Connected TV Viewers More Open To Ads14 Nov, 2012 By: Doug McPherson
DALLAS – The number of North American households with a smart TV will reach 87 million by 2016, according to new research from Parks Associates, which released a new whitepaper, “Connected TV Environments: The Next Iteration of TV Advertising.” The paper, commissioned by ad firm Rovi, examines new opportunities in advertising based on the growing adoption and usage of connected TV platforms in the U.S. and Western Europe.
One key finding: 58 percent of Rovi-served connected households indicate that advertising in the connected platform is an effective medium to communicate with viewers in the household.
The study defined connected-TV households as households with either a smart TV or Blu-ray player connected to the Internet. Parks Associates and Rovi officials say adding connectivity to these devices has opened these screens to interactive advertising, new program guides and opportunities to promote premium services such as video-on-demand. Parks Associates research forecasts more than 70 million Blu-ray players, the vast majority Internet-connectable, will be sold worldwide in 2016.
Heather Way, senior research analyst at Parks Associates, says connected TV systems can change viewer perceptions of advertising. "These systems integrate advertising 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 percent of U.S. 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 findings include: 55 percent of connected-TV households earn at least $75,000 annually and own 11 Internet-enabled devices on average; 72 percent of connected-TV owners say the connected platform makes watching TV more convenient; 65 percent said the technology makes the TV experience more enjoyable; and 49 percent of connected-TV viewers depend on the platform when they are unsure what to watch.
Jeff Siegel, senior vice president, worldwide advertising at Rovi, says consumers are more receptive to advertising that takes this brand-infused approach. “Advertising on connected TVs that provide more immersive brand experiences has a positive impact on consumers,” he contends. “More than 80 percent of our connected-TV households state they consider these advanced campaigns to be valuable sources of brand information."
The whitepaper is available on Rovi's and Parks Associates' websites. To download a copy of the whitepaper, visit http://www.parksassociates.com/connectedtv or http://www.roviadnetwork.com/resources.html.