SMART TV INSIGHTS 2015 · THE SMART TV IS THE MAIN DEVICE FOR WATCHING TV CONTENT – WHETHER IT IS...

SMART TV INSIGHTS 2015 A STUDY ABOUT THE SMART TV MARKET AND THE CHANGING TV CONSUMPTION

UK RESULTS

www.smar t c l i p . com 12 .11 .15

KEY FINDINGS – UK

www.smar t c l i p . com 12 .11 .15 –2–

29% of all TVs are Smart TVs, and 93% of Smart TV owners connect their TV to the Internet – compared to 78% in 2013. This development is fueled by the wider offering and the intensive use of on-demand video content. 82% use apps for movies and series, making it the top content category on Smart TVs.

#1 Smart TVs have arrived among the wide population, but still Smart TV owners are younger and characterized by a higher household income than owners of traditional TVs – making them an attractive audience for advertisers. Echoing the results from the Smart TV study in 2013, Smart TVs are mainly used by above average educated family people in the 20–49-year-old age group with high online affinity.

#4

78% of all Smart TVs in the UK market have been bought in the last 2 years, thus providing the highest technology standards and easy access to the desired on-demand video content provided by broadcasters and other Video on Demand (VOD) services.

#2 Already 37% of TV viewing time on Smart TVs is spent on on-demand content. Since Smart TV owners watch more traditional TV programs and also more on-demand content than Non-Smart TV users, Smart TVs fuel TV consumption in general.

#3

The Smart TV is primarily used as a family entertainment device with an average of 2.7 persons watching – mainly during prime-time.

#5 This study again shows that ads on Smart TVs are highly engaging and have significant impact especially on purchase intent. The big screen combined with interactive ad formats and the influential target group using Smart TV features regularly remain key drivers for the effectiveness of Smart TV advertising.

#6

RESEARCH OBJECTIVES


What are the key drivers for Smart TV growth and usage?

How do Smart TV and Non-Smart TV users consume TV content today – considering Video on Demand and traditional TV programs?

What is the profile of Smart TV and Traditional TV owners, and who is using the Smart TV features?

What is the perception and impact of Smart TV advertising?

  To analyze Smart TV penetration, understand TV content consumption and profile Smart TV owners. As a follow-up to the smartclip Smart TV Ad Effectiveness Study in 2013 this study primarily focuses on the changing TV content consumption.

METHODOLOGY & SET-UP


  This study was conducted by smartclip in collaboration with LG and executed by Nielsen in 4 countries in August 2015.

4 COUNTRIES GERMANY, UK, SPAIN, BRAZIL

ONLINE SURVEY 20 MINUTES

TOTAL SAMPLE SURVEY RESPONDENTS

Identification of TV owners (Smart TV and Non-Smart TV/Traditional TV) by screening questions in first part of the questionnaire in order to analyze Smart TV market penetration Sample size:

23,870 IN TOTAL

Further questioning of purchase decision makers of current TV for deeper analysis of TV content consumption Sample size: n=700 per country (400 Smart TV owners, 300 Non-Smart TV/Traditional TV owners)

2,800 IN TOTAL

UK 3 750

Germany 12 181

Spain 5 115

Brazil 2 824

SMART TVS HAVE ARRIVED AMONG THE WIDE POPULATION AND PROVIDE THE LATEST TECHNOLOGY STANDARDS


29 %

of TVs in UK are

Smart TVs

78 % of Smart TV owners

purchased their Smart TV within

the last 24 months

connect their

TV to the Internet

93 %

[ UK data; Base: All respondents; (Smart) TV owners ]

CONNECTIVITY AND ADVANCED FEATURES, PICTURE QUALITY AND SCREEN SIZE ARE KEY BUYING FACTORS FOR SMART TVS


[ UK data; Base: All respondents ]

USER EXPERIENCE 17 16 ENVIRONMENTAL FRIENDLY 13 12

ADVANCED FEATURES 17 6

BRAND 19 11

TV TYPE 22 14 CONNECTIVITY 19 10

SCREEN SIZE 27 23 WARRANTIES & A/S 20 16

DURABILITY 29 28

SOUND QUALITY 30 31

PICTURE QUALITY 42 39

PRICE 32 39

DESIGN 19 16 SMART TV OWNERS NON-SMART TV/TRADITIONAL TV OWNERS

HIGH INTERNET CONNECTION RATE ACROSS ALL AGE GROUPS


TOTAL 15 – 29 YEARS 30 – 39 YEARS 40 – 49 YEARS 50+ YEARS

98 % 96 % 93 %

93% of Smart TV owners are actually using their Smart TV features. Also all age groups take advantage of the Internet connection of their TV.

91 % 88 %

[ UK data; Base: Smart TV owners ]

SMART TVS ARE THE MAIN DEVICE FOR CONNECTING THE TV TO THE INTERNET


The majority directly connects their TV to the Internet by the integrated Internet functionality of their Smart TV (81%), but also Non-Smart TV owners are connected via other devices.

[ UK data; Base: Those who have their TV connected to the Internet ]

LAPTOP COMPUTERS

6 22

SMART TV

7 34

2 18

MOBILE (Smartphone/Tablet PC)

2 6

GAMING CONSOLE

3 21

81 0

STREAMING BOX/STICK

DESKTOP COMPUTERS

SMART TV OWNERS NON-SMART TV/TRADITIONAL TV OWNERS

THE SMART TV IS THE MAIN DEVICE FOR WATCHING TV CONTENT – WHETHER IT IS TRADITIONAL TV OR ON-DEMAND CONTENT


Among Smart TV owners the TV is the main device for watching traditional TV programs, but also Video on Demand is mostly watched via TV (76%) – followed by computers (16%).

[ UK data; Base: Smart TV owners ] VOD/ON-DEMAND CONTENT TRADITIONAL TV PROGRAMS

SMART TV

90 %

76 %

2 % 6 % 1 % 5 %

DESKTOP COMPUTERS

SMARTPHONE TABLET PC

4 % 10 %

LAPTOP COMPUTERS

3 % 3 %

ALREADY 37% OF TV VIEWING TIME ON SMART TVS IS SPENT ON ON-DEMAND CONTENT


37% of Smart TV owners watch on-demand content via the Internet connection of their Smart TV every day. On average Smart TV owners watch traditional TV programs 4 hours per day and spend 2.3 hours per day on Video on Demand content.

TRADITIONAL TV PROGRAMS:

[ UK data; Base: Smart TV owners; Usage on weekdays and weekends ]

HOURS PER DAY 4.0 VIDEO ON DEMAND:

HOURS PER DAY 2.3

MOVIES AND SERIES ARE THE MOST POPULAR CONTENT ON SMART TVS


28%

SPORTS APPS

WEATHER APPS

30%

[ UK data; Base: Smart TV owners / App users ]

The most used apps on Smart TVs are apps for watching movies and series. 82% of Smart TV app users watch video content via Smart TV apps – compared to 37% in 2013. In the past 2 years the VOD offering has become much wider, this fuels the desire for watching on-demand content and thus for Smart TVs.

82%

MOVIES/SERIES APPS

NEWS APPS

34%

19%

EDUCATION APPS

MUSIC/RADIO APPS

39%

29%

GAMES APPS 30%

SOCIAL MEDIA/TV APPS

ALSO ON-DEMAND CONTENT IS MAINLY WATCHED DURING PRIME-TIME


Video on Demand consumption on Smart TVs shows a similar pattern throughout the day as traditional TV – with an even more significant peak in the evening. This again proves the relevance of prime-time advertising on Smart TV platforms.


8 PM - 11 PM 60 77

11 PM - 1 AM 18 28

12 PM - 6 PM 18 32

6 PM - 8 PM 37 64

9 AM - 12 PM 14 24

6 AM - 9 AM 12 24

1 AM - 6 AM 5 6

SMART TV OWNERS WATCH MORE TRADITIONAL TV PROGRAMS THAN NON-SMART TV OWNERS


Smart TV owners spend more time watching traditional TV programs than Non-Smart TV owners and also watch more channels. Thus Smart TVs fuel TV consumption in general.


FREQUENCY OF WATCHING TRADITIONAL TV PROGRAMS

(in %)

AVERAGE VIEWING TIME PER DAY

(in hours)

NUMBER OF CHANNELS

70

56

SEVERAL TIMES

PER DAY

18 28

ONCE A DAY

12 15

NOT DAILY

3.7 3.4

WEEKDAYS

4.8 4.3

WEEKENDS 7.9 7.1


TRADITIONAL TV PROGRAMS ARE MAINLY USED FOR WATCHING SERIES, MOVIES ARE THE MOST-WATCHED VOD CONTENT


Movies and series are the most watched content in traditional TV programs and via Video on Demand, with series leading the ranking in traditional TV programs. Also news and live shows play a bigger role in traditional TV programs.


LEISURE & HOBBY 0 1 TECH/PRODUCTS 0 1

KIDS RELATED 1 1 EDUCATION 2 2 ANIMATION 1 1

HOME RELATED 4 1 DOCUMENTARIES/REPORTS 7 4 ENTERTAINMENT RELATED 7 4

SPORTS 10 8 REGIONAL PROGRAMS 8 7

LIVE BROADCAST/SHOWS 9 6 DRAMA/OPERAS/SERIES 20 21

NEWS 13 7 MOVIES 16 25

FASHION/SHOPPING 0 1

WAYS OF ACCESSING ON-DEMAND CONTENT


The majority (84%) of Smart TV users mainly access on-demand content via the Smart TV portal and integrated apps, but also the Red Button is used to get access to the Red Button offering of broadcasters.


VIA THE RED BUTTON

VIA THE SMART TV PORTAL

16% 84%

Wider choice of content I can watch movies independent of

broadcast schedules

Comfortable experience and easy access

The traditional TV programs are not sufficient/don’t

interest me

To watch movies that are not shown on

traditional TV channels

I watch on-demand content in addition

to traditional programs

I switch to on-demand video during adverts

in TV programs

REASONS FOR ACCESSING ON-DEMAND CONTENT ON SMART TVS


The primary reason for watching Video on Demand is the wider choice of content that can easily be accessed independent of broadcast schedules.

30 % 36 %

48 %

29 %

5 %

22 % 22 %


SMART TV OWNERS TEND TO WATCH TOGETHER MORE THAN NON-SMART TV OWNERS AND ALSO LOOK AT A BIGGER SCREEN



70 %

60 %

WATCH TOGETHER

WITH FAMILY OR FRIENDS

80 %

48 %

OF TVS ARE ABOVE 40“

PEOPLE INFRONT OF

SCREEN

2.7 2.3


SMART TV OWNERS ARE YOUNGER THAN OWNERS OF TRADITIONAL TVS


40 – 49 YEARS 30 – 39 YEARS 15 – 29 YEARS 50+ YEARS

Smart TV owners are the most sought-after younger target groups. 74% of Smart TV owners are between 15 and 49 years old.

[ UK data; Base: All respondents ] SMART TV OWNERS NON-SMART TV/TRADITIONAL TV OWNERS

13 % 18 % 26 % 33 % 37 %

25 % 31 % 17 %

SMART TV OWNERS ARE WELL-EDUCATED FAMILY PEOPLE WITH HIGH PURCHASING POWER



MARRIED / LIVING WITH PARTNER

48%

MALE HAVE CHILDREN


47% / 70% 55% / 55% 43% /

ANNUAL HOUSEHOLD INCOME £40,800+ 33% 19% /

WITH COLLEGE/UNIVERSITY OR GRADUATE DEGREE

77% 72% /

SMART TV OWNERS OWN MORE INTERNET-CAPABLE DEVICES THAN TRADITIONAL TV USERS


The high online-affinity of Smart TV owners is also indicated by the ownership of other Internet-capable devices. 69% of Smart TV owners have a Tablet PC – compared to 57% of Non-Smart TV owners.

[ UK data; Base: All respondents ] SMART TV OWNERS NON-SMART TV/TRADITIONAL TV OWNERS

LAPTOP COMPUTERS (Notebook/Netbook)

80 81

DESKTOP COMPUTERS

57 52

TABLET PC (iPad, Galaxy Tab, etc.)

69 57

SMARTPHONE

85 83

GAMING CONSOLE (e.g. PlayStation, Xbox)

55 52

STREAMING BOX/STICK (e.g. Chromecast, Amazon Fire, Apple TV)

24 12

AWARENESS OF SMART TV ADVERTISING AND HIGH (INTER)ACTION


75 %

are aware of

Smart TV ads

59 % have interacted

with Smart TV ads

engaged in some kind of

action, for example talking about the

product or purchasing it

[ UK data; Base: Daily VOD users; Those who are aware of Smart TV ads ]

53 %

65 %

30 % 27

ACTIONS TAKEN AFTER INTERACTING WITH SMART TV ADS


CONSIDERED BUYING THE PRODUCT

%

After interacting with the ad 41% of Smart TV owners consider buying the product – compared to 18% in 2013. 30% search for information about the product or brand via the Internet and 27% make the purchase straightaway.

41 %

SEARCHED MORE INFO ON THE PRODUCT/BRAND BY

INTERNET

PURCHASED THE PRODUCT RIGHT AWAY

[ UK data; Base: Those who interacted with Smart TV ads ]

19 %

TALKED ABOUT THE PRODUCT/BRAND/AD

TO OTHERS

REASONS WHY USERS INTERACT WITH SMART TV ADS


Just like in the Smart TV study in 2013 the key factor for successful advertising and interaction is relevance. But also appealing ads and remembering previous advertising provide motivation to engage with an ad.

The ad was for a product I was

interested in buying

56 %

The ad was for a brand I have seen advertised before

56 %

The ad looked nice

17 %

The ad caught my attention

12 %

The ad had a promotion or special deal that I was

interested in

32 %

[ UK data; Base: Those who interacted with Smart TV ads ]

ADVANTAGE OF SMART TV ADS


The primary advantage of advertising on Smart TVs compared to other digital devices that allow to watch video content is the big screen.

More convenient to watch as it has a bigger screen

More trustworthy Large variety of different types of ads

Can purchase the product right away

Ad format is innovative

and interesting

More informative Ads are intriguing and interactive

18 %

11 %

39 %

14 %

6 % 3 %

9 %

[ UK data; Base: Those who are aware of Smart TV ads ]

THANK YOU!


SMART TV INSIGHTS 2015 · THE SMART TV IS THE MAIN DEVICE FOR WATCHING TV CONTENT – WHETHER IT IS...

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