The State of Smart TV Advertising

Back when America watched TV via rabbit ears or a 25-channel set top box, a panel- based measurement system based on viewers keeping diaries seemed like a perfectly reasonable way to measure what people were watching on TV.

But it’s 2018, and few people watch TV the old fashioned way anymore. They’re increasingly watching TV via apps on digital devices and smart TVs. And even if those apps are owned by traditional networks and MVPDs, the programming that’s on them is not getting counted.

That’s why there’s so much excitement about the data collected via ACR (Automatic Content Recognition) off of smart TVs.

Smart TVs are coming into their own TV[R]EV predicts they will be in close to 75% of American homes by 2022. They’re unique in that the ACR data obtained from smart TVs reflects what’s being watched regardless of input device. That means they can measure set top box viewing as well as OTT.

As viewing habits change, it is important to understand how ACR data is affecting advertising and programing decisions, especially as this data becomes more prevalent with the continued adoption of smart televisions over the coming years.

In this report we’ll explain how ACR technology works, who’s using it and how. We’ll also examine its pros and cons, and offer some predictions on where it is headed in the years to come.

This reports have been authored by industry leaders including Alan Wolk, Dade Hayes, Dawn Chmielewski, David Bloom, and Jason Damata and include commentary from dozens of senior-level executives in decision-making roles at leading companies in the advertising, agency, network and measurement space -- offering unprecedented views into these emerging ecosystems.