UK Audience Shows Preference for Ad-Supported Video On Demand Services
The world of sports streaming is expanding, and the UK is at the forefront of this revolution. Two major events, The Ashes and the Women's Rugby World Cup, have presented further opportunities for success in this realm.
A significant number of young viewers are embracing this change. According to recent data, a third (33%) of 18-24-year-olds in the UK prefer to watch sports news on their smartphones. This trend is not limited to mobile devices, as more UK households are streaming content on smart TVs and internet-enabled devices, while traditional linear viewership continues to decline.
The shift towards streaming platforms is creating new opportunities for advertisers. Consumers prefer ad-supported platforms, providing an avenue for advertisers to build brands across screens. Ad-supported streamed TV is becoming foundational for building brand equity.
CTV, or Connected TV, is particularly valuable for reaching younger audiences. More marketers value CTV's ability to reach these demographics (+20% YoY). This is evident in the advanced targeting and contextual mapping capabilities that have seen a 20% year-on-year increase in value among marketers.
Dan Black, Head of CTV at Teads UK, believes that TV remains a powerhouse for delivering captive audiences. He further emphasises the importance of CTV for engaging younger audiences. Among UK 18-24-year-olds, 15% are willing to add products to a shopping basket using interactive features in CTV ads. This figure rises to 14% among UK 25-34-year-olds.
The success of sports streaming platforms is evident in the viewership numbers. The Wimbledon Championship Final and the UEFA Women's Euros, for instance, attracted 8.8 million and 4.2 million viewers respectively.
However, the adoption of CTV advertising is not without challenges. 20% of marketing decision-makers see the lack of understanding of CTV as a key barrier to investing more. Despite this, 58% of marketing decision-makers have started to include CTV advertising in their marketing strategy, a significant decrease from 61% in 2024.
The future of CTV advertising in the UK is promising, with 42% of UK viewers choosing to watch via AVoD (ad-supported VoD) services, a 7% year-on-year increase. This growth is expected to continue, with major media groups such as ProSiebenSat.1 and potentially RTL Group remaining significant advertising market players, albeit facing challenges.
In conclusion, the rise of CTV and sports streaming in the UK presents a promising landscape for both viewers and advertisers. As more viewers embrace this change and more advertisers recognise the value of CTV, we can expect to see continued growth in this sector.
