Smart-TV advertising increases brand engagement, says survey

Smart TVs are effective as an advertising medium when coupled with traditional TV advertising, according to a new study conducted by Nielsen for YuMe, a provider of digital video brand advertising solutions,and smart-TV maker LG Electronics.

The survey, conducted in June, found ad targeting and relevance were important factors in creating an impact. Among respondents, 67 percent said they have engaged or would consider engaging with a smart-TV ad because it advertises products or brands that interest them.

Key findings of the survey include:

  • 90 percent of smart-TV owners expressed satisfaction with their devices;
  • 81 percent prefer a smart TV over a traditional set; and
  • 17 percent are likely to decrease or cancel their cable TV subscriptions in the upcoming year, 13 percent higher than last year.

The survey found that smart-TV users fall into four general categories: affluent technologists, social youngsters, traditionalists and mid-life families. Of those, affluent technologists and social youngsters were the most receptive to smart-TV advertising, the survey found.

"The results not only affirm a growing smart-TV market, but also highlight a tremendous opportunity for advertisers to increase brand engagement through smart TV," said YuMe executive VP of emerging markets Michael Hudes.

The study was conducted on behalf of YuMe and LG by Nielsen as a pilot study in the form of a gang survey of 500 participants in June 2013. A follow-up call and online survey was then carried out with the same group.