As the desire for content control continues to increase and the cost of internet-connected TVs continues to decline, penetration of Smart TVs is predicted to reach nearly half of American households by the end of the holiday season. Just in time for the growing adoption of the new technology, LG is teaming up with online video advertising network YuMe to bring advertising to TV sets in a new way. Without needing a separate device such as a Roku or Boxee, people who own LG internet-connected TVs will see ads not only while watching programs, but also while searching for programs to watch.

Toyota Motor Sales USA will be the first sponsor, but we expect to see more as companies like Samsung, Panasonic and LG are beginning to develop partnerships with YuMe and/or Tremor Video. Spreading use of the technology, plus consumers’ shifting tastes to over-the-top video options with more control and substantially less advertising, challenges marketers to reach and engage this audience without annoying them.

Advertisers must remember the importance of providing ads that are interesting and relevant to the consumer. The new technology conveniently lends itself to this objective, something LG and YuMe intend to capitalize on. The application providers will also get a cut of the revenue, as well as approval of the ads that will air while their product is loading. Ad networks, TV manufacturers and content publishers working together to make internet-connected TV ads contextually relevant for the consumer means that everyone wins, including the advertisers gutsy enough to take a chance with new technology.