A Zenterio report (The Future of TV Advertising) identified interactive advertising as the most important trend within the digital TV industry. The report reveals that 7 out of 10 operators consider integrating interactive advertising as part of their offering.
Zenterio collaborated with Digital TV Europe to produce The Future of TV Advertising, and the full report surveyed 200 industry stakeholders in more than 50 countries. The survey topic was the future of TV advertising and the purpose was to get a more complete view on which advertising solutions they deem as most promising as well as their potential as new revenue streams.
The survey found that an increasing number of operators are thinking about offering interactive TV advertising. The greatest opportunities for doing this are via ads on second screen devices (tablets and smartphones) linked to the content being watched, offering sponsorships or through interactive advertising during regular commercial breaks, within applications or within the program guide.
Survey respondents also said that collaboration is key to enable successful interactive TV advertising. However, there are increasing opportunities for the operators whom, by leveraging the data they have access to are uniquely positioned to offer more efficient and more targeted advertising. By doing so operators can cooperate with the advertising industry to make TV advertising measurable in a whole new way.
And the report reveals that demand for measurable and increasingly targeted advertising is rising; 8 of 10 respondents believe that a more target ads will be crucial for TV operators. More relevant offers also makes viewers more tolerant in their attitude toward advertising and the increasing demands on measurability will affect the TV industry as well.
“Interactive advertising – for example, via second screen – is a critical success factor for the future of television,” says Robin Rutili, CEO, Zenterio. “For operators, it’s a great opportunity because they move higher up the value chain. If they have the technical platform to enable interactive TV advertising, then they can shift from being distributors that deliver content to being hubs that hold crucial information about viewer preference. But in order for this to happen, harmonization and technical upgrades among operators, such as the one Zenterio is doing for Deutsche Telekom, is an absolute necessity.”
Other findings in the report:
- Most TV operators think that interactive and targeted advertising are relevant to them and most are thinking about integrating them into their offering.
- Advertising on second screen devices (e.g., tablets or smartphones), interactive advertising in-between programs, and advertising within apps are the best opportunities for TV operators to generate revenue. Other exciting opportunities are sponsored on-demand content, banners in the program guide, and promotions within the program guide.
- Targeted advertising opportunities have great potential but respondents’ opinions vary regarding which degree of personalization will be possible.
- Personalization is valuable but respondents are skeptical about whether consumers are willing to share their personal data through logging in via user names and passwords; although social media usage and second screen apps are ways to simplify this.
- The key to value creation is in various forms of partnership between operators and advertisers, where operators can add value by offering better segmentation and measurability.
For more information, please contact:
Pelle Rosell, chief marketing officer, Zenterio
Phone: +46 70-926 2733
Zenterio provides Zenterio OS, an independent software platform for interactive TV that is positioned to become a global standard. Zenterio partners with global system integrators, set-top box suppliers, CA/DRM providers, chipset manufacturers and providers of interactive services. Zenterio has more than 200 employees (25 nationalities). Zenterio has offices in Stockholm, Linköping and Atlanta. Zenterio is owned by private investors and private equity firm Scope. The chairman of the board is former Nokia CEO Mr. Olli-Pekka Kallasvuo. Visit www.zenterio.com
About Zenterio OS
Zenterio’s operating system works with most types of hardware available on the market. For TV operators, Zenterio’s software enables fast harmonization of operators’ fragmented software bases, and it can be used on new and already deployed hardware. With a harmonized solution, operators can quickly and cost-effectively deliver new interactive services to end customers. Besides unrivalled hardware support, Zenterio’s software offers market-leading performance and a flexible way to add new features. For system integrators, Zenterio’s products facilitate uniform support for their new solutions that enable TV operators’ interactive services. For TV viewers, this means improved experiences, an increased range of services, and greater access to new applications.