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BizReport : Advertising archives : November 09, 2012

Report: Why smart TV households hold promise for online brands

The number of people watching television and other video content online continues to grow. More than 40 billion clips were served in September according to comScore. But it isn't just people watching content online - a growing trend is using the television to connect online. And it may hold as many benefits for advertisers as 'traditional' video advertising.

by Kristina Knight

A new whitepaper out from Parks Associates forecasts that connected TV households will reach critical mass (North America, Western Europe) next year, and that those devices will not only increase the amount of time spend with television content but that it will deepen the engagement of viewers at the same time.

"U.S. connected TV owners are an affluent, influential and attractive audience segment," is written in the report. "Over one-half (55%)...earn at least $75,000 annually. Connected TV owners use this buying power to be early adopters of technology products and services - each household owns 11 internet enabled devices, on average. They are also strong technology influences: 53% regularly give advice to guide others, including family and friends, in their technology purchase decisions."

According to the report:
• 38% of all North American households will own a smart TV next year
• 32% of Western European households will own a set next year; 54% by 2016
• 70% of current smart TV owners are college graduates
• 49% use a smart-platform when deciding what to watch
• 81% notice ads in the space

Not only do these viewers notice ads within connected TVs, the report shows that most (67%) feel these ads are less interruptive than traditional television ads (Rovi-served households). Ads that are less disruptive of the experience can help to increase engagement not only with the actual content but the ads supporting that content.

The report was developed on behalf of the Rovi Ad Network.

Tags: connected TV, connected video, online video, Parks Associates, Rovi Ad Network, video ads, video trends

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