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

What 15 years of emotional intelligence told us about youth media audiences

Taking people on an emotional journey through content is the most critical part of being a publisher. Which is why emotion lies at the heart of VICE Media.

Stephanie Winkler

Head of insights, VICE Asia-Pacific

Why efficiency and effectiveness are opposing forces in a marketing tug of war

I’ve been a long-time fan of renowned effectiveness experts, Peter Field and Les Binet, and their work. But while their approach is clearly important, the marketing leader’s challenge to deliver effectiveness more often lies in organisational structure. I see the bigger question being whether a marketing chief has a seat at the executive table, and the ear and respect of the CEO and company board.

Nickie Scriven

CEO, Zenith

Augmented Reality: What’s behind the marketing industry’s failure of imagination?

Every flagship smartphone in Australia includes hardware and software purpose-built for AR. A huge audience is ready and waiting. We have an opportunity to craft extraordinary, innovative work. But to get there, we need to push our creative thinking a little harder, writes Gil Fewster.

Gil Fewster

Creative technologist, The Royals

great case study, content has always proved to be an integral part of making a brand, now social media marketing is also one tool that ca...

Govind Dadhich

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

Why it's important for me to know that? I don't get it, sorry.

James Fogle

7 things you need to know about Facebook's mood experiment

Read more

Info graphic have proven to be very useful to create brand awareness and drive traffic. Thanks for sharing these Information.Graphic Desi...

Govind Dadhich

Image intelligence:10 must-see infographics for marketers

Read more

Best web hosting packages Vancouver WA understands that only technical support and domain associated email address can bring huge leads ...

Radiata Solutions

6 Ways to ramp up Social Media to Your Web Design

Read more

I had the same vision about change from CX terminology to HX. Even with almost the same title: 'Forget customer experience...' https://ww...

Ekaterina Khramkova

Forget customer experience, human experience is marketing's next frontier

Read more

Latest Podcast

More podcasts

Sign in