This is how popular connected TV is

The Advanced TV DACH study by Goldbach proves this: The acceptance of TV offerings linked to digital applications is high. More and more people own the right hardware, use streaming services on a daily basis - and advertising acceptance is also growing.

(Image: / Paul Campbell)

Connected TV is enjoying great popularity in all DACH markets. Both streaming services and smaller broadcasters are benefiting from the fact that more and more TV sets connected to the Internet are appearing in people's living rooms in Germany, Austria and Switzerland - and acceptance of advertising is growing in what was "barely developed territory" just a few years ago. All this emerges from the Advanced TV DACH study, which was conducted by Goldbach Group AG and is being published these days. We have summarized the most important findings.

Awareness of Connected TV

The Goldbach study demonstrates that connected TV is now very well known in all DACH countries. When asked about the technology, 72% of respondents were able to categorize it correctly - and 56% of the total respondents stated that they use the technology themselves. The leading age group in terms of frequency of use among connected users is currently people aged between 30 and 49 (63%), with men leading the gender comparison (61%).

"Campfire for the family"

While linear television used to be referred to as a "campfire around which the whole family gathers", connected TV is steadily catching up in terms of the "community experience": the more people share a household, the higher the average weekly frequency of use of the technology - and the greater the likelihood that content offerings will be consumed together rather than by individuals. The current trend is towards co-viewing with a second person, which shows that personalization options do not necessarily have to go hand in hand with a singularization of viewers. This is an important indication for those who design programs, but also and above all for advertisers.

Where is the "access point"?

The fact that connected TV is flourishing is certainly also due to the fact that hardly any televisions are sold today that do not come with the option of digital expansion "from the factory". Accordingly, three quarters of those surveyed in the Goldbach study who use connected TV stated that they do so via a "smart" end device - in other words, they could do without bridging technology. Samsung is very popular among the relevant device brands, followed by LG, Sony and Philips.

"Linear TV used to be the 'campfire' for the family. Connected TV is now catching up."

The minority who use a streaming box are most likely to choose the Apple TV Box, followed by Magenta TV and the Amazon Fire TV Cube. These boxes are mainly used in households with children or households with three or more people (such as shared flats). If it is not a box, but a more compact streaming stick, the Amazon Fire TV Stick claims the highest market share in the DACH region. And when it comes to games consoles - which can also serve as a bridging technology for Connected TV - the Sony Playstation leads by a wide margin.

Almost three hours a day "connected"

Regardless of the access point, those who have access to connected TV technology use it extensively. According to the participants in the Goldbach study, they spend an average of more than two and a half hours a day with the "additional services" offered to them by digitalization - with Germans spending the most time in the connected ecosystem; the daily usage time has also increased significantly in the group of people aged between 16 and 29.

Apps are known - and used

The typical interface for connected TV - i.e. a specific arrangement of apps depending on the device manufacturer or bridging technology - is familiar to 98% of the users surveyed (the remaining 2% can probably be categorized as a statistical blur, as it is difficult to imagine anyone owning a digital TV set without ever having taken a closer look at its user interface). Unsurprisingly, streaming apps are the most popular, followed by TV channel apps and then apps dedicated to music and sport. "Heavy users" are mainly people between the ages of 16 and 49 (95% use apps regularly), but the older target group is catching up: Here, the weekly use of apps has risen to 75 percent.

The Goldbach study also proves that there is an extremely significant willingness to pay in connection with apps in the connected TV sector: the participants in the study stated that they use an average of 1.2 paid apps - if the number of actual users is analyzed, the rate even rises to an average of 2.5 paid apps per person. This rate is topped once again by women (2.7 paid apps), the demographic group of people aged between 16 and 29 (2.8 paid apps) and households with three or more people or households with children (2.8 paid apps). This is reflected in average expenditure of 36 euros / Swiss francs per household, the lion's share of which is invested in streaming apps (Netflix, Sky, Amazon Prime, etc.).

"Advertisers are well advised to consider investing in appropriate formats."

However, free apps are also increasingly being used - as a supplement or alternative to linear TV programs and as a way to consume moving image content in a pre-curated version. The average value of all respondents here is 1.3 apps, with effective users regularly accessing 3.0 free apps. This rate is topped by men (3.2 free apps), households with children and households with three or more people (3.3 free apps). This data also hides a somewhat surprising observation: free streaming apps are used more in Germany than in Switzerland and Austria, although Switzerland probably has the most liberal approach to the digitization of previously linear TV content in Europe.

And what about advertising?

It's no secret that pick-and-choose content has long been associated with certain reservations for advertisers. In an environment in which users can switch between a large number of content platforms more easily than ever, is advertising still perceived at all? Well, the Goldbach study on Connected TV can disprove at least some of these reservations.

This is because 51% of Connected TV viewers perceive advertising in the Connected TV environment. This represents an impressive ten percent increase in advertising awareness compared to the previous year's survey. A country comparison shows that Germany has the highest advertising perception, ahead of Austria. The increase among the female target group is particularly striking (fifteen percent compared to the previous year) and among 16 to 29-year-olds there is even an increase of 16 percent compared to the previous year. Among households with children, advertising awareness is at 56% - a peak value.

The basic acceptance of advertising in the connected TV environment is also growing continuously: more than half of the connected TV viewers interviewed in the Goldbach study find advertising in the connected TV environment "okay". Larger households and households with children not only show a high perception of advertising (see above), but also a top acceptance rate of 56%. Almost half of respondents also find that advertising in the connected TV environment gives them useful information about new products. 41% of respondents find advertising in the connected TV environment "helpful"; more than a third rate advertising as informative and entertaining. In a country comparison, the perception of advertising in Germany is consistently rated better than in Austria and Switzerland.

Build a head start now

Particularly exciting for clients: Advertising on connected TV works and activates. A good third of recipients state that they can "usually remember advertising in the Connected TV environment", that they "find out about a product based on the advertising", "talk about it with friends" and "ultimately buy the product". With regard to the specific forms of advertising "Connected TV spots" and "Connected TV ads", it is clear that over half of the people surveyed are familiar with these two forms of advertising. Advertisers are therefore well advised to check whether they want to invest in these formats. If the latest data from Goldbach is to be believed, it should be worthwhile. And build up a not insignificant lead over market competitors who are still taking a conservative, cautious approach to connected TV.


"We recommend an integrated advertising strategy"

Mario Neumann, Director, Business Development, Goldbach Germany. (Image: zVg.)

m&k: The GoldbachDACH study shows a high CTV usage in the DACH region. What is the Advantage for advertisers?

Mario Neumann: The fusion of digital technology and traditional TV enables precise targeting for advertisers. Data-supported, more efficient targeting is possible, combined with the advantages of TV: relaxed viewing combines high emotionalization and trust in the advertising message.


What new advertising opportunities become through the technology feasible?

New, innovative forms of advertising such as CTV Spots, CTV Ads, Corporate Channels, Addressable TV and Dynamic Ad Insertion (DAI). CTV Spots use viewer data for precise targeting and offer real-time measurement. CTV Ads, as native tiles on streaming platforms, enable unobtrusive interaction. Corporate channels allow companies to create their own CTV channels for their moving image content and thus strengthen brand loyalty. Addressable TV enables targeted advertising within traditional TV environments, while DAI dynamically replaces advertising content in live streams or TV ad breaks to increase the relevance and efficiency of advertising.


Fears about Individualization effects with viewers through CTV are unfounded. Will CTV become linear TV nevertheless only in Audience figures and then also in advertising volume replace?

Our Advanced TV study shows steady growth in CTV usage and acceptance across all age groups, especially among younger people and multi-person households. Advertisers are still hesitant about CTV campaigns - reach and advertising spend do not yet match. We expect CTV to play an important role in the media mix without completely replacing traditional TV in the near future. We recommend an integrated advertising strategy that combines traditional and digital approaches and utilizes the potential of CTV.

Connected TV: What is it actually?

Connected TV (also known as CTV for short) is a term that refers to televisions that are connected to the internet. Connected TV allows users to stream video content from various sources, including streaming services, but also live TV channels and video-on-demand providers. The connection to the internet is typically established either via the TV sets themselves or via bridging technology (game consoles, streaming boxes or sticks).

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