Every Pay TV operator, including smaller ones, can get themselves into the addressable TV advertising market, help attract new advertising budget that was not spent on television before (including from local advertisers) and use their new role (as an enabler of addressable advertising) to diversify their revenue base. Operators do not need to implement any ad-tech themselves and they can use legacy set-top boxes. If they do not have their own sales house, there is no need to create one. An addressable advertising solution ready to tap into the growing demand for this concept can be deployed in as little as six months.
These were some of the takeaways from the recent Videonet webcast, ‘The 5 steps to best-in-class targeted TV advertising’, which investigated a new end-to-end addressable TV advertising solution from Viaccess-Orca and Smart Adserver. The discussion illustrated how operators can harness one of their greatest strengths – their deep insights into household composition and interests, using GDPR-compliant first-party data – as the basis for audience segmentation and then targeting.
Dror Mangel, Senior Product Manager, AI & Data Solutions at Viaccess-Orca, explained how viewing data consolidated from multiscreen viewing as well as set-top boxes provides a “360-degree view” of consumers, including crucial insights into interests at both household and individual level. His company harnesses demographic information (household composition, like life-stage, so whether the home contains an elderly couple or a single person, for example) as one of the inputs for audience segmentation.
Viewing habits can be used to build this profile and reveal more about individual users – like estimated ages. “We know native and spoken languages from the content viewers are consuming,” Mangel added. “Because we are looking on each device, we can understand who is viewing right now. We can tell if, at the moment, a teenager is watching in their bedroom.”
Interests can be deduced from viewing. “We can identify gadget seekers and foodies, for example, which is valuable for advertisers. We also know how content is being consumed, like the device being used and whether that is a ‘premium’ device, and if people are watching on the go.”
Mangel provided an impressive illustration of how GDPR-compliant viewing data can help advertisers, using a graphic to show the dramatic and sudden change in the channels being watched within a household. A line was drawn to signify a key ‘life moment’ that Viaccess-Orca, with its AI/machine learning backed analysis, identified as a baby being born.
“Generally, people are creatures of habit and when habits change we can deduce these life-moments. With AI-enabled analysis, we can detect the exact moment a child arrives in a household.” Mangel acknowledged that advertisers may learn about the arrival of a child from third-party sources (eventually) but as he pointed out: “We can deduce this change of habit really quickly and that is the power of TV data.”
The Pay TV operator addressable TV advertising solution explained on the webcast supports multiple inventory options for in-stream advertising in content the operator owns or in collaboration with their content partners. Addressable banner or video ads can be inserted into live/linear, catch-up TV, cloud DVR and other VOD, with pre-, mid- and post-roll options. Client-side and server-side ad insertion can be used in parallel.
Gerald Sauvageon, SVP Sales Video / Addressable TV at Smart Adserver, outlined the ad server, ad decisioning, campaign management, yield optimisation and demand management (covering direct sales and programmatic) functions that his company brings to the end-to-end solution, and claimed that Pay TV operators will benefit from the open nature of the solution, which connects into 50 demand side platform (DSP) partners, with access to the trading desks at major agency groups.
What this means for ad-supported content owners (whether that is the Pay TV operator or channel owners working in partnership with them) is that audiences and inventory are being made available to a wide base of potential advertisers, which is crucial if you want to maximise demand competition and therefore yield.
Programmatic audience discovery, aggregation and trading is a key part of this solution and Sauvageon explained how the regulatory and commercial compliance requirements of television are met. With this as the starting point, he believes Pay TV operators harnessing programmatic television can exploit advantages long known in the digital side of the advertising industry.
“In digital, programmatic is gaining market share and there is a reason for that. You get automated trading with more effective, precision targeting,” he points out. Advantages Sauvageon listed included smart planning, budget control campaign management and optimisation of campaigns. “For sellers it is simpler to sell advertising space because there is a larger pool of demand,” he added, and inventory should also be valued higher, using this process.
You can hear on the webcast how the Viaccess-Orca / Smart Adserver solution has been designed specifically for addressable advertising in the television marketplace, and there are discussions about the addressable TV opportunity and how addressable can be used. You can hear the one-hour discussion here.