The study examined consumers within a natural living room environment, interacting with and sharing their perceptions of different Smart TV ad formats, while testing brand metrics including recall, favorability, and purchase intent. 67% of respondents indicate that they have engaged, or would consider engaging with, a Smart TV ad because it advertises products/brands they are interested in.
Youngjae Seo, Vice President of Smart Business Center at LG Electronics, says “Smart TV… a unique and exciting opportunity for consumers to interact and respond directly to an ad in-screen… brand advertisers find better ad campaign effectiveness and ROI on Smart TVs… accompanied with traditional TV…”
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Big screen convenience is the most common primary advantage, say the respondents.
Advantage of Smart TV AD | |
Benefit | % of Respondents |
Big screen more convenient to watch | 45% |
Large variety of different types of ads | 14 |
Can purchase the product right away | 13 |
More trustworthy | 11 |
More informative | 7 |
Ads are intriguing and interactive | 6 |
Ad format is innovative and interesting | 5 |
Source: YuMe/Nielsen, August 2013 |
Picture in picture ads on SmartTV leads to increase in most campaign metrics.
Key Campaign Metrics | ||
| (Positive Response; % of Respondents) | |
Measurement | Traditional TV | SmartTV |
General recall | 42% | 52% |
Brand recall | 34 | 66 |
Message recall | 26 | 44 |
Ad likeability | 54 | 64 |
Purchase intent | 66 | 58 |
Recommendation | 66 | 70 |
Source: YuMe/Nielsen, August 2013 |
The Smart TV is being used for more than just TV. Many users report high app usage and 17% are likely to decrease or cancel their cable subscription in the upcoming year, a 13% increase from last year.
Features Used At Least Once A Week | |
Feature | % of Respondents |
Watching free Internet video content | 61% |
Browsing the Internet | 60 |
Watching paid Internet video content | 50 |
Connecting to social network service | 34 |
Use application | 31 |
Playing online games | 29 |
Downloading application | 24 |
Using video telephone (Skype) | 23 |
Source: YuMe/Nielsen, August 2013 |
90% of Smart TV owners are satisfied with their devices and 81% prefer using a Smart TV over a traditional TV set. 63% would like a 2nd Smart TV for bedroom.
Viewers of Smart TVs are generally young, higher income professionals. Smart TV users are tech savvy, professionals with an influential role on household purchase decisions. They are also likely to pay a premium for the latest technology and brand names.
Respondent Profile
Age % of Respondents
Source: Source: YuMe/Nielsen, August 2013
The report indicates that users of Smart TVs can be categorized in four distinct user segments, finding that affluent technologists and social youngsters were most receptive to Smart TV advertising. The four segments are described as:
Segmentation Overview
Affluent Techie (22 %)
Social youngster (25 %)
Traditionalist (19 %)
Family oriented midlife (35 %)
Michael Hudes, Executive Vice President of Emerging Markets, YuMe, says “… results… affirm a growing Smart TV market… opportunity for advertisers to increase brand engagement through Smart TV… understanding how people engage with Smart TVs… “
For additional key findings from the YuMe-LG study, as well as methodology and a copy of the full report, please visit here.
The impact on local TV is important. I wonder how many of the Smart TV owners who have cut the chord get "rabbit ears" to watch Local TV. Or do they just bypass local TV altogether?