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Sergey Karshkov: What Is T-Commerce?

Claire by Claire
March 29, 2022
Reading Time: 3 mins read
Sergey Karshkov: What Is T-Commerce?
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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.

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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.

Claire

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