Michelle Clancy | 10-09-2013
A US study into the impact of smart TV advertising and consumer behaviour has found that smart TVs are an effective advertising medium when accompanied with traditional TV advertising. While pre-roll and accompanying companion banner advertising performs well across all brand and ad metrics, the study from YuMe and LG found that full-package ads are most effective.
The study also found that ad targeting and relevance are keys to driving impact. A full 67% of respondents indicated that they have engaged or would consider engaging with a smart TV ad because it advertises products/brands they are interested in.
"Smart TV creates a unique and exciting opportunity for consumers to interact and respond directly to an ad in-screen, which has not been possible with traditional TV," said Youngjae Seo, vice president of the Smart Business Centre at LG Electronics. "The research clearly underscores that brand advertisers can find better ad campaign effectiveness and ROI on smart TVs when accompanied with traditional TV."
As far as user demographics, viewers of connected TVs are generally young, higher income professionals. Smart TV users are tech-savvy professionals with an influential role on household purchase decisions. They are also likely to pay a premium for the latest technology and brand names.
Users can be categorised in four distinct user segments: affluent technologists, social youngsters, traditionalists and mid-life families. Affluent technologists and social youngsters were most receptive to smart-TV advertising.
"The results not only affirm a growing smart TV market, but also highlight a tremendous opportunity for advertisers to increase brand engagement through smart TV," says Michael Hudes, executive vice president of emerging markets at YuMe. "By understanding how people engage with smart TVs, advertisers can better plan and target their audiences to improve brand awareness."
The research found that connected TVs are being used for more than just TV. Many users report high app usage, and 17% are likely to decrease or cancel their cable subscription in the upcoming year – a 13% increase from last year.
Many smart TV owners said that they enjoy and prefer their devices over traditional TV sets (81%). And the majority (90%) of smart TV owners said that they're satisfied with their devices.