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Interactive TV Advertising – The Shift to Second Screens

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Interactive TV operators will then be able to offer an attractive service to advertisers and gain additional revenue from such collaboration.

Interactive TV operators will then be able to offer an attractive service to advertisers and gain additional revenue from such collaboration.

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  • 1. INTERACTIVE TV ADVERTISING – THE SHIFT TO SECOND SCREENS WHITE PAPER PUT YOUR AD HERE!
  • 2. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©2 1. Introduction 3 2. Advertising - Television as the right media 4 TV’S INFLUENCE AS AN ADVERTISING MEDIUM 4 THE CHALLENGES FACED BY INTERACTIVE TV OPERATORS 5 2.1. The First screen 7 TYPES OF ADVERTISING 8 HOW BEESMART BY BEENIUS CAN HELP OPERATORS PREPARE 9 EFFECTIVE ADVERTISING CAMPAIGNS THE SHIFT TO SECOND SCREENS 10 2.2. The Second screen 11 ADS ON A SECOND SCREEN: THE ADVANTAGES 14 AND BENEFITS FOR INTERACTIVE TV OPERATORS 3. Conclusion 16 About Beenius and the Authors 17
  • 3. 3 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © Introduction TV is still the first choice for advertisers to reach their target groups of audiences and to build brand awareness. Its audio-visual format is especially suitable for creating a bond between the brand and the consumer and focusing of the importance of having the product advertised. On average, TV consumers spend around 4 hours daily watching Live TV in the home, compared with same amount of time – but on a monthly basis – watching video on the Internet, according to Nielsen1 and Deloitte2 . TV is still the main media through which customers get to know new products and what influences their decision to purchase them. On the enormous TV advertising market, US advertisers spent $66.35 billion in 2013, an increase of $2 billion compared to 2012, and this figure is set to rise to over $75 billion by 2017. Expected growth is for digital video, but it is predicted that the mobile share will continue to increase at a faster rate. By 2017, 29.7% of all digital video ad spending will go toward mobile ads.3 Due to demographic differences and technology disruption, the user experience is changing and TV viewing as we knew it a decade ago is not the same. The oldest segments of the population continue to increase their viewing time, while younger segments are changing their habits and supplementing traditional TV with new experiences on new devices. Mobile devices are becoming an increasingly common part of our daily TV routine.4 In the US, tablet ownership increased in the last two years from 18% to 42%.5 Second-screen devices are not just more useful but also increase TV consumption, while more than one- third of UK tablet users say that they consume more TV than they did five years ago, and most of them say that they use tablets alongside a TV.6 All this points to new opportunities for advertising on the new platforms. Apps on smart devices offer users’ a better user experience for social networking, obtaining in-depth info about TV content, and even advertising is more acceptable when it does not interfere with the content on the first screen. What is most important and essential for Interactive TV operators is to have a diversified portfolio of supported clients and that their Interactive TV platform ensures, for no additional costs to 3rd parties, also support for efficient advertising. Besides the in-stream advertising already provided by broadcasters, also operators can have efficient campaigns on their platforms. They own a large share of the resources, which enables good targeted and customized digital advertising in the form of banners or video clips. This is very useful not just for the big advertisers on the market, but also for geographically local advertisers, which can more easily target preferred groups of potential customers from a local area, e.g. a neighborhood. Also operators themselves can advertise their commercial offers, specific content, or just new opportunities for special purchases. All this enables operators to increase revenue through cooperation with advertisers. > 1. 1 Nielsen (http://www.nielsen.com/us/en/reports/2014/an-era-of-growth-the-cross-platform- report.html) 2 Deloitte (http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/ Industries/TMT/uk-tmt-what-television-is-2013.pdf) 3 eMarketer (http://www.emarketer.com/Article/TV-Advertising-Keeps-Growing-Mobile-Boosts- Digital-Video-Spend/1009780) 4 Nielsen (http://www.nielsen.com/us/en/newswire/2013/action-figures--how-second-screens- are-transforming-tv-viewing.html) 5 PewResearch (http://www.pewinternet.org/2014/01/16/tablet-and-e-reader-ownership/) 6 BBC (http://www.bbc.co.uk/mediacentre/worldnews/news-consumption.html)
  • 4. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©4 > 2. Advertising - Television as the Right Media Advertising still has prospects, especially on television, according to the Nielsen Global-AdView-Pulse Report.7 The global TV ad budget grew by 4.2 percent on a yearly basis for the first half of 2013, accounting for 57.6 percent of total ad spending. Global TV advertising expenditure will reach $219 billion in 2018 for the 55 countries covered in the TV Advertising Forecasts Report of Digital TV Research, up by 32% – or $53 billion – from 2012. The marketing budgets of almost all regions are challenging the growth in TV ad spending. We can relate these figures to telecoms and cable operator’s revenues from their triple-play subscriptions reaching US$144 billion in 2018, according to new research by Digital TV Research.8 7 Nielsen (http://www.nielsen.com/us/en/reports/2014/global-adview-pulse-lite-q3-2013.html) 8 Digital Tv Europe (http://www.digitaltveurope.net/126201/triple-play-revenues-to-reach-us144-billion/) 9 Nielsen (http://www.nielsen.com/us/en/newswire/2014/tv-remains-the-reigning-champ-but- display-internet-ads-are-the-mvps-of-3q.html) 10 MarketingCharts (http://www.marketingcharts.com/wp/television/affluents-still-highly-engaged- with-traditional-media-23583/) 11 Financial Times (http://www.ft.com/intl/cms/s/0/c02669da-5ec3-11e3-8621-00144feabdc0. html#axzz2wylGG2Oq) Source: 9 Media - % share of spending - year to date TV’S INFLUENCE AS AN ADVERTISING MEDIUM In reviewing some of main reasons why TV advertising is so important to advertisers, broadcasters, and operators, we found out that advertisements actually have a positive impact on the brand owner and the targeted viewer. It is also important that TV advertising is the main way in which Americans learn about new products and brands and the affluent are more receptive to TV ads than to any other traditional ad types.10 This indicates that TV advertising is still an effective way to provide information about a product to potential customers. Additionally we should realize that digital advertising (digital marketing) is on the rise11 , especially on mobile devices, which increasingly are also used as second-screen devices while simultaneously watching TV. TV for now is still more effective than digital advertising in bringing in new customers, although digital is better at securing sales from existing customers. Television 57,6 % Radio 5,4 % Cinema 0,3 % Internet 4,5 % Magazines 9,9 % Newspapers 18,8 % Outdoor 3,5 %
  • 5. 5 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © THE CHALLENGES FACED BY INTERACTIVE TV OPERATORS Although at first glance it would seem that operators have little presence in TV advertising, advertising represents a great opportunity for operators, and they are very suitably positioned in the TV eco-system to achieve success. They can deliver targeted advertising messages more efficiently and monitor ad efficiency very precisely, and still preserve the privacy of their customers. Namely, this can be achieved with an effective TV platform offering modern services with popular Live TV and On-Demand content for which users are also willing to pay. It is also increasingly obvious that a cross-platform is a must- have.12 All changes in Interactive TV have led to new ways of using and watching Live TV and On-Demand content. OTT technology, the implementation of Social TV features13 , support for second screen devices14 , etc., enable operators to have a key role in a system that delivers content and advertisements. Each of the many players in advertising strives to increase their role in the TV advertising market; each has its own challenges and advantages. Broadcasters can partner with ad producers to create offerings that promote deep interactions based on content. Operators have a direct relationship with customers. They collect vast quantities of customer data, which they can use to develop profiles of their subscribers, including demographic characteristics, personal attributes, and preferences. 12 BeetTV (http://www.beet.tv/2014/02/hohmancrossplatform.html) 13 Beenius (http://www.beenius.tv/resources/files/doc/Beenius_White_paper/Social_TV_White_ Paper.pdf) 14 Beenius (http://www.beenius.tv/resources/files/doc/Beenius_White_paper/White-Paper- Second-Screen.pdf) 15 MarketingCharts (http://www.marketingcharts.com/wp/television/data-dive-us-tv-ad-spend- and-influence-22524/) Source: 15 The Most Influential forms of Advertising (% of global online consumers, indicating that thay allways or sometimes take action on each form) September 2013 % point change from 2007 Recommendations from people I know 84% -- Ads on TV 68% 6% Branded websites 67% -2% Ads in newspapers 65% 4% TV program product placements 58% 3% Billboards and other outdoor advertising 57% -- Ads on radio 55% -2% Ads on social networks 55% 7% Ads before movies 53% -3% Online video ads 52% 4% Online banner ads 50% 8% Display ads on mobile devices 49% 4%
  • 6. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©6 % of respondents Friends/relatives/word-of-mouth 49% Ads 30% -On TV 23% Social media sites (Facebook, Twitter, etc.) 26% Search results 24% Listings on websites/apps offering TV shows 20% Note: n=495 ages 18+; network TV series found online on sites such as ABC.com, HBO.com; *who watch TV SHOWS ONLINE MONTHLY OR MORE Source: Interactive Advertising Bureau (IAB), *45 million Reasons and Counting to Check Out the NewFronts* conducted in partnership with Gfk, April 29, 2013 16 eMarketer (http://www.emarketer.com/Article/Social-Digital-Video-Drive-Further-Growth-Time- Spent-Online/1009872) Operators are also well placed to enable the advertising experience practically anywhere, on any device, and at any time. Operators with an Interactive TV platform who know the opportunity presented by targeted advertising and TV commerce can complement such services and increase their revenues. One advantage of operators is that they can provide ads on all devices with excellent usability. Through effective delivery of ads, recognition of the ad content is more successful and has a greater impact on consumers. With wide knowledge of the viewers and their habits and desires, it is possible to create effective targeted advertising. By knowing what is being watched by a viewer at a given moment, operators have a great opportunity to also offer context- dependent advertising. This can be additionally upgraded with a second-screen solution that connects content and social networking and delivers content- related information. All this enables a compelling interactive experience and increases the reach of advertisements. Source: 16 Ways in Which US Digital Video Viewers* Learn About TV Shows that Are Available to Watch Online, March 2013
  • 7. 7 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © A commercial on TV 53% An advertisement in a newspaper 32% An advertisement in a magazine 30% An infomercial on TV 18% A banner or other advertisement on a website 18% An advertisement on the radio 16% An advertisement on billboard 8% A video advertisement on YouTube 8% (commercial, ad player prior to start of video, etc.) Source: 20 Ads With the Most Influence on Purchases (% of respondents indicating ad has influenced them to purchase a product or service in past 12 months) April 2012 The First Screen When we assume new market shifts, we must first take a look at the existing primary TV advertising device. Although the number of second-screen devices is rapidly increasing and users’ habits in front of the first screen are changing, currently 95% of “eyeballs” are still on the first screen while watching TV, according to UK regulator Ofcom.17 Interactive TV operators have the ability to easily manage advertisements delivered to their installed base of set-top boxes connected to the TV known as the first screen. The TV platform provides them additional advertising options. Operators can simply choose to deliver additional ads as a banner inside the user interface (UI) on places like the electronic program guide (EPG) or VOD library. Ads in the form of a banner can also be delivered along with linear TV channels or VOD content. In the latter case, ads can also have the form of a short advertising video clip. Thus far, managed with existing platforms, operators have successfully maintained Pay TV subscriptions as the largest sources of revenue. With the arrival of new technology and the changing user experience, changes in the market are starting to show. The younger generation of users are increasingly interested in options that allow them to select and pay for exactly the content they want, no matter on which device.18 While we have to be aware of the coming changes, some time is still needed before users change their habits and technological changes create major changes on the market. It is certain that changes with second screens are evolving, but the market is not quite clear and opportunities are still evolving.19 > 2.1 17 Digital Tv Europe (http://www.digitaltveurope.net/155302/influence-of-second-screen-still- negligible-says-ofcom/) 18 Accenture (http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2013-eyes-have-it- who-controls-future-of-television-media.aspx) 19 Deloitte (http://www.deloitte.com/assets/Dcom-Colombia/Local%20Assets/Documents/El%20 futuro%20de%20la%20publicidad.pdf) 20 MarketingCharts (http://www.marketingcharts.com/television/most-online-consumers-say-tv-ads- influence-purchase-decisions-21743/)
  • 8. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©8 Global IPTV market revenue has been increasing since the arrival of the Internet in the TV world.21 While advertising on IPTV platforms is still in the makeshift phase, operators still have great potential to gain revenue also from advertising. Some are even of the opinion that operators should be aggressive in adopting new advertising approaches and explore the revenue potential thereof. Along with monetizing multi- screen TV service, an advertising service should also be one of the revenue drivers. Operators have an excellent chance to attract advertisers especially with contextual targeted personalized advertising, based on a good understanding of customers. TYPES OF ADVERTISING While broadcasters prepare ads within the stream, operators need a slightly more sophisticated solution. There are quite a number of approaches by which operators can create efficient advertising campaigns on their platforms. One of the solutions is advertising along with the content (linear TV or VOD) or inside the UI in the form of banners. The platform must enable ad presentation on STBs and flexible administration, which can create a schedule of advertisements for particular content. Ads as banners, overlaid inside the UI, should be also “clickable” - Interactive Ads, so that when the viewer sees such an ad, he or she can “jump” directly to the content, such as VOD, promotions, an app, or a detailed description. When watching IPTV, viewers will be able to pause the program in order to interact with the advertisement that attracts their attention, submit their details to obtain further information on a brand, or in some cases, make online purchases. In the same way, operators can also easily advertise their own TV services and content. Another solution is an advertising option within VOD, where advertising video clips can be inserted before, in the middle of, or at the end of VOD content. Operators also have the option, the same way as broadcasters, to be a channel creator. They can compose their own TV channels with different VOD content and advertisements. This channel is actually a playlist channel with scheduled VOD content and advertisements typically provided by local advertising agencies. An Interactive TV platform can also provide a great amount of data that can be measured precisely. Beside content measurements, this can also be used for advertising, for example data on how many people have seen a particular advertisement. This enables statistics to be collected on viewed ads and reports to be made thereon. With this feature, an advertiser can know who (the group of viewers), when, and how many times each ad has been seen. With contextual targeted advertisements you can target customers by their viewer profile and tailor entire campaigns with personalized ads (a registration process gives more options for consumers). Targeted advertising presents specific ads to selected groups of individuals. Consumers see the ads that are more relevant to them and/ or are related to content currently playing. Targeting is accomplished by segregating particular groups based on demographic or geographic characteristics, consumers’ viewing habits, personal attributes, preferences, etc. Based thereon, an intelligent recommender engine automatically recommends the best ads for each viewer. Several studies have confirmed that consumers are more likely to respond favorably to advertisements if the topic is of interest to them.22 This is also a great opportunity for advertisers to deliver their message to target audiences more efficiently. 21 PR Newswire (http://www.prnewswire.com/news-releases/global-iptv-market-internet-protocol- television-revenue-to-rise-at-118-cagr-from-2013-18-248880741.html) 22 Deloitte (http://www.deloitte.com/assets/Dcom-Colombia/Local%20Assets/Documents/El%20 futuro%20de%20la%20publicidad.pdf)
  • 9. 9 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © HOW BEESMART BY BEENIUS CAN HELP OPERATORS PREPARE EFFECTIVE ADVERTISING CAMPAIGNS Probably the basic approach for an operator is to put ads in the form of banners into their Interactive TV UI. Beesmart provides the option that operators choose particular UI screens in which ads are to be shown. Upon particular viewer actions (e.g. the opening of a specific UI menu) ads pop-up on the screen. For better effect, ads can be configured to be interactive, so confirmation of a particular ad links to another section of the UI. These are again configurable and are usually a VOD library, a screen with a detailed movie description, or a section with TV promotions. Another effective option that Beesmart enables is to present ads in the form of video clips. These kinds of ads are played out along with VOD content. They are configured to start at a particular point within a movie, so the clip can start at the beginning of a movie, at the end, or at some other time in between. Operators can also define whether their viewers will be able to fast forward or skip the ad or not. A Beesmart integrated targeting engine ensures that ads are targeted at specific groups of viewers. Viewers can state their preferences for a particular topic and dislikes for other topics. Based on this data, the engine will display particular types of ads to particular groups of viewers first; in other words, if a viewer has stated his or her preference for some types of ads, there is a higher probability the he or she will receive an ad of that type. In the same manner, if someone dislikes several types of ads, there is a smaller probability that he or she will receive them on their screen. The Beesmart Playlist Channel feature allows operators to create entire channels. They are able to schedule when their existing VOD content will be automatically played out. A Live TV channel produced in such a manner will also have an EPG. The option to also schedule advertisements (i.e. between particular movies or programs) makes it even more attractive for operators. They can thus obtain another means for advertising, one that is under their full control.
  • 10. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©10 1 Free from ads 2 HD quality 3 On-demand/timeshift 4 Super simple 5 À la care TV/vodeo content Top 5 THE SHIFT TO SECOND SCREENS Technology disruption is bringing new challenges, and along with it users’ habits are changing. By expanding TV service to also include second-screen devices, operators provide a better TV experience. People want to have additional program information, buy related video content, or simultaneously post their opinion on social networks while watching TV – and all this can be done more comfortably on a second screen due its better user experience. In any case, viewers are increasingly engaged with such devices and their attention is not 100% devoted to the TV screen. This is even truer for TV ads; viewers with mobile devices in their hands probably do not pay much attention to traditional commercials on the first screen. If viewers’ attention has moved at least partly to other devices, advertising has to move to such devices as well. Among people who use their mobile devices in front of the TV, about one-third of TV ad viewing time is spent looking at their devices.23 Research done on TV consumers’ preferences and complaints showed that “free from ads” is the most important or preferred service on TV screens.24 Of course, on one hand there are people who are less fond of advertisements on their TV, while on the other we know that most people decide to purchase a particular product according to an ad seen on TV. Other research indicates that ads on a second screen are more easily accepted, have a greater effect, and TV viewers can find second-screen ads more interesting.25 Also ads can be more precisely positioned inside an app’s UI to enable a better UX and still ensure a good advertising campaign. Source: 24 Ericsson ConsumerLab TV and Media study 2013 23 MarketingCharts ( http://www.marketingcharts.com/wp/television/are-people-watching-tv-ads- or-looking-at-their-mobile-devices-28929/) 24 Ericsson (http://www.ericsson.com/res/docs/2013/consumerlab/tv-and-media- consumerlab2013.pdf) 25 IPTV News (http://www.iptv-news.com/2013/05/getglue-ceo-people-can-find-second-screen- ads-interesting/) 5 4 3 2 1
  • 11. 11 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © > 2. 2 The Second Screen Use of second-screen devices while watching TV on a first, big screen is already widespread and is even increasing. Second-screen usage and companion applications are becoming important components of the TV viewing experience. End users can obtain additional information while interacting with Live TV and the program itself. It transforms a traditionally passive viewing experience into active entertainment. Interactive TV operators usually also provide their customers applications for second-screen devices. These applications become part of the operators’ TV service. Viewers use second-screen applications in different ways, including the following: In a sequential manner, when viewers first find the content (using a powerful search function, recommendations, and EPG) on the second-screen device and then fling the content to the TV screen.26 Or viewers simply use the second- screen application as a remote control for the TV set. So viewers combine the convenience of a touch screen with the comfort and quality of watching the content on a big screen. Another way of using second-screen device is in asimultaneous manner, which can be either related or unrelated to the content on the TV screen. In the first case, viewers explore information on the web, shop at web stores, or use social networks, but every activity is related to the content on the first screen. Information related to the current show being watched on the TV is pushed to the second-screen application. Since Interactive TV providers control both the TV screen and the application on the second-screen device, delivery of additional information is easy without the need to use technologies like Automatic Content Recognition. In the latter case, viewers browse the web, check e-mails, or are engaged in social networks, but without any relation to the content on the TV screen. Since the shift to a second screen, the next logical step is that Interactive TV operators consider opening their second-screen applications to advertisers. In other words, operators will show ads within the applications and also target viewers focused on the device at that moment. So if a viewer is constantly engaged in social networks, tweeting or reading twitter feeds, or chatting with Facebook friends, he or she will be shown an ad directly on the device. Ads are specially designed to be shown exclusively on devices and are displayed as banners. Banners may or may not provide interactivity. Interactive ones provide additional possibilities, so when they are clicked on, viewers can, for example, earn credit points, be routed to further web resources, or are asked to vote on something. Special care is taken to ensure that ads are presented in a way that is not annoying for subscribers and is acceptable for broadcasters or content owners. 26 Google (http://www.thinkwithgoogle.com/research-studies/the-new-multi-screen-world-study.html)
  • 12. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©12 2012 2013 Source: 27 Multitasking- devices used regularly while simultaneously watching TV (on tv set) Source: Accenture Video Solutions Survey 2013 50% Com puter/laptop M obile/sm artphone Book/new sletter Tablets G am es consoles Foractivities unrelated to TV content Searching contenton TV Forsocialm edia activities aboutTV program 50% Com puter/laptop M obile/sm artphone Book/new sletter Tablets G am es consoles 27 Accenture (http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Video-Over- Internet-Consumer-Survey-2013.pdf)
  • 13. 13 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © 28 Nielsen (http://www.nielsen.com/us/en/newswire/2013/action-figures--how-second-screens-are- transforming-tv-viewing.html) Tabletow ner Sm artphone ow ner 50% Source: 28 Tablet or smartphone activities while watching TV Looked up inform ation in general Surfed the w eb Visited a socialnetw orking site Look up inform ation on actors, plotlines,athlets,orteam s Read converstions abourthe program on socialnetw orking site Buy a product/service that is being advertised W atched certain TV program m ing because of som ething you read in socialm edia w ebsiteVote orsend com m ents to live program Purchase coupons ordeals related to TV program W rite blurbs on the program you are w atching Ads on a second screen: The advantages and benefits for Interactive TV operators Interactive TV service providers will formulate advertising campaigns in cooperation with advertisers. The benefits of such advertising are also mutual. TV service providers gain an additional source of revenue through some form of revenue sharing with advertisers or web shop owners, a mechanism to award credit points, and voting elicits more subscriber involvement in the TV service and thereby a more loyal and satisfied subscriber base. Advertisers generally gain an effective means of addressing second-screen users. Ads can also be placed on other tablet or smartphone applications that are not part of the operators’ service. However, it is better for advertisers if they collaborate with operators and provide ads within the operator’s second-screen apps. Advertisers (and consequently also operators) will benefit from several advantages that operators have: - leveraging the large subscriber base of the TV service provider, who usually provides the second-screen application as part of its basic services, so every subscriber with a device is a potential application user;
  • 14. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©14 - knowing exactly which content is playing on the first screen, so there is no need to use technologies such as Automatic Content Recognition when displaying an ad that is closely related to the current content on the first screen – so-called contextual advertising; - even more effective targeted advertising since ads can be targeted directly at selected subscriber groups – but not only based on user data, personal preferences, or location (which are common in targeted advertising), but also on the subscribers’ viewing habits. Operators can also use data they have on a subscriber’s search history, VOD purchase history, and Linear TV viewing history to make ads even more tailored to the viewer’s personal preferences. Target engines can either be built into the Interactive TV platform or integrated with the external one used; - interactivity – ads can be “clickable” and contain links not only to additional information on the web or to web shops, but can also include links to ad-related shows which are part of the TV service provider’s offering. Shows can be VOD titles from a VOD library, shows that were broadcast several days before and available as catch-up TV recordings, or shows that will be broadcast in the future and viewers are prompted to set reminders for them; - accountability – there are statistical measurements that show how many ads have actually been displayed and to what type of targeted audience. So operators have exact data on ads and advertisers are able to measure, for example, campaign efficiencies or similar; - TV voting is a feature that Interactive TV providers can already offer that can be easily linked with interactive ads – in this manner viewers can give feedback on certain products or services advertised. Viewers become more involved with the product and service, the ad gets more attention, so advertisers achieve a deeper reach with the ad and can have the extra benefit of knowing the voting results; - credit points are earned by subscribers when watching and clicking on an ad and can later be spent on, e.g., VOD purchases or other purchases within the TV service – it is a means of giving a reward to viewers who have consumed the information the ad provides. Advertisers benefit because a credit points option entails a higher probability that an ad will not be overlooked; Interactive TV platforms, such as Beesmart by Beenius, represent the technological foundation for TV service providers to make the shift to second- screen advertising.
  • 15. 15 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius © Source: 29 The Importance of Integrated Multiscreen Campaigns Now vs. in Three Years, According to US Marketers, Aug 2013 (% of respondents) 29 eMarketer (http://www.emarketer.com/Article/Multiscreen-Advertising-Audience-Targeting-Lead- Way-Mobile-Ad-Targeting/1010658) 1% Very unimportant 2013 1% Somewhat unimportantNeither important nor unimportant 3% 47% Somewhat important 48% Very important Neither important nor unimportant 1% Somewhat unimportant 10% 1% Very unimportant 88% Very important 2016
  • 16. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©16 Conclusion Second-screen devices are becoming increasingly popular among TV viewers. It is vital for Interactive TV operators to also include in their overall TV service offer attractive applications for second-screen devices. It is namely in each operator’s interest that its viewers use apps offered by the operator and not other widely available applications (for accessing, e.g., social networks, TV guides, sports information, etc.). Operators will make their applications attractive when they include attractive features, such as the following: advanced content discovery (e.g. searching through all available content, recommendations based on a particular end user’s viewing habits, recommendations from friends), finding content-related resources on the Web (e.g. web pages or web shops related to the content), and last but not least, as a TV set remote control. Furthermore, operators should be able to show ads on the first screen and also on the second screen within their apps. The latter is becoming increasingly important because the more a viewer uses a second-screen device, the less of his attention remains on the big screen. And this is especially true for TV ads. Moreover, TV operators can offer advertisers the possibility to make advertising campaigns that are narrowly targeted at a selected audience, either according to location, demographics, TV viewing habits, or personal preferences. And thereby, ads can also be interactive, so viewers can, e.g., vote for a certain product, take part in a contest, or simply earn credit points for viewing an ad. The ads should be contextual, i.e. related to the program being watched at the moment. Deploying an Interactive TV platforms that enables ads to be displayed is of key importance for TV operators. Platforms should support that the same ads be displayed on multiple devices, from first-screen TVs with Linux - or Android-based STBs, to various types of second-screen devices. And ads should be contextual, targeted, and interactive, as well as attractive for viewers and acceptable for content owners and broadcasters. Interactive TV operators will then be able to offer an attractive service to advertisers and gain additional revenue from such collaboration. For advertisers and brands, Interactive TV advertising and its shift to second-screen devices entails an even better opportunity to address potential customers. > 5.
  • 17. About Beenius Beenius is the developer of Beesmart, interactive TV middleware for modern TV service operators that deliver the most exciting interactive TV experience to their subscribers. Beesmart empowers the uniqueness of every operator by providing a TV platform along with the tools for extensive upgrades and prompt customizations in a cost-effective manner. Beenius has a proven track record of successful customers and partners, and is committed to continuously delivering the means for their sustainable growth. For more information about Beenius, please visit our website: www.beenius.tv About the Authors Beenius writes its own White Papers and does not outsource such services. This allows us to focus on market requirements and increase knowledge and experience while sharing such with our market. We write these papers for you – so that you can make better decisions. The team that contributed to this paper among others includes Dejan Pavšek, Product Manager at Beenius and Miha Cerar, Junior Product Manager at Beenius. For additional inquiries specifically concerning the topic of this paper, please contact us at marketing@beenius.tv. > www.beenius.tv > PUT YOUR AD HERE!

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