A new thorough analysis has shed some hard light on the possible impact to the subscription VOD service.
Ampere Analysis‘ report, Commercial Gain: If Netflix Moved Into Advertising, finds:
“At current consumption and subscriber levels, a pre-roll model could make Netflix an additional $270m per quarter, assuming an $15 average CPM. This equates to an aggregate $1.6 billion in quarterly subscription revenue.
“By contrast, a full broadcast-style ad-load could make Netflix nearly $2 billion per quarter, assuming a CPM average of $8.
“Netflix would have to be very careful in managing such a process, however, as its customer base has indicated sensitivity to advertising. Low-level churn could wipe out financial gains from a pre-roll model, while heavier churn from a full ad-load would combine with a higher cost-base to result in minimal positive impact on the bottom line.”
Speaking with Beet.TV, Ampere‘s Richard Broughton says Netflix has an attractive demographic for advertisers. Adding a pre-roll model would grow Netflix’s business by 15%: “As little as 10% churn could wipe out those gains.”
But Broughton says, if Netflix introduced a full ad model, it could sustain a loss of up to 50% of its subscribers without losing revenue.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>European satellite operator, channel owner and telco Sky is fighting against that tide when it comes to next-generation advertising, launching an analytics suite for its its AdSmart addressable TV service.
“I think there’s a big challenge in the broadcaster market,” Sky Media’s deputy MD Jamie West acknowledges. “If they don’t add value to that full campaign lifecycle, you end up having a relationship that is very much about being a supplier or transactional, and the power shifts away either to the ad tech company or the media agencies/trading desk.
“We’re building up all of our analytics tools to prove our return on investment. But those same tools can enable agencies and advertisers to plan their campaigns and execute their campaigns and optimize their campaigns for the whole campaign lifecycle if you like.
“So it means that the dynamic and the relationship that Sky has is that very much of a tripartite relationship. We’re evenly balanced between advertiser, media owner, Sky, and the media agency, and that’s a much healthier environment and ecosystem to operate in.”
AdSmart Analytics is a managed service allied to AdSmart, the technology Sky uses to enable millions of satellite set-top boxes for household-targeted linear TV ads.
As part of its expansion, Sky Media just invested $10mn in Boston-based programmatic ad tech vendor DataXu.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Then, in October, the company bowed AdVance, a suite knitting together data from across its many screens to better target consumers. So what is AdVance all about?
“If AdSmart is all about taking the very best and only the very best of digital targeting and bringing it to TV, what Sky AdVance does is take how really unique TV consumption understanding and brings it into digital,” according to Sky Media’s deputy MD Jamie West.
“Knowing which sites subscribers are browsing and which channels they are watching lets Sky Media serve ads back through internet or TV, respectively, that learn from consumers’ holistic behavior.
“We enable our three million-home viewing panel,” West says. “When you think about all those multiple touch-points that we have with our customers … you have a really rich understanding of customer journeys across those multiple platforms. That will enable us both to serve ads both on the Sky platform or via our DSP partners.
“Once you’ve seen the ad four times on TV, we can now frequency cap … Or we can use that platform to tell … different stories … in the app environment, the mobile environment, or the browser environment.”
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>There are many reasons for that – for one, quality content and attractive online services are proving so popular that the BBC is moving one of its linear channels entirely to online.
But the TV advertising set-up, too, is effective enough to be considered a template for the rest of the world, according to the EMEA president for Omnicom’s OMD agency, Nikki Mendonça.
“Specifically Channel 4 and ITV are hugely, hugely innovative,” she tells Beet.TV in this video interview. “We’re doing some fantastic things with them at the moment … they’re developing more of a lean-in attitude that will pay dividends.
“We’ll almost be able to take that UK model and potentially roll it out across the world because I do think that the UK is one of the most sophisticated markets.”
UK total TV revenue continued growing to new heights last year, thanks to increased advertiser spend, more pay-TV subscription revenue and big BBC sporting productions. GroupM estimated UK TV advertising spend would grow 9%. What’s going so right?
“I think the UK understands that the advertising content is just as important as the content itself,” Mendonça adds. “They are doing more to invest in content and to work with us in a way that really appreciates and understands the quality of high content as advertising.
“I think that that’s really protecting the TV ecosystem and why the TV economy is in rude health at the moment in the UK. I think a lot of other markets could learn from the way that certain TV broadcasters are managing to innovate at scale, actually.”
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>SMG’s use of addressable TV is taking off in the States. But that’s not the same in every market.
“The UK market is … off to a very slow start,” Glucklich tells Beet.TV in this video interview.
“The future of of marketing is in real-time addressable content and I think TV has an enormous role to play in that. But, from a UK perspective, really only Sky AdSmart is the one that’s offering that at the moment. I think 2016 will really see some big advancements and we’ve already heard that in the UK from the likes of ITV and Sky in particular.”
Glucklich wants this advancement because the pace of the world of content is quickening up immensely.
“Real-time is a huge challenge to marketers in particular … real, cultural, and pivotal moments are gone in a matter of minutes or hours,” she says. “For us, having a kind of fully data-enabled programmatic solution is absolutely critical to be able to make that work effectively, and television is only really starting to get there. ”
Separately, Thaer Namruti, the European strategy director at Acxiom, has been appointed to the new role of senior vice president for precision marketing strategy at SMG, rejoining the company after leaving in 2014.
Glucklich and co-CEO Steve Parker gave this guided tour of SMG’s new London office to Campaign magazine…
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Havas is working with an audio exchange and other partners to deliver programmatic audio advertising in France and the Netherlands.
“Audio is an inventory source,” Havas Media Group programmatic solutions head Hossein Houssaini tells Beet.TV in this video interview. “Nobody was looking at it because everybody went in to the visual space from a programmatic perspective. But, from a touchpoint perceptive, … audio plays a major role.
“If you can spot the consumer … with an audio ad … and then retarget later with a digital out-of-home (ad) … you can do a lot of interesting advertising.
“It opens up a new field of data, which is emotional data. Based on a playlist, you can say what emotion that person is in right now. It may be the same message with different colour… you’re happy, angry, sad. That changes the varieties or how you advertise.”
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>That’s what Edinburgh-based TVSquared is pushing toward. One of the company’s two main software pieces is ADvantage, a platform providing offering insight in to how each TV impression drives revenue through online, mobile and second screen for advertisers looking for accurate same-day TV attribution.
But TVSquared chief analytics officer Blair Robertson tells Beet.TV things are changing: “At the moment, we have a platform that runs in 45 countries We’re having huge traction amongst brand advertisers.
“But we see it moving from looking at a historical view of campaign performance to a predicative capability, to say, ‘Here are you top five opportunities to improve your buy over the next week or month, you will see an uplift in sales, lifetime value or increased market share’.”
The company’s Predict tool helps advertisers automate the creation of their buy specifications based on predictive analysis of historical attribution data that is optimized, whether the objective is to generate sales, registrations, web site visits or any other kind of response.
“We see many advertisers who start off with very small budgets for TV who end up spending tens of hundreds of millions of dollars because they have accountability on TV now in the same way they’re used to having for digital,” Robertson adds.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>We interviewed him about the transformation of the video landscape for advertisers and broadcasters.
This interview was conducted earlier this year at the Future of TV Advertising Forum. Our coverage was sponsored by Xaxis. For more videos from the event, please visit this page.
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At the Future of TV Advertising Forum in London earlier this month, we interviewed Ben Tatta, President of Cablevision Media Sales, about the deal with and how the company will work with Modi.
Also in London, we spoke with Modi CEO Mike Bologna about the new agreement. You can find the Bologna interview here.
These videos are part of a series produced in London about advanced TV advertising. The series is sponsored by Xaxis. Please visit this page for more videos.
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The former BSkyB of the UK completed a £7bn merger with its sister companies in Germany and Italy in November. That means FreeWheel’s tools will be used at the continental level.
“We’re starting with Germany,” FreeWheel Europe MD Thomas Bremond tells Beet.TV in this video interview.
“We are the ad decisioning platform for Sky Media, managing its digital inventory across a slew of platforms from desktop all the way to set-top boxes, and enable dynamic insertion on all these devices.. We’ll do the same thing in Germany.”
Specifically, Sky took on FreeWheel to better manage ad orders, sales rights and yield optimization. But it’s not just these functions the company is looking for help with.
“One of the big questions that Sky, but also other operators around Europe, are asking us is, ‘Can you help us in trying to facilitate us to become more involved in the operator-broadcaster landscape?’,” Bremond adds.
There is something of a UK TV programmatic arms race kicking off. ITV recently opened up programmatic video capability with RadiumOne, Sky has also tapped Videology to run its programmatic capability, while Channel 4 is using FreeWheel to power its new programamtic ad exchange.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>But that doesn’t have to mean mere product manufacturers – which, traditionally, rely on someone else to sell their stuff – have to be left out, says Candice Odhams, EMEA engagement director of WPP’s Xaxis programmatic advertising unit.
“Traditionally, Xaxis would have worked with a lot of clients who hold a lot of data about their audiences,” she tells Beet.TV in this video interview.
“But, actually, won we’re starting to work with more clients in the CPG or FMCG sector, who might not have a digital sales point but who understand that’s where their audience exists. They’re starting to grapple with the fact that harnessing their own data … can really help them.”
Earlier this year, Mondelēz International marketing chief Bonin Bough told Beet.TV how brands buying ads that drive traffic to wholesale retailers will push ecommerce to new heights. By putting more money in to ecommerce, so that Mondelēz can drive actual custom for its own food stuffs, Bough can bridge the gap.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>But BARB is reinventing itself. The organisation already measures consumers’ digital viewing of core broadcasters’ shows, and separately measures viewing by census data. Now it is embarking on a project to unite the two.
Beet.TV learned more from Kantar UK TV and video measurement MD Margo Swadley, whose company is one agency that supplies BARB data.
“With the base panel, we have begun to measure their online devices as well – we put a software meter in their PCs, laptops and tablets,” Swadley says. “It’s now at about 2,400 households.
“In addition, BARB’s Project Dovetail has been about census-level data… straight from the player provider. Now you can see across BBC, ITV, Channel 4, Channel 5, Sky, UKTV, STV, UTV and a couple of other ones… on a like-for-like basis, common metrics across them, which is really an industry first.”
But Swadley is also currently facing off to compete for a bigger piece of BARB’s business.
“What it can’t tell you is who (watched),” she adds. “So the second stage of Dovetail is about combining the census-level data with the panel data. That’s what advertisers and programme-makers want.
“Dovetail 2 is starting its prototype stage. It’s a six-month competitive prototype. Kantar and Nielsen are, at the same time, doing the process of combing the data.”
BARB will update us on the performance of both the Kantar and Nielsen implementations by June.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Announced in November following a year-long pilot on Freewheel’s Fourfronts technology for upfront programmatic ad sales, Channel 4 had used DSPs from Freewheel, TubeMogul, Adap.tv (AOL) and Videology. PVX (programmatic video exchange) will be deployed not on Channel 4’s live linear broadcast TV but in video ads served up in views of its All4 catch-up service, available across multiple devices.
“It represented around 15% of our total video-on-demand revenue so far this year,” Channel 4 digital and partnership innovation head Jonathan Lewis tells Beet.TV in this video interview. “We see that growing to around 30% next year.”
Channel 4 won’t get there just because programmatic video advertising interest is growing amongst its own customers, even though research shows the PVX-delivered All4 ads are 72% more efficiently targeted and delivered 24% more effective ad recognition than a standard Run of Site (ROS) campaign.
In addition, Lewis wants more companies than just Channel 4 to use PVX. “PVX we see an an opportunity, potentially, to encourage other premium publishers to join,” he adds. “Our long-term ambition is whether or not we can grow our publisher base within our platform and sell that inventory on their behalf.”
There is something of a UK TV programmatic arms race kicking off. ITV recently opened up programmatic video capability with RadiumOne, satellite network and channel owner Sky has tapped Videology to run its programmatic capability.
“We fully expect our competitors to be in the mix in the next 12 to 18 months time,” Lewis adds.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Earlier this year, The Guardian, CNN International, the Financial Times and Reuters together formed the Pangea Alliance, a shared scheme to pool first-party ad data for ad buyers to target their combined 110 million users in an automated fashion.
French conglomerate La Place is another cooperative powered by Rubicon Project, and several have cropped up in Latin America. What’s behind this new coming-together?
“In some European markets, we’ve seen major broadcasters responding to the threat of American technology companies who have achieved massive amounts of scale,” says video advertising technology platform vendor SpotX‘s programmatic demand VP Alex Merwin. “For example, in Germany, the online video views of IP Deutschland, Axel Springer and ProSieben combined pale in comparison to the uniques that a Facebook or Google-YouTube bring to the table.
“The agencies want local-language content. But the disparity in scale is getting to a point where significant portions of ad spend are shifting to non-local publishers. You really need to band together and have a unified offering. That’s why we’ve seen publisher coalitions take off.”
SpotX is launching a new tool, dubbed “curated marketplaces”, to give its customers even more control over how they access advertising inventory programmatically. Whilst so-called “private marketplaces” allow buyers to gate off the inventory pools they use, they nevertheless involve much effort on the ground, Merwin says. So SpotX’s “curated marketplaces” aim to allow them more control.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Doing so is increasingly easy, thanks to a growing plethora of advertising technology. But measuring the impact of those deliveries remains a thorny problem.
Tantalized by the possibilities, some in the industry are dreaming of a single, unifying metric that could unite ROI across all those devices. But others think that is unrealistic as yet.
“It’s becoming more and more a question clients ask,” Mindshare UK CEO Helen McRae tells Beet.TV in this video interview. “We’re getting better and better at it.”
But McRae isn’t bold enough to claim she has cracked it: “There is no common currency. The data from source isn’t comparable, that’s the first challenge. We need to get that right first.”
McRae isn’t yet buying in to the idea of a holy-grail metric. All devices are different, and each client’s campaign objectives are different.
“We just need to get on with it and start doing it, even if it’s imperfect,” she says. “We’re going to have to live with several (metrics).”
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Bologna expects the growth of addressable households in the U.S. will reach 50 million next year. He says his agency will deliver addressable ads for some 70 advertisers in the year ahead.
While technology from the cable and satellite companies are driving this trend, there is a limited amount of inventory which can be “addressed.” It is just two minutes out of every hour of cable programming. But Bologna sees the eventual movement to inserting ads into national programming once carriage fees are renegotiated.
This video was produced at the Future Of TV Advertising Forum. Beet.TV’s coverage is sponsored by Xaxis. You can find more Beet videos from the conference on this page.
]]>Already this year, the pair told Beet.TV they would team up, after RTL’s $144m investment in to SpotX in 2014 and $19.4m in Clypd this April.
Clypd CEO Joshua Summers says the hook-up is enabling advertisers to buy unduplicated audiences across both digital and linear video inventory, including retargeting from one medium to the other.
Although this works on an individual-advertiser basis, Summer tells Beet.TV the pair will bring it to “open market” in 2016.
Clypd already works to help US cable networks and channels like Discovery better target viewers. Summers says the RTL investment is helping Clypd understand the disparate multi-market of Europe.
This video was produced at the Future Of TV Advertising Forum presented by Xaxis. You can find more videos from the Beet Retreat on this page.
]]>This growth is happening despite considerable barriers to digital video including varying government regulations and the lack of consistent measurement and attribution.
We sat down with him in London last week during the Future of TV Advertising Forum, where he was a speaker.
]]>He noted the new architecture assures that video serving happens within the “compliance” parameters.
West runs the company’s AdSmart unit which serves addressable, or specific ads via IP and on linear television to specific households. He says that a recent study reflects consumer enthusiasm for addressable ads. He says that channels switching during addressable ads is down 32 percent versus watching generally served ads.
The collaboration between Sky and Videology was announced last month.
We spoke with West earlier this week in London at the Future of TV Advertising Forum where he was a speaker. For more videos leading up the Forum and subsequent coverage, please visit this page. Our coverage of the Forum was sponsored by Xaxis.
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In this video interview with Beet.TV, commercial content director Gary Knight cautions against getting “obsessed” by addressable TV advertising.
“There’s an element of personalisation that’s good for the ecosystem,” Knight says. “But the good old-fashioned mass targeting … is something we also want. That needs to exist alongside this obsession with big data. It needs to be a balanced ecosystem.”
Sixty-year-old ITV broadcasts over both terrestrial Freeview and satellite and cable pay-TV, and owns a growing production capability of its own.
Certainly, Knight – an ITV veteran who runs broadcast sponsorships and relations with advertisers and agencies for content partnerships – wants to capture first-party data about his viewers. But, without owning the underlying broadcast infrastructure, ITV has no way to know who its linear viewers really are.
That’s why ITV is starting online, recently renaming its ITV Player catch-up TV service as “ITV Hub“, claiming 12.5 million user registrations.
But Knight is so far frustrated with promises made by advertising technology.
“Every time you plug in a system that helps you with better advertising … you hit these technology roadblocks,” he says. “There are enormous costs of being able to achieve this nirvana. I’m not certain when it will ever get there.
]]>Speaking with Beet.TV in this video interview, CEO David Downey reveals the company’s technology will underpin a launch by Liberty Global’s Belgian broadcaster Telenet and channel owner SBS Broadcasting.
The European addressable opportunity is a world away from that in America.
“It’s quite different,” Downey says. “As we head around the world, that same concept of two minutes an hour is not as prevalent. You’re dealing with a broadcaster, which has 24 hours a day of inventory availability, as opposed to the way it works in the United States in the MVPD community, where they own two minutes per hour for their advertiser capability.
“Europe is playing a bit of catch up in terms of addressability. But this is a very sophisticated system. This has the potential to really demonstrate to the rest of the world the power of addressability.”
Privacy concerns have previously been said to slow the rise of addressable TV in European countries like Belgium. Downey says his system includes sophisticated control over the targeting of viewers.
European broadcasters have already been delivering addressable campaigns using HbbTV technology from rival Smartclip.
This video was produced at the Future Of TV Advertising Forum presented by Xaxis. You can find more videos from the Beet Retreat on this page.
]]>One of those, viewability, is improving somewhat, as publishers pare back and focus on quality, says a top programmatic ad exec.
“Publishers are being more responsible about the types of inventory that they create,” Xaxis EMEA CEO Caspar Schlickum tells Beet.TV he has noticed. “They’re being more careful about how their websites are designed.
“Rather than it all being about quantity of ads, it’s about fewer, more relevant, more viewable ads – all of which contributes to a better experience for their user, it also creates a better experience for the advertiser.”
Why is this better
“I would much rather than one, viewable, high-profile, well-executed, well-targeted ad on a page than 10 poorly-executed, messy ads where you’ve got different advertisers all competing for attention,” Schilcikum adds.
The video is part of preview series leading up to the Future of TV Advertising Forum in London You can find videos from the series here. The series is sponsored by Xaxis.
]]>“Addressable TV is here,” says Rentrak CEO Bill Livek. “You have two national platforms at scale, with DISH and DirectTV. Then you have the cable operators moving very quickly in to that.”
So, why would addressable be a good thing?
“The advertiser in a low-GDP-growth economy wakes up every morning and says, how do they increase market share without spending anything more than they did last year?
“Addressable allows that to happen. We will see more addressable in the future. We’re measuring the precision of those commercials for the operator.”
Rentrak just decided to merge with comScore to make a bigger media measurement agency.
The video is part of preview series leading up to the Future of TV Advertising Forum in London You can find videos from the series here. The series is sponsored by Xaxis.
]]>One school of thought says that kind of dynamic personalization is “science-fiction“.
And a leading addressable TV advertising exec is similarly bearish.
“I don’t think true personalization, where you call somebody out by name and location, I don’t think that’s ever going to happen,” Modi Media’s Joanna Thissen tells Beet.TV in this video interview.
“I don’t think you’ll ever see an ad where somebody’s like, ‘Hey, Joanna, who lives in East 36th Street, come and buy my car’ – the ad tech just doesn’t exist for that to happen.
“But I do think that the next wave of addressable will be kind of creating creative that speaks more to the lifestyle of the target you’re looking for … That way, that content is now connecting with the intended audience – rather than just showing them a generic commercial, you’re now starting to speak to them even more on a one-to-one basis.”
The video is part of preview series leading up to the Future of TV Advertising Forum in London You can find videos from the series here. The series is sponsored by Xaxis.
]]>But how viable is this idea, really? Nielsen’s precision and planning SVP Eric Solomon reckons: “Dynamic creative, at an individual level, I think, is science-fiction.”
In this video interview with Beet.TV, he states three reasons why:
The video is part of preview series leading up to the Future of TV Advertising Forum in London You can find videos from the series here. The series is sponsored by Xaxis.
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