88% OF MARKETERS STILL TO DEVELOP CONNECTED TV STRATEGY

Despite global sales reaching 123million by 2014

The Internet Advertising Bureau (IAB) and Adjust Your Set, the multichannel video agency, have today revealed industry reaction to internet-connected TVs. In a survey of over 200 IAB members, 85% of respondents say they’re interested in the advertising opportunities afforded by internet-connected TVs, but only 12% currently have a connect TV strategy in place.

Various businesses claim that sales of internet-connected TVs will continue to grow, with informa predicting that manufacturers such as Samsung, LG and Sony will sell 52 million internet-connected TVs over the course of this year on a global basis and from 2013 internet enabled devices, especially connected TVs, will out-sell PCs. However, according to the IAB and Adjust Your Set research, 10% of industry respondents still remain uncertain as to when a connected TV strategy will be implemented and 22% say they have no plans to implement one at all.

Caption: What respondants of research thought connected TV's would mostly be used for.

“This research reveals a staggering amount of uncertainty when it comes to internet-connected TVs,” said Jack Wallington, Head of Industry Programmes from the IAB. “It’s clear the industry considers the platform a significant leap for online advertising, but it has also become apparent that like so many other technological developments we’re waiting for the customer to leap first.”

The research showed that 82% of respondents feel very important or important, that the type of content on internet-connected TVs is new, entertaining and engaging and almost the same amount felt that short-form content will be the most prevalent (80%). However, over a third feel that only a budget of up to £50,000 should be allocated to an internet-connected TV strategy and 68% feel that consumers will only ‘plug-in’ their connected TV once the trend becomes more widespread.

Chris Gorell Barnes, CEO of Adjust Your Set said, “The rapid uptake of connected TVs should warrant serious consideration from brands on the potential opportunities available and future revenue streams. While people are purchasing internet-enabled devices it is still unclear whether they will plug them in. It is the industries responsibility to create compelling content propositions to persuade the audience.”

Download the connected TV strategy whitepaper here.
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[1] Source: DisplaySearch
[2] Source: IHS iSuppli