The connected TV (or ‘smart TV’) revolution has taken a little longer to take hold than some predicted, although OTT services are starting to take hold. The TV manufacturers have invested heavily in creating their own built-in platforms to compete with games consoles and other devices such as Roku, Apple TV and Google’s Chromecast. LG and Smartclip recently had some research* carried out on the UK smart TV market that was carried out by Nielsen.
Some of the key findings from the UK Market included:
- 29 percent of all TVs are smart TVs, and 93 percent of smart TV owners connect their TV to the Internet – compared to 78 percent in 2013.
- This development is fuelled by the wider offering and the intensive use of on-demand video content.
- Smart TVs have arrived among the wide population, but still Smart TV owners are younger and characterised by a higher household income than owners of traditional TVs, making them an attractive audience for advertisers.
- 78 percent of all Smart TVs in the UK market have been bought in the last 2 years, thus providing the improved technology standards and easier access to video content.
- Already 37 percent of TV viewing time on smart TVs is spent on on-demand content. Since smart TV owners watch more traditional TV programs and also more on-demand content than non-smart TV users, smart TVs fuel TV consumption in general.
- The Smart TV is primarily used as a family entertainment device with an average of 2.7 persons watching – mainly during prime-time.
On the advertising side, one of the big promises of connected TV advertising was the ability to create more interactive ads. Of those who did interact with ads, 41 percent considered buying the product, 30 percent searched for more information online, 27 percent purchased the product right away, and 19 percent spoke about the product to others.
Unsurprisingly, the key to success was relevance:
- 56 percent said they engaged with the ad because it was for a product they’re interested in buying.
- 32 percent said they responded because the ad had a promotional offer.
- 56 percent said they recognised the brand from past advertising.
- Just 17 percent said they responded because the ad appealed to them visually.
* Methodology: In Germany, United Kingdom, Spain and Brazil a total of 2,800 persons (700 per country) who participated in the online survey.