Video viewing has extended well beyond the TV for most households, including consumers watching streaming video on tablets, computers, and mobile phones. 68% of consumers in US internet households report using their mobile phones to watch videos according to Parks Associates' latest research. 

How people watch video has changed. While the "lean-back" experience is still present for many consumers, the portability of devices and compelling short-form, content that welcomes interaction through comments, likes, and sharing drives mobile and social video consumption. The shift to mobile-first video consumption has made social video platforms powerhouses of video entertainment (e.g., YouTube and TikTok), with YouTube becoming a top destination on the TV as well.

With more people spending time on their phones, streaming services, and social media, advertisers have followed the audience. Through a mix of image ads, video ads, and influencer/affiliate marketing, how transactions are integrated into these environments has changed. Advertisers can now seamlessly incorporate "shoppable" features that allow viewers to purchase through an ad or clickable links. This has turned social and video content into a more direct sales channel, blurring the lines between entertainment, content consumption, and e-commerce.

Highly precise targeting, viewer engagement tools, and interactive advertising have attracted advertising dollars away from the TV marketplace. As streaming services and CTV platforms ramp up their advertising businesses, interactive formats and a closer tie between the ad and transactions are critical to competing with social platforms for brands’ ad spend. 

Consumers are bringing their expectations of interactivity to the big screen and are already comfortable with transactional video experiences. The large base of heavy social video users is the foundation of future interactive video services. Service providers should build on consumers’’ expectations of interactivity to engage and retain them in the CTV environment, and expand the transactional services offered.

Parks Associates just published a new study, “Interactive TV: Social, Commerce, Sports” 

This study seeks to understand consumer attitudes toward and potential usage of emerging interactive functions. It quantifies consumer engagement with content, including chatting, polling, sports betting, and shopping/e-commerce features on various platforms, and their interest in engaging in these activities on or alongside the TV.

Interested in details of this new research? View Table of Contents or contact our team at info@Parksassociates.com