Brighter Days Ahead for Smart TVs
Consumer Action Gets More Vivid
T elevision manufacturers again pushed the boundaries of possibility at the recent, all virtual, Consumer Electronics Show 2021. For some, the latest in TV technology was the big story. LG, for example, showed off an exciting new concept in transparent OLED display technology. But for data-driven marketers, the more interesting announcements were from companies like TCL that are making strides to bring the benefits of smart TVs to the average consumer. TCL’s unveiled improvements in screen size (85-inches), clarity (8K) and brightness (record-setting nit counts) foretell better home viewing on the high end, and lower prices for mid-tier TV models. For consumers currently getting all of their entertainment at home, these advancements translate into better pricing for next-gen smart TVs and a better viewing experience. For brands trying to understand how much their product placements motivate consumer action, these lower prices can help close the gap to nearly universal connected smart TV home penetration.
In 10 years, smart TV ownership has grown more than 7 fold, going from 8% to 58% in U.S. TV Households. It’s not just ownership that has skyrocketed, but the ways of interaction and frequency of use have also grown. Among those with smart TVs, 64% have three or more internet-connected TV devices. Additionally, the percentage of adults using these devices to watch a video each day has doubled to 40% from 19% in 2016. (Source: Leichtman Research Group 2020)
The pervasiveness of smart TV households has an added benefit for marketers: data. While it was once impossible for advertisers on TV to truly understand the impact of their product placements, connected TVs now make sales attribution for TV spend a reality. Whether a marketer is interested in understanding the impact of their TV investment of web visits, in-store sales, or even foot traffic to a retail location, the effect of product integrations can now be tracked and measured. BEN recently tested several integrations and saw compelling results (see numbers on right).
— Aaron Frank
The impact of product placements has always been about both moments and metrics. Nothing can match the cultural impact of a great, authentic placement inside water-cooler content. But the data from connected TVs is transformative. It gives marketers the ability to go beyond those moments and compare the effectiveness of product placements alongside the metrics they get from digital, providing a fuller picture of the ROI from their investments.
BEN SVP, Insights