In the next 4 years, the number of smart TV households in the U.S. will jump from 37 million to 87 million. By 2013, Parks Associates analysts say that smart TV households will reach critical mass with about 38% of the viewing market. The functionality of smart TV allows consumers to change the way they watch programming and makes them great targets for advertising.
For advertisers, reaching the smart TV households could be a big plus. Over 33% of the audience earns more than $100,000. In addition, about 70% of these consumers have college degrees, which is 2.4 times higher than average. Not surprisingly, these folks are techies, and they own 11 connected devices on average.
The connected TV viewers own the technology to make their experience more convenient and enjoyable. At least 74% say they can watch what they want, when they want. While they are searching for and viewing programming, these consumers also notice advertising. Marketers are using specific approaches in this environment such as banner ads, video, and other interactive techniques like QR Codes and polls to engage viewers.
Parks Associates partnered with Rovi, an ad network operator for this study. According to Rovi statistics, men make the better audience for smart TV ads as they respond 1.6 times more than women. These consumers also like to be rewarded for their attention, especially with coupons and special deals (61%). Analysts contend that Smart TV is the next ad space where marketers need to position themselves. As consumers select the programming they want to see, they’re also clicking on ads in this format when they are interested in the products and 64% agree that the platform makes an excellent place to reach them.[Source: The Next Iteration of TV Advertising. Park Associates. 2012. Web. 21 Nov. 2012]