Advertisers slow to cash in on connected TV consumption
Editor | 25-07-2012
The demand is there and consumers are putting their hands in their pockets despite the recession but for connected TV this surge in sales is not being matched by advertisers who should be primed to take advantage according to media analyst eMarketer.
Indeed, the analyst warns that instead of simply “watching the steep incline in connected TV adoption”, marketers will need to open their eyes to consumer behaviour when it comes to connected TV advertisements.
Basically eMarketer predicts a bright future for connected TV: it quotes research by DFC Intelligence that calculates 24 million North American households currently own a connected TV, and that this number will nearly quadruple in the next four years, rising to 81 million households by 2016. Furthermore, it says that viewers have already displayed promising behaviours when it comes to engaging with video ads on their connected TVs. According to a study by Tremor Video conducted by Frank N. Magid Associates, in December 2011, 38% of viewers visited a website mentioned in a connected TV ad; 36% considered purchasing a product or service mentioned in a connected TV ad; and 34% went on to look for a mentioned product in a store or online. Furthermore, one in three connected TV viewers told someone else about information mentioned in an ad.
Yet the analyst notes that as consumers catch on to connected TV, advertisers seem unsure what steps to take in response. It says that interest in connected TV ads by brand advertisers and agencies has grown only slowly since 2010 and that in 2011 only 8% of advertisers connected TV. By 2012, nearly a third of brand advertisers supported the channel.