August 19th, 2024

TV set has become a digital billboard. And it's only getting worse

The television industry is transitioning to monetizing viewer data and advertising, with smart TV ad revenue projected to reach $46 billion by 2025, raising privacy concerns over data collection practices.

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TV set has become a digital billboard. And it's only getting worse

The television industry is shifting from hardware sales to monetizing viewer data and advertising, as companies like LG, Samsung, Roku, and Vizio increasingly focus on recurring revenue from smart TV operating systems. This change is driven by declining hardware margins and the rise of smart TVs, which allow manufacturers to serve ads and track viewer behavior. The revenue from smart TV ads is projected to grow significantly, with GroupM estimating a 20% increase from 2023 to 2024, reaching $46 billion. Automatic content recognition (ACR) technology plays a crucial role in this ad ecosystem, enabling companies to gather data on viewer habits, often without explicit consent. While consumers have come to expect ads on budget TVs, major brands are enhancing their ad capabilities, with LG sharing data with Nielsen and Samsung improving its ACR technology for better ad targeting. This trend raises concerns about privacy and the extent to which TVs are becoming tools for data collection rather than just entertainment devices.

- TV manufacturers are shifting focus from hardware sales to ad revenue and viewer data monetization.

- Smart TV ad revenue is expected to grow significantly, reaching $46 billion by 2025.

- Automatic content recognition (ACR) technology is central to the ad business, often implemented without clear user consent.

- Major brands like LG and Samsung are enhancing their ad capabilities and data-sharing practices.

- Privacy concerns are rising as TVs increasingly track viewer behavior for advertising purposes.

Link Icon 8 comments
By @hnburnsy - 8 months
Its not just the tv manufactures...

  NBC ran commercials during Olympic completion, shrinking the competition into the corner and they also ran 2-3 second ads during the program, too fast for you to skip.
  Hockey is placing continual advertising with rotating animations on the dasherboards and the ice surface.
  Youtube is placing much longer non-skippable ads into content displayed on smart tvs versus mobile or web browser.
  HGTV has raised the art of the in program ad popup to a whole new level in terms of frequency and size, even shrinking the current program while placing ads on the left and bottom border.
By @h2odragon - 8 months
A display that only you can watch will become rare and extra valuable.

I wonder what percentage of internet traffic is already "defunct" analytics, send home data for manufacturers that moved on, devices spying for masters that no longer listen.

By @add-sub-mul-div - 8 months
> Roku has also tested a feature that "would force viewers to sit through effectively a mid-roll ad when clicking from the Roku City screensaver to return to home screen,"

This is absolutely horrible and I assume it's only a matter of time before I decide to hook up my PC straight to my TV so as to obviate the Roku/Plex combo which until now I've considered the least bad option.

By @JohnFen - 8 months
TVs have joined newish cars, anything IoT, and so forth on my list of things that aren't worth buying. They're all intended to be surveillance platforms and none of them offer enough value to be worth going to the effort to defang them.
By @eutropia - 8 months
It's too much tk hope we can ban advertising, but surely we can ban all of this absurd tracking?
By @mjcurl - 8 months
I bought a Hisense tv last year and I think I haven't seen an ad once (barring YouTube ads).
By @hooverd - 8 months
Android TV too! They've besmirched the Nvidia Shield homepage with ads.
By @ddmma - 8 months
Feels like Idiocracy device