“We now have tremendous insight into consumer behaviors and preferences as they relate to connected TV at an unprecedented level of detail,” Vorhaus says. “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 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 to monthly subscription or pay-per-view models.
  • Nearly 90 percent of connected TV users say they notice ads on the platform.
  • The majority of ads noticed by these users are pre-roll (57 percent).
  • Two-thirds of connected TV users are likely to interact with a relevant ad.
  • Nearly 20 percent actually purchased the product mentioned in the ad.
  • 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, referred to as “mid-tail” content, will be one to watch in the coming 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.

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