Parks Associates and Rovi: Smart TVs will reach 87 million U.S. homes by 2016
Smart TVs are here to stay, with as many as 87 million U.S. households having the devices by 2016, research by Parks Associates has revealed. The research, which was commissioned by Rovi Corp. (Nasdaq: ROVI) and presented in a whitepaper, "Connected TV Environments: The Next Iteration of TV Advertising," also revealed that the presence of these Internet-connected devices will impact the way consumers see and react to advertising.
"Connected TV systems have the ability to change viewer perceptions of advertising," Heather Way, senior research analyst at Parks Associates, said in a news release. "These systems enable advertising to be integrated into device navigation and content search, engaging consumers at a point of high receptivity and enabling them to immerse themselves in a rich brand experience."
Way further noted that more than half of U.S. connected TV households surveyed "consider these ads as content, containing useful and valuable information" and therefore they're "much more likely to remember and click on these ads."
The market is attractive for advertisers, the research further revealed, since 55 percent of connected TV households boast at least a $75,000 per annum income and own 11 Internet-enabled devices; 72 percent said connectivity makes "watching TV more convenient" and 65 percent found the connected TV experience "more enjoyable."
There is a possibility that connected TV advertising is just a new experience and that consumers may, over time, grow as jaded as they are now with traditional broadcast advertising.
Jeff Siegel, senior vice president of worldwide advertising at Rovi, however, said the survey belies that possibility--at least for now.
"Advertising on connected TVs that provides more immersive brand experiences has a positive impact on consumers," he said. "Over 80 percent of our connected-TV households state they consider these advanced campaigns to be valuable sources of brand information."
- Parks Associates and Rovi issued this news release
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