Aguinaldo Boquimpani - Marketers - Interactive TV Advertising

Interactive Media and
Interactive TV Advertising

Aguinaldo Boquimpani
Digital TV / Interactive Media Specialist
Brazil

Agenda
1. TV and Internet
2. DTV in Brazil and Latin America
3. Ginga: a World-class DTV standard
4. TV Interactivity
5. Why Interactive TV Advertising
6. What is Interactive TV Advertising
7. Current Offerings
8. Example: Verizon Widget Bazaar
9. Convergence Paths
10. Multiple Screens
11. IBB (Integrated Broadcast-
Broadband) – real world samples
12. Relevant Points

TV is…

• Communication
• Entertainment
• Marketing

Watching TV is…

• A lean-back experience
• A group experience
• Getting content (push)

Internet is…

• Information
• Entertainment
• Marketing

Using Internet is…

• A lean-forward experience
• A solo experience
• Seeking content (pull)

Will Internet replace TV?

• Recent Nielsen’s 3 Screen Reports (USA) say that:
• Internet content viewing is growing significantly
• But.. TV content viewing is NOT decreasing
• Use of both platforms at the same time is increasing
drastically

Are Connected TVs the perfect solution?

• Google TV was branded as the killer “Connected TV”
solution and it was a spectacular failure.
• In the connected TV scenario the broadcaster is out:
TV manufacturers want a piece of the action!
• Viewers may not want to search the Internet or
otherwise have an Internet experience on the TV.
• But… what about smartphones and tablets? They
will be secondary screens in the home.

What would be the solution to integrate
both worlds?
• An inclusive scenario, with manufacturers (devices),
broadcasters (content), sponsors and marketing
(money), all in the same boat.
• A platform that integrates the main TV screen and
the secondary, personal screens (tablets and
smartphones)
• A unified user experience in all different screens
• An easy user interface: usability is fundamental.
• Technologies based on open standards, not
proprietary solutions.

Let’s go back to the beginning

• TV today means… Digital TV

• How is the adoption of Digital TV and what
can be expected?

The World Is Switching to Digital TV

1600

1400 2010 :

1200 - 42.5% digital
Analog
- Only Finland
Homes 1000
fully digital
800
2016:
600
Digital
- 80.0% digital
Homes 400 - 33 countries
fully digital
Millions of 200
Households

0
2006 2010 2016

Source: Digital TV Research Ltd., June 2011

Emerging Markets Will Drive DTV Sales

In the next five
years, TV set
shipments will:

grow 2.2% per
year in Latin
America, Eastern
Europe, MEA &
Asia Pacific

decline in Japan
& Western
Europe

be flat in North
America

Source: IMS Research, August 2011

Free-To-Air TV Will Lead in Latin America
Free To Air will Lead in Latin America

140

120
Free to Air
Primary pay DTT
100 DTT will grow
Primary FTA DTT faster than
Analog terrestrial 80 DTH or
Digital free DTH digital cable
Pay DTH 60

Pay IPTV subs 40
Analog cable subs
Digital cable subs 20

Millions of 0
Households
2010 2011 2012 2013 2014 2015 2016

Source: Digital TV Research Ltd., June 2011

In 2016, Brazil Will Be 5th Largest DTV Country
Brazil will be #5 DTV country in 2016

Brazil

TV in Brazil
PC penetration: 55% of
Brazilian households(1)

FTA TV: 96% of Brazilian Broadband: 18% of
households(3) Brazilian Households (2)

(1) Computer Industry Almanac / IBGE
(2) Telecom/ IBGE
(3) WWW.eletros.gov.br

DTV in Brazil
Quick view: still a long way to go,
but advancing fast
-
Highlights
3,00 2,00  Total current number of TVs: 100M+
0,30
 Coverage: Around 65M households
iDTV
3,60
 More than 13M TVs CRT sold on the
LCD/PLASMA 4,30 last 3 years not equipped to receive
CRT DTV
 Around 7M LCD/PLASMA TVs sold
8,00 before 2010 not DTV-ready.

4,90
 3M+ LCD TVs already sold with
4,00 Interactive System (Ginga).

2008 2009 2010E

Source: 2008 and 2009 (SUFRAMA) / 2010 (estimate)
(*) in millions of units

DTV adoption in Brazil

State penetration: 23 of 26 states (1)

Cities: 47, 23 capitals (1) Broadcasters: 100+
broadcasters, including
headends and affiliates (1)
(1) http://www.dtv.org.br

ISDB-T adoption in LATAM

Population: 354 Million in
LATAM (2)

11 countries in LATAM +
Philippines in Asia (1)
(1) http://www.dtv.org.br
(2) http://pt.wikipedia.org/wiki/ISDB-TB

The Ginga Standard for Interactive TV

Ginga: A World-Class Interactive DTV
Standard
Ginga, the Brazilian Terrestrial Digital TV System
interactivity standard, is part of ISDB- Tb (ISDB-T
Japanese standard, Brazilian version) that has been
adopted for terrestrial and mobile DTV in 11 countries
representing over 350 million people, including Brazil,
Uruguay, Peru, Argentina, Chile, and Venezuela.
Ginga is a modern, world-class interactivity system that
was recognized by ITU (the United Nations agency for
Telecommunications and TV Standards) as an
international standard.
Today there are more than 3M TV sets in Brazil already
deployed with full Ginga products from brands like
Sony, Panasonic, Philips, LG and Samsung.

Source: http://www.dtv.org.br

Brazilian Government: TV Interactivity and Ginga
are key technologies to the country
LCD TVs will have to include Ginga to keep tax breaks

Convergência Digital :: 23/09/2011

A change to the Processo Produtivo Básico (PBB) is in public consultation for TV
sets with liquid crystal display (LCD) that will require inclusion in these devices of
the DTV interactive middleware, Ginga.

In other words, manufacturers who wish to continue enjoying the tax benefits for
the production of these devices will have to incorporate Ginga mandatorily. Under
the proposal, until the end of next year 75% of the devices must come with the
middleware.

Starting in 2013, all LCD TVs benefiting from the exemptions will have to include
Ginga. Moreover, it is prescribed that all models that support IP connectivity
middleware must not have the possibility of access restrictions on interactive
applications for the communication channel.

http://convergenciadigital.uol.com.br/cgi/cgilua.exe/sys/start.htm?infoid=27802&sid
=7

Interactive TV Advertising Model

Viewer chooses interaction pressing OK button in the remote

© Copyright TQTVD / TOTVS
22

Modelo Interatividade

Viewer is asked if he wnats to receive a free sample of the product. It could also be a discount
code, a code to participate in a lottery, etc.
23


A dialogue is shown to get viewer’s permission to store his data.

24


If the user agrees, his data is sent to the broadcaster and the broadcaster can forward
this data to its marketing sponsor.
25


From this point on the viewer can access more information with a rich interactive
experience inside the marketing campaign.
26

Why Interactive TV Advertising

Interest is Growing in
Interactive TV Advertising


Who already offers interactive TV marketing in the world?

Source:
http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5- 28
9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D

Modelo de Comercialização de Interatividade na TV

Who is already sponsoring Interactive TV marketing?

Source:
http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5- 29
9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D


Interactive TV Improves Advertising Value

Makes TV Advertising More Measurable & Accountable
Traditional commercial spots are not nearly as valuable
in homes with DVRs
Q3 2009: In Tivo households, 39% of programs were time-shifted

Addresses, Engages & Empowers the Consumer
Transforms TV ad messaging into a lean-forward experience
with scale, customization, addressability & localization
Consumer chooses when and how long to engage

De-Clutters the Ad Environment
Offers a rich, singular brand experience that cannot
be replicated with commercials or online advertising

Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010


Interactive TV Advertising is Effective
Canoe Ventures Study on Interactivity
& Advertising (March-Sept 2010)
Goal:
- Measure impact of interactivity on brand metrics
- Measure recall, opinion, purchase intent

Scenario #1: “Request for Information” (RFI)
- An interactive call to action during a TV commercial
- A request for a product sample, a coupon, or informational brochure
- Viewer simply uses their remote and “clicks” to receive

Scenario #2: In-Program Poll
- Advertiser-sponsored interactive poll or trivia quiz
- Poll displayed during program, then followed by commercial


Interactive TV Advertising is Effective
Results

Interactivity improves brand recall
- RFI in commercial increased unaided recall of test brand 132%
- Unaided brand recall rose 167% for interactive poll following ad

Interactivity results in a higher brand opinion
- Favorability increased in viewers who noticed interactivity
(42% to 51%)
- 91% who accepted offer had “a more favorable opinion about
the brand”

Interactivity increases purchase intent
- Interactive Poll + commercial raised brand purchase intent
scores 40%
- Just noticing interactive ad without clicking raised purchase intent

What Is Interactive TV Advertising
“Entry Points are the place
within the TV viewing or
Entry Points interactive experience where
the viewer is first exposed to
the interactive advertisement.”

Main Menu Banner Interactive Tags in Commercials
(a.k.a. Triggers)

Interactive Guide Banner
Pause/Delete Screen Banner



Destinations / Capabilities
“Destinations are the follow-on engagements that Examples
the consumer experiences once they have initiated Branded
the interaction. Showcases/Microsites
(a.k.a Dedicated Advertiser
Technical Capabilities are applications or Location/Virtual Channel)
functionality that can be interacted with.” Branded Theme
Promotions on Demand
Broadband/VOD
Sponsorships
Click to Call
Customized Applications /
Games / Commerce
Lead Generation Capability
(a.k.a. Request for
Information (RFI))
Survey/Voting/Polling
Telescoping to VOD



Destinations / Capabilities


Use case: Verizon Widget Bazaar

Verizon: Widgets are Key to Advertising
Verizon, the US quad-play provider, is focusing its advanced advertising attentions on its
Verizon Widget Bazaar...Tellingly, the TV apps platform is a much bigger priority than
advanced VOD advertising like dynamic VOD ad insertion.

...A good example of the advertising opportunity with the Widget Bazaar is provided by
Victory Motorcycles, which includes video about its products that amounts to a television
brochure, plus a gallery of product photos. This is complemented by an interactive dealer
locator that presents the nearest five dealers to a viewer, based on their ZIP Code. Viewers can
also request a brochure to be emailed to them. All the apps within the Widget Bazaar will
benefit from the fact that Verizon can use its own 30 second advertising spots to promote the
concept and make sure consumers know the applications exist.

… “I would argue that our widgets provide the most advanced dedicated advertiser
landing page available in the US today,” Jason Malamud, General Manager of Verizon FiOS
Advertising declares. “Advertisers can pull video from our VOD servers and they can pull text
and graphics from web servers so they can be dynamically updated. They can offer interactive
features like a dealer locator [for car dealers, for example]. That information is not sent to us
separately but is available from the advertiser so data can always be fresh.” Usage data can
also be delivered straight back to the advertiser.

Source: "Verizon focuses on widgets-based advanced advertising", John Moulding, Videonet, 10 Nov 2010

Use case: Sky Active
SKY ACTIVE

SKY Active is a model of Interactive TV launched in
the UK and Ireland in 2001.

Business models for interactive marketing:

• Interactive Airtime – it is the transmission time
used to exhibit an ad associated to interactivity, which
is accessed inside the context of the video content.

• Interactive Airtime Premium – It is an additional
fee which enables an interactive spot in the video
content. The price depends on the number of
insertions but only households that support
interactivity pay for the insertions.

• Hosting Charge – Fee to store and transmit the
interactive content.

Source: http://www.t2dgroup.com/downloads/Guide%20to%20Interactive%20TV.pdf 39

Connected TV shipments to exceed 138M in
2015

Source:
DisplaySearch
Q2’11 Quarterly
TV Design and
Features Report

5 Reasons why Connected TVs can be a flop
1. The Internet on TV Sounds Confusing (to the user)
For average consumers, the thought of hooking up the Internet to their television set
sounds confusing. Many wonder what they will have to do to make a smart TV work
2. The Internet on TV Is Confusing
They want to watch their new television without a call to tech support, and that is
understandable. Delivering products that are simple to set up and easy to use should be
a main concern for television manufacturers.
3. Fear of Obsolescence
4. Customer Support Concerns
5. Poorly Defined Value Proposition
Most Smart TVs are being touted for their technology rather than the benefits they
provide.

Source: http://mashable.com/2011/01/11/smart-tv-flop/

Where is the convergence?

• This is the true question.
• Most of Internet scenarios will not be successful in the
TV screen and for the TV lean-back experience.
• Convergence then can really exist including:
– Different ways and places to consume content
– Interactivity on TV and multiple secondary screens
– Interactive advertising
– Rich content
– Integration between all of the features
above

Caminhos de Integração: Múltiplas Telas
Connected Devices and Multiple Screens

• There is a growing offer of broadcaster’s applications on
tablets.
• But apart from accessing the same content, what can the user
do?
• There is currently no integration between TV and devices. This
huge potential for the simultaneous and complementary use of
TV and devices is still not explored by broadcasters and the
advertising market.

Caminhos de Integração: Múltiplas Telas
Connected Devices and Multiple Screens
With a convergent model that includes interactive services a huge
horizon of possibilities is opened in the Connected TV home:

• Changing content viewing from the TV to the device, with
access to a rich interactive content interspersed with sponsors
information, product marketing etc.

• Direct real-time feedback from the user to the broadcaster and
to its sponsors using the broadband channel when present.

• Same user interface and user experience.

Paths of Convergence: Connected TV + Ginga
Two worlds that complete each other. It is not a battle for the home
screen anymore:
– Linear content viewing can be transferred from the TV to the
device.
– Non-linear content can be accessed on the device or on the
TV.
– For the majority of the broadcasters this will mean converging
existing solutions. For manufacturers this will mean revenue-
sharing models with broadcasters and their sponsors.

IBB (Integrated Broadcast & Broadband)
a Ginga-based solution


Advanced Interactive and OTT Framework

Multi-screen content distribution with an advanced
IBB/OTT framework

Sticker Center: a Ginga-based solution

Sticker Center integrates a flexible Application Store
model and can work in TVs and in Android platforms.

Integrated Broadcast & Broadband:
real world sample applications


T-Banking
T-banking: access bank accounts on the TV or on multiple
screens, connected with TV bank advertising.


T-Commerce
T-Commerce: access to a Walmart product portal.


T-Commerce
Complete rich content product information: QR-code access on a
Walmart portal.


T-Government
Access to social benefit agencies and retirement pension plans.


T-Government
Public health-care agencies information and programs.

OTT Content Distribution de conteúdo OTT
Distribuição
Access to news portal on Brazil’s largest Internet provider (UOL).


OTT Content Distribution
Access to a SBT Videos broadcaster’s content portal.


OTT Content Distribution
Access to TV Globo’s broadcaster’s content portal.


Social TV Social TV
Recommendations and content information sharing among viewers.


Relevant Points
• Internet and traditional TV are not about to battle for the home
screens.
• They are about to converge and integrate, enabling seamlessly
unified user experience across different screens and enabling
the viewers choice and freedom.
• There is a huge potential to explore Interactive TV scenarios
using standardized and open solutions like the Ginga standard
for Interactive Digital TV.
• Content is king and marketing will always be about selling a
good product within a rich content experience.
• Welcome to the new TV!

Contact
Thank you!
Aguinaldo Boquimpani
Consultant
Digital TV Media
Interactive TV
Mobile Media Technology
aguinaldo.boquimpani@yahoo.com
http://br.linkedin.com/in/aguinaldoboquimpani

Aguinaldo Boquimpani - Marketers - Interactive TV Advertising

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