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Cable Technology Feature Article

January 26, 2010

Social TV Environment Enables More Effective Ads: Report

By Raja Singh Chaudhary, TMCnet Contributor

Akoo, a social music television network, has reportedly announced that, according to a latest research study conducted by the media research firm Arbitron, an integration of traditional 30-second TV commercials and interactive, social TV programming environment has been found to be much more effective in comparison to broadcast TV equivalents, in terms of various brand metrics such as recall, consideration and purchase intent. 

Arbitran had conducted the study upon Akoo advertisers, which had been classified in various categories such as gaming consoles, quick-service restaurants, consumer electronics retail, movie studios and mobile broadband service providers. 

In the present scenario of advertising, converged Internet-connected HDTVs, social media apps, smart phones, and Wi-Fi enabled mobile devices are the key factors that are changing the way people experience broadcast and IP-based television programming, both in-home and out-of-home. 

As a matter of fact, the year 2010 is being predicted as a period when “social” will become a ubiquitous experience spanning all screens and finally transforming the broadcast TV model. 

The rapidly changing technology, commercial avoidance, and the increasing influence of younger demographics are changing the advertising world in such a drastic way that traditional TV advertising is being predicted to last one one-third effective in the year 2010 as compared to what it was in 1990, a study by McKinsey & Company (News - Alert) concluded. 

In its certified audience measurement research, Arbitran found that at present 64.5 million monthly viewers watch Akoo programming and advertising in 53 top markets across 30 U.S. states. The company claims that during the research, 79 percent of viewers were more likely to consider trying the a new service launched a mobile broadband service provider, after seeing the TV ad on Akoo. In a yet another campaign, 76 percent of viewers didn’t know they could text a consumer electronics retailer for gift advice prior to seeing the TV ad on Akoo, while 27 percent of viewers were more likely to use the service for gift advice after seeing the TV ad on Akoo. 

Akoo leverages its patented technology for delivering major label music videos and original programming to a national audience. The viewers in each location can also get local programming experience, and can use SMS text message request or Akoo’s mobile application for selecting programming, and further sharing it on the network, free and on-demand. 

According to Niko Drakoulis, CEO at Akoo, the study validates that a social TV environment delivers younger, more engaged, and higher quality audiences; and these factors increase the effectiveness of traditional television advertising dramatically. 

Earlier this month, Akoo had announced the receipt of a company patent from the United States Patent and Trademark Office, which covers an apparatus and method for using mobile devices to select on-demand content and to socially interact with programming across networked digital video and IP television services by using SMS text messaging or mobile applications. 

Raja Singh Chaudhary is a contributing editor for TMCnet. To read more of Raja's articles, please visit his columnist page.

Edited by Kelly McGuire