Report: Connected TVs to offer advertisers a ‘very powerful capability’

written by: Richard Kastelein

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The potential of Smart TVs is getting increased attention from the America’s biggest advertisers and broadcasters as a result of the rising number of connected devices being distributed across America.

Last year alone $29 billion was spent on TV advertising. On online video advertising a further $3.1 billion was spent. Online video ads are expected to grow 20% in 2011 and then average 20% global growth through 2016.

Recent research from Forrester has also revealed research covering 124 advertisers across 16 major industries discovered that there is experimentation with advanced ad placements. Nearly half of the advertisers said they were testing or planning to test advanced TV ad placements in the next 12 months via platforms such as video on connected TVs.

Yet in a recent whitepaper, industry leaders from A+E networks, groupm (part of WPP) and LG Electronics have revealed that there remain issues causing advertisers to shy away.

Michael Bologna, Director of Emerging Communications at groupm, states:

"Advertisers will only adopt the new Smart TV platform when there is increased ability to measure audience figures. It’s a challenge to get an accurate assessment of how many Smart TVs are out there, let alone how many are currently in use, who is using them, and what they’re using them for."

The major concern amongst many advertisers and brands is the assessing the true scale and reach of Smart TVs. While shipments are increasing, accurate figures as to how many people connect and engage on these devices remain limited.


LG Electronics’ Kemal Altintas, Senior Manager of Business Development and Product Innovation, agrees, claiming:

"...generally, there are no major technical difficulties right now. It’s more an issue that there are not many examples yet."

Whatever the case, as Dietrich von Behren, VP of Digital Media & Investments at A&E Television Networks, puts it, ‘there’s tremendous opportunity ahead and early-adopters are going to have an advantage.’

The Smart TV and Multi-screen Advertising free whitepaper recently released by Smart TV Insider outlines the potential for growth, major technical challenges and investment opportunities for broadcasters, content owners and advertisers alike.

To view the full white paper visit:

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