In October 2023, JWP conducted a survey to over 300 people in North America with a survey error rate of +/- 3%.
The objective of this survey was to uncover emerging trends in video streaming, understand consumer behaviors and attitudes, and gauge viewer attitudes towards ad experiences.
The questions were designed to fully grasp what consumers are anticipating heading into 2024 while understanding what’s important to them as the streaming industry evolves.
Although in many cases the results of the survey seemed congruent with current trends, it’s clear that video streaming platforms and organizations will need to address oncoming uncertainties, especially when it comes to video advertising.
JWP SURVEY INSIGHTS 2024Emerging Trends
TV Viewers Have Adopted Internet-Connected TV Devices
Connected TV adoption is no longer speculative; it’s a full-blown reality.
83% of survey respondents indicated that their primary means of watching TV is through an internet connected device.
Unsurprisingly, this falls in line with current industry research.
The downstream effects of connected TV and other internet connected devices
Traditional TV Network Viewing is on the Decline
Only 36% of respondents who favor internet connected devices indicated they watch traditional channels like ABC, BBC and NBC to name a few on a daily or near daily basis. On the other hand, 26% stated they never or almost never watch traditional channels.
Unsurprisingly, users who prefer linear TV were much more likely to watch traditional TV networks on a daily basis at 44% of respondents.
This aligns with current industry trends that also suggest network TV viewing is on the decline, along with public television.
It’s important to note that conglomerate network TV companies have already pivoted to a stream-first strategy with platforms like Peacock and Paramount Plus, respectively.
So while the raw numbers for consuming network TV has declined, these networks have already adapted to the emerging streaming market by providing a diverse array of content outside of just original programming.
85% of viewers with connected TV are at least moderately satisfied with the quality of new content hitting the market.
Unsurprisingly, as streaming adoption continues to grow, so do studio budgets.
It’s estimated that content providers and streaming platforms will spend nearly $24 billion on scripted programming in 2023 (although the SAG-AFTA writer’s strike may alter that total).
While this might seem fairly obvious, it’s important to note that any adoption with regard to streaming is completely reliant on the availability of desirable content.
In fact 80% of respondents with connected TV actually mention that they’re at least somewhat overwhelmed with the amount of quality content they have to choose from.
This means that competition for share of mind is as fierce as ever.
Consumer Behavior
Only 13% of viewers with connected TVs say they rarely or never watch subscription services.
Connected TV goes hand-in-hand with the plethora of streaming services on the market. This further illustrates the shift from network TV dominance to platform-specific streaming.
21% of respondents with connected TV said that content recommendations were helpful.
There’s a lot to learn here, but companies spend a ton of resources trying to keep users on site and engaged. Metrics are murky, but this shows that users who find new content are doing so because of much more nuanced factors than simple automated content recommendations.
For example, Netflix will often recommend new content based on user behavior, audiences, seasonality, and casting, but this suggests that the way in which users discover new content is a bit more nuanced.
In fact, in a recent survey, nearly 50% of users said that they discover content through word of mouth.
There are other reasons why content recommendations aren’t always helpful:
- Users, when completing a show, often gravitate towards a change of pace. For example, if a viewer just finished watching a suspenseful series, they might be more inclined to dive into something more lighthearted.
- There’s no way to account for word of mouth. A user may watch something that’s completely incongruous with what data suggests they would enjoy.
- Cross-channel data is limited at best. For example, with the household subscribing to nearly 3 separate services on average, aggregating data across platforms can be murky at best. For example, a viewer may have a netflix subscription solely to watch reruns of Friends, while using their Peacock subscription to watch the English Premier League and their HBO Max subscription to catch new episodes House of the Dragon. Native analytics within these platforms are limited when it comes to deciphering user behavior across various platforms.
Ad Experience
Only 22% of viewers with connected TV say they would likely use interactive TV to make a purchase
Interactive TV, which either relies on QR codes or on-screen links, is poised to become a point of emphasis for advertisers. Advertisers have long tried to adapt display advertising into the connected TV market by allowing consumers an easy path to purchase products or services they’re seeing in real-time.
However, adoption just isn’t there yet.
Part of the reason viewers might be hesitant to adopt interactive advertising is because
- The ads themselves are irrelevant (more on this later)
- The ads aren’t showing up at the optimal time to be top of mind
- The purchasing experience takes away from the viewing experience
- Users tend to disengage during ad breaks
These results tell us that there’s still not significant demand for interactive ads.
71% of viewers with connected TV are unsatisfied with their ad experience
This is particularly telling when you consider that targeting is as accurate as ever. Despite a virtually tailored ad experience, almost 3 quarters of respondents are dissatisfied with their ad experience.
General dissatisfaction with ads could explain why users are reluctant to adapt to interactive ads.
Projections
Unsurprisingly, the streaming and connected TV market will continue its ascension and show no signs of slowing.
However, the battle for streaming supremacy will be won by the platform that figures out how to:
- Deliver the right ads at the right time to the right audience
- Foster engagement through its ads
- Create a positive ad experience that inspires its users to make a purchase through interactive ads
Appendix
Percentage of Responses by Age
Percentage of Responses by Device Type
Percentage of Responses by Gender
Percentage of Responses by Household Income
