Next Generation of Consumers Could Transform Video, TV Advertising

New research from Tremor Video, a provider of software for video ad effectiveness, and Hulu, the leading premium streaming service, shows that the next generation — “Generation Z” — could radically change video and television advertising.

“The data show that Gen Z is a native digital video generation that overwhelmingly equates “watching TV” with an online source,” reads the provided report summary. “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.”

It’s a “transformative shift” — and it could present big opportunities for both streaming services and advertisers who capitalize on this trend.

Consider — for starters — how the term “watching TV” has changed.

“Eight four percent of adults aged 14-50 equate “watching TV” with devices such as an Apple TV or PlayStation,”notes the Tremor report. “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.”

Change is occurring rapidly, according to Karen Ring, Senior Director, Insights + Analytics at Tremor Video.

“The transition of television programming to a digital, streaming-first culture has been happening at a rapid pace,” said Ring. “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.”

Julie DeTraglia, Head of Ad Sales Research at Hulu, agrees.

“This survey is a window into the consumption habits and advertising preferences of the next generation of viewers,” DeTraglia said. “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.”

Streaming has made viewers “serial monogamists,” according to the research.

“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.”

That definitely affects advertising strategies.

Want to read more about the study’s findings? Click here.