Feature: Advertisers Move Into The Red
In the past, interactive digital TV has been viewed as something of an albatross by advertisers, with high-perceived costs and relatively low response rates deterring all but the most adventurous marketeers. However, the uptake of digital TV is gradually increasing and with a growing number of viewers going interactive, brands are beginning to cotton on to the potential behind the little red button.
Figures from Continental Research show that 36% of UK homes now have digital TV, up from 31% in June last year and 18% in the previous year (see below). Interactive digital TV has been slower to catch on and uptake has often been dogged by poor reliability, delayed access and weak content. However, penetration now stands at over 50% of digital homes, giving advertisers access to 19% of the UK’s adult population.
Research shows that the majority of interactive TV users are aged between 25 and 34 (see below), with a significant proportion falling into the elusive ABC1 socio-economic category (see below). This makes them an attractive option for advertisers, and according to Toby Hack, head of interactive media projects at OMDtvi, interactive viewers are a valuable minority.
He says: “Consumers that choose to interact with ads are having a much deeper brand experience. Rather than just staring at a 30 second TV execution they are taken out of the broadcast stream and are presented with highly relevant online content.”
Those that have been brave enough to dip their toe into the interactive pool over the last few years have achieved relative success, with response rates for the average campaign hovering between 1% and 3%. However, Hack acknowledges that the medium has been slow to get off the ground, with the industry-wide downturn forcing the majority of media owners to abandon less conventional forms of marketing in favour of the tried and tested favourites.
He says: “The difficult market conditions have made it hard for advertisers to justify using what is a relatively new medium. However, interactive advertising is a great direct response mechanism and the majority of marketeers will agree that it is here to stay.”
A recent report from the London Business School found that most digital viewers require some kind of incentive to engage with interactive advertising, and according to Hack, brands must use the medium creatively if it is to grow. However, programming is generally regarded as the key to driving interactivity, with event TV such as Big Brother and Wimbledon alerting viewers to what Hack calls a “massively enhanced viewing experience.”
According to analysts predictions, the penetration of digital TV will exceed 75% of UK households within the next five years and even if response rates remain unchanged, interactive advertising will allow brands to target large numbers of viewers with highly tailored marketing messages.
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