Magid Study: Majority of U.S. Homes Have Internet-Connected TV

NEW YORK: Connected-TV penetration in the U.S. has more than doubled from 26 percent of U.S. households in 2013 to 53 percent this year, according to a new report from Frank N. Magid Associates and ad software platform TubeMogul.

The Magid research shows that number increasing to 64 percent among Americans ages 19 to 37. Magid’s research indicates that the increase in TV connectivity comes alongside the proliferation of set-top boxes and smart TVs on the market. In 2013, a significant majority (64 percent) of households that connected their TVs to the internet did so through a gaming device. This year, the number of households relying on gaming consoles decreased to 45 percent. In that same timeframe, households using devices exclusively meant for connecting TVs to the internet has surged. Smart TV connection grew from 29 percent to 38 percent, while Roku’s penetration increased to 21 percent of households. Similarly, Google Chromecast nabbed a 14 percent share in less than two years on the market.

Magid’s 2014 Media Futures study showed the percentage of households subscribing to Netflix, Hulu or Amazon Instant Video hitting 53 percent. In 2015, subscriptions to these three services increased to 62 percent among the general population and 76 percent among consumers ages 19 to 37.

“This mix of big screens, digital content depth, and affordable connectivity hardware goes to show that connected TV isn’t just here to stay,” said Mike Vorhaus, the president of Magid Advisors. “It’s beating live TV at its own game. Connected TV is the new TV.”

Data from TubeMogul suggests that the comparisons with live TV carry over to advertising as well. TubeMogul’s recently announced connected TV viewability measurement solution shows 70 to 90 percent viewability for directly purchased inventory on content streamed on a TV set.

“Connected TV combines the flexible targeting of digital with the engagement of live TV,” said Vorhaus. “Buying connected TV inventory is looking more and more like buying live TV, and that’s a home run for savvy advertisers.”