Almost half of consumers (49%) perceive ads on streaming TV as more relevant than traditional services says research from marketing technology and consumer engagement firm Valassis.
Valassis surveyed more than 1,000 consumers over the age of 18 in the US to understand their use of traditional and connected TV (CTV). The survey was conducted at the end of January 2020.
The survey found that nearly three-quarters of consumers subscribed to at least one streaming TV service, and as many as 69% of young consumers (ages 25-34) particularly believe of the superior nature of streaming, with 69% agreeing on the superior relevancy of connected TV (CTV) ads. Additionally, 53% of consumers used their mobile devices or tablet to shop while watching TV on a streaming service, with this number rising to 74% among parents.
The survey also found that 56% of consumers have cable and streaming TV services, while 14% only have streaming TV and 21% only have cable. Almost three-quarters (72%) of parents have cable and streaming TV, with 83% of parents subscribing to streaming TV services overall and 28% of 18- to 24-year-olds had only streaming TV.
The sample also showed commitment to future purchases of new streaming TV services. just over a third (35%) were planning to purchase new streaming TV services within the next year, and 21% more indicated they are considering it. A healthy number of parents, 56%, expressed plans to purchase new streaming TV services in the coming year.
A significant amount of time was being spent on streaming TV services. A third of consumers watched 1-3 hours of streaming TV per day, a fifth watched 3-5 hours per day while 13% watched more than 5 hours per day.
From an advertising perspective, Valassis said the survey showed clearly that short and entertaining ads were most desirable. Nearly two-fifths (37%) of consumers noted the maximum length of non-skippable ads they would watch without it taking away from their streaming TV experience was 15 seconds or less. Another 24% noted they were fine with 30-second ads, while only 12% and 9% said they were comfortable with 60-second and 90-second ads, respectively.
Assessing the results of the survey, Valassis said that such 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. Moreover, the firm says 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,” observed Jay Webster, executive senior vice president, product and engineering at Valassis regarding the research.
“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.”