Advanced advertising is imperative for broadcasters looking to compete with major internet players, according to report
Leading international research and strategy consultancy MTM has today released a report which has found that advanced advertising is imperative for broadcasters looking to compete with major internet players.
London(30 Nov 2017)
Leading international research and strategy consultancy MTM releases a report today that explores US industry perspectives on the future of live and linear broadcasting in an OTT world.
The research, sponsored by Yospace, found that US TV executives are bullish about the prospects for live and linear channels, despite intensifying competition for audiences and ad spend. Live and linear TV is unique in offering mass concurrent audiences and, as the online market fragments, the value of that reach is growing – delivering “immense value” according to US executives.
“The way to remain socially relevant is to be live. A live viewer will be tweeting about it, and telling their friends the next day. That’s hugely valuable to broadcasters because it creates an affinity for their channel – and it’s valuable to advertisers.” – US broadcaster.
However, central to enhancing this value, according to the study, is the need to invest in advanced TV advertising (ATVA) technology. TV executives are increasingly looking to develop and deploy addressable solutions over IP networks delivered to connected devices and, crucially, Smart TVs.
By contrast, the wider development of ATVA capabilities on TV platforms will require broadcasters and MVPDs to strike partnerships and commercial agreements, as required, to bring data and inventory together – partnerships that have proven challenging to establish.
Despite the challenges in striking these partnerships, there is a widespread desire to move quickly to combat the threat to premium content rights posed by the major internet companies. TV executives see four key priorities for the US industry:
1. Enhance the linear consumer experience with fewer – but more relevant – TV ads, to retain audiences
2. Apply data and addressable solutions to linear streams, to maximize the value of the inventory delivered over their IP-based services
3. Collaborate, where appropriate, to provide cross-publisher solutions to advertisers, reducing market fragmentation
4. Work with MVPDs to enable the roll out of ATVA solutions on TV platforms, across a wider range of inventory.
“Negotiations are all about what we can do together and how we can partner. It’s absolutely driven by a collective fear of Google, Amazon, Facebook and Apple.” – US cable network.
Jon Watts, Managing Partner of MTM, said: “It’s clear that broadcasters and MVPDs are looking to advanced advertising solutions to help them compete with the data-driven offerings of the major internet companies. The question is whether they can work together and forge partnerships that unlock the insight and inventory required to deliver addressability at scale. Our research suggests that the industry is ready to move forwards and there seems to be a healthy appetite amongst executives for greater cooperation in the advanced advertising space.”
Tim Sewell, CEO of Yospace, said: “The pace of change in the broadcast industry is such that regular check-ins on the state of the marketplace are essential. It’s noticeable in this report how the broadcast industry is coming together to forge a common path and looking to adopt common technologies and standards to realize the full potential of addressable TV. This is a fascinating period in the long history of live and linear television — broadcasters are realising the immense value of live content, which is why we’re seeing the major internet companies jump in — and through collaboration, I believe it has a very bright future.”
The research paper, entitled “The imperative for addressability in live and linear video,” was informed by a seminar in New York attended by leading US TV and agency executives. This was supplemented by a series of one-to-one interviews discussing the current state of the live and linear TV market, its future in the digital landscape and the steps required for broadcasters to protect and enhance market share. It follows a European-focused report that was published earlier in the year.
Download the new paper here: