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Future Developments in TV advertising


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Future Developments in TV advertising

  1. 1. Future Developments in TV advertising Charlie Horrell CEO PacketVision
  2. 2. 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>
  3. 3. 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>
  4. 4. project
  5. 5. 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>
  6. 6. 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>
  7. 7. 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>
  8. 8. 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>
  9. 9. 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>
  10. 10. 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>
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