CTV REPORT 2022 | UK

CONNECTED TV:
THE NEXT EPISODE
How ad-supported streaming video
will fuel new growth for brands

CONNECTED TV ON
 Consumer viewing habits are changing. But what is the full picture

ABOUT
of this change, and how will viewing trends drive opportunities for
marketing and advertising – now and over the coming year?

To explore these questions, The Trade Desk partnered with YouGov

THIS
to survey 1,010 adults (aged 18 and over) living in the U.K. Field
work was conducted between 9 June, 2022 and 22 June, 2022. The
Trade Desk also commissioned research with Savanta to survey
250 advertisers across brands and agencies in the U.K. These

REPORT
advertisers spend a minimum of 2 million pounds annually. Savanta
study field dates were 8 June through 6 July 2022.

This report summarises both survey results. The Trade Desk

provides this information as general knowledge for its clients and
prospective clients. It does not make any representations or
warranties of any kind with regard to future performance based on
the information set forth.

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TABLE OF
CONTENTS
Introduction 4

Key findings 5

Streaming overtakes traditional TV 6

Genre insights 8

Live sports 9

A surge in streaming is an opportunity for advertisers 10

Conclusion 13

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INTRODUCTION
The generational shift in the way we consume video content on our
screens has been a recurring media story in recent years. Technological
advances, the surge in premium content, and a global pandemic are likely
three of the reasons why the trend towards streaming has accelerated to
the point where traditional TV is no longer the go-to option. In 2022,
streaming video content continues to draw viewers from all age groups
and demographics. While this change has created more fragmentation for
viewers and advertisers alike, it also gives advertisers more opportunities
to significantly expand their reach and place their ads alongside the
most-watched content with more precision. In response, many are
adapting their marketing strategies as they consider budget in this vibrant
new world of premium content.
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KEY FINDINGS

73%
of the U.K. population
47%
of U.K. viewers say they
51%
of U.K. viewers are open to
76%
The amount U.K. advertisers
88%
of advertisers say they are
choose to watch shows are spending less time either a free service funded who are already advertising likely to buy inventory from a
and movies on watching traditional by advertising, or a less on connected TV plan to streaming platform if it offers
streaming platforms. television. costly service subsidised by increase their spend in the exclusive access to live sports
tailored ads. channel in 2023. or other premium content.

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STREAMING OVERTAKES TRADITIONAL TV
Streaming is now the most popular way for U.K. consumers to watch
content, according to a new survey conducted by The Trade Desk and
YouGov, with 73 per cent of the population watching shows and movies
on streaming platforms. The results reveal that streaming content has
overtaken traditional ways of watching, as 68 per cent say they watch
traditional broadcast TV. To be sure, this is not necessarily an either/or
calculation, as respondents shift between the various ways to watch, but
it’s indicative of how streaming has become part of many people’s daily
habits. There are nuances, as viewers move among the different options
depending on what kind of content they’re after. But the survey data
shows that streaming has become part of consumers’ daily habits. What’s
more, they seem to appreciate the flexibility that streaming offers, with the
power to watch content anytime, anyplace.
Predictably, an even bigger majority of U.K. viewers in the 18- to 34-year-
old age category favour streaming content over traditional TV, with 84 per
cent expressing this preference. A similar figure 83 per cent applies for the
35- to 54-year-old age group. Furthermore, according to The Trade Desk
and YouGov data, 64 per cent of 18- 34-year-olds spend up to two hours a
day watching streaming content.
With more great content being produced now than ever before, from
House of the Dragon on Sky Now to Love Island on the ITV Hub, this new
golden age of television is speeding up the adoption of streaming
consumption for viewers, not just in the U.K., but around the world. In
addition to the big international platforms, such as Netflix and Disney, U.K.
broadcasters from Channel 4 to ITV to Sky are all producing top-notch
content for their own streaming services, All4, ITV Hub, and Sky Now
respectively. Of course, it’s not possible to talk about the U.K. broadcast
market without recognizing the publicly funded BBC, which has made its
content available on its ad-free platform, iPlayer. In short, many major
broadcasters in the U.K. have invested heavily in streaming platforms,
enabling viewers ever greater choice as to when and where to watch.
The viewing figures reflect this darning golden age: 40 per cent of U.K.
viewers saying they’re spending more time streaming; meanwhile 47 per
cent say they’re spending less time watching traditional television. The
data shows that the market is likely at a tipping point.
This is good news from an advertiser’s perspective, according to research
conducted by The Trade Desk and Savanta, as advertisers can apply data
to TV advertising in ways that are not possible in traditional, linear TV,
driving precision and aiming to add value. Indeed, most U.K. advertisers
(88 per cent) say they are likely to buy inventory from a streaming platform
if it offers exclusive access to live sports or other premium content.
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“
The rise of streaming has
redefined advertising’s most
powerful channel and it shows no
sign of slowing down. While the
largest screen in the house still
rules, viewers expect the
convenience of watching what
they want, how they want, and
when they want. This presents an
exciting opportunity for
advertisers to connect with new,
diverse audiences across multiple
devices at the perfect moment.
— PATRICK MORRELL
LLEAD DIRECTOR, INVENTORY PARTNERSHIPS
THE TRADE DESK

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GENRE INSIGHTS
When it comes to the actual content, what exactly are viewers spending their
time bingeing, sharing, and obsessing over? The Trade Desk and YouGov
gathered more granular insight into the kind of content viewers are watching
— the genre piece of the pie. This represents a snapshot in time and inevitably
will evolve, but it illustrates that certain types of shows are drawing many
viewers to streaming platforms. For instance, 44 per cent of people in the 18- to
34-year-old category say they watch documentaries on streaming platforms,
while 46 per cent say they watch comedy, and a close 41 per cent are watching
drama in the same way. Likewise, viewers in the 35- to 54-year-old category
show a similar predisposition to watching this kind of content via streaming
rather than traditional TV. Overall, viewers seem to be happy to watch their

44%
of people in the 18- to 34-year-old
dramas, comedies, and documentaries on their own schedules. Perhaps this category say they watch documentaries
preference, which is less tied to topical events like news and sports, means on streaming platforms
viewers are craving a flexibility that traditional TV lacks.

These insights are not lost on advertisers, which according to the research by

46%
of people in the 18- to 34-year-old
The Trade Desk and Savanta, are leveraging drama (50 per cent), comedy (48 category say they watch comedy on
per cent), entertainment (48 per cent), as well as live sports (48 per cent) to streaming platforms
activate their media plan for streaming channels on connected TV (CTV).

At the same time, traditional TV still draws viewers to scheduled broadcasts

41%
of people in the 18- to 34-year-old
such as the news and live sports. But even here, old habits are changing. category say they watch drama on
streaming platforms

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LIVE SPORTS
One category that’s being watched closely by consumers, broadcasters,
and advertisers alike is live sports. In the 2021 “Future of TV Report,”
which surveyed consumers in the U.K. and Germany on their viewing
habits, The Trade Desk found that streaming sports was challenging the
status quo. In fact, the report found that 26 per cent of Brits, and 22 per
cent of Germans, preferred streaming platforms as their go-to viewing
method for game time.
A year later, those figures are similarly robust in the U.K., according to
new research gathered by The Trade Desk and YouGov, which surveyed
potential viewing habits around the FIFA World Cup Qatar 2022. A
quarter of all Brits use streaming and video on-demand (VOD) to follow
sports events. That percentage equates to roughly 17 million people in
the country. While this figure does not address the primary method of
watching, it is indicative of the trend toward streaming live sports. The
World Cup survey finds that, since the last World Cup in 2018, the share
of British people following the games on streaming and VOD is expected
to increase, while those watching on traditional channels is anticipated
to decrease. Meanwhile, streaming the World Cup is an especially
popular choice for Brits aged 44 and under, where between 25 per cent
and 32 per cent of all viewers surveyed say they’re planning to follow via
streaming and VOD.
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A SURGE IN STREAMING IS AN
OPPORTUNITY FOR ADVERTISERS
The proliferation of streaming platforms in the U.K., from Netflix to All4 to
Sky Now, means that viewers have more choice than ever before.
However, many consumers say they can’t afford to pay for a large array of
subscription services. According to The Trade Desk and YouGov, 55 per
cent of U.K. viewers do not want to spend more than 30 pounds per
month on streaming services. Viewers say that too many subscriptions
means they’ll likely unsubscribe. As an alternative, 51 per cent of U.K.
viewers are open to either a free service funded by advertising, or a less
costly service subsidised by tailored ads. Furthermore, over half of Brits
say they don’t want to see the same ads repeated and want fewer ads in
general, especially ones that are relevant to them.
Given these findings, many advertisers are ready to seize the moment.
According to data from The Trade Desk and Savanta, more than 6 in 10
(64 per cent) advertisers mention that their brand/agency is likely to
increase spending on programmatic CTV in the coming 12 months.
Moreover, those advertisers who are ready to increase their investment in
connected TV plan to increase their ad spend in 2023 by a further 76 per
cent. Clearly, the data implies that they see the future and it’s
programmatic advertising.
Many marketers are keeping their eye on live events, too. The Trade Desk
and Savanta found that more than two-thirds (67 per cent) of advertisers
expect to grow their ad budgets for programmatic campaigns to align
with live sports events on streaming channels and connected TV. Even
here, many advertisers are anticipating the shift in viewing habits to
make sure they’re reaching sports fans who are no longer tied to
traditional television.
KEY TAKEAWAY 64% of advertisers mention that their brand/agency is
likely to increase spending on programmatic CTV in the
coming 12 months.
Advertisers who are already leveraging connected TV
plan to increase their spend by 76%.
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“
Live sporting events are
synonymous with ads from a
receptivity perspective.
Audiences are used to seeing
natural integrations within live
events, which in turn offers
advertisers and brands a unique
proposition of reach, frequency,
audience segmentation and
creative messaging.

— RONAN MCCARTHY
SVP, MEDIA OPERATIONS
DAZN ADVERTISING

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A SURGE IN STREAMING IS AN
OPPORTUNITY FOR ADVERTISERS
The fact is, advertising on streaming channels and connected TV allows brands and
agencies access to more insightful performance metrics around their campaigns
compared to the same on traditional TV. For instance, according to The Trade Desk and
Savanta data, brand lift (44 per cent), viewability (42 per cent), and campaign reach and
frequency (33 per cent) are the top three metrics used by advertisers to measure the
performance of live sports on connected TV. Some 60 per cent of these advertisers cite
better measurement capabilities on connected TV compared with traditional television.
Likewise, 59 per cent say there’s more flexibility on CTV, while 51 per cent say CTV allows
them to target specific subsets of live sports viewers.
of advertisers cite better
It’s likely because of these superior digital metrics that almost half of the advertisers (48
per cent) surveyed by The Trade Desk and Savanta see live sports as integral to their
media strategy on connected TV.
60% measurement capabilities on
Connected TV compared with
traditional television

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CONCLUSION
Streaming content is a fact of life for many television viewers in the United
Kingdom, where most major broadcasters are offering streamed or catch-
up content over digital channels. The fact that consumers now favour
streaming content over other more traditional methods of watching great
television is indicative of a behavioural shift that is likely only accelerating.
The Trade Desk and YouGov’s consumer-facing survey reveals some
insight into these trends, showing the kinds of content that U.K. audiences
are more likely to stream, and also the holdouts (such as news and sports),
that have long been the mainstay of major broadcasters in the country. But
even here, the data shows that streaming is making inroads into hitherto
sacred territory.
From an advertiser perspective, the survey data shows that this consumer
shift is already driving a new approach to the television market, one that
ensures campaigns reach their audiences on digital channels as well as
those mainstay commercial channels. What is startling is the commitment
that advertisers are ready to make, especially when it comes to
programmatic spend to reach those people who may be watching outside
of traditional linear channels. In effect marketers are committing to a more
data-driven approach to reach those intended audiences with precision,
whether they’re watching a favourite sitcom on their own time or streaming
the highlights of a World Cup football match from Qatar. Advertisers will
want to keep their eye on the ball.
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