Sometime in the early 2000s the average number of TVs per American household surpassed 2 and it’s more or less stayed there ever since, even as people have embraced smaller screens including computers and smartphones.
In 2019, Americans started spending more time on their smartphones than watching television. As a result, the TV is going through somewhat of a midlife crisis - still ubiquitous, but ready to take on on a new role
Through most of its lifetime, innovation in television was synonymous with improving the home theatre experience - bigger, flatter screens, better resolution, and louder sound systems, etc. but the new role of television will draw more inspiration from the smartphone - becoming more personalized, more social, and more interactive.
For advertisers these innovations are already being tested, and signal the beginning of a new era where TV is one piece of a multiscreen lifestyle. TV advertising needs to be relevant in relation to other channels that consumers interact with, and in relation to their evolving daily lives.
A More Personalized Viewing Experience
Televisions are starting to deliver personalized content for every member of the household. User profiles, a feature pioneered by streaming platforms like Netflix and Disney+, are now the norm, enabling TVs to remember viewing preferences, suggest relevant shows, and even customize content recommendations based on past behavior. With advancements in AI, televisions will only become smarter, capable of adapting dynamically to viewing habits and predicting what users want before they know it themselves.
Beyond content personalization, the technology driving TVs is also becoming more attuned to individual preferences. Whether it's syncing with a smart home ecosystem or adjusting picture settings based on ambient lighting, the television is steadily becoming a device that knows and caters to its viewer’s unique needs.
As TV becomes personalized, advertising evolves with it. Personalization through programmatic CTV advertising delivers new opportunities for brands, especially when paired with dynamic creative optimization. But this is only the beginning. Soon ads won’t just be targeted to audience segment or location data, but by past purchases, recent store visits or to people in a loyalty program. Imagine a loyalty VIP unlocking access to a concert or fashion show on their phone that plays on their TV.
Contextual data can also be used to make the ad experience more personal in the moment. Advertisers can use AI to deliver ads that flow with the content, creating different ads for someone watching a comedy or a game.
A More Social Experience
While smartphones and social media have made sharing content second nature, televisions are finding ways to reclaim their role as a communal device. New features are focusing on enhancing shared experiences, both in-person and remotely. Watch parties, popularized by streaming services during the pandemic, are here to stay. These features allow friends and family to synchronize their viewing experiences, complete with chat options or live video feeds.
Television manufacturers are also leaning into multi-user interaction. Split-screen capabilities, once limited to gaming, are being reimagined for a variety of applications. Imagine watching a sports game while simultaneously keeping up with social media commentary or monitoring a live fantasy league scoreboard. TVs are evolving to foster both physical and virtual socialization, becoming more than just a passive device for individual consumption.
Social can be incorporated into advertising in similar ways and is quickly gaining traction. An ad featuring friends on vacation could be targeted to everyone in a fantasy league at the same time while they watch the game. Already CTV ads can include real- time ratings of a hot product, or an influencer review for a product someone recently searched.
A More Interactive Platform
Perhaps the most significant shift inspired by smartphones is the push to make televisions more interactive. The days of passive viewing are being replaced by active engagement. Many modern TVs now feature app ecosystems, allowing users to browse, shop, and even work directly from their screens. Voice assistants like Alexa, Google Assistant, and Siri are increasingly integrated into smart TVs, allowing for hands-free control and tailored functionality. Shoppable TV, where viewers can purchase items directly from the screen, is becoming increasingly common, blending e-commerce with entertainment.
Gaming is another area where televisions are becoming more interactive. The rise of cloud gaming platforms like Xbox Cloud Gaming and Nvidia GeForce Now has transformed TVs into powerful gaming hubs without the need for a console. With support for motion-sensing technology and augmented reality, televisions are poised to redefine interactive entertainment in the home.
Gen Z in particular is trained to assume that screens are interactive. Commerce ads on TV already have the ability to send people to a website or app using a QR code or link, but that’s nothing compared to the interactivity around the corner. Soon people will use Siri or Alexa to pause a show and learn more about the car someone is driving, or highlight someone’s sneakers in an ad and navigate to a store on the big screen.
The television is far from obsolete, but its role in the home is undeniably changing. Drawing inspiration from the smartphone, it is transforming into a more personalized, social, and interactive device. This evolution ensures its continued relevance, not as the sole focus of home entertainment, but as a versatile and dynamic part of a connected lifestyle.