Smart TVs: Ad Effectiveness High, But Need Better Marketing

TV set makers would be wise to reconsider the way they market smart TVs. Brands can benefit greatly from the advertising reach and potential of the sets, but most viewers don’t feel compelled to buy them.

A recent IHS study found that about 73% of consumers  aren’t interested in buying a smart TV in the next year, with purchase intent checking in at a low 7%. But if set makers can better promote features such as Internet TV, on-demand programming and onlune interactivity, they’ll have a better shot at driving sales, IHS said. After all, advertisers are keen on the medium and are spending money there. Video ad platform Videology said that connected TV ads rose by 27% for the third quarter over the prior one.

This is a divide that should be crossed, because advertising on smart TVs can be highly effective. Yume, LG and Nielsen studied smart TV ads and their effectiveness this summer and concluded that ads viewed on smart TVs index higher in key brand metrics such as brand recall, message recall and likeability. Smart TV users are also a desirable crew. They are usually young, higher income and professionals, the study found. About 42% are under 40, while 35% earn more than a $120,000 household income. Also, they are often the decision makers in their homes.

“Smart TV purchasers have high purchase decision responsibility within their household across all product categories tested (e.g. electronics, technology, groceries, etc.),” the report found.

When it comes to technology specifically, about 40% of smart TV users are early adopters, a data point that underscores the value in marketing tech products to this segment. They will usually pay a premium for new technology and they’re also influential among friends in this category.

These findings demonstrate that advertising on smart TVs can work well, but the IHS study indicates consumers don’t feel a need for the product. Perhaps marketers can work together with smart TV set makers to better market the devices, because they seem to represent a potential boon for brands.

3 comments about "Smart TVs: Ad Effectiveness High, But Need Better Marketing".
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  1. Mike Einstein from the Brothers Einstein, November 6, 2013 at 5:06 p.m.

    I guess we've come full circle. 50 years ago they called TV the idiot box.

  2. Paula Lynn from Who Else Unlimited, November 6, 2013 at 9:28 p.m.

    You pay for it and I will buy it. Most people, especially higher income just installed TV's throughout their home within the last few years and feel no need to redo. Give it another 10, 15, 20 years or when the TV's that work find now go caput. There is something as too much too soon.

  3. Pete Austin from Fresh Relevance, November 7, 2013 at 4:42 a.m.

    Don't see why anyone would replace their existing TV with a smart TV when they can get the same result by keeping the TV and adding a "smarter" set top box? This means smart TV purchases are linked to the natural replacement rate, which is pretty low. Is there any - better - research which considers TV equipment as a whole, including set top boxes, because that's what matters here and not just what's inside the TV itself?

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