Viewers Prefer Ads to Subscriptions for Connected TV

Followers of this blog know that I have been encouraging our industry toward more inspired online video ads. This is because the statistics are already emerging to prove that video will be the most effective form of advertising for online publishers looking to get premium CPMs. And it will be the most effective options for brands wanting to reach and engage customers easily and quickly with their already tested TV ads.

Although we’ve heard quite a bit about how adept this new generation of digital natives is with ad blocking software, they don’t seem to be using it for online TV. A new study by YuMe and Frank Magid Associates tell us that connected TV viewers actually prefer ads to paid models. According to this study 30% of all Internet homes have TVs connected to the Internet, and users of those sets are generally receptive to advertisements.

In addition, “almost 90% of connected TV users reported that they noticed ads on the platform, particularly pre-roll ads. The majority of those users also interacted with ads and nearly one-fifth of users (19%) subsequently purchased a product as a result of an ad they’ve seen.”

This is good news both for online publishers and brands. We do believe that in the next five years, the best advertising will appear either on tablets or streamed to TVs from the Internet. So the entire cable-cutting argument will become moot as viewers will indeed swap cable for Internet. They will use their big TVs as another option for a screen. They will be using a variety of “computers” such as tablets, Roku (a ZEDO customer), video game consoles, phones and set top boxes to connect the TV screen to the Internet.

The message is clear: viewers are accustomed to the traditional model of TV programs interrupted by advertising and are now willing to engage with it as well. In this viewing environment, for our partners in the publishing and advertising industries, ZEDO‘s new Full Screen TV ads on the web will prove to be a big moneymaker.

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