Free TV startup Telly just hired an advertising lead from Uber as it gears up for an ad blitz

• Free TV startup Telly hired Seho Lee as its first advertising president.
• Lee, formerly of Uber, will pitch Telly's personalized ad capabilities.
• After early distribution hiccups, the company says 2025 will be a big growth year.

Telly, the startup that's giving away TVs in exchange for viewers' personal data, just hired its first advertising president as it gears up for an ad blitz.

Seho Lee is hitting the ground running, with a packed meeting schedule with marketing and ad agency executives at the CES electronics show this week. He comes from Uber, where he helped Uber Ads become a $1 billion business.

Pluto TV cofounder Ilya Pozin launched Telly in May 2023. The startup raised a seed round of over $20 million from investors, including media analyst Rich Greenfield's LightShed Ventures and VaynerMedia CEO Gary Vaynerchuk.

Telly gives users a 55-inch, 4K HDR display with a separate, programmable screen that sits under the main display and shows news, sports, games, and other content. Users can also use Telly to make video calls, play video games, do fitness workouts, play music, and connect to smart-home devices like doorbells and thermostats.

At launch, Pozin said the Telly would be worth $1,000 if sold at retail. But it's free for users who consent to an extensive questionnaire about brands they prefer and products they use.

Telly has had early interest from advertisers

Many advertisers in the current marketplace are demanding measurable results from their ads. Telly's general pitch is that it serves personalized ads on the second screen that encourage viewers to take action without interrupting them.

"We're bringing a new and innovative format to the big screen that's never been really utilized before with our dual-screen operating system," Lee said.

Telly has seen some interest from advertisers. In January 2024, it was named a participant in WPP ad-buying giant GroupM's Ad Innovation Accelerator program. The group sought to create ad formats that could be distributed across TV platforms like Telly, Roku, YouTube, and more. Telly said it's worked on a pilot basis with several partners in categories like fast food, retail, and car insurance, mostly pulling from digital and video advertising budgets. It said it plans to share case studies from those partners this year.

"We're big fans of the innovation Telly is bringing to TV, both for consumers and advertisers," said Sam Bloom, head of partnerships at ad agency PMG, which has used Telly on behalf of advertising clients. "Telly's ability to transform the biggest screen in the home into a dynamic and measurable platform is a game changer."

An obvious limitation is distribution. Telly launched with a big media push and a goal of giving away 500,000 TVs in its first year. It fell short of that, though, only distributing "thousands" by the end of the year, the company told Marketing Brew. Telly switched device manufacturers and has been distributing more TVs at giveaways around Thanksgiving and Christmas.

Telly execs said there's strong interest based on word-of-mouth signups but wouldn't disclose how many households currently have Tellys or detail its distribution goals.

"I truly do think we'll be one of the fastest growing TV brands in 2025 and potentially the largest and fastest growing 55-inch TV," Lee said. "Our ambitions are to create a multibillion-dollar business."

Telly says its ads can make TV spots work harder

For now, Lee is focused on showing advertisers what they can actually do with the TV.

Telly has a variety of ad units it offers, some of which the company is debuting at CES.

To get the free Telly, people have to answer a 120-question survey about their location, spending habits, and preferred brands. Telly can use that information to create localized ads for brands on the bottom screen. These are meant to sync with and boost the performance of the TV ad running on the top screen (from either network TV or a streaming service).

State Farm, for example, ran a companion ad that let people schedule an appointment with a local agent by clicking.

Another format Telly offers is a tune-in ad, which asks a viewer to click to watch a show, movie, or other offering.

Telly gave other examples of ways advertisers could use its ad products, such as a fast-food chain using the second screen to invite people to order food.

Most of Telly's ads are sold through automated channels, making it easier for advertisers to jump on board. Others require custom creative. Telly is also exploring other ways advertisers can buy, like by time block.