If 2010 was the year of the Smartphone, then it looks like 2011 is shaping up to be the year of the Internet connected television, or IPTV. Forget 3D TV. By the end of this year, many of the world's biggest electronics manufacturers will have joined forces with some of the web's strongest brands as well as Hollywood's most sought-after content providers to bring interactive television to your living room.

These new devices allow you to stream movies, buy TV shows, video chat with relatives, surf the web and access loads of other customized, web-based content without ever having to leave your couch. In a recent interview, Reed Hastings, the CEO of Netflix, projected:

"By the end of 2012, nearly all purchased television sets will be connected to the Internet."

Early generations of IPTV technology have already hit the market in the form of set-top boxes, and while I don't think any single device has "got it right," many will most likely be hot stocking stuffers this Christmas. Some of the more popular devices include the Apple TV, Google TV, Boxee Box and Roku -- not to mention the PS3 and xBox 360 which have grown to be much more than video game consoles.

So, as advertisers, what does the eventual IPTV revolution mean to us? It's still early days, but I think we can expect two major shifts in the way users interact and consume television.

1.) Advertising That Sells
Imagine the type of interactive advertising a brand could do with a robust ad platform that has been fully integrated into the content you're watching. For example, let's say you're watching Desperate Housewives, and Eva Longoria is wearing a pair of killer Christian Louboutin shoes that your wife just has to have. With IPTV, there is nothing stopping her from simply clicking on the shoes to buy them instantly. Dangerous? Yes. Effective sales technique? Absolutely. Or what if you hear a song during an episode of Glee that you really dig? IPTV could allow you to instantly buy the album or book concert tickets for the artist, all with just a few clicks of the remote.

2.) Content Is King
The Internet is the great equalizer when it comes to content delivery. Unlike the cable industry, with its multitude of providers and prohibitive carriage fees, the free Internet puts all content on equal ground, and is probably the only place you can find videos of cats playing piano right next to news clips from CNN. With bandwidth continually getting cheaper, aspiring artists are no longer locked out when it comes to distributing their content.

Soon, traditional networks like FOX and NBC won't be the only places where brands take the spotlight during commercial breaks. Companies like Revision3 are helping usher in an era of inexpensive, but highly produced broadcast content. This means that anyone with a camera, a microphone and an idea can produce content. With sites and shows catering to specific audiences, brands are going can more easily narrowcast their message to a specific target, based on what IPTV content they're consuming. Want to reach the technology geeks out there? Check out Revision3's Tekzilla. Want to reach moms? Listen to the MOM Podcast. Instead of reaching millions of viewers or listeners, you'll reach tens of thousands, but those consumers will be easier to activate than the majority of consumers watching traditional media.

Early Days
These set-top boxes represent just the beginning of a burgeoning industry, but they could be disruptive for a number of businesses -- from advertising to sales to video production and distribution. With that said, they still have a long way to go until they truly reach mass market appeal (or as I like to call it, the "Does my Dad use it yet" measurement).