TV to Become a ‘Stronger Advertising Platform’ with Onset of Smart TVs and Multi-screen Possibilities

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Smart TV and multi-screen advertising whitepaper evaluates connected advertising potential, but lack of investment is hindering uptake

Advertisers need to help the nascent advertising market by funding innovation, and minimising risks.

In late 2012 Nielsen reported a 2.2% decline in traditional TV advertising investment in Europe. Consider this, alongside the fact that digital investment in advertising is forecasted to outgrow traditional advertiser expenditure in the near future, and it quickly becomes apparent that Smart TVs and other connected devices will soon be the focal point for the biggest advertisers. Knowing that the adoption of connected TVs is forecasted to reach 1.8 billion by 2016 it isn’t hard to see why this is the case. [Informa]

This view was confirmed recently in the ‘Connected TV and Multi-screen Advertising: Prospects for 2013’ published by Smart TV Insider http://tiny.cc/7016rw . While scale and reach remain major concerns for advertisers and media buyers, there is strong shift in focus towards developing the potential of these connected devices.

Jean-Paul Edwards, Executive Director of the Futures Unit at Manning Gottlieb OMD, states that advertisers ‘need to help the nascent advertising market by funding innovation, and minimising risks.’ But also suggests that ‘multi-screen advertising is a little further ahead, as we have some scalable opportunities’

The potential for multi-screen advertising is backed up by Shazam, which boasts 275 million users worldwide. Miles Lewis, VP of Advertising Sales, claims in the report that multi-screen campaigns offer the best opportunities for advertisers and brands ‘to enable consumers to engage more deeply with a 30-second spot.’

Yet investment from the leading brands makes up only a tiny proportion of their advertising spends. As Jeremy Lockhorn, VP of Emerging Media at Razorfish, states, in order to reach critical mass, and see investment from the biggest brands, it is pivotal to ‘go big’. He says that after a series of effective case studies took place over the last year, ‘we, as an industry, have to collaborate more to demonstrate the success more broadly’.

Smart TV Insider’s ‘Connected TV and Multi-screen Advertising: Prospects for 2013’ whitepaper includes insight from TF1, Shazam and Manning Gottlieb OMD, as well as analysis addressing the major technical challenges, investment opportunities and innovations that are changing advertising in the connected era.

To read the full whitepaper free of charge simply download it now by going to: http://tiny.cc/7016rw

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Tom Sapsted
Smart TV Insider, FC Business Intelligence
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