Recently, we attended IAB UK’s first ever Connected TV week for insights and findings from the most recent Real Living study. This conversation explored consumer behaviours and how to better understand TV streaming users, important campaign success metrics to identify, as well as useful ways to amplify your message amongst TV streamers in the UK. Here are some of the most important learnings from the conversation.
TV Streaming: A Vehicle for Mass Reach
While traditional linear TV is regarded as an instrument of mass reach, brands are coming to realise that the same can be applied for TV streaming. However, unlike traditional television, TV streaming provides the opportunity for more specific targeting and the ability to connect your message to audiences who are likely to be most receptive to it.
Brands should be mindful of the fact that both linear and TV streaming are necessary components of a successful campaign. Findings indicate that both are key to engage a cross-generational audience and to drive incremental reach.
While 4 out of 5 people over 55 and slightly more than half (56%) of viewers 35-54 are watching some linear TV daily, younger audiences are largely migrating online to consume content. 60% of all viewers under 35 say they are not watching any linear TV on a daily basis, and nearly 70% of regular viewers say they are more engaged on TV streaming than they are with traditional linear television.
An omni-channel campaign can help capture both groups, and a thoughtful retargeting strategy across other screens (mobile, desktop etc) strengths recall and conversions across the board.
Want to Connect with Younger Audiences? Advertise on TV Streaming
As users migrate from traditional linear TV to streaming, brands are realising the increased importance of meeting audiences where they live. With its lowered cost, convenience, and ease, TV streaming is now mainstream in the UK.
For brands hoping to connect with people under 35, advertising on TV streaming platforms is becoming crucial. The report found that after mobile phones, (80%), TV streaming devices (66%) are the second most used technology in the UK.
The panel also identified another important finding from the study: TV streamers, particularly those under 35, are more accepting and understanding of the value exchange inherent to ad-based streaming services.
Advertising video on demand, or AVOD services are becoming increasingly popular in the United Kingdom for that very reason: streamers appreciate a good value, and advertising-based TV streaming channels provide just that.
Nearly three-quarters (72%) of participants surveyed who identified as heavy streamers said that watching ads in exchange for free streaming content was a fair deal. And here’s what those audiences are watching:
TV streamers are more accepting of the value exchange
Regular TV streaming viewers are more accepting of ads in exchange for free online services vs those who don’t stream TV regularly (72% vs 61%). What’s more, among younger streaming audiences, ads are seen as less intrusive than traditional TV ads, with 60% of 16-34s feeling this way.
This could be in part due to the fact that these audiences have opted-in already and chosen the content. Alternately, it could be because TV streaming advertisers have the ability to make ads relevant to viewers’ interests.
Younger viewers are advertising savvy
TV viewers under 35 are advertising savvy and more aware of how advertising technology works, with 66% of 16-34s saying that they find ads that are too tailored to them on streaming services unnerving (vs 47% average). Conversely, only 16% of over 55s have noticed TV streaming ads that are specific to their interests or location. This suggests that advertisers need to beware of over-personalising ads, particularly among younger demographics.
The Future of TV Streaming: Balancing Data Solutions with Consumer Preferences
Mike Shaw, our Director of International Ad Sales, commented on the study’s findings as well. For him, the most noteworthy finding was the discovery of TV as a continued focal point of a living room.
The current industry narrative around TV being a “dying medium” is simply not the case. “TV is just getting more and more important.” Mike said, “And this opportunity to bring incrementality and addressability to it is only going to make it even better.” In the future, as streaming becomes even more popular, Mike believes that it will it will take on a larger share of investment capital to match its increasing share of engagement on the consumer end.
The future is bright for TV streaming and the brands who capture that enthusiasm with their ad spends.
Interested in learning more about how TV streaming can be an important component of a successful omni-channel strategy to reach and convert audiences of all ages? Contact us.