The Digitalisation of TV – from SMART to SuperSMART
Though compared to on-line the number of ad innovations that TV viewing
has had in recent years is small, as the technology behind the screen and the
viewers in front of it become more Connected and "SMART"er, the two
will undoubtedly become more interconnected. Whilst Tivo is currently
leading the way in terms of innovations from a format perspective, what most
are eagerly anticipating is the long awaited use of consumer view habit data
that Sky is seeking to soft-roll in Aug next year.
The notion of targeted TV (TTV) is one that is set to have enormous
ramifications on all ad-fronts, and could lead to a complete overhaul of how we
buy and consume TV ads; but what’s in store and where could this potentially
lead?
Competition and Pricing
Firstly, this will lead to a new way of purchasing ads, likely to be
along the lines of Run of Channel (ROC) and the TTV method of Behaviourally
targeted ads[1].
Introducing this second method of spot purchase would effectively split a
single spot into numerous ones, and for more mainstream spots result in
inflated pricing and increased competition - e.g. more people want to buy the
“young urban family” viewers for the first in break X factor spot = increased
value of that segment. Whilst conversely, buying a ROC X Factor spot
would prevent any higher priced TTV buys, so could also cost more.
However on the flip side, as more clients would have the potential to
reach their audience in a single spot, there would be less competition for the
less desirable spots, and consequently lower pricing at the other end of the
spectrum, and more spots auto-filled by operators.
Progress in Verification
Whilst all major broadcasters continue to state the high view rate of ad
breaks, as familiarisation of skippable TV and 2nd/3rd screen penetration
continues to rise, a key question that clients will continue to ask is:
“Was my ad seen?”
Companies such as DoubleVerify and AdSafe are helping tackle this
question on-line through piggybacking adserver tagging, however as clients
become used to measuring (and soon paying for) only ads that are actually seen,
pressure will continue to rise for TV tech to progress to a more accountable
level.
In response to this Sky have
confirmed what many have hoped for, in that upon its soft launch this July[2] they will be able
to establish whether a TTV ad was seen.
Whilst this makes sense - it naturally follows that to sell specified ad
volumes a broadcaster must have the capability of tracking the delivery of said
volumes – the importance of this move shouldn't be underestimated.
Digital media has had a swift ascent
over the past few years, with progressions in targeting and accountability
causing publishers and agencies to stand up and pay attention – indeed over 50%
of SMG London’s total billings are now in digital media. However whilst
many clients have begun to appreciate and value the digital space, due to the
ease of scale and the ability of providing that “water cooler” moment they’ve
typically continued to favour more traditional media[3].
As TV starts to acquire these digital attributes, we can only expect this
position to become further entrenched[4].
Whilst without login data[5]
TV’s multi-viewer nature results in it being impossible to establish the exact audience present, the use of
behavioural data suggests that the intended target will be present for a TTV
ad.
Becoming fully Digital
This progression potentially marks a huge step forward not just for TV
but for the media industry in general
However it could lead to ads being purchasable on a CPM level (and
eventually a biddable level - though this would be years away).
In some regard we have already seen a movement towards the digital
eventuality, with in-banner and in-app banner activity being purchasable on
Xboxes and Smart TVs. This aspect of the new-era TV has the
potential to even move to a CPC or CPE model, though - whilst it'd be grand to
say that SMART, interactive (e.g. where you can visit a website straight from
an ad) TVCs have the same potential - due to diminished volumes, there lacks
the business model to support such a move. That said, we may see a
different sort of engagement for standard TVCs. As AV and consumers gets
ever more connected and Smarter, it is expected that we will be able to draw in
internet data to live ads. Dynamic optimisation of creatives being
currently done online through enterprises such as DOT, this sort of auto
pulling of relevant data could take engagement of a standard ad to the next
level - think Paddy Power "live" odds updated ads, but pulling in
browsing data. Whatever the future
holds, as the technology around TV and its accompanying second screen continues
to progress we can expect to be able to create immersive individual experiences; at scale.
Conclusion
Having been one of the more stagnant mediums from an innovations
standpoint it's unlikely that this ship will turn that quickly, however
over the next few years there lies real scope for a complete overhaul
in not only how media buyers purchase TV, but of how consumers interact
with and consume TV. Only trouble is, having been promulgating this rollout for
some time to no avail, it seems the Sky is still the limit on any substantial
progression.
[1]
Though as a
potential, Experian data could be used as a mid-point between the two extremes
for demographical location based targeting, though this may unnecessarily
confuse things.
[2] It
is expected to be able to reach a maximum of 5% of their total subscription
audience.
[3]
Creative agencies also favour TV, however this is partially due to it resulting
in the highest amount of revenue for them
[4]
Though in order to maximise its potential, greater levels of cross media
collaboration will be required than currently occur between digital and TV.
[5]
Though individual log-ins are unlikely at present, as advances with SkyGo
continue this personal data could be mapped to household viewing.
