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Buying Ads on Smart TV Not Catching On

6 Aug, 2014 By: Doug McPherson

NEW YORK – Even though connected TV (Internet-enabled) is growing and offers unique potential for ads, eMarketer reports 60 percent of media buyers don’t know how to buy ads on such TVs or a TV connected to a streaming device like Roku.

The company says more than half of U.S. consumers will be watching TV through electronic devices connected to the Internet by 2017. It also predicts that during the next three years, regular connected TV usage (regular defined as once a month) will jump to 54 percent from the current level of 36 percent.

eMarketer also predicts third-party connected devices like Roku, Google Chromecast, Apple TV and Amazon Fire TV will drive this growth.

Analysts project that by the end of 2014, there will be 397 million connected TV sets worldwide. What’s more, online video viewing via connected TV climbed from 2.3 hours per week in the first quarter of 2013 to three hours in the same period of 2014.

Troels Smit, a writer with MediaPost News, says from a format and content perspective, it’s hard to beat a smart TV ad. “The format lets viewers interact with ads, which gives marketers more opportunities for engagement,” he contends. “Brands are eager to capitalize and reach their target audience through this nontraditional channel.”

Smit adds most marketers understand that to leverage the rise in connected TV consumption and deliver the highly personalized and unique ad experience every company covets, will require technology – “and smart technology at that.”

“I expect that as connected TVs continue to infiltrate the market, we will see more advertisers looking to capitalize through video ads, with those embracing the medium in its early stages, seeing great ROI and success with their campaigns,” he says.

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