Online TV may be popular with viewers but the TV networks and content providers are not so impressed with the advertising returns compared to traditional TV. But as viewer habits change, the online advertising option seems to be much more efficient at raising brand awareness, and the perfect model for the advertiser is to spend their budget on connected or smart TV advertising.

But it seems that advertising on connected TV sets is where the action is. Recently research by IAB and GfK research showed that online advertising gives advertisers a much better brand awareness than advertising on TV, for a much lower price.

So TV advertising is expensive and viewers are ad blind, but online advertising is still new, fresh and effective. So how about putting the two together in the form of connected TV?

The combination of the web and TV advertising gives a 17.1% uplift in brand awareness says the IAB research. The number of connected or smart TV’s sold is still relatively small compared to standard sets, but sales are growing rapidly. Reports say that by 2014 most TV hardware will be internet connected.

A trial by electronic program guide creator Rovi had an amazing 13% Click-Through rate on Connected-TV Advertising during a 3 month period in the US. This number is over 10 times of typical Web banner ads.

Advertising was shown on internet-connected televisions and Blu-ray Disc players from Samsung Electronics and Sony. Speaking about the trial, vice president of Rovi worldwide advertising Jeff Siegel said, “We really feel we’re starting a new advertising vehicle.”

By the end of 2011, Rovi expects about 4.5 million to 5 million connected units to be part of its ad network, and more if the company signs up additional consumer-electronics partners for the advertising network, Siegel said.

Internet TV has been booming recently, thanks to the release of more connected hardware, quicker broadband and social interaction. Add the fact that internet TV can be watched anywhere, on smartphones, games consoles and tablets, and you get an attractive advertising medium.

The real money is still in TV advertising, but online is certainly becoming a viable alternative, especially as viewers actually seem to take some notice of the medium. Nielsen are launching a service that measures more correctly, online advertising campaigns.

When connected TV becomes the standard feature in nations living rooms, then something amazing will happen, there will be a merging of online and standard TV advertising. We will all live in a single internet-connected TV world. And advertisers can use the single all powerful connected TV platform.

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