The Rise, and Continued Rise, of Connected TV
by Reid Stein
In our ever-growing world of connectedness, there’s only one guarantee: New technologies are always coming, and you can either get with the times, or stay stuck in the past.
For a long time, the only way to stream online content in the living room was to hook up a laptop with an HDMI cord and make your TV an external monitor. Broadcast companies started to notice how lucrative it was to put their television content online. I had watched hours and hours of shows on CartoonNetwork.com, Nick.com, and even my local news station, but I had to do all of this at the family computer which sat oddly near our dining room. Then, laptops became more and more viable as legitimate machines, losing pound after pound to become as portable as they’d promised. I moved to watching those shows on my bed, but there was still something missing.
I remember trying to access YouTube from my Nintendo Wii’s internet browser, and while it somewhat worked, it was far from ideal. Netflix took the next step. As instant streaming became a larger part of their offering, they sent video game console owners a disc with a Netflix app on it in order to stream content. This never worked well in my experience, and I don’t think I was the only one.
Around the early 2010s, Smart TVs continued to show up and impress at trade shows like CES. The PlayStation 3 and Xbox 360 opened their store to apps, and both Netflix and the new player in the game, Hulu, had started the race. Before long, the living room finally became a viable option for streaming online content. Netflix blew up and paved the way for broadcast companies to recognize that there was a new way for viewers to consume their content. The online streaming space grew and grew and is somehow still growing today. But there’s only one good way to give consumers free content: advertising.
Companies moved their advertising tags over to the connected TV space, and the advertising industry moved with the times, just as it always will. Nielsen continues to produce staggering statistics for the space. A report from November showed that consumers age 13 to 34 spend an average of more than an hour daily on their connected devices. Compared to 36 minutes on the computer, and 24 minutes on mobile devices, this is the new place to reach a younger audience. Americans stream over 8 billion hours per month on connected TV devices, and this spans all of the available apps.
The connected living room is a space brimming with possibility as technology improves. Companies are putting QR codes and specific coupons in their connected device advertisements to get around the lack of interactivity in a TV ad. As the world continues to try to find ways for people to get together rather than grow apart with technology, shared areas of households are becoming important to families and consumers, making the space perfect for advertisers as well. I personally have moved almost all of my online video watching over to my living room when I got a Roku earlier this year. It’s easier, more comfortable, and more inviting to spend time with friends and roommates.
Connected TVs are only going to continue growing as they get better and cheaper. The only questions is: which advertisers will get with the times, and which ones will stay stuck in the past?










