Over half of Brits (55%) would choose streaming services versus broadcast linear TV (45%) if they could keep only one, according to new research.
Independent sell-side advertising platform, Magnite, has released its “CTV: The Future Forward” report, identifying how audiences are consuming TV.
The data highlights how Brits are consuming content, and demonstrates the opportunity for marketers seeking to connect with engaged audiences as the seismic shift to CTV accelerates and consumer behaviour evolves.
Key findings include:
• Seven in ten (69%) UK consumers prefer streaming services to broadcast linear TV
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• Nine in ten (89%) UK respondents reported using a streaming service at least once a week and three-fifths (61%) watched daily, more than half (54%) of UK viewers are watching more CTV content now versus a year ago
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• Half (51%) of UK viewers’ time spent watching TV takes place on streaming channels, and if they could only keep one, over half (55%) would choose streaming services versus broadcast linear TV (45%).
• Over four-fifths (85%) said they prefer to watch advertising in exchange for free or reduced-cost streaming services. Over three-quarters (77%) would switch to a free or reduced-cost, ad-based tier of a paid streaming service if available.
• Over six in ten (63%) UK consumers are receptive to CTV advertising, and almost eight in ten (78%) have taken an action after exposure to a CTV ad – including online searches and purchasing an advertised product or service.
The “CTV: The Future Forward” report, finds almost seven in ten (69%) UK consumers prefer streaming services to broadcast linear TV (31%). The study of 10,500 consumers across the UK, France, Germany, Spain, and Italy, identifies how audiences are consuming TV and explores the opportunity for marketers seeking to connect with engaged audiences as the shift to CTV accelerates and consumer behaviour evolves.
Increasing adoption for CTV services
The UK leads in terms of CTV adoption in EU5, according to the report. Among the five countries surveyed, nearly nine in ten (89%) UK respondents reported using a streaming service at least once a week and three-fifths (61%) watched daily. UK viewers tune into subscription (SVOD) and ad-supported (AVOD) streaming services almost equally, showing that advertising is not a barrier to adoption, with three-quarters watching SVOD (75%) and AVOD (74%) weekly.
The report also found that half (51%) of UK viewers’ time spent watching TV takes place on streaming channels, and if they could only keep one, over half (55%) would choose streaming services versus broadcast linear TV (45%). Currently, half (50%) of TV audiences turn first to streaming channels instead of broadcast. When delving into the different consumption patterns between CTV and broadcast channels, three-fifths (62%) of viewers watch broadcast TV out of habit, whereas three-fifths (62%) of respondents choose CTV as their default service because it boasted their favourite shows and half (51%) enjoy the greater variety of content.
When looking at streaming behaviour by age, the preference is even more pronounced. Nearly seven in ten (70%) Millennials and GenZers go directly to streaming channels first over broadcast.
“We’re experiencing a seismic shift in how individuals are consuming content,” said Julie Selman, UK Managing Director at Magnite. “The research demonstrates a significant change in consumer behaviour, with more than half (54%) of UK viewers watching more CTV content now versus a year ago. This acceleration in CTV adoption creates a huge opportunity for advertisers to use the power of CTV to connect with consumers, and reach people where they are enjoying content they love.”
Additional findings from the study include:
- AVOD vs SVOD: Over two-thirds (67%) of respondents said they would be willing to pay more for streaming services, indicating a healthy appetite for additional streaming content. For these consumers who would increase their streaming budget, the average maximum monthly budget was identified as £32, up from the current average monthly spend of £25. That being said, UK audiences are still budget-conscious and over four-fifths (85%) said they prefer to watch advertising in exchange for free or reduced-cost streaming services. Over three-quarters (77%) would switch to a free or reduced-cost, ad-based tier of a paid streaming service if available.
- The advertiser’s opportunity: Over six in ten (63%) UK consumers are receptive to CTV advertising, especially those that are relevant to the show they are watching (77%), relevant to hobbies or interests (75%), or related to online searches (58%). And CTV is a key driver in encouraging consumer action signalling the major potential of CTV to deliver on campaign goals; almost eight in ten (78%) have taken an action after exposure to a CTV ad – including online searches and purchasing an advertised product or service.
Selman continues, “Our latest research shows that CTV is more than a brand-building opportunity for advertisers and that CTV exposure leads audiences to take concrete actions. Two-fifths (39%) of viewers recognise that addressable ads are the future of TV advertising. As more marketers learn to harness the addressability opportunities that are available through streaming TV, I am confident we will see TV emerge as a premium, brand-safe, performance marketing channel.”
Daniel Knapp, Chief Economist, IAB Europe, comments: “Magnite’s research into the rise of connected TV adoption across Europe is vital in educating advertisers on the opportunity to capture audiences’ attention where they’re consuming content. Proof points like these will equip advertisers with actionable insights and the confidence to incorporate CTV into media plans. It’s important to understand the rapid rise in each region, but also acknowledge the nuances in viewing habits, to reach viewers with relevant and targeted advertising in a preferred viewing environment.”
Methodology
Magnite’s “CTV: The Future Forward study” was conducted by Harris Interactive using an online survey. A total sample of 10,500 consumers aged between 18-64 were surveyed across five major EMEA markets, including the UK (2,100), France (2,100), Germany (2,100), Spain (2,100), and Italy (2,100) between October and November 2020 to deliver nationally representative insights.