In today's rapidly evolving media landscape, the potential for impactful advertising through Smart TVs has never been greater.
With over 75% of households now equipped with Smart TVs, advertisers have a unique opportunity to engage viewers in innovative ways. This article explores the compelling evidence and trends shaping the future of TV advertising, highlighting the advantages of harnessing the power of advertising on streaming and video-on-demand (VOD) services.
Smart TV Ownership
Within the last decade, smart TVs have become commonplace in households across the UK. According to a report from Statista, from 2014-2024, the percentage of households with a smart TV rose from 11% to around 76%.
This means that a vast majority of homes now have easy access to multiple streaming services, providing advertisers with a prime platform to connect with viewers.
Viewing Habits
Dominant Age Group
Adults aged 25-34 are leading the charge in video consumption, spending an average of 1 hour and 5 minutes per day on streaming services. This demographic dedicates 28% of their total in-home video time to subscription video-on-demand (SVoD) and advertising-supported video-on-demand (AVOD) platforms.
Daily Viewing Metrics
In 2023, streaming and on-demand services accounted for 14% of total in-home video viewing, translating to approximately 38 minutes per day per household.
The Rise of Ad-Supported Tiers
By Q1 2024, Netflix's ad-supported tier had already gained traction, with reports revealing that 40 million active users are subscribed to their ad-tier across the globe. The platform estimates that a remarkable 60% of its subscribers will opt for this ad-supported model going into 2027, indicating a significant shift in consumer behaviour.
Expanding VOD Landscape
Discovery+ saw its household penetration more than double in 2023, showcasing the growing demand for diverse content options. This trend is expected to fuel further investment in VOD advertising, with projections indicating that spending will reach £2.3 billion by 2026.
Shifts in Viewing Platforms
Interestingly, while traditional ITV linear viewing declined by 4.7% in 2023, many viewers have migrated to on-demand platforms like ITVX, 4OD, and Sky Go. ITVX alone has achieved 2.1 billion programme streams to date, marking a 21% year-over-year increase.
Smart TV Advertising: Exciting Times Ahead
The landscape of TV advertising is undergoing a transformation driven by the rise of Smart TVs and VOD services. With the majority of in-home video viewing now taking place on main TV sets and the increasing popularity of ad-supported streaming options, brands have unprecedented opportunities to reach their target audiences effectively. As we look to the future, embracing TV advertising in this dynamic environment promises to deliver exciting results for advertisers who are willing to innovate and adapt.
By leveraging the data and insights provided, businesses can position themselves strategically in this evolving marketplace, ensuring they capture the attention of today’s discerning viewers.
The time to invest in Smart TV advertising is now—exciting times are indeed ahead!
Are YOU ready to start your move into TV Advertising?
Don't hesitate to contact our team at Ark Media today for the latest information and advice.
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