{"id":6557,"date":"2024-04-01T12:17:15","date_gmt":"2024-04-01T16:17:15","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2024\/04\/01\/after-vizio-is-telly-next\/"},"modified":"2024-04-01T12:17:15","modified_gmt":"2024-04-01T16:17:15","slug":"after-vizio-is-telly-next","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/after-vizio-is-telly-next\/6557\/","title":{"rendered":"After Vizio, is Telly next?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Omri Argaman, CMO\/CGO, Zoomd<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With recent <a href=\"https:\/\/www.adexchanger.com\/tv\/walmart-buys-smart-tv-manufacturer-vizio-a-valuable-ads-data-asset\/\">Walmart\u2019s acquisition of Vizio<\/a>, the industry\u2019s proverbial guessing game of \u2018Who\u2019s next?\u2019 began.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Though it\u2019s a very different TV offering, I think Telly might be next.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">For those who missed Telly\u2019s PR onslaught last May, <a href=\"https:\/\/www.nexttv.com\/news\/telly-offer-viewers-free-tvs-in-exchange-for-targeted-ads-and-data\">the company announced<\/a> that it planned to ship 500,000 free TVs in 2023. The TVs, worth about $1000 according to the company, ship with a 55-inch 4K picture screen and a second, smaller display screen featuring customized apps and ads. Telly\u2019s business model is focused on selling targeted ads as well as customer viewing habits and ad engagement data.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.marketingbrew.com\/stories\/2024\/01\/08\/telly-falls-short-of-delivering-half-a-million-tvs-but-says-people-are-watching\">Telly didn\u2019t ship 500,000 TVs in 2023<\/a>. The company claimed it shipped \u2018thousands of devices\u2019, and CEO Ilya Poznin said that there are close to 400,000 people on the company\u2019s weighting list.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Here&rsquo;s why I&rsquo;m bullish on Telly<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">With consumer tech products, seeing is believing. That\u2019s why I was impressed by <a href=\"https:\/\/www.zdnet.com\/home-and-office\/home-entertainment\/i-tested-the-free-tv-that-got-the-internet-buzzing-and-it-was-far-better-than-expected\/#google_vignette\">ZDNet\u2019s review of Telly<\/a>. Though most people outside of the advertising industry are less bullish about advertising and user data, the reviewer said that Telly was \u2018far better than expected\u2019. He felt that the ads weren\u2019t nearly as intrusive as expected, that the audio and video quality were excellent, and that the built-in camera provided new and fun ways to interact.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The reviewer also said that Telly served relevant ads based on what he was watching and that \u2018the rotating ad on the bottom screen fit nicely beside the rest of the information\u2026 information I started to find useful.\u2019<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Another data point that impressed me is that Telly said that among their thousands of users, <a href=\"https:\/\/www.nexttv.com\/news\/ces-telly-says-ads-on-its-free-tvs-generated-high-recall-for-kia\">usage is more than twice the national average of 3.5 hours<\/a> for TVs.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The built-in camera is enabling Zoom calls today, and could easily support fitness classes or multi-player games in the future.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>It&rsquo;s the ads and data<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The real opportunity for Telly is tied to ads and user data. Automaker Kia ran an ad campaign with a full takeover unit on Telly\u2019s second screen which resulted in a 60% recall rate, 300% higher than competitive auto commercials in streaming and broadcast ad breaks.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Addressing the challenge of making a sale from most CTV or OTT commercials, Telly has installed an integrated browser that enables users to go online when they see an ad that interests them. Telly also facilitates T-commerce by letting users shop online, even from <a href=\"https:\/\/www.nexttv.com\/news\/ces-dazn-telly-adopt-thetakes-interactive-shopping-capabilities\">interactive ads<\/a>, or order food while watching a game or other show on the TV.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The only thing holding back Telly\u2019s ad opportunities is the lack of scale.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Analyzing ad and user data will enable Telly to provide granular data about TV user consumption and ad engagement. The company already has a data licensing partnership with Nielsen, but given the size and quality of Telly\u2019s data, who needs Nielsen\u2019s panels?<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who could buy Telly?<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">After Walmart\u2019s acquired Vizio, many might consider Amazon as a company likely to purchase Telly, but given the growth of Amazon\u2019s advertising and Prime businesses, coupled with the objection of the company\u2019s attempt to purchase iRobot, I doubt Amazon would receive regulatory approval for purchasing Telly.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">TV measurement companies including Nielsen, comScore, iSpot.tv, Samba TV, or VideoAmp would all be logical acquirers though other than Nielsen, I\u2019m not sure any have the finances available to acquire Telly.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Though I could see the value of Telly to a major consumer goods marketer like The Coca Cola Company, Nike, Inc., Unilever N.V., Procter &#038; Gamble, PepsiCo, or Nestl\u00e9 SA, I\u2019m convinced these companies would buy a technology company so far from their main business models.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The major streaming companies would find value in owning Telly, but I\u2019m not sure anyone other than Netflix or Disney could acquire Telly, and I\u2019m not sure either would pursue an acquisition like Telly today.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">I think that Microsoft and Meta would be the most likely acquirers. For Meta, the acquisition would make sense if the company could find a way to integrate Telly TVs into their vision for the Metaverse. And for Microsoft, it\u2019s an entr\u00e9e into a new device beyond computers in the home. Of course, potential regulatory issues could impact both companies.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">As I mentioned earlier, scale is an issue (for an acquisition). Telly has \u2018thousands of devices\u2019 in the market according to the company, and a weighting list of 400,000. By comparison, there were <a href=\"https:\/\/nscreenmedia.com\/vizio-q1-2023\/\">17.5 million Vizio SmartCast smart TV active users<\/a> in Q1 2023. That\u2019s a big difference that will impact Telly\u2019s valuation, coupled with the fact that the company doesn\u2019t manufacture the TVs it sells.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Like everyone, the founders and owners of Telly have a price. Will the potential acquirer be willing to offer a price that everyone will accept?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Only time will tell.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like everyone, the founders and owners of Telly have a price. Will the potential acquirer be willing to offer a price that everyone will accept?<\/p>\n","protected":false},"author":7,"featured_media":6558,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[10],"topics":[2],"class_list":["post-6557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-streaming-ctv","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>After Vizio, is Telly next? | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/after-vizio-is-telly-next\/6557\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"After Vizio, is Telly next?\" \/>\n<meta property=\"og:description\" content=\"Like everyone, the founders and owners of Telly have a price. 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