There seems to be a new buzz around the advertising industry about connected-TV and the possibilities that could emerge from the advertising world with this new technology. What is connected-TV? Connected-TV is a concept which combines the traditional TV and Internet in one device. Not only are there connected-TVs but there are many other connected devices such as tablets, smart phones, e-readers, Google Wallet etc. Google has introduced a product called the Google Wallet which ties to both a Google ID and user’s credit card information. This allows companies to track a consumer from online search to a single TV ad to a purchase on a credit card. There are definite possibilities when it comes to advertising through this new technology but there are also cons when talking about advertising through connected devices. The possibilities start with consumers being required to log in with a universal identifier i.e. Google or Facebook that will use third-party data. Samsung has already featured TVs that log viewers into Facebook through face recognition. The types of advertising opportunities available include a standard banner, pre-roll ad, interactive brand experience and category sponsorship (brands may sponsor categories which offer a way for users to interact and learn more about the brand). Research by Rovi suggests by the end of 2012 there will be 27 million smart TVs in users homes. It will be interesting to see where advertising through connected devices takes this industry. Let’s go over some of the pros and cons to advertising on a connected-TV.
Pros
- New creative opportunities
- More interactive advertising
- Long term brand benefits
- Offers metrics that aren’t available on traditional TV (unique views, behavior, state, zip code, etc.)
- Effective for advertisers to engage with their target
- Manufacturers plan to push out more models of connected-TVs this year
- Connected-TV is not limited to just TVs but can be used for game devices, blue-ray players, and Roku
- Last but not least, there will be room for it to improve and continue growing
Cons
- Should primarily be used for brand campaigns
- Many people with connected-TVs have not connected their devices to a network
- Lack of a cookie
- Trouble with targeting
- Primary ads are pre-roll
- Measurement challenges
- Reach is not that great compared to TV
