The market dynamic in Europe (EU) is somewhat different from that of the US and UK. In Europe it is driven by a variety of cultures, languages and media consumption habits.
Each European country has its own CTV apps in addition to services from local broadcasters that are affordable and popular.
In spite of this, many EU countries have not been slow in adopting services provided by Roku, Amazon Fire and Apple TV, all of which have increasing marketing penetration.
So, as in the English speaking world, in Europe CTV offers a huge opportunity for advertisers to reach their desired audiences, since viewers are changing the way in which they consume TV.
According to IAB, in Europe’s biggest markets (UK, Germany, France, Italy and Spain) 40% of households are already using a smart TV, and together with streaming devices and gaming consoles, more than 61 million households consume CTV.
As in the anglophone regions, in Europe the major segment of the connected TV audience is represented by people aged 35-54.
This group of viewers appreciates CTV for its variety, and studies indicate their preference for Advertising-Based Video on Demand (AVOD) since it allows them to save money on streaming services. As a generalisation, this demographic is interested in home improvement and family leisure.
The second major European viewer group is over the age of 55. They are baby boomers and most of them are either retired or approaching retirement. This group is typically focused only on the content without being distracted by other activities, thus they are the most engaged audiences. In the US this group would typically like to view news and drama, whereas in Europe documentaries are the dominant genre.
US viewers in the younger demographic, 25 to 34 years old, typically consume content on multiple large screens at home, and their preferred videos are live events, sitcoms, and family content including children’s shows. In Europe this audience watches CTV content daily and seeks variety. They may live with a partner with children and tend to choose ad-supported videos because they are free of charge.
Connected TV in Europe can’t develop at the same speed as in the US because many local markets are somewhat specific with their own requirements. In order for CTV to move to the next level in Europe, the peculiarities of the various local audiences and their preferences need to be considered. Thus the main goal for media providers is to comply with all the particulars of the global CTV ecosystem while offering unique high-quality solutions for local market consumption.
Overall CTV has the potential to achieve greater reach and penetrate a wider diversity of viewers, more representative of Europe’s current population. And whereas the traditional TV audience is older delivering less for younger audiences, CTV attracts addressable audiences across all age groups. This is a major media shift, where European CTV providers have enormous potential for growth and profit.