Smart TV ads more effective for brands: Report

Pilot study by Adconion Media Group and LG Electronics on smart TV usage finds nearly one third of viewers have engaged in an action as a direct result of an advertisement

Advertising brands across both smart TV and traditional TV platforms increases the awareness, purchase intent and recommendation impact on consumers, according to a new report.

The pilot study, which was conducted by cross-channel platform provider, Adconion Media Group, and LG Electronics, found half of smart TV users surveyed have already interacted with an ad, and have a positive attitude towards advertising. In addition, 31 per cent engaged in an action as a result.

Fifteen per cent also said they thought about buying the product straightaway, while 24 per cent talked about the ad and 20 per cent searched for more information online on the brand or product advertised.

In comparison with traditional TV viewers, smart TV users show a 21 per cent higher brand recall and a 13 per cent higher message recall. Purchase intent was also higher by 60 per cent, and 23 per cent of smart TV users are more likely to recommend the products or services being advertised.

The report also showed more than 80 per cent of smart TVs purchased are at least 40-inches wide, and are owned by above average, educated people of 20-49 years of age with high purchasing power - a group difficult to reach via traditional TV, the report claimed. Eighty per cent use their smart TV set for Internet features.

Like traditional TV viewers, 62 per cent of smart TV owners on watching between 6-9pm. According to Strategy Analytics’ latest Global Smart TV Vendor Market Share report, 12.7 million smart TV units were shipped in the first quarter of this year globally.

“The screen size of the smart TV compared to other devices makes it effective for advertising,” senior vice-president of connected TV for Adconion’s smartclip platform, Shrilene Chandrapal, said. “We have seen an increase in traffic across all LG smart TVs; whereas brands often grapple with the small screen size on mobile, smart TV offers alternatives to engage the audience.”

How Telstra united TV and digital analytics
Twitter acquires Trendr to get a better handle on TV tweets
Facebook talks hyper-targeting, analytics and cross-platforms

Nearly half of survey respondents said ads must be relevant, informative and easy to understand if they’re to be effective. Top reasons why users interacted with a smart TV ad included interesting products and brands, discount offers and appealing or eye-catching content.

“This research has revealed that Smart TV has huge potential to engage audiences and we expect to see more and more advertisers capitalising on this platform in more creative ways,” Chandrapal added.

The research was conducted across 2000 consumers across both traditional and smart TV platforms in the UK, Germany, Spain, Russia and Australia by Nielsen in June. It involved a usage study where respondents from both groups were exposed to traditional TV programs with ads, followed by smart TV tasks where the same brand ads were displayed in different placements. Users were then asked to fill in a questionnaire.

The survey was followed-up with calls and an online survey.

Key findings from the Smartclip study can be found here.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

How do we break out of our marketing echo chambers?

Clients and agencies can get stuck into a particular way of behaving and viewing the world, but there are ways to break out of our marketing echo chamber.

Steve O'Farrell

Managing Partner, The Royals

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

The saying is pretty tongue in cheek. It's not saying that marketers are bad people, nor that they don't take themselves seriously. There...

LYF Solutions

The trouble with Scotty from Marketing - The CMO view - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in