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IPTV: Advertising, Pay per view, Subscription Models
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IPTV: Advertising, Pay per view, Subscription Models

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  • 1. IPTV: Advertising, Pay per view, Subscription Models I think a good point to make in addition to yesterdays notes would be that despite what we think brands are demanding more for their money, bigger better campaigns and pushing the boundaries (Nike - Yoga TV/Honda TV/ Thompsons TV/Audi Channel). Lighthouse brands are already making moves to get newly formed video content onto the web as we speak, taking the next step away from simple sponsorships to branding their own content on editorial, broadcast, gaming and mobile platforms. Years ago, brands started asking questions about branded content hence why Stream/BBH Content/BCMA was set up, not to fool the brands, they’re too switched onto the markets, but in response to the demand they were placing on their creative agencies outside the traditional realm of advertising. We cant deny that brands are already making their own content in various forms with some years into this and it is becoming successful in all respects – brand building, reinforcing and above all engaging on a new level. In addition to that, consumers are also creating their own content and sharing it ‘Youtube’ over 25 millions clips uploaded since 2005 shared throughout the world with around 15 million clips being streamed each day. MSM Video attracted nearly 10 million unique US users last month. We cant avoid the fact that this is already happening and weather it be PC or TV, what ever formats are needed, whatever people may think this is a growing phenomena and one that more brands will want to get involved in. So at some point they will want the technology to take this forward – the inevitable next step – brand owned channels – branded and showcasing engaging content as either a free window into the brand or for consumers to pay for. Who’s to say a brand can’t work with the makers of 24/Desperate Housewives/Hollyoaks to make video content. It’s not impossible and there is enough evidence to show the process has already started. Advertising Models How is internet advertising different from broadcast advertising – measurement/interact with customers Interactive advertising is the process of allowing a user to select or interact with an advertising message: termed addressable advertising IPTV advertising stands out because broadcast advertising is difficult to measure: • Consumers don’t usually purchase until after the ad • Problems separating orders for brands • It’s the age of engagement we need to be working harder to engage consumers • Ad avoidance is increasing (TiVO, Sky+) making advertising jobs harder • All in all interactive advertising has been making waves
  • 2. So interactive advertising holds huge potential for brands and their campaigns. Through IPTV you are aware that the person viewing is actually interested in the content – chosen to view. • Benefits of ads in this arena include: • Measurement through capture user scrolling over ads – click through rate & impressions • Effectively this is real time data capture • Maximize campaign efficiency and brand positioning - prevents over usage/alienation • Users can request for further info a huge advantage over broadcast • Extends viewing over the 30-60 sec traditional broadcast slot • Extended information for user usage/absorb • No more peak and off peak • IMPORTANTLY ads can be targeted – registration process create more options for consumers (airline X using same ad different parts to appeal) Therefore the one size fits all scenario of TV ads is no longer a restriction. A more one-to-one experience is in the making & this obviously affecting the marketing community: So Interactive advertising is a Win Win situation for advertisers, customers & the carriers • Advertisers are seeing measurable success rates increasing awareness through targeted & addressable ads: o Disney’s new trial of online TV shows – (Desperate housewives) has lighthouse brands subscribing to advertising slots during trials. • Customers are seeing improved services through targeted ads, addressing their demands on time & convenience and accessibility – again it’s the age of engagement we need to be thinking smartly to keep abreast of the Increase in computer-enabled devises making viewing even more flexible. • Carriers making more money: o In the US Super bowl seen by 140 million viewers at desks – brands paid up to $2.4 mill for 30 sec spot! So figures are huge and so is the potential • Analysist speculate 27 million IPTV subscribers worldwide by 2008 • Global IPTV revenue to top $17 billion dollars by 2010 • And Ofcom predicting that by 2010 50% households will be watching TV over the internet Personalised Interactive ads? You can target by viewer profile and tailor entire campaigns. • Through registration processes – basic viewer profiling/opting in (like HomeChoice) - Footprint previous ads of interested triggering similar.
  • 3. • There are now models available for Ads to be broken down into demographical elements – music start middle and finish – showing scenes appealing specifically (holidays example). These are key to engaging consumers in this new generation of content specific advertising Mizu’s Advertising model and player? • User profiles can be compiled. • Associate adverts with particular content genres or even specific programmes and programme types. • Flexible web based administration enables both your ad team and your customers to remain up-to-date with their advertising activity and in control of the process at all times. • Approval process ensures both Customer and Ad Team can review and authorize their ad content prior to public viewing. • Sponsorship - Programme Sponsorship, Channel Sponsorship and for high profile positioning there is Station Sponsorship. • Adverts can feature interactive elements, providing further marketing engagement. • Dynamic ad insertion into the programme sequence without altering the video file itself. The models out there vary slightly and you’ll find most of them have like bolt-ons to the basic IPTV players available - this could be advertising, pay per view or subscription modules or all 3. If you have the content or the means to generate it you’re able to walk away with unique off the shelf IPTV suites. Pay Per View • Beyond high profile content like - movies - TV programmes - and sport there’s limited scope for pay view and the PPV solutions are mainly limited to premium content at the moment. • There’s an influx of video sharing sites and increase in clip culture – You Tube (limited to 10 mins per clip), this is random, scattered and not focused not a solution for brand manager. • Needs next level - Brands owning their own content. • Lager scale models (BT) premium rate video on demand services – but this is already happening. • The scope of IPTV revenue generation could work in a basic level with community generated content – brand owners run the network and community run the content, with ads included. RCT - Allows an account set up – profile awareness and a window into a customer base. An interactive model on all fronts.
  • 4. • We’re finding an increase in community content being shared on all levels and in some cases people are willing to pay - small time dj’s out there being offered payment for their content. But will this drive PPV models? • On a different level there is a lot of talk within one of the richest industries out there - Per minute billing being investigated by the porn industry. Subscription • So far this only really works for specialist content – snooker day time/tennis season/basket ball. • But there are infinite possibilities for branded channels making subscription to the brand – buying into the brand - reinforcing it. • You’ve still got to realise that people aren’t yet swapping their TV for a PC (yet) and there are limits to be overcome. • Moving forward the idea that brands own their own channels would make subscriptions an attractive model but the risks make this a delicate venture – where do you get your content from, how much will it cost etc. • How do you explain paying £15million for 4 campaigns a year then want £xmillion for a channel of branded content! Brands find this hard but revenue models make it easier to swallow. All in all PPV and subscription are limited and by far the advertising model shows best ROI. I think the big idea/blue sky view for IPTV: Brands to own their own channels – branded experiences with clear ROI – making intelligent viewing.