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By 2014, connected TV homes will have surpassed PC homes

As TV advertising continues to command the largest share of investment, marketers might be interested in seeking out connected TV opportunities to keep growing in the video ad market. In a recent study by IHS Screen Digest conducted in the United States and on Western Europe including France, UK, Spain, Italy and Germany, where the TV ad growth is slowly growing year over year.

As the report shows, IP-delivery and connected TVs open up more avenues for digital video advertising because of the growing interest for this technology. In fact, by 2014, the number of active connected living-room devices – ranging from TVs, gaming consoles and set-top boxes – in the USA and Western Europe will surpass the number of PC and TV homes!

“The growth in living-room devices will be spearheaded by connected TVs, the manufacturers of which are hoping to help drive sales using a mixture of attractive hardware combined with a content offer – a strategy which has served technology players such as Apple well in the past,” the report said. “Connecting such devices is becoming increasingly easy for consumers, with simple wireless network integration helping to improve the connection rates.”

Ad revenue is also rising on other devices, luring programmers to new platforms. The study says that broadcaster ad delivery to connected devices other than PCs has grown from 2% to 16%, from April 2011 to March 2012, of the total ads delivered for its European clients.

As advertisers begin to run more spots on connected TVs they’ll need to pay close attention to ad loads, frequency capping, video length and click-through rates, IHS Screen Digest advises.

 

Source: MediaPost Vidblog, “Connected TV Homes to Surpass PC Homes by 2014, Report Says”, July 11, 2012.

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