Tremor Video & Hulu Research Reveals Gen Z is at Peace with Connected TV Advertising

New study shows how the next generation of consumers’ embrace of
digital TV consumption may transform video advertising, television
industries

NEW YORK–(BUSINESS WIRE)–Tremor
Video
(NYSE:TRMR), a provider of software for video ad
effectiveness, today released a proprietary study in conjunction with
Hulu, the leading premium streaming service, regarding Gen Z’s ad
receptivity on connected TV (CTV) and over-the-top (OTT) devices. The
data show that Gen Z is a native digital video generation that
overwhelmingly equates “watching TV” with an online source. They also
may be the first to fully embrace digital video advertising by seeing
ads as indistinguishable from actual TV shows, and they will be
CTV-first consumers.

This transformative shift in attitudes and preferences represents a
tremendous opportunity for both streaming services and advertisers, with
the ability to capitalize on this continued growth for the long term.

Proof that even the term “watching TV” now holds a different meaning, 84
percent of adults aged 14-50 equate “watching TV” with devices such as
an Apple TV or PlayStation. Specifically, 70 percent of Gen Z consider
watching TV through an online source, whereas 74 percent of Gen X
consider watching TV to be through traditional cable or satellite
services.

The transition of television programming to a digital, streaming-first
culture has been happening at a rapid pace,” said Karen Ring, Senior
Director, Insights + Analytics, Tremor Video. “Gen Z, who in two years
will make up 20 percent of the workplace, is in a prime position to
create an inflexion point in favour of online consumption.”

This survey is a window into the consumption habits and advertising
preferences of the next generation of viewers,” said Julie DeTraglia,
Head of Ad Sales Research, Hulu. “TV consumption habits have evolved and
Gen Z is at the forefront of the shift. And Hulu is perfectly positioned
to help advertisers reach this generation of viewers with relevant and
targeted advertising in a preferred viewing environment.”

Serial Monogamists

Due to streaming’s on-demand nature, Gen Z are 40 percent more likely to
watch multiple episodes of TV in solid, focused chunks, much like
reading chapters in a novel. Demonstrating their loyalty to the medium,
more than half of respondents say they prefer to stick to a single show
until they finish the series, rather than intermix shows. Part of the
reason is to stay relevant with their friends: 43 percent want to talk
about it with their social group, 32 percent want to impress their
peers, and 23 percent think watching a show makes them smart. Regardless
of the device, TV remains deeply entrenched in pop culture: 20 percent
claimed to post something about a show on social media without ever
having seen the show.

Advertising Makes a Comeback

Consumer data accumulated by these digital platforms continues to
improve in order to customize the ads served to viewers. This targeting
changes perception of those ads to be thought of as content. This means
all viewers are more likely to share content socially in the same way
they discuss the show they’re watching. In a true first, a majority (54
percent) of Gen Z said that they don’t mind or enjoy watching ads,
compared to significantly smaller portions by millennials (45 percent)
and Gen X (43 percent). While the youngest generation claims to watch
less TV than their parents, they still have a low tolerance for a heavy
ad load.

The study encompassed an online survey administered to 1,020 respondents
ages 14-50 from March 9– March 15 2017 by the Center for Generational
Kinetics, a leader in generational research.

For more on the study, please click
here
.

About Tremor Video

Tremor Video (NYSE:TRMR) is the leading provider of monetization
platforms for video advertising. Our buyer and seller platforms enable
seamless transactions in a premium video marketplace by offering control
and transparency to clients. We employ patented all-screen technology to
make every advertising moment more relevant for consumers, and deliver
maximum results for buyers and sellers.

Contacts

MWWPR
Ivy Chen, 415-580-6133
ichen@mww.com