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BizReport : Internet : October 13, 2011

88% marketers unprepared for IPTV

Predictions that global sales of IPTVs will soon start to take off don't seem to have motivated marketers to formulate strategies to harness the advertising potential of the new technology, according to new research from the Internet Advertising Bureau (IAB) and multi-channel video agency Adjust Your Set.

by Helen Leggatt

IAB_LOGO_Large.gifWithin the next three years global sales of Internet connected televisions are expected to grow fast. By 2014 global sales are set to reach $124 million.

But marketers appear uncertain as the IAB's latest whitepaper "Internet Connected TVs: The Next Living Room Evolution" reveals.

While the majority (85%) of the 200 IAB marketers surveyed for the research cited an interest in Internet connected television's advertising opportunities just 12% currently have such a strategy in place.

"The rapid uptake of connected TVs should warrant serious consideration from brands on the potential opportunities available and future revenue streams," said Chris Gorell Barnes, CEO of Adjust Your Set.

In budgetary terms more than a third of respondents pegged investment levels in IPTV at around $78,000.

Just under a quarter (22%) said their firm had no intention of implementing an IPTV strategy.

Jack Wallington, head of industry programmes at the IAB, said the research has revealed a "staggering amount of uncertainty when it comes to Internet-connected TVs".

"It's clear the industry considers the platform a significant leap for online advertising, but it has also become apparent that like so many other technological developments we're waiting for the customer to leap first," he added.

Sixty-eight percent of respondents felt consumers wouldn't be plugging-in to IPTVs until the trend became more widespread.

Tags: Internet connected television, IPTV, online advertising, television advertising

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