TV Apps’ Value Hard to Quantify — What That Means Now

TV apps still have significant development ahead before they become a major channel for advertisers or a primary habit for consumers, according to an expert panel at Apps World.

The panel, which included representatives from Samsung, Mindshare and the CTVMA, emphasized that connected TV applications remain in their infancy.

Jodie McAfee, general manager of Samsung’s Adhum in Europe, explained that much current activity focuses on understanding developer and user behavior. “It’s important for us to study how people use TV apps,” McAfee said.

“From a marketing ROI perspective, it’s still very early. The market volume isn’t yet big enough to determine clearly how effective this channel can be.”

Many consumers are buying smart TVs only to discover that the experience doesn’t match the smart functionality they expect from smartphones. “The way smart TVs have been introduced often ignores basic brand-marketing principles,” said Keith Johnson, UK president of the CTVMA. “There’s confusion about the term ‘smart’; what we actually need is smarter marketing.”

Johnson argued for a novel approach that delivers a distinctive connected TV experience, rather than simply applying the same methods used for mobile apps. So far, he noted, Skype is one of the few apps that has truly changed how people use their TVs.

“How do we attract advertiser investment into this space?” he asked. “We need creative service offerings that people actually want. The industry must build a market that consumers find engaging.”

Jeremy Pounder, business director at Mindshare, said that apps delivering video content are showing the most promise. “There’s a clear appetite for video apps,” he said. “It makes sense for those experiences to live on the primary TV screen.”

“When content requires more interaction, such as social networking, it often belongs on secondary devices,” Pounder added. “People discover recommendations on companion devices—their phones or tablets—through platforms like Facebook, so it’s crucial that smart TVs support seamless transitions of content between screens. That interoperability will drive discovery and viewing from companion devices to the TV.”

As the market evolves, priorities include improving user experience, clarifying the value proposition for advertisers, and ensuring smoother connectivity between TVs and companion devices. Progress will depend on better measurement of usage patterns, innovative app experiences designed specifically for the TV context, and marketing that communicates both functionality and value to consumers.

For more on the future of TV apps, see coverage from TV Hackfest, which took place at the Moscone Center West in San Francisco on February 7–8.