Feeling bombarded with ads every time you turn on the tube? Well, you are. TV manufacturers figured out they could make more money from ad sales and tracking than actually selling TVs.
It used to just be commercials, but now we’ve got pop-ups, home screen ads, interactive ads — you name it. I’ve got the scoop on what’s next, plus some actionable tips to survive the ad avalanche.
How TV makers really rake in the cash
Here’s something you probably didn’t know. TV maker VIZIO makes significantly more money from its advertising and data business than from actually selling TVs.
VIZIO’s Platform Plus, which includes advertising and viewer data, generated $57.3 million in gross profit over a three-month period, while its devices segment, which includes TV sales, made $25.6 million. So, VIZIO’s profit from ads and data is more than double what it earns from selling TVs.
Big names like Samsung, LG and Roku are also stepping up their ad games. Manufacturers and advertisers put on their creativity caps to find ways to make that money:
- Force-feed: Roku recently tested a feature that forces viewers to sit through ads when they click away from their TV’s screensaver to return to the home screen. They also filed a patent to show ads over anything else that gets plugged into your TV.
- Under one roof: In November, Amazon swapped a proprietary operating system into its Fire TVs, meaning they get a bigger take of whatever is sold. Fun fact: Amazon’s ad business had its most profitable year in 2020.
- Till you drop: Brands like Samsung are developing shoppable ads. Soon you’ll be able to purchase stuff right from the tube. They’re exploring games, QR codes and ads you can interact with using your remote.
It won’t be long until you see mega brands like Walmart and Amazon all over your screen. Think of how targeted those ads will be when they combine your purchase and viewing histories.
Tuning out
Watching TV completely ad-free is close to impossible, but there are a couple of things you can try.
Stop the snoop
Smart TVs have what’s called “automatic content recognition,” or ACR, technology. ACR tracks everything you watch to send you targeted ads. Here are the latest steps to shut that down for today’s most popular brands.
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