Parks: 87 Million Smart TVs in 2016

New study sees opportunities for connected TV advertising

By George Winslow -- Broadcasting & Cable, 11/8/2012 5:42:14 PM

With the number of North American homes with a smart TV connected projected to hit 87 million by 2016, new research from Parks Associates is predicting that these Internet-connected TVs will open up new advertising opportunities.

The research, which was commissioned by Rovi, found that in Rovi-served connected homes 58% indicated that "advertising in the connected platform is an effective medium to communicate with viewers in the household."

"Connected TV systems have the ability to change viewer perceptions of advertising," said Heather Way, senior research analyst, Parks Associates, in a statement. "These systems enable advertising to be integrated into device navigation and content search, engaging consumers at a point of high receptivity and enabling them to immerse themselves in a rich brand experience. As a result, over 50% of U.S. connected-TV households surveyed by Rovi consider these ads as content, containing useful and valuable information, and they are much more likely to remember and click on these ads."

The new whitepaper, "Connected TV Environments: The Next Iteration of TV Advertising," also found that connected TV homes are generally affluent, with 55% of connected-TV households earning at least $75,000 annually.

These homes are also extremely connected, owning an average of 11 Internet-enabled devices.

Nearly three quarters (72%) of connected-TV owners reported that the connected platform makes watching TV more convenient, and 65% said the technology makes the TV experience more enjoyable. About half (49%) of connected-TV viewers depend on the platform when they are unsure what to watch.

"Advertising on connected TVs that provides more immersive brand experiences has a positive impact on consumers," noted Jeff Siegel, senior vice president, Worldwide Advertising, Rovi Corporation in a statement. "Over 80% of our connected-TV households state they consider these advanced campaigns to be valuable sources of brand information."

The study defined connected-TV households as those with either a smart TV or Blu-ray player connected to the Internet.