TV-enabled shopping isn’t anything new. After all, Americans already spend millions of dollars a year on impulse purchases fueled by popular TV networks like QVC or HSN.
However, TV shopping, or “tCommerce,” could be primed to change dramatically in the coming years. By combining with social media and smart TVs, a new report revealed it could allow consumers to enjoy a faster, more efficient buying process that creates a lucrative market for advertisers.
Delivery Agent, a San Francisco-based provider of shopping-enabled entertainment, recently released the results of a study that found that roughly two-thirds of survey takers are interested in using their TVs for shopping. The company surveyed 1,100 consumers it identified as “active online entertainment shoppers” from May 1 to May 31 to gather its data.
“We are at a pivotal moment in the industry, where the ecosystem has been developed to allow customers to shop directly from their TV with a mobile device or remote control,” Mike Fitzsimmons, Delivery Agent’s CEO, said in a statement. “TCommerce has been missing from the omnichannel experience and the long-term potential of selling products directly to viewers as part of the TV experience is enormous.”
In this PYMNTS.com Data Point, we’ll go behind the study’s findings to show what’s driving the future of tCommerce and how consumers want this experience to look.
What Consumers Want From tCommerce
The report found that 82 percent of respondents would be interested in purchasing products tied to their favorite shows. Comedies and dramas were the most likely TV show genres to encourage spending. Sixty-eight percent of the individuals surveyed said they would be very interested in using their TV to shop.
Perhaps most notable was the finding that 76 percent of survey takers said they would like to buy directly from a commercial they’re watching. Apparel and entertainment products were the most frequently cited items survey takers said they’d be interesting in buying in this format.
The report also indicated that automotive, beauty, food, health and travel companies could all benefit from capitalizing on the growing consumer interest in tCommerce.
What’s Fueling tCommerce Growth?
Two notable trends are converging to shape the future of tCommerce: the first of which is rising social media use. Experian found in April that Americans spend 27 percent of their time online on Twitter, Facebook and other social platforms. Many have taken this relationship further, using their smartphones and tablets as companions for TV viewing, where they can watch and comment online with friends or other viewers. Twitter has already made inroads to capitalize on this experience as a way for it to grow its operations.
Also supporting this study is research predicting that the popularity of Internet-ready TVs will increase. Gartner indicated in a 2012 study that Internet-connected smart TVs would account for 85 percent of TVs in the United States by 2016.
However, these statistics remain predictions. As 3-D TV has proven, TV viewers can be fickle about new technologies, especially those that interfere with their established habits.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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