Advertisers to Increase Spending on Free Streaming TV Programs

Earlier this week, I blogged on a report that noted slower than expected growth in consumer use of the TV Everywhere onlineshopping2model. A report from NPD group shows consumers have a more positive mindset about viewing free streaming TV shows. As this format gains traction with viewers, advertisers will be taking note.

With some consumers fed up about the increasing costs of pay TV, they’re turning to free alternatives. About 12% of consumers are regularly tuning into free streaming shows. The most popular channels for this activity include:

  • Hulu 43%
  • CBS​.com 10%
  • ABC​.com 9%
  • Fox 4%
  • NBC​.com 4%

NPD research points to general consumer satisfaction with this method of TV viewing, especially:

  • Convenience
  • Site organization
  • Current release availability

About ½ of the audience for free streaming TV programming is between the ages of 18 and 34. Russ Crupnick, senior vice president of industry analysis at NPD, says that this format of programming is appealing to  younger demographic groups because they are accustomed to watching what they want at a time of their choosing. One of the most surprising findings of this study is that the vast majority of this viewing, 83%, occurs on computers instead of mobile devices.

This trend bears watching. If the TV audience continues to shift away from traditional viewing and into streaming, the nature of the ads marketers choose to display in these different formats may change as well.

[Source:  Free Streaming Making Inroads. Npd​.com. 4 Feb. 2013. Web. 7 Feb. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.