The Rise of Interactive TV

Interactive TV is an overarching term describing any service allowing viewers to interact with television content. The new technology allows the user to select content and control playback features. Interactive TV has evolved to include video on demand, VCR-like pause, rewind, fast forward, and DVR usage. The consumers control their content viewing by the use of the remote control. According to Forrester research, by 2010, over 45 million households (40% of the US) will have Interactive TV in their households.

Advertisers can utilize Interactive television several ways. A few examples include:

Air traditional :30 spots enhanced with triggers which would transport viewers to a full screen Microsite. Run traditional :30 spots enhanced with triggers which transport viewers to long form content regarding information about products. Use Interactive TV as a call to action and collect the viewer’s contact information when the consumer clicks on a screen where they request more information regarding a specific product or a free sample.

What does this all mean for the future of television? The typical television viewing experience will soon resemble the current web surfing experience of today. Advertisers will selectively target ad messages to specific groups and interests, weeding out the ad for a product or service not of interest to the viewer.

This also means that the commercials will become scripted programs, and will have to offer more information on the products. The spots will have to intrigue customers to select and watch when they want. This could weed out advertisers where long form will not work for their products or where budgets will not allow for the production of these scripted spots.

Lastly, scheduled programming may become a thing of the past. The importance of the time of the show and broadcast will shift to an emphasis on what the show has to offer.

Although Interactive TV is currently deployed in around 30 million US households in one form or another, it has yet to reach viability as a stand-alone service. Part of the reason is that it is a new product, and will require testing, integration, maintenance and updating. Once this service becomes more widely adopted by advertisers, it will become a more efficient and recommended opportunity. Consumers will watch Interactive TV with more attention, and will not bore them because they are actively involved. The right creative can engage consumers and stop viewers in their tracks and keep them there. The medium is measurable, as you can acquire information on the viewers, analyze and evaluate who is interacting with the brand, and make relevant decisions on target marketing.

It is a rapidly changing world and wherever consumers go over the coming years to find their favorite TV content, smart advertisers will follow.

Natalie Suesser
Media Investment Supervisor
Cheil Communications New Jersey