New study shows how the next generation of consumers’ embrace of digital TV consumption may transform video advertising, television industries
NEW YORK – Tremor Video (NYSE:TRMR), a provider of software for video ad effectiveness, released a proprietary study in conjunction with Hulu, the leading premium streaming service, regarding Gen Z’s ad receptivity on connected TV (CTV) and over-the-top (OTT) devices. The data show that Gen Z is a native digital video generation that overwhelmingly equates “watching TV” with an online source. They also may be the first to fully embrace digital video advertising by seeing ads as indistinguishable from actual TV shows, and they will be CTV-first consumers.
This transformative shift in attitudes and preferences represents a tremendous opportunity for both streaming services and advertisers, with the ability to capitalize on this continued growth for the long term.
Proof that even the term “watching TV” now holds a different meaning, 84 percent of adults aged 14-50 equate “watching TV” with devices such as an Apple TV or PlayStation. Specifically, 70 percent of Gen Z consider watching TV through an online source, whereas 74 percent of Gen X consider watching TV to be through traditional cable or satellite services.
“The transition of television programming to a digital, streaming-first culture has been happening at a rapid pace,” said Karen Ring, Senior Director, Insights + Analytics, Tremor Video. “Gen Z, who in two years will make up 20 percent of the workplace, is in a prime position to create an inflexion point in favour of online consumption.”
“This survey is a window into the consumption habits and advertising preferences of the next generation of viewers,” said Julie DeTraglia, Head of Ad Sales Research, Hulu. “TV consumption habits have evolved and Gen Z is at the forefront of the shift. And Hulu is perfectly positioned to help advertisers reach this generation of viewers with relevant and targeted advertising in a preferred viewing environment.”
Serial Monogamists
Due to streaming’s on-demand nature, Gen Z are 40 percent more likely to watch multiple episodes of TV in solid, focused chunks, much like reading chapters in a novel. Demonstrating their loyalty to the medium, more than half of respondents say they prefer to stick to a single show until they finish the series, rather than intermix shows. Part of the reason is to stay relevant with their friends: 43 percent want to talk about it with their social group, 32 percent want to impress their peers, and 23 percent think watching a show makes them smart. Regardless of the device, TV remains deeply entrenched in pop culture: 20 percent claimed to post something about a show on social media without ever having seen the show.
Advertising Makes a Comeback
Consumer data accumulated by these digital platforms continues to improve in order to customize the ads served to viewers. This targeting changes perception of those ads to be thought of as content. This means all viewers are more likely to share content socially in the same way they discuss the show they’re watching. In a true first, a majority (54 percent) of Gen Z said that they don’t mind or enjoy watching ads, compared to significantly smaller portions by millennials (45 percent) and Gen X (43 percent). While the youngest generation claims to watch less TV than their parents, they still have a low tolerance for a heavy ad load.
The study encompassed an online survey administered to 1,020 respondents ages 14-50 from March 9– March 15 2017 by the Center for Generational Kinetics, a leader in generational research.
For more on the study, please click here.
About Tremor Video
Tremor Video (NYSE:TRMR) is the leading provider of monetization platforms for video advertising. Our buyer and seller platforms enable seamless transactions in a premium video marketplace by offering control and transparency to clients. We employ patented all-screen technology to make every advertising moment more relevant for consumers, and deliver maximum results for buyers and sellers.
