‘To sell more TVs, we need to have better TV content’: Why Vizio is trying to standardize addressable TV advertising

The big shift: Smart TV manufacturers such as Vizio and Samsung are creating ad-supported streaming channels in their OS to compete with Roku and Amazon.

Share of U.S. TV households with a smart TV according to Nielsen:
2018 – 39%
2019 – 47%

The goal for Smart TV manufacturers: The profit margin on a smart-TV is roughly 6% (ex: $30 of profit on a $500 smart TV) which is leading the manufacturers toward other revenue streams such as addressable advertising.

The benefit for consumers: Cheaper smart TVs and more free video content that is supported through advertising.

The benefit for advertisers: More addressable advertising inventory to reach consumers.

Quote from William Wang – CEO @ Vizio:
“For us to sell more TVs, we need to have better TV content. We need to have more free content,”

TV content + digital attribution: Addressable advertising through a smart TV is able to provide digital like attribution (purchases, store visits, etc.) through a technology called ACR.

What is ACR? Automatic Content Recognition (ACR) is a technology that identifies the content that is playing (TV show, etc.) based on what it hears. It is alternative to collecting viewership through panels (Nielsen, etc.) and/or set-top box data (ComScore, etc.).

The players in ACR:
Nielsen Gracenote
2) Inscape
3) Samsung Ads
4) Roku
5) Alphonso
6) Samba TV

Advertiser plans for advanced TV over the next 12 months according to the IAB:
Increase – 59%
Stay the Same – 38%
Decrease – 3%

Podcast: How We Get To Better Measurement

More #1: Waiting For Addressable: Why It’s Taking So Long For The Industry To Get Its Act Together

More #2: Paul Haddad Explains How a4 Is Inventing the Way Advertising Works


Want the latest insights from around the video advertising industry?
Subscribe to our State of the Screens Newsletter.


Thank you

We have received your message and will be in touch shortly.


Contact Us