A research paper from consultancy MTM and Yospace, a leader in dynamic advertising insertion (DAI) technology, has highlighted the ongoing power of linear and live television, fears among broadcasters that global Internet giants will bid for premium sports rights, and their confidence that they can better monetise their own online simulcasts thanks to DAI and more data-driven audience insights.
The Belgian broadcaster launched the new version of ‘Stievie Premium’ last week, which enables the ads that appear in broadcast signals to be replaced with targeted versions in the live online simulcast. Medialaan and DAI provider Yospace are hailing the radical innovation on the platform, which also shortens ad-breaks when you are behind live.
Most German viewers of the RTLplus broadcast channel saw ads for Raffaello chocolates on Wednesday night but owners of HbbTV 2.0 compatible televisions saw ‘nutella B-ready’ ads instead. IP-delivered ads replaced the broadcast stream in real-time, demonstrating the potential for broadcast linear targeting in the free-to-air market.
Joe Marchese, who is responsible for advertising revenue at Fox Networks Group, says TV cannot compete based on impressions. It must deliver attention, in increasingly variable lengths, with a sliding scale of what each ‘view’ is worth. He also repeated the idea that the scramble for digital impressions, regardless of their quality, is media’s equivalent of sub-prime mortgage madness.
Cadent Technologies has integrated its addressable linear DAI solution into its unified multiplatform advertising system. If one targeted campaign has been served too many times on a tablet, the STB knows instantly and chooses a different one. Ad decisioning is performed in real-time in the cloud and even ad copy can be unicast for just-in-time splicing on the STB.
The media buyer is worried that SVOD is taking viewers away from advertising and has indicated that it would welcome ad-supported offers from today’s popular SVOD services. GroupM hopes broadcast partners will give it the large scale addressable capabilities it wants – but Netflix ads would certainly increase the incentive for broadcast innovation.
The DVB has been consulting on whether the market needs standards to harmonize ad insertion and back-office processes for addressable and targeted advertising, across both broadcast and OTT networks. The European free-to-air market could be one of the main beneficiaries, but Pay TV platforms are also showing an interest.
Automated planning, and the removal of humans who interpret data, is bad for brands. That is the warning from Simon Daglish, Group Commercial Director at ITV, who says the siren of immediate sales is driving media consideration more than the idea of creating and changing demand.
Irwin Gotlieb, Global Chairman at GroupM, has confirmed that Canadian broadcasters and platform operators will be judged by the same standards as those in Europe and the U.S. and will be expected to provide uncomplicated access to quality addressable inventory, and soon. He also thinks Canadian TV has a solid future despite some strong pro-digital sentiment in that market.
The research, published during Ad Week Europe, found that the "true" cost per thousand (or minute) for broadcaster VOD completed ads is around 20% cheaper than YouTube and one-third of the cost of Facebook, including organic views. It also found that commercial broadcaster VOD delivers "significantly higher engagement levels, completion rates and watch time for advertisers" compared to VOD ads on YouTube and Facebook.