The rise of T-commerce

• 
• Connected TV; where new TV functionality and e-commerce strategy merge to provide new avenues of income generation.

  Whilst there are a variety of opinions on what exactly T- commerce is, in the Connected TV space, this refers to online retail transactions via  internet Connected TV's. With the long awaited convergence of the TV and internet, new platforms are emerging, such as Connected TV’s providing new opportunities for brands to exploit, reach out and engage with the consumer.

  Whilst the web is great for individual purchase decisions, Connected TV’s bring the focus back into the living room where family units can enjoy all the functionality of the web but on the big screen.  Retailers need to harness the commercial opportunities that this large screen real estate provides. No longer is there the need to crowd round the one computer screen with your friends and family; vying for the best view! Users can access the latest retail deals, video on demand (VoD) and interactive apps, powered by their trusted brands, from the comfort of their lounge and on their TV.

  The route to market for a Connected TV is best compared to that of mobile. With UK Smartphone users collectively spending £581m a year via mobile apps, brands have proved that interactive applications can increase revenue, brand awareness and encourage brand loyalty. Consumer interest in new technology can potentially play into the hands of brands that are willing to lead the way and branch out to driving commerce on Connected TV’s.

  Whilst mobile applications are built for smaller resolution and touch screen functionality, TV applications will have to be built around the remote control functionality. A sleek user interface and easy navigation is key to customer engagement. With pin protection and click to pay a necessity to gain approval and followers, users will need to feel secure and trust the brands to convert retail browsing to online sales.

  It took a while but consumers now finally trust the internet for most of their security conscious transactions e.g. banking, insurance and purchasing.  This confidence will not need to be re-established on the TV from scratch, as the payment providers they know and trust will no doubt emerge as the favoured route to secure payments on TV as well. However there is surely a lag before consumer behaviour becomes confident and happy interfacing via Connected TVs.

  This is an exciting time for brands. As new platforms emerge, so does new potential to exploit a new market. It is only a matter of time before brands start developing for these platforms, where new functionality and e-commerce strategy merge to provide new avenues of income generation.