In 2017, the OTT advertising market was projected to reach 2.5 billion yuan, showing a significant rise in popularity. From December of the previous year to this year's Spring Festival, many brands saw their OTT ad spending triple. With features like mandatory viewing and high audience reach, OTT advertising has become a top choice for companies seeking effective marketing channels.
Many internet TVs, including major brands such as LeTV, currently display boot-up ads. As a derivative of smart TVs, the profitability of television sets has been under pressure in recent years. This has led to the widespread adoption of startup ads as a way to generate additional revenue. The reason behind this trend is closely tied to the highly competitive nature of the internet TV market, where low pricing has left manufacturers with minimal profit margins. As a result, boot-up advertisements have become an essential income source for content providers and service platforms.
Currently, most internet TVs show short ads that last between 15 seconds and one minute during startup. These ads are unavoidable—users cannot skip or fast-forward through them. They must watch the entire ad before accessing the content they want. While some companies argue that these ads help ease the monotony of the initial black screen, not all consumers agree.
According to industry insiders, the startup time of smart TVs is often seen as unproductive. To make this period more engaging, companies insert ads without delaying the user experience. However, despite this reasoning, many users find it frustrating to be forced to watch ads they didn't ask for.
This practice has become quite common in the industry, but not all consumers are satisfied. A recent online survey revealed that 92.9% of respondents found boot ads unreasonable, with 65.2% stating that such ads negatively affect their TV-watching experience. Most consumers feel that even though they paid for the TV, they shouldn’t be forced to watch unwanted ads. Additionally, 97.2% of participants said they would prefer ads no longer than 15 seconds.
Industry experts argue that forcing ads on users could be considered a form of bundled or forced consumption. Under Article 44 of the Advertising Law, online ads should not interfere with the normal use of the Internet. Pop-up ads, for example, must include an obvious close button. Since internet TV ads cannot be skipped or removed, some believe that companies should offer users more control, allowing them to choose whether to watch the ads or not.
In reality, pushing ads during startup may only lead to consumer dissatisfaction rather than increased engagement. If manufacturers can address these pain points and focus on improving user experience, launching a "clean" TV model could open up new opportunities. Furthermore, according to the Consumer Protection Law, consumers have the right to choose whether to accept or reject any service. Mandatory ads on internet TVs clearly violate this right, and there is growing concern about the legality of such practices.
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