LG, YuMe team on connected TV ad platform
CE manufacturer LG Electronics is integrating YuMe's online advertising technology into its line of connected TVs, creating what it contends is the first advertising platform for connected TVs... and it already has signed Toyota up as a charter advertiser.
With the connected TV market expected to boom, research shows that 65 percent of all TVs shipped in 2012 will be Internet ready, and the deal positions YuMe as a go-to player. YuMe will be providing the infrastructure for LG's ad solution, which includes in-app advertising support incorporated into LG's app development SDK, management and optimization of the publisher's ad inventory and ad monetization through YuMe.
"Even as consumer attention fractures, we offer brands a way to seamlessly reach consumers at every stage of interaction with the TV, and across all platforms and devices," said Jayant Kadambi, CEO of YuMe. "As the interactive TV market grows we expect to be the leader in delivering relevant advertising to consumers."
The multi-device platform offers advertisers the immersive engagement of the TV's large-screen experience combined with the interactive engagement of digital media.
"As users discover the expanding content and application offerings on LG's Smart TVs and connected devices, usage is growing rapidly which will provide advertisers with the audience and reach for both broad and targeted campaigns," said Sam Chang, GM of LG's Smart TV Innovation Development Group.
The ad platform will be powered by YuMe's ACE Relevance Engine, which manages publisher ad inventory to optimize ad CPMs and supports a variety of ad sales models including YuMe's Connected Audience Network.
Because the LG ad platform is integrated into LG Smart TV HDTVs, Blu-ray Disc players, Smart TV Upgraders and other LG Smart TV platforms, advertisers can run campaigns on these devices as well as other connected CE devices participating in YuMe's Connected Audience Network.
"The LG ad platform will enable several common digital ad formats such as interactive display banners, in-banner video and in-stream video, as well as some new ad units such as click to sponsored applications and search related ad units," Chang said.
LG and YuMe will be running pilot ad campaigns in the United States with several leading advertisers starting in November with broader advertiser participation planned for the spring of 2012.
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