Streaming Services Aren’t Just Gaining More Customers
According to 64% of consumers aged 25-34 and 69% of consumers aged 35-44, products advertised on streaming TV are more relevant than those advertised on traditional cable TV. (iStock/wutwhanfoto)
For a good part of 2020, consumers stayed home and watched television while being quarantined during the pandemic. So it’s no surprise that sales of connected TV (CTV), also known as streaming services, soared through their roofs of their homes.
Based on survey by Vericast of 1,000 U.S. adults, 70% said they are currently using streaming TV services. CTV grew exponentially in 2020, with 74% of consumers aged 25-34 and 72% of consumers aged 35-44 responding that they added a streaming service over the last year — compared to 55% overall, Vericast found.
The San Antonio, Texas-based marketing solutions company’s survey findings also revealed that CTV is changing the advertising marketplace and presenting new opportunities for brands. According to 64% of consumers aged 25-34 and 69% of consumers aged 35-44, products advertised on streaming TV are more relevant than those advertised on traditional cable TV. As a result, almost half (46%) of all respondents indicated they are more inclined to research or purchase a product or service they saw on streaming TV than traditional TV. In the past year, more than one-third of consumers have made a purchase based on a CTV ad.
“Brands can — and should — leverage CTV to target and reach consumers more effectively than traditional TV,” said Amanda Shelton, Vericast’s vice president of product, digital marketing and technology group. “As the CTV market continues to expand, marketers can deliver on these brand moments, reaching an audience willing to engage and make a purchase.”
Additional findings from Vericast’s survey include:
• Consumers — especially parents — are ready to buy: 64% of consumers use their mobile device or tablet to shop while watching TV on a streaming service. This number increases among households with children, with 82% of parents noting they browse or shop online while streaming TV.
• Viewing ads is preferred over paid subscriptions: More than half of consumers (54%) would be willing to view ads in their streaming TV experience for a lower monthly subscription cost. Consumers age 35-44 are most willing to view ads in their streaming TV experience for a lower monthly subscription cost (69%), followed by ages 25-34 (64%) and 18-24 (59%).
• Consumers are willing to trade data for a better ad experience: 68% of consumers said they are willing to share data with brands to improve their streaming TV ad experience, including the types of shows they watch regularly and anonymous demographic data.