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How is Smart TV changing Marketing & Advertising?

TV is nothing new and has been around for decades now and it has become a basic necessity over the time. Gone are the days when Television was something that could be afforded by only the riches, today almost the whole world has access to it from the rich to the less privileged, and TV is still by far the biggest Advertising medium.

But we cannot deny the fact that in today’s digital era everything relies on the internet and we see an increasing number of connected devices around us. So, how could TV stay behind? Smart TVs also popularly known as connected TVs are television sets integrated with the Internet and interactive ‘web 2.0’ features. Now the idiot box is no longer an idiot box, but a Smart TVs that has the ability to browse the web, stream content, integrate with social media, download apps and do much more just like your mobile phones, of course with huge screens. 

Smart TVs are nothing new especially in the developed markets like US and Europe and are growing rapidly in the growth markets of the world, like India.

What’s in it for Marketers and Brands?

With internet explosion, the huge colossal shift to digital marketing is very much evident and this can be seen with big time users of traditional marketing industries like Automobile, FMCG, and Market Research adopting a digital-first marketing strategy for its products and new launches.

And Smart TV comes as a blessing in disguise for digital marketers and advertisers as it provides a new avenue to them giving access to an even wider audience that TV advertisers get, with the benefits of online marketing, like analytics and targeted advertising.

As per the Smart TV ad effectiveness study by YuMe-LG research, consumers in the US are more receptive and provide higher engagement to Brands. Not just this,

  1. Smart TVs are being preferred more than the traditional TV sets, as it makes more sense to use a connected TV with growing use of Internet
  2. Smart TV users are more tech savvy, young, professionals with higher incomes and fall into 4 segments
    1. Technologists
    2. Social youngsters
    3. High-income professionals
    4. Traditional and mid-life families

A study by Decipher revealed that Connected TV ads delivered a 6% incremental reach beyond what marketers achieved on traditional media channels.

 “Smart TV creates a unique and exciting opportunity for consumers to interact and respond directly to an ad in-screen, which has not been possible with traditional TV,” says Youngjae Seo, Vice President of Smart Business Center at LG Electronics.

In the digital world today, the gadgets & products users use, are connected and interact with each other making user’s life simpler and more connected, be it cars, mobiles, home, digital personal assistants, etc. so why not television sets, which is why companies like Samsung, LG, Panasonic, and Vizio have been betting big on Smart TVs.

With Smart TVs, marketers and advertisers can achieve what was not possible earlier with traditional TV sets, i.e. – Targeted Advertising and analytics, where now they can target ads to users based on what they watch. Users in the US have already started to receive targeted pop-up ads based on the content they view.

According to 2015 consumer reports, major Smart TV brands have integrated ‘automatic content recognition’ technology that is collecting and analysing users viewing habits and the content being watched by them, whether it’s a broadcast, online video, DVD, etc. to provide more personalised and targeted ads. This data is incredibly valuable as it helps marketers and advertisers achieve what online marketing has been effectively using for years now – ‘personalized ads’ based on user activity.

The Wall Street Journal reported that Samsung is increasing the number of tile ads that display in the menu bar of its Smart TVs (which the U.S. consumers are already familiar with) and is expanding its program to Europe in the coming months. Moreover, the older model Smart TVs will get a software update to deliver ads to its users. These efforts are led by Samsung Executive Vice President (former Google exec) as Samsung has been shifting gears up to generate revenues from its long-standing ad business and due to the slowdown in TV business.

Personalization is not just being limited to ads, but now moving to content as well where Samsung has been working with multiple content partners like Red Bull for unique content that can differentiate it from its competition and can be accessed via Samsung’s TV Plus, the “virtual channel” video service it launched last February, says Stuart Mayo, the marketing director for Samsung’s TV and audio visual business.

Smart TVs are being considered part of the Internet of Things in future, which is why Samsung does not want to be left behind and has been exploring a number of opportunities, like their “interest-based ads” that were launched last month.

Bridging the Gap between Online and TV Divide –

Smart TVs would be replacing the traditional television sets in future, if not soon and studies show the potential they have in, engaging the audience with targeted ads and content marketing, making marketers realise that targeted advertising, content marketing, and analytics would no longer remain the domain of Internet marketing only.

Marketers, advertisers, and brands have an even more important reason to keep a close eye on Smart TV advertising, capitalising on this platform in creative ways.

What do you think how would Smart TV change advertising and marketing in a digital world?

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238 thoughts on “How is Smart TV changing Marketing & Advertising?

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