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Keep your audience and increase revenues with second screen applications
The document discusses strategies for television networks to enhance viewer engagement and revenue through second screen applications. It highlights the decline in advertising revenues, the importance of synergy between TV and the internet, and the potential of new business models that adapt to changing viewer behaviors. Key recommendations include improving advertisement efficiency, innovating formats, and leveraging partnerships to create additional revenue streams.
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Keep your audience and increase revenues with second screen applications
- 1. Aurélien Cazes KEEP YOUR AUDIENCE AND INCREASE REVENUES WITH SECOND SCREEN APPLICATIONS
- 2. How to change TV to reconnect with adver9sers and viewers? 2012 adver9sing revenues: -‐4.5% Prime9me hours: -‐17% From 6 to 25+ channels From push to pull Internet video consump9on: rising Internet revenues: +7% and +4.8%
- 3. Cannibalism is a myth 10k video views 1k€* Aired on TV Plus Belle la Vie 59 episodes above 3 million viewers in 2012 Palmashow 1M video views 100k€* 86M video views 860k€* * : with a 100% inventory
- 4. Storyboard This is in 18 months your business model is stronger you turn your weaknesses into opportuni9es How you reduce costs and increase revenues you improve your value proposi9on you should do it
- 5. Second screen applica9ons transform weaknesses into opportuni9es Strengths Weaknesses Opportuni9es • • When exposed to an interac9ve ad on TV 1/3 have clicked • TV is the preferred media for adver9sing investments • TV accounts for 35 million fans and 20 million Tweets in 6 months • Online video viewing is rooted in Internet users • Net revenues per channel from adver9sing are steadily decreasing • • Business models of TV channels rely too much on adver9sing • • Synergies between the web and TV are not well exploited • • 1 program = 1 app. i.e. difficulty to recruit new viewers • Investors can be_er monitor their adver9sing campaigns They strengthen and diversity revenues of TV actors Catalyst of the synergies between the web and the TV Finger prin9ng technology is available Enhance the viewing experience Threats • Rela9ve success of the new adver9sing formats • Second screen applica9ons require to answer to many KSFs • OTT actors are coming • Applica9ons like Shazam or IntoNow meet success in the US • No new viewers • Mul9 program apps
- 6. Value proposi9on Second screen applica9ons give the opportunity to turn TV actors’ business models’ weaknesses into new strengths How? By improving your business model Raise Efficiency of adverGsements ExisGng revenues Synergies with the Internet Viewer engagement Reduce Influence of compeGtor apps OTT’s share of innovaGon Efforts Eliminate Decrease of net revenues Decrease of audiences Wasted efforts Create Revenues streams ParGcipaGve TV CustomizaGon Behavioral analysis Value
- 7. Today Key Partners Adver9sers + social networks + Guests Key AcGviGes Sell adver9sing space on TV Value proposiGon We offer you video commercials during live programs Key Resources Lots of waists – only one finished product Cost Structure Financial efforts made on different media and devices without centralizing them Customer RelaGonship No feedback on campaigns Customer segments All adver9sers present on TV and new prospects Channels TV + computer: video ad Revenue Structure Dependent on very few adver9sing formats
- 8. Tomorrow Key Partners Adver9sers + Social networks + guests + m-‐commerce websites + stores Key AcGviGes Offer new innova9ve formats and customize shows Value proposiGon You can now gather all the synergies between your adver9sing investments into one device Key Resources Use of lem overs + new uses Cost Structure Benefit from synergies and use new formats on exis9ng resources Customer RelaGonship Partnering to offer innova9ve formats + feedbacks + purchasing Customer segments TV + Internet investors + prospects + m-‐commerce websites Channels TV + web: sync. + new formats with direct sales Revenue Structure New revenue streams with added shares on leads to purchase
- 9. How to go there: revenues are key Increase exis9ng revenues SynchronizaGon InteracGvity AnalyGcs VOD SubscripGon Create new revenues Direct purchase Cross selling Product placement
- 10. Key Success Factors How to maximize the revenues at the lowest possible cost? Generals Synchronize commercials AdverGse at opGmum Gme Make robust partnerships Avoid over-‐pressuring users Capitalize on quality of TV ads Offer video formats with pre-‐rolls M-‐commerce Easy to use Secure Save shopping cart SGck to market price Enable to finish payment on the computer Direct to another app – offer to go back to yours
- 11. Go to market Audience tailored Increased revenues Cross sales Product placement Customized Influence ParGcipaGve TV New revenue streams New & more robust programs Need big awareness Common prac9ce? App Dependence on m-‐websites Release Partnerships are key (MVP) Synergies under exploited Global Low cash generated media Generic Fans oriented No synergies Synchroniza9on Enhanced info Non-‐linear Social Media Li_le revenues Now 3 months 6 months 12 months 18 months .COMMUNICATE
- 12. 18 months only to reconnect with adver9sers and viewers 3rd month Enter the market with an MVP Add new revenue streams amer strengthening current ones 6th month Improve live experience and thus keep it 18th month Become a unique actor to both TV viewers and web savvys
- 13. Let’s get started now Get your second screen app within the 3 next months 1. Concept + ini9al specs 8. Release 2. Prototyping + wireframing 7. Deployment + valida9on 3. Usability tests 6. Development 5. Valida9on 4. Interac9on design + final specs
- 14. Thank you! To contact me: Aurélien Cazes aureliencazes@gmail.com Special thanks to Mar9n Palmgren, Phd