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Connected TV Is Strong for Streaming Video Ads Says YuMe Survey

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Online video advertising company YuMe has just released the results of a survey that looks at online video ads in the connected TV space. The survey provides important information about who is watching video over connected TVs and their feelings about ads.

"The real intent behind the study was to create a baseline in the market that will allow advertisers to make informed buying decisions," says Travis Hockersmith, senior director of client Strategy for YuMe.

The survey included all types of home entertainment streaming options, including game consoles, Blu-ray Players, smart TVs, and set-top boxes. It found that 30 percent of Internet-enabled households have some type of TV streaming connection.

YuMe's chief takeaway is that this is a great time for advertisers to get into the connected TV space (perhaps not a surprising message coming from an advertising company). It found that 57 percent of viewers noticed pre-roll ads and that nearly 70 percent were likely to interact with an ad. Interactions might involve liking a brand on Facebook, getting more information through the TV, or seeing a website on the TV screen.

Viewers openness to connected TV ads has to do with the area still being young.

"The biggest reason by far is that right now it's a very uncluttered ad environment," says Hockersmith, calling this moment a "first-mover opportunity." "As ads loads increase, consumers will start to tune out ads more." When streaming ad breaks get longer to match the length of TV ad breaks, consumers will tune out as they currently do with TV commercials, he says.

The survey includes interesting data about how people view connected TV. The largest group, 77 percent, uses game consoles, 34 percent uses Blu-ray Players, 28 percent use smart TVs, and only 25 percent use set-top boxes. Note that many households connect in multiple ways.

Apps drive connected TV viewing, with Netflix, YouTube, and Hulu being the most popular apps.

The survey questioned 736 connected TV viewers ages 18 to 54, between May 24 and June 4, 2012. The full survey is available from YuMe.

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