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Smarter TV Ads

03 October 2013 | Blog

Good news: Smart TVs are turning out to be smarter for ads. A couple of recent studies have highlighted the growing importance Smart TVs are going to have on the advertising world.

SmartClip and LG conducted a study across five different countries. They found that advertising on Smart TVs increased both recall (by 14%) and ad likeability (by 26%), as compared to traditional ads. Purchase intent went up by an impressive 60%. The interactive nature of many of the ads made it easier for viewers to act immediately on interest, with 48% of viewers having already interacted with the ad, and 31% having taken an action as a result, whether it be talking about the product or purchasing it. The icing on the cake is that Smart TV owners are more likely to be the very demographics that are most valuable and harder to reach: younger, more affluent and educated families.

YuMe also worked with LG on their own, U.S.-based study. Their findings backed up SmartClip’s conclusions. They reported that the interest in Internet-connected TV is growing, especially in coveted demographics. They, too, found that Smart TV ads had better “brand metrics including recall, favorability, and purchase intent.”  When 67% report engaging in or willing to engage in Smart TV ads and 90% say they are satisfied with their Smart TV, the potential for advertisers seems huge.

These particular studies focused on interactive ads within the Smart TV infrastructure, as opposed to interactive TV ads. But interactive ads on regular TVs have been around for a while and have delivered some compelling results, which implies that the combination of interactive TV ads and Smart TVs has the potential to be even more powerful.

Some of these metrics are doubtlessly skewed by the fact that Smart TVs are a relatively new technology, and owners still fall into the early-adopter camp. The demographics, for example, are sure to widen and age as Smart TV usage grows more widespread. But the message is clear—Smart TV is worth focusing on. Crafting messages aimed specifically at Smart TV viewers will reap enormous rewards.