Smart-TV makers will welcome some good news at last from a survey demonstrating that Internet connectivity increases the effectiveness of brand and product advertising on big screens.
While some recent research has indicated low levels of Internet connectivity among smart-TV users, now a UK study by content discovery specialist Rovi, in conjunction with London-based Decipher Media Research, has provided evidence that it can make a difference to user engagement with advertising by exploiting the power of interactivity.
The study examined a recent American Airlines ad campaign, which demonstrated that consumers expressed higher rates of brand favorability, awareness of key brand statements and also purchase intent, when exposed to a campaign on connected TVs. The airline’s "New American" campaign appeared on a range of connected TVs and Blu-ray Disc players, involving interactive banners strategically placed within the connected TV interface, including key positions in entertainment search areas. The interactive banners led consumers to a dedicated American Airlines branded destination, where they could then view further video content.
American Airlines said this achieved an increase in brand favorability of 254 percent and a 308-percent gain in association with key brand statements. The campaign also revealed that consumers seeing the ads on connected TV were 4X more likely to book a flight on American Airlines than those not exposed to the ads. There was also generally increased awareness of advertising on connected TV platforms, with 55 percent of respondents in Q1 2013 claiming they had noticed it, a rise of 14 percent over Q4 2012. Furthermore, 10 percent of respondents claimed to have clicked on the advertising, an 8-percent rise over the quarter.
There was some other encouraging news for smart-TV makers in the survey, with 49 percent of respondents in households that own connected TVs reporting they use the connected platform once a week or more during Q1 2013, 10 percent more than in the previous quarter. Then, 84 percent indicated that connected functions are accessed by more than one user in the home, a rise of 23 percent over the quarter.
The take away message perhaps is that connected TV can deliver benefits to users, advertisers and operators alike, but only when the features are transparent and emerge through existing services, rather than requiring active browsing.