Addressable TV: The Re-evolution of the medium TV

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One-way communication and Television ran the show for about 60 years.
We now welcome CMOs to the re-evolution of the medium Television.

TV will transform to more channels, more platforms (cable, ip, connected), more
screens (pc, tablet smartphone), open distribution, VOD, non-linear players (Hulu,
Netflix, Google, Apple, Disney), Web & Social TV and Addressable TV…

Addressable TV: The Re-evolution of the medium TV

  1. 1. Addressable TV - 2012 and beyond Amsterdam 2012
  2. 2. Hola! We are a leading social media marketing agency with offices in Amsterdam, London, Madrid and Milan We are helping brands to transform from traditional advertising, towards a model that is more content- driven, engaged and focused on consumer dialogue Because without great content there is no engagement. And without engagement there is no buzz, no viral, no social and no community We work with TomTom, Nike, Dell, Mazda and LG If you’d like help too, pls connect to socialmedia8.com
  3. 3. The Re-evolution of the medium TVOne-way communication and Television ran the show for about 60 years.We now welcome CMOs to the re-evolution of the medium Television. TV will transform to more channels, more platforms (cable, ip, connected), more screens (pc, tablet smartphone), open distribution, VOD, non-linear players (Hulu, Netflix, Google, Apple, Disney), Web & Social TV and Addressable TV…
  4. 4. R.I.P TV?The internet introduced freedom of choice, not being bound by selective channels.As massive audiences have moved towards digital, media budgets are shifting too.Is this trend killing TV softly?
  5. 5. TV was never goneIn reality the TV empire is far from crumbling. In the US traditional television still hasthe highest reach: 96% and TV advertising is still a whopping $70 billion business.However one downside of TV advertising is the amountof waste that is needed to reach the target audience.Source: Experian Simmons
  6. 6. It’s all about efficiencyWhat if you could efficiently target your audiences with TV ads?
  7. 7. The Solution: Addressable TV Addressable TV Advertising is delivering TV commercials to specific audiences using household-level analytical profiling and segmentation. In short, Addressable TV enables brands to deliver specific messages tailored to their target audiences. Addressable TV Advertising is tailored to your audience 100 MAIN ST. 200 MAIN ST. 300 MAIN ST. 400 MAIN ST. Existing Customer Existing Customer Prospect Prospect Family A Family B Family A Family B $50K+ $150K+ $50K+ $150K+ MarketerSource: Visible World
  8. 8. Addressable TV Ads: How does it work?Recent advances in the technology to collect and assess set-top-box data, offer usefuldata currency to increase TVs efficiency and accountability as a marketing medium.Addressable TV offers a more accurate alternative to Nielsen data, and helps CMOsto go beyond demographics with consumer interests, clickstream and buying behavior.
  9. 9. Addressable TV: The Benefits Why should CMOs embrace Addressable TV?  Offers a more accurate alternative to Nielsen data for buying slots in linear TV  Gains 56% higher efficiency in delivering TV ads to relevant target groups (opposed to the whole population), decreasing waste significantly  Helps to go beyond demographics, offering: geographic data, consumer interests, product affinity, clickstream and buying behavior analyses.  Enables interactions with audience as viewers can request for information (RFI)  Viewers have the ability to opt-in for specific ads gaining superior engagement that can increase direct leads and sales  Finally gives TV efficiency, measurement, metrics, actionable insights, accountability and ROI it deserves  Addressable TV can now close the loop as social media: See, Like, BuySource: ViralBlog.com
  10. 10. Addressable TV - Future OutlookIn the US alone, there will be 66 million subscribers enabled foraddressability, representing 60% of the Pay-TV marketplace by 2015. By 2015 TV the US will still be on top with 39.2% of theSource: eMarketer total media spendings, followed by digital with 25.6%
  11. 11. Interactive ExperienceWhat if you could make your Addressed TV Ads engaging, interactive experiences?
  12. 12. Interactive BroadcastingWith Interactive Broadcasting CMOs can engage and retain their audiences in awhole new way. Viewers will be able to: Participate – i.e. vote for a reality TV contestant Request for information (RFI) Take polls and tests Buy via T-CommerceThe most interesting feature for CMOs might be T-Commerce.With T-Commerce viewers can make purchases while watching a TV showand even during your TV commercial.You might say “I’ve heard that before”. But just think non linear with us forone more moment. F-Commerce offers CMOs a new See, Like, Buy funnel,and the global Social Commerce revenues will rise to $30 billion by 2015.
  13. 13. T-Commerce T-Commerce will enable CMOs to take advantage of viewers’ impulse buying needs through TV.T-Commerce will connect brands to targets in real-time, and enables engagement duringTV commercials (or other branded entertainment experiences) in richly immersive ways.
  14. 14. T-Commerce – Future Outlook In 2010 the E-Commerce revenues in the US have grown to a $175 billion industry. This certainly shows the revenue opportunities for T-Commerce.As over 90 million US households have Pay-TV , and are watching 8 hours TV onaverage per day, T-Commerce could be that disruptive force to ROI driven CMOs.Source: Forrester Research
  15. 15. Example: T-Commerce TV Ad While watching CNN, Samsung could target it’s new tablet like this This is an example created by SocialMedia8, just to visualize the possibilities of T-Commerce.
  16. 16. RecapWith Addressable TV & Interactive Broadcasting CMOs can Target specific audiences efficiently and decrease waste significantly Gain powerful metrics and feedback from target audiences Engage viewers by delivering branded entertainment experiences Go beyond a media outlet, and evolve TV into a direct sales channel Finally get their measurement, audit, metrics, actionable insights and ROI Now make their TV advertising as interactive and social as in the online worldAddressable TV Advertising is ultimately about: showing the right ad to the righttargets (less waste) across multiple devices and multiple ad formats - in orderto drive efficiencies in the ecosystem and to improve accountability and ROI.
  17. 17. R.I.P TV?Definitely not. TV is still the global king in terms of media spend.However, the Internet is the emperor in several markets already. The medium TV will change dramatically in the next 5 years. So CMOs should definitely integrate Addressable TV into their long term marketing strategies.
  18. 18. Adios! Some see countries with borders We see markets with opportunities Buzz, reach, engage, connect, distribute or amplify Connect to socialmedia8.com if you see opportunities Igor Beuker Founder – CSO Chi Chung Man – Insights Analyst igor@socialmedia8.com Rick Dauvillier – Social Analyst 0031 20 575 74 55

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