In the United States, the total smart TV household penetration has been increasing rapidly from 2012 onwards, from around about 9% in 2012 to 60% in January 2020.
This growth comes from shifting consumer preference towards online content. The wide availability of high-speed internet and the smart features of connected TVs have also contributed to the fast growth of the smart TV market both in the United States and the world. And, added to that, the pandemic has further pushed the consumption of content up even further.
Americans spend an average of 3½ hours in front of a TV each day, according to eMarketer, the market research company. With more and more consumers opting for Smart TVs, marketers and publishers today have access to a wealth of consumer information.
Content Recognition & Targeting
Automatic content recognition (ACR) technology has the potential to capture all types of TV viewing: linear, OTT, video on demand, commercials, and video games. When tracking is active, Smart TVs can record and send out everything that comes up on the screen regardless of whether the source is cable, an app, the DVD player, or a set-top box, but without personally identifiable information. Once collected, media analytics companies consume the ACR data, then clean, compare and combine it with other data sets to make it more usable and accurate. TV advertisers, therefore, no longer need to rely on Gross Rating Points (GRPs) and have greater capabilities of showing their ads to the right person at the right time.
Analytics & Advertising
While the world of advertising is moving to digital, TV advertising still accounted for $84 billion in 2018 in the US alone. But data-driven methods are enabling these dollars to be spent more efficiently using automated systems over programmatic TV.
Advanced advertising technology enables advertisers to have more control with end-to-end inventory visibility, audience, and demand. Using specially developed software solutions, marketers can integrate and streamline omnichannel advertising and marketing activities. Advanced analytics technology for advertising can help businesses also use ACR data to connect ad spend to business goals, like driving in-store traffic and make intelligent media advertising plans.
Data-Driven Media Subscription Management
Subscription rates after March 2020 grew between 3 times for digital news and up to 7 times for streaming services as published in the Covid19 Subscription Impact Report conducted by Zuora. By analyzing television viewership data in conjunction with product subscription information, publishers can manage subscription features specific to OTT platforms, such as auto-renewing and churn management.
Netflix has claimed that its media recommendation solution could be saving up to $1 Billion a year by decreasing churn.
AI-based Viewership Recommendations
Content metadata in smart televisions are often only applicable to an on-demand video where there is time to generate it before distribution. Advance recommendations based on prior knowledge are irrelevant in cases like live sports, where viewership is based on expectations instead of prior information. For this reason, operators need to leverage AI/ ML to generate effective recommendations, even for VoD content. Recommendation engines help uncover video content for users that they would not be likely to find themselves. As a result, video and TV services can increase their content reach without having to constantly acquire new content.
Tavant specializes in advanced advertising technology and media analytics to help companies gain the most from smart tv data. For more information on how we can help you write to us at [email protected]; or click here.
SOURCES:
https://www.washingtonpost.com/technology/2019/09/18/you-watch-tv-your-tv-watches-back/
https://www.zuora.com/guides/subscription-impact-report-covid-19-edition/
