smart tv ad effectiveness a pilot study about · 2013-09-03 · 52% 49% 44% 43% advertises...

SMART TV AD EFFECTIVENESS A PILOT STUDY ABOUTThE IMPACT OF SMART TV

ADVERTISINg

How are Smart TVs used in daily life?

Who is using Smart TVs and Smart TV features?

What is the impact of advertising on Smart TV platforms combined with traditional TV advertising?

What are the key drivers for Smart TV advertising effectiveness?

The study was disguised as a simple Smart TV Usage & Attitude study. A tradi-tional TV and a Smart TV group watched traditional TV programs with exposure to ads. The traditional TV group then filled in a questionnaire. The Smart TV group performed tasks on a Smart TV (2 respondents per session) where the same brand ads were displayed in different placements. The group then filled in a questionnaire.

Purpose: To evaluate ad effectiveness on Smart TV combined with and com-pared to traditional TV. As well as to understand usage of and attitudes towards Smart TV.

R E S E A R C hOBjECTIVES & DESIgNThe results of this study verify the impact of Smart TV advertising for the first time as well as provide current data on Smart TV usage and users. This study was conducted by smartclip in collaboration with LG and executed by Nielsen in 5 countries in May 2013.

90 min

g A N g S U R V E Y

The follow up call was conducted within 24 hours after the gang survey.

Purpose: To evaluate ad effectiveness on Smart TV combined with and com-pared to traditional TV; and gain data on purchase intention & recommendation

5 min

F O L L O w U P C A L L

COUNTRIESgERMANY, UK, SPAIN,RUSSIA, AUSTRALIA5 PARTICIPANTS

2000+

The online survey was conducted in the same month following the gang survey process (9-19th May).

Purpose: To profile Smart TV users and understand usage

25 min

O N L I N E S U R V E Y

F I N D I N g S g L O B A L K E Y

Ads on Smart TV platforms combined with adver-tising on traditional TV increase the advertising effect of TV campaigns. They not only increase awareness, they also have significant impact on purchase intent & recommendation.

More than 60% of Smart TV users have a positive attitude towards advertising on Smart TVs. Also Smart TV advertising is highly engaging. Users not only interact with the ads, they also talk about the product to others or pur-chase it right away.

The big screen combined with interactive ad formats and the influential target group using Smart TV features regularly, are key drivers for the effectiveness of Smart TV adver-tising.

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Smart TV users are difficult to reach via tradi-tional TV. They are above average educated family people with high purchasing power in the 20–49-year-old age group, making them an important audience for advertisers to reach. This echoes the results from the previous Multiscreen & Connected TV study in 2012.

Connectivity is one of the key reasons for buy-ing a Smart TV. More than 70% bought their Smart TV in the past 12 months, and 80% actu-ally use the Smart TV features.

The Smart TV is primarily used as a family entertainment device with an average of 3 persons watching – mainly during prime time.

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5

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General Recall Brand Recall Message Recall

+13%

+14%

+21%

4943

81

67 6154

Ad Likeability Purchase Intent Recommendation

+23%+26%

+60%59

47

32

20

4335

SMART TV ADSCOMBINED wITh ADVERTISINg ON TRADITIONAL

EFFECT OF TV CAMPAIgNS

[ Global5 data; Base: Traditional TV group (n=250), Smart TV group (n=250); Unit: % ]

Traditional TV group

They not only increase awareness but also result in higher purchase intent and recom-mendation. As Smart TV users are difficult to reach through linear TV these results cannot effectively be achieved with additional ad spending across traditional TV.

TV INCREASE ThE ADVERTISINg

Smart TV group

have a positive attitude towards Smart TV advertising and look

at Smart TV adshave already

interacted with the ad

engaged in some kind of action, for example talking about the product or purchasing it

purchased the product right away

considered buying the product

searched more info on the product/brand by internet

talked about the product/brand/ad to others

48%61%

31%

24%

20%

15%

7%

POSITIVE ATTITUDE

[ Global5 data; Base: All respondents (n=2000) ]

INTERACTINg wITh SMART TV ADSACTIONS TAKEN AFTER After interacting with the ad 24% of Smart TV users search for information about the product or brand via the internet. 15% consider buying the product and 7% make the purchase straightaway.

[ Global5 data; Base: Respondents who have clicked on a Smart TV ad (n=960) ]

TOwARDS SMART TV ADVERTISINg

& hIgh (INTER)ACTION

52% 49%

44% 43%

Advertises interesting products / brands

Offers discounts

Appealing / Eye-catching

Easy to understand

Informative Offers coupons

Relevant to me Different / unique

INTERACT wITh SMART TV ADSREASONS whY USERS The key factor for successful advertising and interaction is relevance. Products and

brands aiming at the target group as well as further content, for example product information, add value and increase relevance. »Easy to understand« and appealing ads also provide motivation to engage with an ad.

[ Global5 data; Base: Respondents who have clicked on a Smart TV ad (n=960), Top 3 values on a 7-value scale ]

46%

41% 38%

45%

of Smart TVs are

above 40”

consider the big screen as the primary advantage for ads when compared to

other digital devices

have placedtheir Smart TV

in the living room

usually watch with family or

friends

Ø3people

watching

50%

81%

78% 78%

[ Global5 data; Base: All respondents (n=2000/n=2565) ]

ENTERTAINMENT DEVICE

S M A R T T V S A R E M A I N L YUSED AS A FAMILYADS ON SMART TVS ARE

S I z E M A T T E R S : MORE CONVENIENT TO wATCh

BIg SCREEN


5%

IN ThE MORNINg(6AM-12PM)

13%

IN ThE AFTERNOON(1-5PM)

62%

IN ThE EVENINg(6-9PM)

AT NIghT(10PM-12AM)

21%

Just like traditional TV, Smart TV programs are mainly consumed in the evening. Thus prime time advertising is also of high relevance on Smart TV platforms.


ThE MAjORITY OF SMART TVUSERS wATCh CONTENT IN ThE EVENINg

41%

NEwS APPS

MUSIC APPS

40%

27%

SPORTS APPS

28%

36%

ENTERTAINMENT APPS

are actually using the Smart

TV features

of Smart TV users purchased their Smart TV within the last

12 months

of Smart TV users say connectivity is a key buying

factor

wEAThER APPS

81%

80%

73%

ThE MOST POPULAR PROgRAMS ON SMART TVS

NEwS AND ENTERTAINMENT ARE

Smart TV apps enable Smart TV users to watch their favorite program whenever they want.Thus they are used alternatively to linear TV programs. Just like traditional TV, news and entertainment content are most popular.

[ Global5 data; Base: All respondents (n=2565), Top 5 apps ]

SMART TV FEATURES A N D w A N T C O N N E C T I V I T Y

S M A R T T V U S E R S U S E T h E


TOTAL 20’s 30’s

84%

80% 85%

40’s 50’s 60’s*

44%

79%

74%

ALL AgE gROUPS

[ Global5 data; Base: All respondents (n=2565), *small base ]

80% of Smart TV owners are actually using their Smart TV features. Younger target groups show above-average usage and users up to 59 years also take advantage of the Smart TV features.

USE ThE SMART TV FEATURES

35%

19%25%

21%

25 – 29 YEARS 30 – 39 YEARS 40 – 49 YEARS 50 – 64 YEARS

ThE MOST SOUghT-AFTER AND MOST DIFFICULTSMART TV USERS ARE

Smart TV users are younger than the average population and also younger than the average internet user. 79% of Smart TV users are between 25 and 49 years old.

TO REACh YOUNgER TARgET gROUPS


ThE DEMOgRAPhIC PROFILE INDICATES:

SMART TV USERS ARE OF hIghEST RELEVANCE FOR A D V E R T I S E R S


ARE wELL-EDUCATED FAMILY PEOPLE wIThSMART TV USERS Smart TV users are not only the young target group that is difficult to reach via

traditional TV, they are also well-educated and affluent family people who are of maximum relevance for advertising.

hIgh PURChASINg POwER

30%

51%

wITh COLLEgE / UNIVERSITY

M A L E

wITh PARTNERMARRIED/LIVINg

hAVE ChILDREN

hOUSEhOLD INCOMEhIghER-ThAN-AVERAgE

52%

64%

79%OR gRADUATE DEgREE

smartclip is a global multiscreen and brand advertising platform specializing in video ad formats across all Internet-connected devices, including smartphones, tablet PCs, gaming consoles, set-top boxes and connected TVs, in addition to the classic PC. The company helps advertisers and media agencies to reach targeted consumers. Publishers benefit from proprietary and innovative technology solutions for the monetisation of their video content. smartclip is headquartered in Hamburg, Germany with major operations in Europe, Australia, the U.S. and Latin America, pushing the frontier of digital video advertising.

The company is a wholly-owned subsidiary of Adconion Media Group, which has 26 offices serving 20 countries around the world.

Kleiner Burstah 12 20457 Hamburg, Germany

[email protected]://twitter.com/smartclipAG

SMA

RT TV

STUD

Y, GLO

BA

L // 2013

smart tv ad effectiveness a pilot study about · 2013-09-03 · 52% 49% 44% 43% advertises...

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