the new TV is everywhere - IAB Southeast Asia & India€¦ · the medium, allowing it to become a more immersive, interactive experience for audiences. The rise of streaming services,

Outside of the box: the new TV is everywhere

Outside of the box: the new TV is everywhere | SINGAPORE

SINGAPORE

2 Outside of the box: the new TV is everywhere | SINGAPORE

Executive summary

Methodology

Introduction

Conclusion

What do we really mean by ‘TV’ nowadays?

•What is Singapore watching?• Streaming by age• Netflixwinsthestreamingrace•How many subscription services

does a SIngaporean household have?

Evolution of Connected TV

• The business of CTV• Connecting the dots

Getting Personal

•How valuable is your data?•Making it memorable• Effectiveconsumerexperience

Contents

Part

1Part

2Part

3


Commissioned by dataxu, this whitepaper presents the current perceptions of media agencies, brands, and consumers around the existing and future state of the TV landscape.

Research conducted from more than 1000 interviews split between businesses and consumers uncovered the following:

• The majority of consumers surveyed still watch television through traditional formats, as opposed to paid subscription services or Smart TV’s

• Age demographics vary for each type of TV content available – a larger proportion of younger generations opted for paid subscription services, which is likely to increase in the coming years

• Netflixiscurrentlythemostpopularsubscriptionservice for consumers in Singapore, with almost half of those surveyed already subscribing to it

• Brands and agencies alike stated that they plan to increase investment on Advanced TV over the next5yearsby29%

• Consumers are also shown to be more conscious of how their data is being used – claiming they believe their data has become more valuable to advertisers

• Veryfewconsumers(35%)whobelievetheyhavebeen targeted by personalised advertising can recall what this was about. Nevertheless, the majority of consumers believe that their overall experiencewithadvertisinghasimproved,thanksto ads being more suited to their preferences and habits

Executive summary


• 106 interviews with business’; and 1003 with consumers were completed in Singapore

• Ofthebusiness’surveyed,56werewithmediaagenciesand50werewithbrands/advertisers

• The interviews were conducted online by SapioResearchinMarch2019usinganemail invitation and an online survey

TheglobalTVindustryisevolvingexponentiallyand with it, Advanced TV – meaning any form of TV beyond the traditional realms – has grown fromstrengthtostrength.Theexponentialriseof digital has fundamentally uprooted the way in which we, as consumers, watch our favourite TV shows. Considering that TV consumption habits have shifted in the past couple of years alone, advertisers must constantly look to reinvent their strategiesthroughTV.Assuch,dataxupartneredwith market research agency Sapio & surveyed media agencies, brands, as well as consumers, to bring you a realistic picture of the current landscape of Advanced TV in Singapore.

Digital advertising has the tendency to become over cluttered, meaning brand messages may struggle to be heard or seen. Personalised advertising may very well provide the solution to this problem. ResearchconductedbySapio&dataxu,revealshow consumers really feel about advertisers’ use of their data, particularly in the wake of media coverage of privacy breaches by tech giants like Facebook and Google and GDPR hitting its one-year milestone in the EU. Diving deeper, media agencies and brands revealed which areas businesses are investing in, and where they believe investment will takeoffinthecomingyears.

Methodology

Introduction


What do we really mean by ‘TV’ nowadays?

Television has undergone a dramatic transformation since the days of black and white programming. Technological innovation consistently breathes new life into themedium,allowingittobecomeamoreimmersive,interactiveexperienceforaudiences.Theriseofstreamingservices,includingNetflixandAmazonPrime,havequicklyinfiltratedmainstreamculture.By-proxy,viewershipitselfhaschangedovertheyears.Sapio&dataxusurveyedconsumersontheirTVpreferences, providing a clearer insight into the realms of digital and traditional TV, and how consumers are currently engaging with both mediums.

Part

1


The prevalence of online streaming giants in our every day, water-cooler conversations seems to suggest consumers have replaced traditional TV as the go-to for their favourite shows. In actual fact, traditional TV still holds the largest share of TV watching (36%), as opposed to paid subscription services such as Netflix which captures 31% of viewing time.

What is Singapore watching?

36%

Traditional TV (liveprogrammes)

31%

24%

8%

Smart TV (catch up applications)

Paid subscription services (e.g.Netflix,AmazonPrime)

CTV devices (e.g. Roku, AmazonFireStick)

ThemereclassificationsofTVhavealsochanged.Whenconsumerswereaskedhowtheydefinepaidsubscriptionservices,overtwothirds(65%)optedfortheterm‘digitalvideo’,whereas28%defineitas‘TV’.Interestingly,7%ofconsumersansweredwith“Idon’tknow”, indicating that there is still much confusion arounddefiningexactlywhattelevisionisandrepresentsin this new era. 65%

Digital video

28%TV

7%I don’t know

What proportion of your total tv watching is made up of the following types of TV content?

How would you classify services like Netflix and Amazon Prime?


Nevertheless, consumer habits regarding TV vary depending on age demographics. Whilst traditional TV still dominates the market at a macro level, the statistics revealed younger generations show higher engagement rates with online media. Unsurprisingly perhaps, the digitally native tribe of millennials, particularly those aged 18-24 lead the demographic for watchingpaidsubscriptionservices(43%).TraditionalTVisgreatlywatched(67%)bythose aged 66+.

Streaming by age

Traditional TV watching by age

Paid subscription service watching by age

29%

43%

18-24

18-24

25-34

25-34

35-44

35-44

45-54

45-54

55-65

55-65

66+

66+

27%

37%

35%

30%

46%

23%

58%

18%

67%

13%

What proportion of your total tv watching is made up of the following types of TV content?


In an era of such hyper-connectivity, it comes as nosurprisethatNetflixescalatedimpressivelyfrom DVD rental store to SVoD giant. This growth has also allowed it to become the most accessed platform in Singapore, in which 46%ofsurveyedconsumersstatetheyowna subscription to the service. In Singapore, AmazonPrimeisthenextmostpopularstreamingchoicebyasignificantmargin(10%).

Netflix wins the streaming race

46%

10% 9%6% 5% 4% 3% 3%

List of paid subscription services ranked by popularity


Respondents in Singapore stated that they have, on average, access to 1.17 paid subscription services. 56%ofthosesurveyedclaimthey have access to 1 or 2 paid subscription platforms, with the minority(2%)claimingtohavemore than 4.

How many subscription services does Singaporean household have?

35% said None35%None

56%1-2

7% 3-4

2%More than 4

How many platforms do you have paid subscriptions to? (Netflix, Amazon Prime, Hulu, etc).

Male29% Female42%


Evolution of Connected TV

Connected TV – essentially a television that can connect to the internet, allowing access to content beyond traditional forms of TV – has been fuelled by Advanced TV’s rapid growth. For advertisers, the opportunities Linear TV offersareenhancedbythebettertargetingpotentialthatConnectedTVhastooffer.AccordingtoSapio’sfindings,Singaporemediaagenciesandbrandsareinvesting in Advanced TV, with Connected TV showing the greatest amount of investment within the industry.

Part

2


Connected TV certainly means big business. Having surveyed media agencies and brands on their inventories, statistics revealed that 86% of media agencies buy Connected TV/ OTT inventory, compared to 84% of brands and advertisers. Over four fifths of businesses asked state that they are buying Connected TV/ OTT inventory.

The Business of CTV

All

Media agency

Brand/advertiser

Which type of TV inventory do you buy?

Accordingtomediaagenciesandbrands,amajority(21%)ofTVinvestmentisspentontraditionallinearTV.However, this is very closely followed by investment in newer forms of TV inventory such as Connected TV (19%),VideoonDemand(16%),OTT(14%)andAddressableTV(13%).

Connected TV/OTT

85% 86% 84%

Traditional linear TV

63%

79%

46%

Addressable TV

58%68%

48%

I don’t buy any type of TV inventory

1% 2% 0%

Connected TV

19%20%

19%

Addressable TV

13% 13%13%

OTT

14% 14%15%

All

Media agency

Brand/advertiser

Video on demand (VOD)

16%15%

17%

Considering your/your clients investment on TV advertising, what is the percentage of budget invested on...

Traditional linear TV

21%

24%

19%

Increase significantly Increase slightly No change Decrease slightly Decrease significantly


38%

46%

28%

52%

8% 7% 8%

2% 1%0% 0%4% 2%

46%

58%

Media agencies and brands are clearly optimistic about the future of Connected TV. As such, respondents predict that Connected TV buyingwillincreasebyanaverageof31.9%overthenext5years,andwithinthistimeframe,90%ofbusinessesexpecttheirspendonAdvancedTVtoincreaseoverthenext5years.

Connecting the Dots

31.9%34.0%

27.9%

Connected TV

27.6%30.3%

22.6%

Addressable TV

29.5% 28.5%31.4%

Video on demand (VOD)

27.2% 27.7% 26.3%

OTT

All

All

Media agency

Media agency

Brand/advertiser

Brand/advertiser

By how much do you expect to increase your clients investment on Advanced TV inventories?

In the next five years do you expect to increase or decrease your/your clients investment on Advanced TV (CTV, VOD, OTT, etc)?


Getting Personal‘Adfatigue’hasmeantthatadvertisershavehadtofindnewer,morenuanced ways to keep up with shifting consumer habits. Bring on the wave of personalisation–inwhichadvertisingiswell-tailoredtobenefittheindividual,oraspecificdemographic.Andconsumersareindeedawareofpersonalisedadvertising, and how advertisers are making use of their data. But perhaps a little added sophistication is needed to enhance advertising strategies. With only a small number of consumers able to recall the brand that targeted them withapersonalisedad,itseemsthatpersonalisedadvertisingneedsmoreflairtobeeffective.

Part

3


Following the implementation of GDPR in the EU, and with a more transparent digital advertising ecosystem on the rise globally, it is no wonder that consumers are more knowledgeable on how advertisers make use of their data. The majority of those surveyed (78%) believe their data has become more valuable to advertisers over time. In terms of how consumers would prefer this value exchange to work, 61% would be at least somewhat happy to share their data in an anonymous way in order to see personalised ads and offers whereas 65% would be in exchange for free content.

How valuable is your data?

Consumers have become more welcoming of advertisers’ use of their data, which has given way to the rise of personalised advertising. Nevertheless,ofthe60%ofconsumers who claim to have been targeted by personalised ads on TV, only35%canrecallwhattheadwasrelated to.

Making it Memorable

60%Yes

40%No

35%Yes65%

No

Do you think you have already been targeted with personalised advertising on TV?

Do you remember which brand/product the ad was related to?

Knowing that your data is anonymous and can’t be linked back to you, would you be happy to share your data in order to see personalised ads and receive personalised offers, or in exchange for free content?

Yes, completely

Yes, somewhat

No

Not sure

16%

17%

45%

27%

12%

48%

23%

11%

61%say yes 65%

say yes

Personalisedads/offers

Free content


Improvingpersonalisedadvertisingisamutuallybeneficialexperience.Consumersreceivemorevaluablerecommendationsand suggestions based on products and services that will actually benefitthem,andarerelevanttothem.Inreturn,advertiserswill receive an optimised ROI, stronger leads, and better relationshipswiththeirconsumers.62%ofconsumerssurveyedstatedtheyhadabetterexperiencewithadvertisersnowthatads are becoming better tailored to their likes and habits.

Effective Consumer Experience

Do you think your online experience with advertisers has improved in the past year?

It has improved greatly

It has improved slightly

No change

It has worsened slightly

It has worsened greatly

17%

45%

30%

6%

2%

62%say it has improved

8%say it has got worse


More than ever, television lies at the heart of an important intersection between technology and innovation. As a direct result, Advanced TV isexpanding–creatingabroadercanvasforadvertisersandamoreenrichedexperiencefor consumers. Having collated the thoughts of industry insiders, and supplemented these with thatofconsumers,dataxuhasuncoveredkeyinsights into how shifting consumer habits are complemented by the industry’s investments, and vice versa.

Progressions in Advanced TV mean there is now a considerable appetite for streaming services in Singapore, particularly among younger generations. The power of these streaming services has yet to outstrip the competition of traditional TV, which still holds great market domination. Still, media agencies and brands are increasingly looking to enlarge their CTV buying inventories and amplify their advertising strategies across the spectrum of Advanced TV. Truly, the evolution of Advanced TV is growing considerably – and shows no sign of slowing down.

Conclusion

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Documents

the new TV is everywhere - IAB Southeast Asia & India€¦ · the medium, allowing it to become a more immersive, interactive experience for audiences. The rise of streaming services,