Banner Ads on Internet-Connected TVs Are Effective, Study Says

Sep 9, 2013 5:00 PM PST

NEW YORK — Adult entertainment companies distributing pay-per-view and membership content on Internet-connected TVs might find another form of reliable revenue — banner advertising.

A new study from Nielsen, commissioned by video brand advertising technology provider YuMe and electronics giant LG, shows that larger banners and picture-in-picture ads work well on Internet-connected TVs, and that a full package of those two as well as smaller banner ads featuring a single brand works best of all.

The study also looked at Internet-connected TV usage and user profiles, but most relevant to me were the findings on advertising, which were shown to have a positive impact on brand metrics.

One reason the ads were effective on brand recall, according to YuMe is elementary: Viewers were seeing the same brand targeted to their interests in multiple contexts.

Two-thirds of respondents said they were engaged or would consider being engaged with an Internet-connected TV ad when it pitches products or brands they’re already interested in.

“Never before have brands had the opportunity to advertise on a TV’s home screen,” according to Ed Haslam, YuMe’s senior vice president of marketing.

Nielsen conducted the research for the project in the U.S., U.K., Australia, Russia, Germany and Spain.

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