SOURCE: YuMe

YuMe

December 18, 2012 09:00 ET

Connected TV Survey Reveals Expanding Advertising Opportunity Emerging From Growing Ecosystem

Research Shows Steady Uptake of Connected TV, and Clear Ongoing Opportunity to Reach Key Demographics

REDWOOD CITY, CA--(Marketwire - Dec 18, 2012) - YuMe, a leading provider of digital brand advertising software and services, in conjunction with Frank N. Magid Associates, Inc., a leading research-based strategic consulting firm, today announced the results of an extensive survey on the future of Connected TV in the marketplace. The study includes insight into rapidly-growing adoption rates, analysis of components in the broader Connected TV environment, and many details about Connected TV and Smart TV adopters and their preferences.

Conducted as a follow up survey to YuMe's August 2012 survey which provided insights on the growth of the Connected TV market as it related to advertising, this online survey of 1,500 U.S. consumers ages 12 and older in November 2012, shows that as consumers demonstrate increasingly bullish attitudes on TV and Internet-related electronics, the movement to connect televisions to the Internet continues its steady growth. Specifically, this survey continues the in-depth look at the Connected TV platform, and demonstrates the related future use and intent of consumers. For brands, the current survey highlights the strong consumer engagement and attractive demographics of Connected TV adopters, and positions the Connected TV ecosystem as an essential ingredient in today's effective advertising campaign mix.

"Building on our significant existing insight into consumer behavior and preferences related to Connected TV and its environment, we're seeing an unprecedented rate of adoption that's providing us with the industry's richest insights to date," noted Mike Vorhaus, President of Magid Advisors at Frank N. Magid Associates. "Connected TV and its ecosystem comprise a set of increasingly important channels for advertisers and major brands to effectively target a variety of viewers, and quite interestingly, in particular, younger males and ethnically diverse populations, both demographics that typically present a challenge to reach."

Top Survey Insights Include:

  • Nearly half of respondents intend to replace their televisions -- 45 percent of consumers surveyed expect to purchase a new television in the next 12 months.
  • Connected TVs as the replacement -- Of those consumers expecting to replace their TV with a Smart TV, 8 percent say they are "very likely" to purchase a Smart TV; adding to this the existing base of 11 percent of households with a Smart TV, total adoption nears 20 percent of homes in 2013.
  • Majority of consumers prefer ad-supported content -- 54 percent of consumers surveyed prefer free, ad-supported content across all screens, highlighting a continued strong opportunity for brands.
  • Two-screen viewing is on the rise -- 55 percent of respondents say that they use two screens simultaneously at least half or more of the time when they are watching TV, with laptops the most commonly used second screen (65 percent of respondents), followed by smartphones (49 percent) and tablets (24 percent).
  • Online viewing drives better satisfaction and higher rate of future use than video on demand -- Respondents are more satisfied with TV show selections online (62 percent) compared to their satisfaction with on demand TV show selections (50 percent); over the next six months, respondents expect to watch more shows online than on demand.
  • Traditional remote control still preferred by consumers -- Consumers surveyed say a physical remote control is the preferred interaction and navigation tool to access websites on a Smart TV (34 percent), while voice-activated TV control is the second most desired method (29 percent). Gesture control was the least preferred method (14 percent).
  • Significant Connected TV viewer growth underway -- Growth in Connected TV for long-form video viewing use has jumped from 30 to 35 percent in the past year. Video viewing growth is projected to grow to 42 percent, showing growth accelerating at 7 percent annually.
  • One-third make a Smart TV purchase in order to access free ad-supported content.
  • Application and short-form video viewing is typically discovered post-purchase, providing advertisers with additional opportunities to reach consumers.

Connected TV Continues to Grow as Sweet Spot in Complementary Multi-Device Advertising
 
Survey findings reveal the Connected TV marketplace will continue to grow in value as a complement to traditional video environments. Connected TV users and potential future consumers alike view Connected TV video content as an enhancement to their current video viewing options, rather than as an outright replacement. Notably, these early and early-majority adopters continue to be avid media users across all platforms, hinting at future viewing trends for the broader population.

"Our earlier research clarified the advertising opportunity around Connected TV, and as our customers' actual spending choices are demonstrating to us, the Connected TV opportunity has increased," noted Ed Haslam, Senior Vice President of Marketing, YuMe. "This new research brings to light interesting demographics at this stage in Connected TV adoption, as well as underscoring the importance of running Connected TV campaigns as part of a larger concerted, multi-screen campaign."

For more on the results of this study as well as a copy of the "Emerging Growth Opportunities for Connected TV and Advertisers" whitepaper which accompanies the study, visit: www.yume.com/ctv_opportunities

For the results of the earlier Connected TV study and accompanying "The Who, What, When, Where, Why, and How of Connected TV & Advertising" whitepaper, please visit: http://bit.ly/YuMeWhitepaper.

About YuMe
YuMe is the software infrastructure provider powering digital video and the next generation of television with its operating system for TV 2.0. Its video advertising technology and services seamlessly connect advertisers, app developers, content distributors, consumer electronics manufacturers, and publishers across the globe. YuMe's patent-pending Relevance Engine powers its premium in-stream video ad network, the YuMe Connected Audience Network, and its industry-leading advertising management solutions, ACE for Publishers and ACE for Advertisers. The YuMe Relevance Engine matches the right ad to the right audience on whatever screen they are viewing -- PC, mobile, or connected TV. YuMe is a privately held company headquartered in Redwood City, CA with its European headquarters in London. The company is backed by Accel Partners, BV Capital, DAG Ventures, Intel Capital, Khosla Ventures, Menlo Ventures, Samsung Ventures, Translink Capital and WestSummit Capital. For more information, visit www.YuMe.com, follow @YuMevideo on Twitter (www.twitter.com/YuMevideo), or like YuMe on Facebook at www.facebook.com/YuMevideo.

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