connected TV

40% Own A Smart TV, 35% Still Have A VCR – via MediaPost (source: GfK)

The study comprised interviews of 1,100 consumers in a nationally representative GfK panel of consumers aged 13 to 64. Smart devices in the home are less likely to totally replace existing devices — they are more likely to become an addition. Most significantly, new devices are most likely to integrate with consumer behaviors already in place and then improve and advance those behaviors.

While more consumers plan to add Internet-connected devices such as thermostats, security systems, locks and lighting over the long term, people in the short term are increasingly streaming content through their connected TVs.

Four in 10 consumers already have a smart TV, according to the consumer market research firm GfK. And more than a third (36%) own a digital media player. Apple TV is now used by the least (8%) of those, with the other main players being Roku (15%), Google Chromecast (10) and Amazon’s Fire TV, according to the report, Over-The-Top TV 2016.


Connected TVs Marry New and Old Viewing Habits

More than 50% of the U.S. population is expected to watch streaming content on connected TVs by 2016, and that percentage is expected to increase to 60% by 2019.  In the new eMarketer report, “US Connected TV Usage: Digital Content Gives the ‘First Screen’ New Life,” connected TVs are defined as TV sets connected to the internet through built-in internet capability or through another device, such as Blu-ray players, game consoles or set-top boxes.

In addition, it is important to note that connected TV is a household phenomenon more than a personal one, so that household penetration is an important metric.

According to this eMarketer article, viewing habits for connected TV more closely resemble linear TV than other digital platforms.  eMarketer refers to studies by both Nielsen and Tremor Video that found that the share of average US audience on connected TV devices peaks during primetime.

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Connected TV Spend to Rise, While Priority Remains Low

The Association of National Advertisers (ANA), in partnership with BrightLine, an ad platform, reports that more than 70% of 215 client-side senior marketers believe that connected TV represents an opportunity for the advertising industry.  Despite this belief, none of these marketers spend more than 10% of their budget on connected TV.

YuYu Chen, summarizing this report for ClickZ, reports that 48% of respondents whose companies are currently engaged in connected TV or OTT devices plan to allocate more of their TV ad budget to it next year.  In addition, another 13% of respondents not currently engaged in connected TV or OTT, plan to allocate some of their budget to it next year.


Top benefits of connected TV/OTT include:

  • Audience targeting
  • High engagement
  • Amplification of video content

According to this report, barriers to greater spending on connected TV or OTT by marketers include:

  • Lack of reliable measurement metrics
  • Small-scale audiences
  • Cost/pricing
  • Creative concerns
  • Budgets
  • Not familiar enough (especially reported by respondents not currently engaged with connected TV/OTT)

Rob Aksman, founder and CEO of BrightLine, is optimistic about the future of connected TV.  “There’s nothing stopping connected TV from going mainstream today: there’s scale, there’s targeting and there’s data.  With connected TV, advertisers can not only reach TV viewers, but also offer a better brand experience with clickable and measurable videos.”

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