Thursday, January 24, 2013

Connected TV Ad Revenue, Monetizing the Second Screen

When is the last time you saw some really good information about how well advertising is working on digital video through the first screen?  A connected TV is a TV that able to deliver OTT content from the major services (iTunes, Netflix, Hulu, Vudu, Amazon Instant and Prime, YouTube, etc) by either being connected itself (SmartTV) or by being connected to another device (game console, OTT device, Blu-ray player, etc) that can deliver that content service.

The graphic below represents the results of a study commission by YuMe which was presented at the 2nd Screen Summit at CES by Ed Haslam, their VP of marketing.

  • 25% of all TV's shipped in 2011 were "smart" and the market penetrations is growing at 60%
  • 90% of viewers of connected TV notice ads on them
  • Ad supported viewing was preferred over subscription and transactional for TV and short form (subscription preferred for movies)
  • the average ad viewer is 34
  • an overwhelming majority watch from their family room/living room
  • more than 50% of consumers are streaming TV and movies at least weekly (half of that is daily)
  • short form content that is not available on TV/cable is growing rapidly on the web, garnering 81% viewership from all consumers
Where is the link to second screen?  The monetizable market today for second screen is made up of two primary revenue streams: ad supported viewing (shifting some of the $200B TV ad market and the growing mobile online advertising market which is at $6B today, growing to $17B by 2017) and m-commerce (shifting the tiniest percentage of the currently $76B market to tablets in the living room, growing to $158B by 2017).  Looking for more details? Check out www.2ndscreensociety.com/research/



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