• by Daisy Whitney , Op-Ed Contributor, August 21, 2012

Despite their relatively modest reach, connected TVs offer a highly engaged base of viewers, new research has found.

Connected TVs are still a small portion of the ad marketplace, but they’re growing quickly, and users seem to pay attention to the ad messages. Nearly 90% of connected TV users notice ads on the platform and half have interacted with the ad, according to research just released from video ad technology provider YuMe in partnership with research firm Frank N. Magid Associates. The findings come from a survey of 736 connected TV users conducted online in May and June.

Even better news for marketers is that not only do connected TV users pay attention to ads, nearly 20% say they have purchased a product as a result of an ad they have seen on connected TV.

Also, respondents said they prefer 15- to 30-second ads in short-form videos and streaming shows compared to monthly subscriptions or pay-per-view pricing models. That’s not surprising -- generally speaking, consumers would rather see shows for free in exchange for ads. Even so, the information is useful for publishers and programmers selling the ads. 

In addition, about 66% of connected TV users say they are likely to interact with relevant ads.

While connected TV users tend to skew young and male, 93% of them do live in multi-member households. That data point shows that connected TV viewing is a shared activity, and that ad exposures on a connected TV are likely to reach more than one person -- women included -- similar to linear TV, YuMe said.

Those who use the connected TV streaming capabilities seem to be regulars at it. The study found that 26% of users streamed short-form content multiple times each week, compared to 29% of users who said they streamed TV shows on their connected TVs regularly. Those are promising findings for short-form programmers, suggesting that connected TV early adopters don’t favor one type of content over another and are open to both network programming and shorter videos.

The study also found that 30% of Internet homes have some type of connected TV. But bear in mind that consumers often buy connected TVs but don’t connect them, or don’t use the connected capabilities.