Americans are highly interested in purchasing products directly from TV commercials and programs using their remotes, according to a new t-commerce study released today by Connekt. However, many don’t realize the capability currently exists, suggesting a need for greater consumer education.
Next-Generation Connected TVs Fulfill Promise of TV Commerce
The study found a strong consumer appetite for buying goods through the largest screen in the home, with 76% saying they would shop through their TVs in real time if it were an option. The majority – 65% – would be most likely to purchase products highlighted in TV ads, whereas 35% would be most inclined to purchase those featured in TV shows.
T-commerce is surging in the advertising world, driven by a connected TV market that’s projected to reach 260 million installed devices by 2020, and new technologies capable of turning TV ads and programming into transactable opportunities. Prospects for t-commerce sales next year already look favorable – nearly half (42%) of those surveyed said they will likely buy products through their TV in 2018.
“TV remains most prolific way for brands to reach consumers, and smarter TVs mean smarter advertising where brands can move consumers from awareness to a transaction without ever leaving their TVs,” said Tripp Boyle, senior vice president for Connekt.
Convenience Is King for In-TV Buying
The biggest draw of buying products using just a remote? Convenience ranked first, cited by 74% of respondents, while the ability to buy right when they see a product they like ranked second with 66%. Also high on the list were the appeal of a cool new technology, and the ability to purchase from a comfortable setting. [See Chart 1].
TV Especially Prime for CPG and Electronics Advertisers
When asked which products they’d be most likely to buy from their TVs, 76% said household goods such as cleaning supplies and cosmetics. Consumer electronics was a close second with 67%, followed by clothing with 47% and home & garden with 44%. [See Chart 2].
Room for Industry to Clear up Confusion
While there is undeniable interest in t-commerce, consumers are still figuring out how to engage with TV content and make purchases through their connected devices in real time. In fact, 78% of those surveyed said they’re not familiar with technology enabling them to buy products using their TV remote.
Digital Showers, Ray-Bans and Echos Popular for 2017 Holidays
Connekt also separately identified the most-purchased products for the holidays by analyzing actual transaction data through its ShopTVTM application, which is embedded in more than 10 million devices. [See Chart 3].
The top-shopped products during the holiday season by category are:
- Consumer Electronics – Amazon Echo
- Home Accessories – Kohler digital showering system
- Fashion Accessories – Ray-Ban Chromatic sunglasses
- Automotive – Mercedes GLE SUV
- Hobby & Toys – Spark Mini Drone by DJI
- Sports Merchandise – Isaiah Thomas jersey
- Wellness – The Corebar at Home Training System
The ShopTV consumer panel was comprised of 320 active TV viewers and shoppers, and was conducted across Connekt’s range of digital engagement
Connekt is an AI-driven technology company that enables its media and advertising partners to make TV ads more targeted, engaging and measureable. It does this by leveraging proprietary artificial intelligence, in-content ad delivery and a patented t-commerce platform. Current partners include CBS, HBO, LG, Nielsen, Showtime, Sony and TiVo, among others. Founded in 2017, Connekt is headquartered in San Francisco, with offices in Denver and New York. For more information, visit www.connekt.com.