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With extensive experience of the marketing industry, 9 Pandas founder Sergey Karshkov will be well aware of the potential posed by t-commerce and ready to support clients with its future developments. This article will explore the potential of t-commerce to add a new, highly engaging and effective advertising channel.
In essence, t-commerce is trade conducted via a smart TV. This relatively new marketing platform facilitates interactive and addressable advertising. Its two primary drivers are connectivity and scale, both of which are rapidly reaching tipping point.
In the United States today, 74% of households have at least one active connected TV device. Analysts predict that the rapidly increasing market for voice-enabled devices will place additional impetus on smart TV OEMs to tap into the t-commerce revenue stream to boost meagre margins in a highly competitive industry.
It is easy to draw parallels between the advent of t-commerce and the early days of mobile commerce, or m-commerce as it became known. Just a decade ago, few people envisioned using their mobile phone to buy laundry detergent.
It took three key developments to change the status quo: a surge in growth in connectivity following the creation of smartphones; the formalization of secure payment solutions; and the widespread deployment and adoption of user-friendly commerce interfaces.
In 2012, m-commerce sales represented just 11% of total e-commerce sales, drawing a revenue of under $25 billion. By 2018, that percentage had risen to 33%, with m-commerce sales rising to circa $208 billion. In 2021 there was an explosion in m-commerce, with sales projected to surpass $420 billion, accounting for almost 54% of all e-commerce.
From Miracle Socks to My Pillow and Forearm Forklifts, many consumers are lured by deals touted in infomercials. T-commerce is essentially a next generation, point-and-click version. With t-commerce, all consumers need to do is point and click their remote to schedule a test drive, receive coupons, or purchase a product.
Hulu is already leveraging t-commerce to promote its content. In addition, Connekt recently joined forces with Sony Electronics, integrating Connekt’s t-commerce platform on Sony Blu-ray disc players and smart TVs, according to Retail Dive.
By facilitating the buying and selling of products and services via a smart TV, t-commerce provides scope for an e-commerce revolution. Research from Hulu suggest that viewers spend twice as much time engaging with brands when advertisements are interactive, driving up purchase intent by a staggering 160% compared with conventional ads. Combine this with Connekt’s research, which suggests that 75% of shoppers would be willing to purchase items directly from the TV given the opportunity, and it is easy to appreciate the considerable brand channel opportunities.
Experts suggest that t-commerce could reshape the home shopping experience for consumers, with Amazon currently running tests within its Prime shows and Sky recently unveiling a new shoppable ad format. According to statistics from eMarketer, there are currently 93 million US homes with an active smart TV or over-the-top (OTT) device, opening up an entirely new channel for brands seeking to enhance shopping experiences and make them more personalized.
TV remains the biggest, most-watched screen in most modern homes. Technologies currently in development will soon enable consumers to buy directly from their favourite brands in real time, with just a few clicks of the remote. Businesses continue to invest in linear TV ads, but in terms of engagement and building branding awareness, their effect is somewhat limited.
With high-impact visual potential, connected TV ads could add a new dimension to omni-platform sales presence, enabling brands to connect with consumers and provide value. This multi-sensory touchpoint could be used to capture imaginations, informing the consumer journey while simultaneously providing businesses with valuable insights to inform future marketing strategies and drives.
