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Magnite Research Finds 7 in 10 Brits Prefer Streaming Services to Broadcast TV

by on 3rd Mar 2021 in News

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Magnite (NASDAQ: MGNI), the world’s largest independent omnichannel sell-side advertising platform, released its “CTV: The Future Forward” report, which finds that 69% of UK consumers prefer streaming services to broadcast linear TV. The study of 10,500 consumers across the UK, France, Germany, Spain, and Italy, identifies how audiences are consuming TV and explores the opportunities for marketers as the shift to CTV accelerates and consumer behaviour evolves.

Increasing adoption for CTV services

The UK leads in terms of CTV adoption in EU5, according to the report. Among the five countries surveyed, 89% UK respondents reported using a streaming service at least once a week and 61% watched daily. UK viewers tune into subscription (SVOD) and ad-supported (AVOD) streaming services weekly almost equally (75% and 74% respectively), showing that advertising is not a barrier to adoption.
The report also found 51% of UK viewers’ time spent watching TV takes place on streaming channels, and if they could only keep one, 55% would choose streaming services versus broadcast linear TV. Currently, 50% of TV audiences turn first to streaming channels instead of broadcast. When delving into the different consumption patterns between CTV and broadcast channels, 62% of viewers watch broadcast TV out of habit, whereas 62% of respondents choose CTV as their default service because it boasted their favourite shows and 51% enjoy the greater variety of content.
When looking at streaming behaviour by age, the preference is even more pronounced. Nearly 70% of Millennials and GenZers go directly to streaming channels first over broadcast.
“We’re experiencing a seismic shift in how individuals are consuming content,” said Julie Selman, UK Managing Director at Magnite. “The research demonstrates a significant change in consumer behaviour, with 54% of UK viewers watching more CTV content now versus a year ago. This acceleration in CTV adoption creates a huge opportunity for advertisers to use the power of CTV to connect with consumers, and reach people where they are enjoying content they love.”

 

Additional findings from the study include:

 

  • AVOD vs SVOD: 67% of respondents said they would be willing to pay more for streaming services, indicating a healthy appetite for additional streaming content. For these consumers who would increase their streaming budget, the average maximum monthly budget was identified as £32, up from the current average monthly spend of £25. That being said, UK audiences are still budget-conscious and 85% said they prefer to watch advertising in exchange for free or reduced-cost streaming services. 77% would switch to a free or reduced-cost, ad-based tier of a paid streaming service if available.
  • The advertiser’s opportunity: 63% of UK consumers are receptive to CTV advertising, especially those that are relevant to the show they are watching (77%), relevant to hobbies or interests (75%), or related to online searches (58%). And CTV is a key driver in encouraging consumer action signalling the major potential of CTV to deliver on campaign goals; 78% have taken an action after exposure to a CTV ad – including online searches and purchasing an advertised product or service.
Selman continues, “Our latest research shows that CTV is more than a brand-building opportunity for advertisers and that CTV exposure leads audiences to take concrete actions. 39% of viewers recognise that addressable ads are the future of TV advertising. As more marketers learn to harness the addressability opportunities that are available through streaming TV, I am confident we will see TV emerge as a premium, brand-safe, performance marketing channel.”
Daniel Knapp, chief economist, IAB Europe, comments: “Magnite’s research into the rise of connected TV adoption across Europe is vital in educating advertisers on the opportunity to capture audiences’ attention where they’re consuming content. Proof points like these will equip advertisers with actionable insights and the confidence to incorporate CTV into media plans. It’s important to understand the rapid rise in each region, but also acknowledge the nuances in viewing habits, to reach viewers with relevant and targeted advertising in a preferred viewing environment.”
To view the full report, and explore additional insights from the other countries surveyed, click here.