Smart TVs are new to the market, but their impact on consumers is already evident. In a study conducted by Nielsen on behalf of YuMe and LG Electronics, consumers are interacting frequently with ads on smart TVs. With 12.7 million global shipments of smart TVs in this year’s first quarter, consumers are inviting interactive ads into their homes and giving marketers a new path to purchase.
According to MarketingCharts, the study found that most viewers clicked on a smart ad because they were interested in the brand or the advertised product. It was also found that viewers were equally likely to click on an ad if there was a deal as they were if an ad was informative. Obviously, relevance to consumers was also a major contributor to prompting a viewer to click on the smart ad. Roughly 42% of viewers agreed that they were more likely to click on an ad on their smart TVs if it was relevant to them.
Two thirds of all survey respondents who clicked on a smart ad took some kind of action. What’s even better is that 1 in 8 who did click on an ad purchased the product immediately. Advanced Television reports that the eye-catching content of Smart TV ads have seemed to create a positive perception of advertising on the platform by viewers. “The interactive features that Smart TV offers are the key to advertising effectiveness. This research really highlighted that viewers are now predisposed to take action as a result of viewing an ad and advertisers of course need to take advantage of this,” stated Youngjae Seo, Vice President of Smart Business Center at LG. Marketers love to draw consumers down a new path to purchase. Since so many of them are tech savvy these days, attracting consumers’ attention with an interactive ad on a television is much more enticing. It allows them to engage with a brand without needing a second screen to do so.
Smart TVs may be new to some of us, but those already adopting this new technology can be a new sweet spot for marketers. A new way to promote consumer engagement can also be a new way to accrue purchases.
This is an attractive audience. DailyFinance reports that 90% of smart TV owners prefer them to the traditional television set. Viewers are generally younger, tech savvy, have higher incomes, and are willing to pay a premium for the latest technology trends. Affluent techies, social “youngsters,” traditionalists and mid-life families are the 4 main segments of smart TV buyers.ReTweet