SMART TV INSIGHTS 2015
A STUDY ABOUT THE SMART TV MARKET AND THE CHANGING TV CONSUMPTION
GERMAN R ESULTS
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KEY FINDINGS – GERMANY
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36% of all TVs are Smart TVs, and 82% of Smart TV owners connect their TV to the Internet – compared to 75% in 2013. This development is fueled by the wider offering and intensive use of on-demand video content. 71% use apps for movies and series, making it the top content category on Smart TVs.
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76% of all Smart TVs in the German market have been bought in the last 2 years, thus providing the highest technology standards including HbbTV functionality and easy access to the desired video content provided by broadcasters and other Video on Demand (VOD) services.
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Already 32% of TV viewing time on Smart TVs is spent on on-demand content. Since Smart TV owners watch more traditional TV programs and also more on-demand content than Non-Smart TV users, Smart TVs fuel TV consumption in general.
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Smart TVs have arrived among the wide population, but still Smart TV owners are younger and characterized by a higher household income than owners of traditional TVs – making them an attractive audience for advertisers. Echoing the results from the Smart TV study in 2013, Smart TVs are mainly used by above average educated family people in the 20–49-year-old age group with high online affinity. The Smart TV is primarily used as a family entertainment device with an average of 2.3 persons watching – mainly during prime-time. This study again shows that ads on Smart TVs are highly engaging and have significant impact especially on purchase intent. The big screen combined with interactive ad formats and the influential target group using Smart TV features regularly remain key drivers for the effectiveness of Smart TV advertising.
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RESEARCH OBJECTIVES
To analyze Smart TV penetration, understand TV content consumption and profile Smart TV owners. As a follow-up to the smartclip Smart TV Ad Effectiveness Study in 2013 this study focuses on the changing TV content consumption.
How do Smart TV and Non-Smart TV users consume TV content today – considering Video on Demand and traditional TV content?
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What is the profile of Smart TV and Traditional TV owners, and who is using the Smart TV features?
What are the key drivers for Smart TV growth and usage?
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What is the perception and impact of Smart TV advertising?
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METHODOLOGY & SET-UP
This study was conducted by smartclip in collaboration with LG and executed by Nielsen in 4 countries in August 2015.
TOTAL SAMPLE Identification of TV owners (Smart TV and Non-Smart TV/Traditional TV) by screening questions in first part of the questionnaire in order to analyze Smart TV market penetration Sample size: UK Germany
3 750
Further questioning of purchase decision makers of current TV for deeper analysis of TV content consumption Sample size: n=700 per country (400 Smart TV owners, 300 Non-Smart TV/Traditional TV owners)
Spain
5 115
Brazil
2 824
IN TOTAL
4
COUNTRIES
GERMANY, UK, SPAIN,
BRAZIL
ONLINE SURVEY
12 181
23,870 12.11.15
SURVEY RESPONDENTS
20 MINUTES
2,800
IN TOTAL –4–
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SMART TVS HAVE ARRIVED AMONG THE WIDE POPULATION AND PROVIDE THE LATEST TECHNOLOGY STANDARDS
76
%
of Smart TV owners purchased their Smart TV within the last 24 months
82 %
36% of TVs in Germany are Smart TVs
connect their TV to the Internet
[ German data; Base: All respondents; (Smart) TV owners ]
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CONNECTIVITY AND ADVANCED FEATURES, PICTURE QUALITY AND SCREEN SIZE ARE KEY BUYING FACTORS FOR SMART TVS 52 35
41
DURABILITY
34
26
SOUND QUALITY
39
22
SCREEN SIZE
27
WARRANTIES & A/S
27
TV TYPE
27
CONNECTIVITY
26
ADVANCED FEATURES
7
BRAND
7
19 24
24 16 18
15
USER EXPERIENCE
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36
PRICE
37
SMART TV OWNERS
38
PICTURE QUALITY
20
ENVIRONMENTAL FRIENDLY DESIGN
NON-SMART TV/TRADITIONAL TV OWNERS
9 [ German data; Base: All respondents ]
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HIGH INTERNET CONNECTION RATE ACROSS ALL AGE GROUPS
82% of Smart TV owners are actually using their Smart TV features. Not only younger age groups take advantage of the Internet connection of their TV.
82 %
TOTAL
88 %
15 – 29 YEARS
83 %
30 – 39 YEARS
78 %
40 – 49 YEARS
80 %
50+ YEARS
[ German data; Base: Smart TV owners ]
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SMART TVS ARE THE MAIN DEVICE FOR CONNECTING THE TV TO THE INTERNET The majority directly connects their TV to the Internet by the integrated Internet functionality of their Smart TV (78%), but also NonSmart TV owners are connected via other devices.
78
0 SMART TV
11
43 STREAMING BOX/STICK
2
26 LAPTOP COMPUTERS
5
14 DESKTOP COMPUTERS
2
3 MOBILE (Smartphone/Tablet PC)
2
14 GAMING CONSOLE
SMART TV OWNERS
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NON-SMART TV/TRADITIONAL TV OWNERS
[ German data; Base: Those who have their TV connected to the Internet ]
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THE SMART TV IS THE MAIN DEVICE FOR WATCHING TV CONTENT – WHETHER IT IS TRADITIONAL TV OR ON-DEMAND CONTENT Among Smart TV owners the TV is the main device for watching traditional TV programs, but also Video on Demand is mostly watched via TV (64%) – followed by computers (30%).
95 % 64 % 2%
SMART TV
VOD/ON-DEMAND CONTENT
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15 %
DESKTOP COMPUTERS
3%
15 %
LAPTOP COMPUTERS
TRADITIONAL TV PROGRAMS
0%
5%
TABLET PC
0%
1%
SMARTPHONE
[ German data; Base: Smart TV owners ]
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ALREADY 32% OF TV VIEWING TIME ON SMART TVS IS SPENT ON ON-DEMAND CONTENT 21% of Smart TV owners watch on-demand content via the Internet connection of their Smart TV every day. On average Smart TV owners watch traditional TV programs 3.2 hours per day and spend 1.5 hours per day on Video on Demand content.
TRADITIONAL TV
PROGRAMS:
3.2
HOURS
VIDEO ON DEMAND:
PER DAY
1.5PER DAY
HOURS
[ German data; Base: Smart TV owners; Usage on weekdays and weekends ]
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MOVIES AND SERIES ARE THE MOST POPULAR CONTENT ON SMART TVS The most used apps on Smart TVs are apps for watching movies and series. 71% of Smart TV app users watch video content via Smart TV apps – compared to 32% in 2013. In the past 2 years the VOD offering has become much wider, this fuels the desire for watching on-demand content and thus for Smart TVs.
% 71
7%
16%
EDUCATION APPS SPORTS APPS
38% NEWS APPS
MOVIES/SERIES APPS
33%
% 42
MUSIC/RADIO APPS
29% WEATHER APPS
GAMES APPS
21% SOCIAL MEDIA/TV APPS
[ German data; Base: Smart TV owners / App users ]
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ALSO ON-DEMAND CONTENT IS MAINLY WATCHED DURING PRIMETIME Video on Demand consumption on Smart TVs shows a similar pattern throughout the day as traditional TV – with an even more significant peak in the evening. This again proves the relevance of prime-time advertising on Smart TV platforms.
4
6 AM - 9 AM
4
9 AM - 12 PM
14
19 53
6 PM - 8 PM
63
85
8 PM - 11 PM
15
23
11 PM - 1 AM
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10
12 PM - 6 PM
29
VOD/ON-DEMAND CONTENT
8
1 AM - 6 AM
TRADITIONAL TV PROGRAMS
5 [ German data; Base: Smart TV owners ]
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SMART TV OWNERS ALSO WATCH MORE TRADITIONAL TV PROGRAMS THAN NON-SMART TV OWNERS In addition to Video on Demand consumption Smart TV owners also spend more time watching traditional TV programs than Non-Smart TV owners and watch more channels. Thus Smart TVs fuel TV consumption in general. FREQUENCY OF WATCHING TRADITIONAL TV PROGRAMS
AVERAGE VIEWING TIME PER DAY
(in %)
(in hours)
55
2.8 2.7
4.2 4.0
47 29
29 17
SEVERAL TIMES PER DAY
SMART TV OWNERS
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NUMBER OF CHANNELS
ONCE A DAY
24 WEEKDAYS
WEEKENDS
8.1
7.7
NOT DAILY
NON-SMART TV/TRADITIONAL TV OWNERS
[ German data; Base: All respondents ]
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ALSO IN TRADITIONAL TV PROGRAMS MOVIES ARE THE MOSTWATCHED CONTENT Movies lead the ranking of content watched in traditional TV programs and via Video on Demand. News and live shows play a bigger role in traditional TV programs.
25 8 13
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NEWS DRAMA/OPERAS/SERIES
6 8 4 2 7 0 3 2 2 2 0 1 VOD/ON-DEMAND CONTENT
29
MOVIES
9 9
LIVE BROADCAST/SHOWS REGIONAL PROGRAMS SPORTS ENTERTAINMENT RELATED
4 4 9
DOCUMENTARIES/REPORTS HOME RELATED ANIMATION EDUCATION KIDS RELATED FASHION/SHOPPING TECH/PRODUCTS LEISURE & HOBBY
TRADITIONAL TV PROGRAMS
1 1 3 1 0 1 0 [ German data; Base: Smart TV owners ]
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WAYS OF ACCESSING ON-DEMAND CONTENT
The majority (72%) of Smart TV users mainly access on-demand content via the Smart TV portal and integrated apps, but also the Red Button is used to get access to the HbbTV offering of broadcasters.
28%
72%
VIA THE RED BUTTON (HbbTV)
VIA THE SMART TV PORTAL
[ German data; Base: Smart TV owners ]
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REASONS FOR ACCESSING ON-DEMAND CONTENT ON SMART TVS
The primary reasons for watching video-on-demand are flexibility and wider choice of content.
40 %
45%
39% 29 %
38 %
30 % 7%
Wider choice of content
I can watch movies independent of broadcast schedules
Comfortable experience and easy access
The traditional TV programs are not sufficient/don’t interest me
To watch movies that are not shown on traditional TV channels
I watch on-demand content in addition to traditional programs
I switch to on-demand video during adverts in TV programs
[ German data; Base: Smart TV owners ]
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SMART TV OWNERS TEND TO WATCH TOGETHER MORE THAN NONSMART TV OWNERS AND ALSO LOOK AT A BIGGER SCREEN
85 % 2.3
67 % 48 %
63 %
2
PEOPLE INFRONT OF SCREEN OF TVS ARE ABOVE 40“
WATCH TOGETHER WITH FAMILY OR FRIENDS
SMART TV OWNERS
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NON-SMART TV/TRADITIONAL TV OWNERS
[ German data; Base: All respondents ]
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SMART TV OWNERS ARE YOUNGER THAN OWNERS OF TRADITIONAL TVS Smart TV owners are the most sought-after younger target groups. 78% of Smart TV owners are between 15 and 49 years old.
%
%
24 21%
29 25
15 – 29 YEARS
SMART TV OWNERS
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%
%
%
25 25 23
30 – 39 YEARS
40 – 49 YEARS
NON-SMART TV/TRADITIONAL TV OWNERS
%
% 30
50+ YEARS
[ German data; Base: All respondents ]
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SMART TV OWNERS ARE WELL-EDUCATED FAMILY PEOPLE WITH HIGH PURCHASING POWER
%/
51 40
%
%/
60 55
€38,001+
WITH DIPLOMA FROM SECONDARY SCHOOL
ANNUAL HOUSEHOLD INCOME
%/
49 38
%
MALE SMART TV OWNERS
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%
63%/45% MARRIED / LIVING
WITH PARTNER
47%/36%
HAVE CHILDREN
[ German data; Base: All respondents ]
NON-SMART TV/TRADITIONAL TV OWNERS
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SMART TV OWNERS OWN MORE INTERNET-CAPABLE DEVICES THAN TRADITIONAL TV USERS The high online-affinity of Smart TV owners is also indicated by the ownership of other Internet-capable devices. 92% of Smart TV owners have a Smartphone – compared to 79% of Non-Smart TV owners.
17
6 STREAMING BOX/STICK
(e.g. Chromecast, Amazon Fire, Apple TV)
60
59 DESKTOP COMPUTERS
86
77 LAPTOP COMPUTERS (Notebook/Netbook)
59
38 TABLET PC (iPad, Galaxy Tab, etc.)
92
79 SMARTPHONE
55
43 GAMING CONSOLE
SMART TV OWNERS
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NON-SMART TV/TRADITIONAL TV OWNERS
(e.g. PlayStation, Xbox)
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[ German data; Base: All respondents ]
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AWARENESS OF SMART TV ADVERTISING AND HIGH (INTER)ACTION
35 %
51
have interacted with Smart TV ads
%
are aware of Smart TV ads
42
%
75 %
engaged in some kind of action, for example talking about the product or purchasing it
[ German data; Base: Daily VOD users; Those who are aware of Smart TV ads ]
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ACTIONS TAKEN AFTER INTERACTING WITH SMART TV ADS
After interacting with the ad 58% of Smart TV owners consider buying the product – compared to 14% in 2013. 36% search for information about the product or brand via the internet and 14% make the purchase straightaway.
58%
CONSIDERED BUYING THE PRODUCT
36%
14%
SEARCHED MORE INFO ON THE PRODUCT/BRAND BY INTERNET
TALKED ABOUT THE PRODUCT/BRAND/AD TO OTHERS
14%
PURCHASED THE PRODUCT RIGHT AWAY [ German data; Base: Those who interacted with Smart TV ads ]
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REASONS WHY USERS INTERACT WITH SMART TV ADS
Just like in the Smart TV study in 2013 the key factor for successful advertising and interaction is relevance. But also appealing ads and remembering previous advertising provide motivation to engage with an ad.
67%
25% 31%
13% The ad was for a product I was interested in buying
15%
The ad caught my attention
The ad had a promotion or special deal that I was interested in
The ad was for a brand I have seen advertised before
The ad looked nice
[ German data; Base: Those who interacted with Smart TV ads ]
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ADVANTAGE OF SMART TV ADS
The primary advantage of advertising on Smart TVs compared to other digital devices that allow to watch video content is the big screen.
34 % 18 %
More trustworthy
10 %
9%
7% More convenient to watch as it has a bigger screen
18 %
Large variety of different types of ads
Can purchase the product right away
Ad format is innovative and interesting
More informative
5% Ads are intriguing and interactive
[ German data; Base: Those who are aware of Smart TV ads ]
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THANK YOU!
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