LG To Add Ads To Its Internet TVs

By Greg Tarr -- TWICE, 11/2/2011

Englewood Cliffs, N.J. - LG Electronics is teaming with an online advertising sales company called YuMe to add electronic advertising capability to its Internet-connected televisions.

The in-app advertising support is incorporated into LG's app development SDK, the TV maker said.

LG Electronics said in a statement Wednesday that it developed the LG advertising platform to "strengthen the ecosystem of developers, publishers and users, creating a mutually beneficial platform in which developers can maximize revenues and users receive targeted, relevant and engaging advertisements."

 The global, multi-device platform is said to present "an immersive engagement of the TV's large-screen experience combined with the interactive engagement of digital media."

LG said publishers also will be able to make use of a real-time reporting system built into the technology along with a number of other business friendly features to measure performance results.

The LG ad platform is powered by YuMe's ACE Relevance Engine and was described as "a turnkey solution for publishers, which manages publisher ad inventory to optimize ad CPMs and supports a variety of ad sales models including YuMe's Connected Audience Network."

 Because the LG ad platform is integrated into LG smart TV HDTVs, Blu-ray Disc players, smart TV Upgraders and other LG smart TV platforms, advertisers can run their campaigns on these devices as well as other connected CE devices participating in YuMe's Connected Audience Network.

The first sponsor to appear on the service is Toyota Motor Sales USA, which plans to use the system to promote its 2012 Toyota Camry as part of what the car maker said would be its largest advertising campaign to date.

Owners of LG smart TVs carrying the new app will now see ads for the car when browsing the TV set's app store and while performing programming searches.

"For advertisers like Toyota, the LG ad platform can be the third screen complementing online and mobile digital campaigns with an in-home shared viewing experience. As users discover the expanding content and application offerings on LG's smart TVs and connected devices, usage is growing rapidly which will provide advertisers with the audience and reach for both broad and targeted campaigns," stated Sam Chang, general manager of LG's smart TV innovation development group based in San Jose, Calif.

"Toyota customers are watching video online, on their mobile phones and on TV, and we are excited to be able to reach this previously unreachable audience on smart TVs," said Dionne Colvin, national marketing media manager, Toyota.  "At Toyota, we pride ourselves on our innovative approach to advertising, and as media consumption habits change, we see a real opportunity to further engage consumers through YuMe and LG."

Financial terms of the deal were not disclosed, but YuMe said it will sell advertising for the service, and split the revenue with LG.

YuMe did not say if it was in negotiations with any other consumer electronics manufacturers to add its services to other brands of smart TVs or set-top devices.

LG and YuMe will be running pilot ad campaigns in the United States with several leading advertisers starting in November with broader advertiser participation planned for the spring of 2012, the companies announced.