The rise of connected TVs means more than the ability to stream Netflix on the big screen. Along with high-quality, long-form content, the devices mean a climb toward innovative and interactive advertising, a joint report from Yahoo and Ipsos MediaCT found.
"We're talking about a whole new way of consuming TV," said Yahoo's Edwin Wong, director of Market Research. "That means lots of potential for new forms of customer engagement, advertising experiences and content sponsorships -- that's where we think the real opportunities are for brands."
Analysts expect connected TVs to make up 70 percent of TV shipments in 2016
. Their users skew younger, with 49 percent of them in the 18-34 age bracket. Older consumers are interested in these devices but are less proactive, with 48 percent of those in the 34-54 age group saying they may connect their TVs in the next 12 months. Separately, a Parks Associate reports find just over half of connected TVs are hooked to the Internet
. The Yahoo/Ipsos MediaCT report found that while 63 percent are satisfied with their connected TVs, only 32 percent are familiar with their features.
About 70 percent of users connect their TVs to the Internet with a game console, cable box or DVD/Blu-ray player, and half of users say they multitask when watching television. Forty-seven percent of viewers also expressed wanting better program personalization. When it comes to the Yahoo! Connected TV platform, consumers reported advertising on the platform to be more relevant, interesting and fun, with 63 percent saying "it opens up a 'new world' of information on products and services."
"These devices are going to completely open up the shopping experience on Internet TV," says Wong, who noted that viewers prefer to interact with the platform with mobile and tablet devices. "The future is all about how these devices interact with content, and how content interacts with ads."
Advertisers should take note of this trend and create interactive multimedia-rich experiences to engage consumers and drive sales.