One of the oldest and most user-friendly electronics devices, the television, remains at the epicenter of all platforms. We still watch more than five hours of content a day through the TV, a device so ubiquitous and accessible that despite claims of a mass exodus reigns in advertising budgets in excess of $70 billion, still greater than the revenue attributed to digital ad sales in the U.S. How television continues to maintain its relevance as a device is as much a question as it is an opportunity for programmers, advertisers and consumer electronics manufacturers. By balancing the assets and interest each party in the media ecosystem brings to the table, all parties have the opportunity to realize new revenue streams and deeper engagement with viewers. This dialogue becomes the foundation for the reinvention of television.
TV is King
For decades, the advertising industry has wanted the television to be more and do more. Now, we’re finally at a tipping point with U.S. connected TV viewers topping 200 million by 2019. The interactivity that has long been sought after is now available to brand advertisers and viewers in the form of t-commerce or television commerce. The recipe for t-commerce is simple: Combine the inherent power of television content to drive consumer demand with a monetization platform that’s integrated into the same connected platforms that carry the content.
The results are impressive. Imagine running a television campaign that has an embedded call-to-action that’s activated while the content is airing. Imagine knowing which of the networks and shows from which you’ve purchased media have delivered the highest rate of interactivity and engagement. Many clients have not only been surprised to get the results but they’ve been surprised by the results. The same type of interactivity is available to brands involved in product placement. Those brands come to life when people can engage with them on screen, all while viewing a program. Is this TV? Yes, it’s the new TV, reborn in the era of connectivity with the accountability, flexibility and scale that marketers expect from their investment in digital experiences.
Monetization Potential is Here
When Madison Avenue, Silicon Valley and Hollywood come together the television experience is transformed and the power of television as a transactional platform is finally realized. Delivery Agent has been a catalyst in the transformation. With a diverse and powerful ecosystem of partners, including leading media companies, advertising agencies, brands, retailers, smart TV and streaming device manufacturers, Delivery Agent has worked as an industry advocate and central technology platform to future-proof the monetization potential for all entities that are dependent upon the television to deliver audience and revenue. Delivery Agent’s ShopTV® t-commerce platform is integrated into connected TV and streaming devices from Samsung, LG, Sony and Roku.
We believe, with access to national reach, and t-commerce technology that can move viewers through an on-screen purchase funnel, brands will see improved ROI on their ad spend and therefore have the propensity to increase investment in television advertising. Agencies including Horizon, Havas, Saatchi, Carat and Hill Holliday are all embracing what the new TV has to offer their brands and viewers. Saatchi LA deployed a TV campaign for Camry that enabled their ads to send product detail information to a viewer’s mobile device while simultaneously viewing the Camry advertisement. Hill Holliday/Trulia enabled Dunkin’ Donuts national ads to send a t-commerce mobile text message -- with an incentive and app download link -- while a viewer simultaneously watched the TV advertisement. Brands and agencies are embracing the capabilities of new TV and consumers are responding. Eighty-five percent (85%) of consumer respondents, surveyed after engaging with a t-commerce TV ad, said they had a positive experience. Ninety-six percent (96%) said they would likely interact with a TV program or commercial again.
Ease of use, convenience, and innovativeness were among the attributes respondents liked most about the interactive viewing experience. Getting additional product information, coupons, samples and purchasing were some of the most compelling call-to-action messages with which consumers were interested in engaging.
The Next Frontier for Digital Commerce
The new TV is quickly becoming the next frontier for digital commerce. The largest screen in the house has become the newest consumer shopping portal. This lean back shopping experience -- whether the starting point is a TV ad, a TV program or directly through your TV’s smart hub -- allows consumers to access, engage and transact with a brand safely and securely through the TV as they have become accustomed to doing through the web and mobile. One day it will seem implausible that there was a time when TV viewers didn’t have the convenience of opting-in through an engagement and/or purchase funnel. Today, we are able to look back at the TV as a foundational device that’s being reinvented to satisfy the monetization needs of agencies, brands, retailers, CE manufacturers and broadcasters while also addressing the needs of the viewer for great content and interactivity. The future for the new TV is brighter than ever. Take a look.
Image at top courtesy of Corbis. The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillage/MyersBizNet management or associated bloggers.