Parent Category: NEWS 15-09-2013
Despite multi-device adoption and the rise of mobile and online viewing, owners of connected TVs still regard their set as the unifying device within the household, with nearly 80% of users watching with family or friends according to a new survey. That’s opens up a big interactive advertising opportunity for pay-TV providers and brands.
Just in time for IBC 2013, new research from smartclip and LG Electronics into smart TV habits found that as with traditional TV, most people interviewed (62%) watch smart TV during the evening, meaning that primetime advertising reigns supreme. Smart TV is mainly used as an entertainment service, with nearly half of people in the study citing news and entertainment programmes as their favourite content on the device.
Furthermore, the fact that these programmes can be watched on-demand on the smart TV platform means that advertising on the device is an effective way for advertisers to reach consumers with highly relevant ads, the research noted. Combined with the effects of advertising on traditional TV, smart TV advertising can particularly be used to boost engagement across on-demand content.
Even better, smart TV users are comprised of a key demographic of above-average educated people, aged 20-49 years old, with high purchasing power.
“The interactive features that smart TV offers are the key to advertising effectiveness,” said Youngjae Seo, vice president of smart business center at LG. “This research really highlighted that viewers are now predisposed to take action as a result of viewing an ad and advertisers of course need to take advantage of this. For example, the LG Magic Remote enables much easier interaction with an ad on screen. Being able to control the television experience through pointing, drag and drop, voice or gesture brings a new dimension to viewing which is engaging and interactive.”
According to Strategy Analytics, shipments of connected TV units hit 12.7 million in the first quarter of this year, as more and more people demand interactivity that blends Internet and television experiences.
Also, more than 80% of smart TVs are more than 40 inches in size. According to the study’s smart TV users across the world, this big screen coupled with interactive ad formats are key reasons that smart TV ads are so effective.
“The screen size of the smart TV compared to other devices makes it effective for advertising,” said Shirlene Chandrapal, senior vice president of connected TV at smartclip. “We have seen an increase in traffic across all LG smart TVs; whereas brands often grapple with the small screen size on mobile, smart TV offers alternatives to engage the audience.”
Smart TV advertising prompts interaction with eye catching content, as more than two thirds of interviewed smart TV users stop to watch interactive ads and have a positive attitude towards advertising on the platform.
Half of the study’s smart TV users say that they have already interacted with an ad, and 31% of people engage in an action as a result of watching a smart TV ad. 15% of these users who interact with an ad think about buying the product straightaway, 20% talk about the product, brand or ad; and 24% search for more information on the brand or product on the internet.
In order to stand out from the crowd though, ads need to be relevant, informative and easy to understand with nearly half of respondents citing these as the key considerations. Other factors that tempt users to interact with ads are incentives such as discounts and coupons.
Chandrapal continued, “By creating interactive, relevant campaigns for smart TV, brands can more easily track the influence of their content and measure engagement and resulting actions. All over the world users are now looking for a more connected viewing experience where apps and the internet play a larger role, so it is imperative that brands monitor whether they are achieving this by measuring engagement. This research has revealed that smart TV has huge potential to engage audiences and we expect to see more and more advertisers capitalising on this platform in more creative ways.”