IP is the common theme in the TV explosion. IP has enabled Web TV, mobile TV and IPTV. People want to choose where and when and what they watch. BUT There will always be a role for sit-back (relaxed) viewing with push TV in the home. This means that IPTV is probably going to have the biggest immediate impact for you (media planners and advertisers) By giving you measurability, accountability, relevance and control.
Measurability: -IP gives TV return path data. This enables real-time data collection of audience viewing and delivery data Because multiple ads can be sold in same slot, for the first time it becomes possible over time to reduce the cost of reaching a defined audience - The net effect of this opens up TV to new-to-TV advertisers. It becomes feasible for a provider of luxury yachts to target high-wealth individuals living in the catchment area of a British marina. Relevance: TV advertising can now be targeted/addressed to new clusters. - Geographic targeting - (town and village not region) - Demographic (male, female, age, old/young, social economic grouping Behaviour (likes sailing and cars, is sporty etc) EG: So ads for nappies addressed to households with children or a campaign for premium financial product could be seen exclusively by households in Cardiff with appropriate earning levels. This means more CONTROL for advertisers: - Ability to Frequency cap - so you avoid ‘over-exposure’ to ad copy - Ability to control viewing sequence of episodic ads so that they can be seen in the right order - Opportunity to improve ROI from TV advertising
Addressable TV advertising offers many benefits but also highlights some challenges: Audience measurement and evaluation will need to change to accommodate the ability for advertisers to target different (and new) clusters of viewer The way TV adverts are ‘traded’ will need to change Systems will need to change to enable multiple ads to be sold for the same ad spot and eanble ad-stacking Change in payment models Target new-to-TV advertisers – opportunity for TV advertising to appeal to niche advertisers
With so many agencies focused on Web the elephant in the room (IPTV addressable TV advertising) could be missed.
Future Developments in TV advertising
Future Developments in TV advertising Charlie Horrell CEO PacketVision
IP - the next quantum change in TV <ul><li>Consumers require control over ‘when’, ‘what’ and ‘how’ – WebTV, Mobile and IPTV provide this </li></ul><ul><li>IPTV is as relevant to linear as well as non-linear broadcasters (push and pull services) </li></ul><ul><li>Consumers benefit from consolidated services - triple-play offers (TV, phone, Internet) </li></ul><ul><li>Broadcasters benefit from wider distribution and more cost efficient delivery </li></ul>
IPTV: Addressable TV advertising <ul><li>Measurability - return path data = real-time audience measurement </li></ul><ul><li>Relevance - highly defined targeting to audience clusters (geographic, demographic, behavioural) </li></ul><ul><li>Airtime efficiency – multiple commercials being delivered within the same timeslot </li></ul><ul><li>Responsibility – sensitive advertiser products and services delivered solely to the intended target audience </li></ul><ul><li>Control – frequency capping/sequential ad viewing </li></ul>
Project 4 <ul><li>World’s first large-scale addressable TV advertising roll-out </li></ul><ul><li>3-way agreement between: </li></ul><ul><ul><li>Channel 4 </li></ul></ul><ul><ul><li>INUK Networks (Freewire) – the exclusive providers of TV, Phone and Broadband services over the JANET university network </li></ul></ul><ul><ul><li>Packet Vision </li></ul></ul><ul><li>TV advertising on Channel 4 distributed to 160,000 university students in halls of residence across the UK </li></ul>
Linear TV channels on IPTV <ul><li>Predominantly received by students on a laptop, though can have a STB and TV </li></ul><ul><li>Between ‘sit up’ and ‘sit back’ TV </li></ul><ul><li>Full screen multicast, with EPG </li></ul>
Campaigns <ul><li>20 campaigns since 6 th October 2008 - over 7000 spots successfully transmitted so far </li></ul><ul><li>12 participating agencies – at least 1 from each of the big 6 media holding companies </li></ul><ul><li>Brands include NatWest, Cadbury, Weetabix, Microsoft, Mates, Unilever, Co-Op, Jack Daniels, Southern Comfort </li></ul><ul><li>New advertising categories for TV – recruitment (Shell, Emirates) </li></ul><ul><li>Commercial copy tailored to project (NatWest, Shell, Weetabix) </li></ul><ul><li>Interactive phone and click-thru measurement as well as campaigns targeted by gender (Mates condoms), university (NatWest) and coursework </li></ul>
Relevance and impact <ul><li>Commercial environment benefits </li></ul><ul><li>Viewer enjoyment and relevance </li></ul><ul><li>Reduction in channel hopping </li></ul>
Addressable TV advertising – benefits to all <ul><li>BROADCASTER gains incremental TV advertising revenue and maintains viewership </li></ul><ul><li>CONSUMERS see relevant ads </li></ul><ul><li>ADVERTISER benefits from greater cost-effectiveness and enjoys real metrics for TV </li></ul><ul><li>MEDIA PLANNERS can build increasingly integrated campaigns and increase TV advertising performance </li></ul>
Implications for media planning <ul><li>Accommodate new audience measurement/evaluation methodology </li></ul><ul><li>Advertising trading currencies and references will have to adjust (beyond age, gender, socio-economics) </li></ul><ul><li>Systems and process change – traffic, airtime management </li></ul><ul><li>Cultural change – media comparisons, budgeting – who looks after what? </li></ul><ul><li>Broadcast use – new-to-TV advertisers, multiple copy opportunities </li></ul>