Internet Connected TVs

With the growth of on-demand video, Internet-connected applications on TVs, and a plethora of new devices that make online connections easier, a growing percentage of consumers are watching online content on their TVs, and the trend shows no sign of slowing. The convergence of TV and Internet is here, and advertisers should take notice.

In order to better understand consumer usage of Internet connected TV devices and gauge consumers’ attitudes around advertising on Yahoo!’s Connected TV product, Yahoo! partnered with Ipsos OTX MediaCT to survey 1,902 broadband/DSL. In addition to questions about general Internet connected TV interest and behavior, respondents were also shown a one-minute video demo of the Yahoo! Connected TV product to measure their perceptions.

What are the key findings?

1. THE TUBE EVOLVES AGAIN. 1 in 3 broadband households are using Internet connected TV at least once a week or more, and 3 in 5 have online connected TVs. Households are no longer exclusively viewing TV on their TV sets. They are also streaming Internet content such as music and video clips.
2. BUILT-IN WIDGETS AND GAME CONSOLES WILL DRIVE THIS TREND. Game consoles and built in Internet- TV applications will drive Internet connectivity with 32% showing interest for each. Users are more interested in accessing the Internet through their TV, rather than relying on an extra box such as a dvd player or cable box.
3. ON-DEMAND VIDEO, WEATHER, GAMING AND MUSIC STRONG CONTENT PLAYERS. Currently full-length TV or movie programming (68%), weather (65%) and gaming (64%) are the most common types of content accessed via Internet-connected TV. Interestingly, weather and video games are accessed more frequently on a weekly basis. Consumers are very interested in accessing music on their TVs, reporting 44% interest in the next 12 months, second only to TV/movies.
4. HOOK THEM WITH THE TV SHOW. 53% desire special content around the TV shows they watch and 28% want to include their friends via social media when watching. Content around TV shows will spur the growth of these applications, especially among women.
5. INTEREST IN ADVERTISING IS HIGH. Advertising is also a key driver of usage as about 2 in 5 are interested in content relevant to commercials they see, provided it’s interesting. Half of respondents reported they are likely to interact with an ad on Yahoo! Connected TV and this increases even more for Internet TV users (63%) and among those interested in Yahoo! Connected TV (70%). See chart 1. Advertising should also be relevant when searching for certain info (45%), and be related to products featured in the program (42%) and commercials (41%).