Smart TVs change view of advertising
November 11, 2012 09.49 Europe/London By Broadband TV News Correspondent
The number of North American households with a smart TV will reach 87 million by 2016, according to new research from Parks Associates.
The company’s new white paper Connected TV Environments: The Next Iteration of TV Advertising, commissioned by Rovi, examines new opportunities in advertising based on the growing adoption and usage of connected TV platforms in the U.S. and Western Europe.
“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 US 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.”
Other key findings according to Parks show that 55% of connected-TV households earn at least $75,000 (€58,986) annually and own 11 internet-enabled devices on average.
72% of connected-TV owners say the connected platform makes watching TV more convenient, and 65% said the technology makes the TV experience more enjoyable.
49% of connected-TV viewers depend on the platform when they are unsure what to watch.
58% of Rovi-served connected households indicate that advertising in the connected platform is an effective medium to communicate with viewers in the household.
“Consumers are more receptive to advertising that takes this brand-infused approach,” said Jeff Siegel, SVP, Worldwide Advertising, Rovi Corporation, in a statement.
“Advertising on connected TVs that provides more immersive brand experiences has a positive impact on consumers. Over 80% of our connected-TV households state they consider these advanced campaigns to be valuable sources of brand information.”
Connected-TV households in this white paper are defined as households with either a smart TV or Blu-ray player connected to the internet. Adding connectivity to these devices has opened these screens to interactive advertising, new programme guides, and opportunities to promote premium services such as video-on-demand.
Parks Associates research forecasts over 70 million Blu-ray players, the vast majority internet-connectable, will be sold worldwide in 2016.