CONSUMER ATTITUDES TOWARDS TRADITIONAL AND 2ND SCREEN ADVERTISING A SURVEY STUDY

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1 CONSUMER ATTITUDES TOWARDS TRADITIONAL AND 2ND SCREEN ADVERTISING A SURVEY STUDY Virpi Oksman, VTT TV advertizers TOP-3 pain points #1 I need a simple, reliable and real time data of my advertisement #2 I need consumer feedback #3 How can I get people to watch my ads?

2 TV watchers TOP-3 pain points #1 Ads are irritating! They interrupt my watching experience! #1 Ads are irritating! They interrupt my watching experience! #2 Ads are not for me #2 Ads are not for me #3 If I see an interesting ad what then? #3 If I see an interesting ad what then? The aim of the study 02/2013 The a survey study focused on the topics such as: The current watching habits of TV and internet-tv The utilization of 2nd screen devices (tablets, mobile phones, laptop computers ) while watching TV Attitudes for TV traditional ads and 2nd screen/targeted TV ads NEXT MEDIA - A TIVIT PROGRAMME

3 Smart and Targeted Ads The survey in Finland, Spring 2012 Overall 2473 filled out the questionnaire (1447 male, 1026 female, 1571 of the respondents were over 45 years old ) The respondents had secondary education, occupations varied a lot Nearly half of the tablet device owners used Internet over 3 hours per day 60% of the respondents under age 45 years and 35% over age 45 used social media daily 40% of the respondents under age 45 years 15% over age 45 used watched recorded TV content many times per week NEXT MEDIA - A TIVIT PROGRAMME Media multitasking is increasing (picture: NEXT MEDIA - A TIVIT PROGRAMME

4 Findings Two thirds of the respondents utilised ICT devices while they were watching TV The most popular 2nd screen device was a laptop, then a touch phone (Nokia, Samsung & Sony Ericsson), tablets becoming more and more popular (appr. 10% by the time) Tablet device owners were the most active and impulsive consumers. Tablet device was the most popular choice (11% of the respondents) for what the respondents are going to buy in next three months 11% of the respondents had an internet-tv and 5% of the respondents was going to buy it in next three months Findings Internet video service usage frequency Youtube MTV3: Katsomo.fi Nelonen: Ruutu.fi Daily Weekly Monthly Seldom Yle Areena NEXT MEDIA - A TIVIT PROGRAMME

5 Findings Internet-tv Devices in use and planned to be bought in next three months Basic cell phone Smart Phone Tablet device Laptop PC Table top PC Planned to be bought In use Findings Approximately half of the respondents were willing to share their personal information (age, gender, hobbies, interests) for targeting ads Almost half of the respondents agreed that ads targeting is useful and profitable Product and services offers and product rewards were the two most popular ways to motivate for creating a personal interests profile

6 Overview of the open ended answers Material is huge: it consists of over 600 pages Includes detailed descriptions what people do during commercial breaks Commercial breaks are used for doing something else than watching tv Others leave the room physically in order to do something Empty dishwasher, do laundy, go for a smoke, eat something, exercise, play with children Others leave the TV/current channel Surf the net, make calls, do , write messages, play games, shop online, change the channel, fast forward the commercials

7 Main reasons to skip TV ads People are already used to spend commercial breaks for something useful People want to save time by fast forwarding Ads are unpleasant and they are not meant for me Ads repeat themselves too much Could 2nd screen bring some added value for users? Almost half of the respondents agreed that ads targeting is useful and profitable Some were critical against profiles mainly because of privacy concerns I would not like to share my advertising profile with my friends! I would like to get also ads of things that I would not like to share.

8 Personal information users were willing to share Approximately half of the respondents were willing to share their personal information (age, gender, hobbies, interests) for targeting ads. Conclusions & future work The findings indicate that among other activities, using second screen applications during TV watching is a growing trend among consumers. Consumers use second screen applications to browse the Internet, contact with their friends through social media and to get more information related to TV programs. Consumers were willing to act to receive only more relevant advertisements for themselves. Over half of the respondents were willing to share their personal information for targeting ads. Combining multiple devices and second screens could bring some extra value for TV ads. Almost half of the respondents agreed that ads targeting is useful and profitable. Some of the users were critical against profiles mainly because of privacy concerns user privacy should be secured.

9 Thank you for your interest! Virpi Oksman, VTT,

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