But viewers are so far somewhat underwhelmed – of those who believe they have been targeted by ads, just 20% can recall what they were about.
The study from marketing software firm dataxu, Outside the Box, looked at the “Advanced TV” market, which allows for ad personalisation, across the UK, France and Germany; researchers collated and analysed responses from over 2,000 consumers along with those of 200 media agencies and brands to produce their findings.
Despite the rapid growth of subscription streaming services, with Netflix and Amazon Prime the standout favourites with consumers, paid-for services still – for now – capture only a relatively small slice of the viewing market.
In the UK, subscription services account for 30% of viewing time, followed by 29% in Germany and 25% in France.
There is, as would be expected, a clear age differentiator when it comes to consumer preference for TV formats, with traditional TV still the overwhelming favourite among those in the 66+ age group, corresponding to 90% in France, 84% in Germany and 71% in the UK.
Younger viewers are far more likely to choose paid subscription services – 44% in France, 47% in Germany and 45% in the UK.
When asked about their predictions for the future of Connected TV, 50% of businesses in the UK said they plan to increase inventory buying “significantly” over the next five years, with 33% in Germany, and 29% in France agreeing.
But viewers are generally less excited. For respondents across all markets, less than half believe they have been targeted by personalised ads on TV, and less than a quarter were able to recall which brand or product this ad related to.
However, researchers found that 71% of the consumers who thought their online experience with advertisers had improved in the past year say this is because they were being shown more relevant ads.
Sourced from dataxu; additional content by WARC staff