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Connected TV – Welcome to the Marketing Mix

November 21, 2017 / by Derayo

In 1939, David Sarnoff, a pioneer of TV and radio described the TV as “A new art and new industry which will eventually provide entertainment and information for millions”. He was right. Over 75 years later, it’s now a feature in many homes and influence on popular culture.

November 21st marks World TV Day, first established in 1996 by the UN’s General Assembly in recognition of the increasing impact television has on society. Since its inception, the way we consume TV has drastically changed, especially as new devices have risen in popularity.

In recent years connected TV, (also known as a hybrid or smart TV) is the latest trend to impact advertising. As marketers, we look for what captures consumer attention and so connected TV should now be respected as part of the marketing mix.

Mass adoptionPicture 1

According to a report conducted by eMarketer, the US are leading the way in mass adoption for connected TV, with over 202 million users. This is a 51 million increase in just under 5 years.

Currently 69.5% of US internet users own a connected TV, an 18% increase in two years.

Picture 2The UK is also adopting smart TVs rapidly, with 59% of households owning one. This figure is just behind Denmark and Norway whose smart TV adoption is 60% and 63% respectively. 

 

 

Attractive benchmarks

Picture 3

Another telling stat for marketers is around increased engagement levels. The ‘Extreme Reach’ report looked at digital video ad benchmarks worldwide which indicated that VCR on connected TV is 94%, due to their non-skip format and full-screen experience.

Co-Viewing

Connected TV fits in well with other devices. According to the IAB’s recent research, consumers are more likely to discuss brands and products they see on over-the-top (OTT) advertising compared to linear TV. 45% of respondents even went as far to say they would ‘change someone else’s mind about a product/brand they see’ when co-viewing a OTT platform. This is compared to just 36% of respondents asked the same for linear TV.

Picture 4In recent years there’s also been a huge rise in multi-screen viewing, with consumers using their phone while watching TV. 22.6% of UK consumers watch TV on multiple devices and this is Picture 5expected to rise. This means that marketers are looking to spread their ad budget between different platforms, understanding consumers have multiple touch points throughout the day.

Get in touch with your local account rep or contact us here to learn more about LoopMe’s cross-screen solutions.