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
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.
Couple of thoughts on this article:
1) Acceptance of new advertising models is always higher initially, because the ads are novel. The real trick will be changing the nature of ads based on the platform they're served on... if you make the ads more interactive, or even USEFUL to what the user is doing, long-term lift is more likely.
2) Strange definition of Connected-TV Households... it ignores those with AppleTV/Roku/Boxee/Slingbox or connected Game Consoles. Blu-Ray players and SmartTVs may have connectivity, but in my experience people never user those features and are often completely ignorant of them.
3) For that reason, I think the total number of Smart TVs in market will continue to be as irrelevant as 3D TV. Early adopters will geek out over the features but wntil these platforms can provide premium content or experiences you can't get through other devices (i.e. not just ports of Netflix, Hulu Plus, etc, which are available everywhere) they'll never be adopted fully by consumers.
Anthony Iaffaldano - 11/9/2012 10:50:26 AM EST
No related content found.
No Top Articles
Digital Rapids provides market-leading software and hardware solutions, technology and expertise for transforming live and on-demand video to reach wider audiences on the latest viewing platforms more efficiently, more effectively and more profitably. Empowering applications from..more