CTV Viewers Are Watching Ad-Supported Content. But How Do They Respond to Ads?

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Advertising Trends | Creative & Formats | Customer-Centric | Digital | Non-mobile Connected Devices | Privacy & Security | Video

SpotX CTV Viewer Response to Ads Aug2020Connected TV (CTV) usage is on the rise, with streaming hours via these devices growing considerably since 2019. And, with 60% of streamers choosing to watch free content, according to a new report [download page] from SpotX, ad-supported SVOD is likely to form a big part of viewers’ engagement with CTV. Here’s what the report highlights about CTV viewers’ response to ads.

While 40% of the 1,500 CTV viewers surveyed prefer to watch paid, ad-free services, there appears to be a limit to the number of subscription services viewers are willing to pay for. Indeed, some 4 in 5 currently watch ad-supported programming.

How Do Viewers Respond to Ads?

Fortunately, viewers indicate that ads are having a positive impact on their purchase decisions. When it comes to product awareness, a majority (57%) of respondents see ads for products that they have an interest in, with a further 3 in 10 being exposed to products they had not previously consumed. About one-quarter (26%) were entertained by an ad they saw recently.

At the intent stage, around 1 in 6 (17%) are considering making a purchase because of an ad they saw recently, and 1 in 8 (12%) have made a purchase because of an ad they were exposed to.

However, one concern for CTV viewers when it comes to ads is their privacy: the vast majority (71%) say they are concerned about how their personal information is being used for advertising purposes, and 28% find it concerning when ads “follow” them from one screen to another, including on CTV. The issue of privacy is one of growing concern for Americans, as a Pew Research Center study reveals that 7 in 10 consumers feel their personal information is less secure than 5 years ago, with nearly the same percentage believing that all or most of their activities were being tracked. As such, advertisers should tread carefully between relevant and creepy when it comes to targeting.

What Are Different Viewers Watching?

The choice of content genre provided by CTV is one of its key benefits, and an index-based analysis of viewing figures highlights what some specific audience segments are choosing to watch the most.

  • Men 18-24: Animated/Cartoons.
  • Men 25-44: Sports.
  • Women 18-24: Reality.
  • Women 65+: Cooking.
  • Those earning $100K and over: DIY/Home.
  • Those earning $50-100K: Travel.

The full report can be found here.

About the Data: Results are based on a February 2020 survey of 1,500 adults (18+) CTV viewers who watch CTV at least once per month.

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