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BizReport : Research archives : February 04, 2011

Forecast: Changes to TV screens may be good for advertisers

Changes are coming to your television screens, and those changes may just change the game - again - for advertisers. A new forecast from IMS Research finds that television screens change to become more green and add connectivity features. That, in turn, could bring more viewers back to television, making TV a good bet for brands.x

by Kristina Knight

imsresearch.jpgAccording to the forecast, the CES 2011 expo identified several upgrades expected for television sets. Over the next few years, 3D is expected to become more economical, television sets are expected to become greener and connectivity is expected to increase. Already consumers have shown interest in turning in 'old' flat-screens and Plasma units for 3D sets. Meanwhile many have already upgraded to television sets with Internet connectivity - specifically social applications. That trend has shown manufacturers that consumers want more from their sets, and manufacturers are responding.

At CES 2011 experts reported that connected Panasonic TV shipments would increase to 43% by 2013. That is up from 21% of shipments in 2010. Also manufacturers such as LG and Vizio reported they would move toward 'passive 3D' options in their sets. Although consumers have shown interest in 3D sets, the price point has made the adoption rate take off at slow levels.

Recent news from In-Stat agrees with the IMS Research forecast. According to In-Stat web-enabled smart devices - including Smart TVs - will reach more than 230 million installed units by 2014.

"Consumer adoption of online applications, using web-enabled CE devices, will be regionalized, or in some cases, country-specific," said Keith Nissen, Principal Analyst. "For example, in China, there is very little licensed video entertainment content available for delivery over the Internet. In contrast, the availability of online video entertainment in Europe and North America is expected to grow substantially over the next five years. The primary markets for web-enabled CE devices will correlate to where online video is also available."

This increased interest in television should be a good thing for advertisers. Although the trend toward watching original programming online isn't going to change, more connected television sets may bring consumers back to the couch to watch, surf and connect from a single device.

Tags: IMS Research, In-Stat, three screen advertising, video ads, video content

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