Is Advertising Becoming Too Invasive?

The Real Cost of a Free TV

As a business leader who has spent a lot of time working in the technology sector, I’m constantly monitoring the trends and developments in the digital landscape. The advent of ad-based television services, exemplified most recently by the startup Telly, has sparked intriguing discussions regarding the balance between invasive advertising and consumer preferences.

Telly is unique among ad-based TV services in that they are focused on hardware. While other services, such as Tubi and Pluto TV offer free to watch content supported by ads, Telly is providing U.S. consumers with free to own smart TVs that are completely supported by advertising. They claim that 250,000 people registered within the first two weeks of launch.

The use of ad-based TVs raises a number of privacy concerns. When consumers use an ad-based TV like the one Telly is offering, the company behind the TV is collecting data about their viewing habits and more. To even receive the television set, Telly requires users to give the company detailed information about themselves, such as their name, age, gender, home address and ethnicity, as well as viewing habits and purchasing behaviors. This data can then be used to target ads that are more likely to be relevant to them. However, some argue that this level of data collection is a violation of privacy.

The Appeal of Ad-Based TV

As consumers seek cost-effective options in an era of subscription fatigue, ad-based TV models like Telly offer an alluring proposition. Ad-supported platforms often boast a vast content library, giving viewers access to a diverse array of movies, TV shows, and more. For those who crave variety and quantity, the prospect of exploring a treasure trove of programming free of charge becomes a compelling reason to embrace ad-based TV services.

Invasive advertising may have its downsides, but it also opens doors to new shows, products, and services that viewers might not have stumbled upon otherwise. Telly has the potential to leverage user preferences and viewing habits to curate personalized recommendations, enriching the viewing experience and introducing users to exciting content they may have missed otherwise. The advertisements themselves will also be more relevant as more data is collected.

Advertisement Overload

Some companies have taken intrusive advertising to the extreme, disrupting the viewing experience with excessive ad frequency, un-skippable ads, or unwarranted collection of personal data. The television Telly is offering may only double the number of ads being served to its users.

What makes Telly’s product unique is a second screen below the primary display that serves up a constant, rotating stream of advertisements. However, with a plethora of ad-supported streaming platforms in existence, users may feel overwhelmed by the barrage of ads across multiple services. Telly, and companies like it, will need to strike a balance to ensure that the cumulative impact of advertising doesn’t overshadow the seamless and uninterrupted viewing experience that consumers crave.

Privacy Concerns

Telly has included a camera in the display that can integrate with web conferencing services, such as Zoom, as well as microphones for digital assistant integration. The company insists that the camera will not be used for data collection and has implemented privacy measures, including a physical shutter to block the camera when not in use. However, the display also includes a presence detection sensor that determines whether people are in front of the TV during advertisements. The sensor also puts Telly into low-power mode when viewers have left the room.

The amount of data users must share with Telly just to have the product in their home is already concerning. Knowing that the TV can also tell when you’re watching it, in addition to what you’re watching on it is concerning. A TV that watches you while you are watching it is a privacy nightmare.

Who Is Telly For?

I think it’s safe to say that almost nobody enjoys ads. More often than not, they get in the way of the content we would like to consume, rather than offering valuable content in their own right.

People of different generations engage with ads in unique ways. I come from the “just change the channel” generation, while my kids have stopped using apps and services because of the number of ads they are served.  With network television already showing between 11 and 15 minutes of advertising every hour, it’s hard to imagine that there is an appetite for more advertising.

However, there is an undeniable appeal to receiving a free 55-inch television regardless of your age or other demographic qualifiers. Only time will tell how many Telly users keep the device long-term, and how many end up returning the product.

The Prospects of Telly’s Success

Telly’s triumph lies in finding the sweet spot between advertising and user experience. By delivering targeted and non-intrusive ads, Telly can provide users with relevant content recommendations while respecting their privacy. Offering user-friendly controls such as ad frequency settings or the ability to choose preferred ad types can go a long way in ensuring Telly’s success.

The company must also prioritize transparency and address privacy concerns head-on. Implementing robust data protection measures, empowering users with control over their data, and being forthright about data collection and usage are essential in building trust.

As a CEO with a tech background, I understand the allure of ad-based TV services like Telly, which present consumers with a tantalizing trade-off between cost-effectiveness and potential advertising intrusiveness. While we must acknowledge the valid concerns surrounding invasive advertising practices, the appeal of a diverse content library, personalized recommendations, and reasonable costs cannot be overlooked. As the market evolves and consumer preferences shift, the path Telly traverses will serve as a crucial litmus test for the viability of ad-based TV models in an increasingly privacy-conscious world.