By Dr Morten Boyer from GfK Australia
There is no question that Smart TVs are popular. GfK figures show that the proportion of TVs sold with Smart functionality has been growing consistently, reaching 32 per cent in second half of 2012, up from 21 per cent 12 months earlier.
However, as is often the case, the sales data only tell part of the story.
The latest results from ConsumerScope suggest that the industry has certainly promoted the Smart TV message very actively, with concept awareness rising from 28 per cent in late 2010 to an impressive 82 per cent two years later.
But there is still quite a job to be done in communicating the benefits of “Smart”: an amorphous technical term to the average consumer.
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While most TV buyers have heard of Smart TV, less than half (47 per cent) think they have a good understanding of the technology. This would help explain why nearly half of all new Smart TV owners acquire the functionality simply because it “came as a standard feature”.
So the need for further consumer education is clear but currently only 51 per cent of recent TV buyers say they received a memorable Smart TV demonstration on the shop floor.
More attention should focus on showing emerging Smart behaviours, like on-demand entertainment (for example: catch-up TV, video content subscription and rental services), additional channels, games, video calling, wireless device connectivity, and listening to the radio or other music services.
Furthermore, there is a significant adoption barrier to address, with 34 per cent of non-Smart TV buyers not wanting to connect their sets to the internet due to a variety of reasons, including slow download speeds (18 per cent) and a fear of exceeding data limits (21 per cent).
If these benefits and barriers to adoption can be addressed concurrently, there is a significant opportunity to increase consumer demand for more fully-featured premium TVs, along with stronger post-purchase product engagement and advocacy.
Dr Morten Boyer is the general manager of Media and Market Insights at GfK Retail and Technology ANZ.