Nielsen: A study on the viewing behavior of all samples of Chinese smart TV users and the value of OTT advertising

Background

In 2013, the sales volume of smart TVs nationwide was close to 20 million, and this number rose to 25 million in 2014. The sales volume of smart TVs will reach 30 million next year. As smart TVs continue to become more popular, more audiences are returning to TV media, and the audience and advertising value of smart TV media are constantly increasing.

On August 26, 2014, Nielsen Netcom, an authoritative third-party media monitoring and research organization in China, and VisionMedia, a comprehensive smart TV advertising service provider, officially released the "Research Report on the Viewing Behavior of Chinese Smart TV Users and the Value of OTT Advertising" (hereinafter referred to as the "Research Report"). The research report comprehensively analyzed the log data of 11 million smart TV terminal users in China.

Research shows that: 1. The number of smart TV users is showing a growing trend, and users are mainly distributed in more developed areas; 2. Smart TV users show high user stickiness in their behavior, and mainly tend to perform operations such as video on demand; 3. Smart TVs are turned on frequently, and the advertising value scale is relatively high.

This report adopts a census approach, collects data up to April 2014, and conducts a full sample study of massive user log data.

Among the more than 7 million devices whose data were collected, smart TV advertising reached an average of 3.77 million devices per day, accounting for more than half, and as time went on, the daily reach showed a significant growth trend.

The reach of smart TV advertising showed a rapid growth in the first week of its launch, and has maintained a strong steady growth momentum since then. Behind this is not only more existing reach, but also more newly activated users.

Smart TV users are most widely distributed in East China, accounting for 29% of the total; the distribution in East China, Central China, North China and Southwest China accounts for 81.64% of the total.

The economies of East China, Central China, and North China are developed and have a large number of users, so the number of times the device is turned on is significantly higher than in other regions. However, as far as a single terminal is concerned, the number of times it is turned on and used is relatively high due to the high stickiness of smart TV users.

Smart TV users are mainly concentrated in economically developed regions. The number of users in provinces with higher GDP also significantly exceeds that in other provinces, and the audience has greater purchasing power.

Among the cities covered by smart TVs, Beijing and Chongqing have the highest coverage. First-tier cities and municipalities such as Shanghai, Tianjin, Shenzhen, and Guangzhou are also all in the top 15 list, and provincial capital cities with better economic levels dominate.

The daily power-on frequency of smart TVs shows obvious cyclical changes, with users turning them on more frequently on weekends.

The average daily startup frequency of smart TVs is higher than that of digital set-top boxes, reflecting the user's operating habits: users need to shut down or standby the TV screen more frequently. A higher startup frequency will also provide more exposure opportunities for smart TV startup ads.

Compared with digital TV, the peak of smart TV users' power-on behavior appears later, and the peak is more obvious during the lunch break. The main viewing behavior of smart TV comes from non-linear on-demand viewing. Since on-demand viewing does not require much time, a new viewing peak can be formed during the relatively short lunch break, which undoubtedly provides advertisers with another display opportunity during the audience's leisure time.

Baidu's mobile internet development trend report for Q2 2014 shows that the average daily usage time for iPhone users is 157 minutes, and the average daily usage time for Android users is 142 minutes.

The average daily usage time of smart TV users is 4.58 hours, which is 1.8 times that of smartphones. Compared with digital set-top boxes, the usage time of smart TVs is not much different. The reason why it is slightly shorter than that of set-top boxes is that the usage behavior of smart TV users is more fragmented.

Smart TV users show high stickiness, with nearly 30% watching more than 6 hours a day.

The main operation behavior of smart TV comes from video on demand. According to the data, 72.90% of the application clicks come from video on demand applications, followed by application markets, accounting for 14.52%, and music and game applications accounting for 4.39% and 4.31% respectively. In terms of usage, users are mainly in a relaxed and entertaining state when using smart TVs, and are more likely to accept advertising suggestions.

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