Smart TVs offer savvy advertising channels for small businesses

We’ve got apps on our phones, apps on our computers, and now, we even have apps on our televisions. And if there’s an app, there may be a business opportunity. Smart TVs may offer ways for businesses big and small to connect with customers.

More devices are becoming “smart,” which, among other things, means they’re connected to larger networks (such as the Internet). Modern TVs are loaded with streaming apps, like Netflix or Peacock. Meanwhile, online retailers and others are offering apps too.

Take Amazon, for example. The online retail behemoth spent $11 billion on video and music content in 2020, up from $7.8 billion the year before. To put that in context, Netflix spent $10.81 billion on content in 2020 and $9.22 billion in 2019.

Why is Amazon spending so much on media content? Part of it is to advertise goods sold on Amazon through video and music ads. The small businesses that sell their goods through Amazon’s marketplace can pay for ads to get their products in front of customers.

Peacock and other platforms also allow small businesses to buy ad space. Traditional TV ads are expensive and collecting data is difficult. We can estimate how many people watch a given show through surveys. However, it’s challenging to gather more specific data, like who purchased a product due to a commercial.

With digital apps and platforms, it’s possible to measure and define customer actions. With an app, you can track when a customer clicks on an ad and buys a product. Rather than paying for commercial spots, businesses can pay for results, such as click-throughs or sales.

As smart TVs take over the living room, instead of merely showing a customer an ad for your awesome local pizza parlor, you can get them to order delivery right from their TV. Or when Amazon launches its upcoming Lord of the Rings series, small businesses selling on Amazon might advertise swords, independently published fantasy novels, and other related products.