Considerations for advertising in the new connected, multi-platform world

Jeff Siegel, senior vice president, worldwide advertising, Rovi Corporation, gives insights from phase one of Rovi’s smart TV advertising study in the UK (in partnership with Decipher)…

The first TV ad broadcast in the UK appeared in 1955 on ITV, the commercial public service TV network, for Gibbs SR toothpaste. The ad showed a tube of the toothpaste lodged in a block of ice while the voice of the late BBC presenter Alex Macintosh touted the toothpaste’s “tingling fresh” and “fresh as ice” attributes. It was a groundbreaking milestone that forever changed the relationship between brand and buyer, and paved the way for an ever-growing target market as the introduction of products and services made their way into the living rooms of consumers throughout the UK.

Fast forward 56 years to today, and the merger of CE devices and the internet has created new connected entertainment platforms that have led to even greater advertising opportunities in the home. Brands and advertisers are looking at moving beyond the 30-second spot to incorporate innovative campaigns on smart TVs, Blu-ray players, gaming consoles, mobile and other connected devices. In addition, the options for brands to interact with consumers have reached yet another milestone as innovative technologies drive consumer engagement to another level – from consumers immersing themselves in related multimedia content and social networking activities, to requesting more information and making direct purchases.

The number of smart TV users in the UK is rising very dramatically with projections of users estimated to be close to one million by end of year. But as more and more connected devices amass in consumers’ homes, questions remain as to how consumers are using these platforms. To better understand the new and emerging advertising opportunities on television and other devices connected to the internet, Rovi launched the Rovi Smart TV Field Trial Advertising programme in the UK in August of this year, with participation by 20th Century Fox and Channel 4.

The Rovi Smart TV Field Trial, also running in the US, Canada and now Germany, enables companies to study how to effectively reach consumers via internet-connected devices such as smart TVs and Blu-ray players. The Smart TV Field Trial programme is based on the production, delivery and measurement of campaigns within the Rovi Advertising Network, which has a large worldwide smart TV advertising footprint. Currently, Rovi’s advertising services, products and technologies together reach more than 40 million homes globally, providing highly measurable and interactive TV advertising options designed to reach an engaged consumer audience that is actively seeking live, recorded, on-demand, cable or network programming.

Phase I smart TV advertising study takeaways

In tandem with Decipher, one of the UK’s leading media strategy and research firms, Rovi conducted Phase I of a smart TV advertising study in the UK with a focus on consumers’ familiarity with and usage of connected devices, awareness and usage of the connected platform. The research was conducted in more than 500 households in the UK and included Samsung Smart TVs and Blu-ray players with the “smart hub” content portal.

Some of the key takeaways from the Phase I research of the UK trial indicate the connected device platform is driving consumer action:

• Survey respondents are using the smart hub to find what to watch

-36% of users access the smart hub to explore content to watch

-39% using it to find specific programmes

• Users are actually watching more TV, but using other connected devices less

-58% of those surveyed use fewer devices to access the internet while watching TV because they can now access apps on their TV

-1 in 2 connected users spend less time on the internet because they can now access apps on their TV

• The majority of respondents are positive about advertisements

-53% like TV ads that make them laugh

-65% believe that ads help them learn about products that are available

• On average, Smart TV users have downloaded nine apps

-Facebook was the most frequently accessed app

-YouTube and BBC iPlayer were also the most widely used apps

• Smart TV users are younger, more affluent and there is a slight male bias

-Users are also early adopters and “tech influencers”

-Apart from owning a connected TV or Blu-ray player, ownership of other video capable devices such as consoles and tablets is considerably higher than the national average with tablet ownership being seven times higher.

The second part of the study, to be made available early in 2012, will assess the effectiveness of a range of specific interactive campaigns on the platform.

Advertising advancements in targeting, engagement and measurement

Today’s connected, multi-platform entertainment environment has resulted in new options for brands and agencies to reach highly targeted and measurable market segments. New advanced tools and technologies are emerging that are designed to take engagement, measurement and targeting capabilities for TV advertising to a new level – providing benefits to advertisers that help them reach their most relevant consumer audience segments. Rovi recently announced its plans to incorporate the following capabilities into its Rovi ad network to help brands capture viewers’ attention across a multi-platform ecosystem:

• Expanded targeting based on geographic, demographic and psychographic data (plans include targeting by postal code, continent, direct marketing area, age, household income, or their genre-based searches, among other options)

• Additional multimedia functionality to help advertisers extend brand engagement through pre-roll video insertion and the ability to embed long-form video within a dedicated advertiser portal to keep consumers engaged with the advertiser’s message

• Request For Information (RFI) support for click to call, email, and quick response (QR) codes within advertisements, designed to help generate new leads by enabling consumers to respond immediately using their remote controls, mobile devices, or online prompts

• Social networking options for consumers to continue interacting with an advertiser’s brand and share information using popular sites

• TV commerce capabilities to make it possible for consumers to immediately purchase product and services that are seen in and associated with related video programming, simply by using their remote control

• Enhanced ad measurement and reporting tools that are designed to provide new evaluation metrics that are planned to deliver time spent, unique impressions, conversions and click-throughs based on census or sample metrics.

The Connected Consumer and Advertising

The Rovi Smart TV advertising study in the US revealed that 80% of the respondents indicated they noticed the presence of ads, and about a third of those were compelled to click through, revealing that consumers have strong ad awareness on the connected platform and are interacting with it (learn more about Phase I and Phase II of the US study). Dynamic multimedia platforms are providing consumers with options to visit microsites to discover new content about a product or service. Consumers can dive deeper to learn more information via videos and photos.

If we were to take the case of the first ad to hit UK households for toothpaste, today’s connected technologies would enable us to engage with the consumer on multiple levels, enabling advertisers to extend engagement with the brand. This might be clicking on information about other products available from the brand; viewing a tutorial video on proper brushing techniques; “liking” the brand on Facebook; participating in a contest; requesting a coupon for the product; or even, purchasing it – all with the remote control.

Much like the premiere of the TV as a platform for ads in 1955, the emergence of the connected device in 2011 will also go down in advertising history as a milestone, testament to yet another medium for advertisers to engage with their target audiences. With adoption rates of connected devices continuing to grow and new technologies emerging at a fast pace, the industry continues to revolutionise the relationship of brand and consumer to new heights of engagement and interaction.