Rapid TV News - Advanced advertising imperative to compete with online video giants
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A study carried out by international research and strategy consultancy MTM has found that found that advanced advertising is imperative for broadcasters in the US looking to compete with major internet players.

YospaceMTM2 1Dec2017Sponsored by dynamic ad insertion (DAI) technology provider Yospace, the industry leader in, the research explored US industry perspectives on the future of live and linear broadcasting in an OTT world.

It found that US TV executives are bullish about the prospects for live and linear channels, despite intensifying competition for audiences and ad spend. Moreover, it revealed that US executives saw live and linear TV as unique in offering mass concurrent audiences and, as the online market fragments, the value of that reach was growing as it delivered ‘immense’ value. “The way to remain socially relevant is to be live,” remarked one of the broadcasters surveyed. “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.”

YospaceMTM 1Dec2017Yet despite this optimism, the study cautioned that central to enhancing this value was the need to invest in advanced TV advertising (ATVA) technology. TV executives were found to be increasingly looking to develop and deploy addressable solutions over IP networks delivered to connected devices and, crucially said the survey, smart TVs. Yospace noted that 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.

Even though there were challenges in striking these partnerships, the survey revealed that there was a widespread desire to move quickly to combat the threat to premium content rights posed by the major internet companies. TV executives saw four key priorities for the US industry: enhance the linear consumer experience with fewer – but more relevant – TV ads, to retain audiences; apply data and addressable solutions to linear streams, to maximise the value of the inventory delivered over their IP-based services; collaborate, where appropriate, to provide cross-publisher solutions to advertisers, reducing market fragmentation; work with MVPDs to enable the roll out of ATVA solutions on TV platforms, across a wider range of inventory.

Expressing fears of the current state of the market, a US cable network exec remarked: “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.”

Commenting on the research, MTM, managing partner Jon Watts 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.”

For Yospace CEO Tim Sewell, added: “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, The Imperative For Addressability In Live And Linear Video, can be downloaded from http://www.yospace.com/home-page/insights/future-of-live-and-linear-video-2017