Real-time monitoring of TV advertising performance

internetprotocolTV
Real-time monitoring of TV
advertising performance
Charlie Horrell, PacketVision, explores the implications of IPTV for broadcasters,
advertisers and the 30-second spot
VISIONS OF THE future are most
compelling when rooted in the
present, when they reflect the
concerns of the here and now. That is why
I prefer the immediacy of George Orwell’s
Nineteen Eighty-Four to H. G. Wells’ more
alien War of the Worlds – even if the future
hasn’t turned out quite how Orwell imag-
ined, and we are actually watching Big
Brother more than Big Brother watches us.
When it comes to the future of TV adver-
tising I feel the same. So rather than look
to a far horizon where convergence is
prophesied to have happened, this article
will discuss what is possible in TV today,
and how it affects broadcasters, advertis-
ers and agencies.
In any discussion of TV advertising and
the revenues the industry commands,
you have also to consider the internet.
From a TV advertising perspective the
According to Thinkbox, 2.25 billion TV ads are watched every day and individuals watch 11
internet is a double-edged sword. The lev-
minutes more commercial TV than they did 10 years ago
els of accountability made possible
through the AdWords pay-per-click busi-
doing very well. Tess Alps, CEO of
What is interesting about this land-
ness model and more traditional display
Thinkbox, recently responded to the gen-
scape is that it looks broadly similar to
advertising, as employed by Yahoo! for
eral noise emanating from the nay-sayers
the internet. Under the ‘old’ TV model,
example, have caused significant prob-
by describing it as ‘ill-informed rubbish’.
advertising airtime supply was finite
lems for traditional media. Group M
She pointed out that UK TV impacts
and small, and the cost of opportunity
predicts that UK adspend on the internet
reached an all-time high, with a 3.9%
was high. The proliferation of multi-
(the figures combine search and display
increase, in 2007.
channel TV was predicted to pull
advertising) will overtake TV adspend
According to Thinkbox, 2.25 billion TV
eyeballs away from the popular towards
during 2009. Yet at the same time, the
ads are watched every day and individuals
the niche.
internet has set a general – one might
watch 11 minutes more commercial TV
As new advertisers came to TV to take
argue, irreversible – expectation among
than they did 10 years ago (1). That isn’t
advantage of greater segmentation,
consumers that content is free. With the
quite the funereal performance some
adspend would follow eyeballs, providing
exception of movies, sport and a few spe-
industry experts have been suggesting.
niches with greater revenue, financing
cialist genres, these expectations also
But there is a challenge for advertisers
greater production of niche and thus lev-
apply to TV. The recent launch of Qtrax –
using TV, and it is wrapped up in that
elling the playing field.
a legal music-download website funded
extra 11 minutes of commercial TV view-
But, as we all know, that hasn’t hap-
entirely by advertising – is a good exam-
ing. Multi-channel television has driven
pened. Instead we observe a pond
ple of how much faith content owners are
that growth, but it is growth that comes at
populated by many minnows and a few
prepared to place in advertising. The utili-
a price. The rapid increase in the number
very big fish. Advertisers find most TV
ty of the business model is clear. What is
of channels has resulted in greater frag-
viewers clustered in large numbers
less certain is how TV might deal with mentation, which in turn has made
around a few channels, but a significant
the challenges of accountability and audiences more difficult to reach. We’ve
remainder spread thinly across the multi-
efficiency that have driven advertising
gone from 1 to 400 commercial TV chan-
channel universe. The same is true of the
spend on the internet.
nels in just over 25 years, and current net
internet – although that admittedly is a
TV advertising revenues describe a mar-
much bigger pond. For advertisers and
Challenges of TV advertising
ket in which ITV1 commands the lion’s
their media planners, the challenge is
today
share, followed by Channel 4 and Five
how to make best use of the high-cost
Despite a forecast of doom and gloom for
respectively. Yet ITV1’s year-on-year share
opportunity available on terrestrial TV,
TV advertising from certain sectors of the
has fallen and multi-channel television’s
and overcome the difficulty of reaching
media, with some calling time on the 30-
share has increased, so that the two are
fragmented audiences across multi-
second ad spot, TV advertising is actually
now roughly equal in size.
channel channels.
48 Admap • April 2008
© World Advertising Research Center 2008

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Charlie Horrell joined
PacketVision as CEO in September
2006. He was formerly chief
operating officer for the set-top
box division of Thomson SA.
charlie.horrell@packetvision.com
Enter IPTV and targeted TV
India all have early-stage IPTV deploy-
the terrestrial and largest multi-channel
advertising
ments. At the same time, cable systems
channels, where viewing can be meas-
While visions of the future of TV buzz
across all territories are being upgraded to
ured on a minute-by-minute basis, it has a
excitedly around programming – either
Switched Digital Video, which essentially
much tougher time tracking the relative-
streamed over the internet or shared
means they are being retro-fitted with an
ly small audience numbers across the
through social networks – they have
IP management layer.
myriad different channels that are the
largely overlooked the quiet but radical
IP will become the backbone of the net-
reality of TV today. There are two key
changes taking place in other video work of all video delivery platforms. So
problems here:
delivery platforms. Internet Protocol those who take the opportunity to master
1. reaching the correct audience in order
Television – IPTV for short – has become a
the features and benefits IP currently
to deliver commercial messages
mainstream video delivery platform.
offers will be well placed to conquer a TV
2. getting accurate feedback on how suc-
IPTV means the delivery of TV, typical-
landscape on the near horizon that is
cessful you have been in reaching your
ly to a standard television set (whether dominated by IP.
target audience.
SD or HD), over a fixed-line network
The second point goes to the heart of
(whether DSL or fibre) using Internet Pro-
The light viewer
advertisers’ current concerns – namely,
tocol (IP). It does not include TV made
As an example of the power of IPTV to
delivering a return on investment. When
available over the open internet (which is
help advertisers reach a specific audience,
audience data are statistical and the sam-
also known as web TV).
take the light viewer. Although not a
ple size small, achieving accurate feedback
Two of the key features that make
demographic in or of themselves, light
becomes challenging, to say the least.
IPTV so exciting are:
viewers provide a useful insight into the
1. the technology allows return-path data
media consumption patterns of some
IPTV’s virtuous advertising
to be received from a TV household, pro-
more upscale demographics.
circle
viding an accurate real-time audience
At a rudimentary level, there is a corre-
The return path data provided by IPTV are
measurement opportunity,
lation between busy, successful lifestyles
actual rather than sample-based. This
2. broadcasters can divide audiences
and consumers without enough time to
allows advertisers to target their messages
between advertisers on the basis of demo-
watch T; 15% more predisposed than
on the basis of lifestyle and location, so
graphic, geographic, socio-economic and
average to shop online, 43% more likely
that every 1000 viewers reached are rele-
behavioural profiles.
to drive a luxury car and 18% more likely
vant to the tune of 1000. In other words,
IPTV offers a level of accountability
to spend more than £100 per year on
there is no waste.
and control previously associated only
music, light viewers constitute a valuable
Relevance may not be an end in itself,
with the internet.
audience (3). But they are also expensive
but it is the first major step towards prop-
Imagine a network where we watch
to reach. Not only do they spend less time
erly engaging with a viewer and thereby
linear television on the standard TV set in
watching TV, but also they watch fewer
generating response. Current learning
our living room, and receive commercial
channels and fewer different types of pro-
breaks constituted so that they are rele-
gramming within those channels.
‘IPTV not only allows
vant to our individual lifestyles and
Trying to reach this audience through
locations. Broadcasters sell the same ad
terrestrial commercial breaks simply isn’t
TV to mitigate the
spot to different advertisers, who can then
cost-effective. At the same time, the fur-
send their commercial messages to differ-
ther the media planner moves from
influence of the
ent audiences simultaneously. This is
terrestrial commercial opportunities
internet, but also
advertising over IPTV. And it is available
towards the lower-entry-cost domain of
right now.
multi-channel TV, the less chance each
enables media
The uptake of IPTV in the UK has been
placed spot has of being seen. The act
slow. BT Vision and Tiscali TV use IPTV,
becomes something like fishing for min-
planners to
although BT Vision offers a hybrid service
nows with a trawler net.
in which it uses IP for the VoD (Video
A further consideration is that
introduce a further
on Demand) sport and other premium
although multi-channel TV has proven
content, and DTT (Digital Terrestrial Tele-
effective in refining the composition of
layer of refinement
vision) for the delivery of standard
audience on a per-thousand basis, the cur-
broadcast channels.
rent panel system can be a tricky
to an old and
The story in mainland Europe is slight-
measurement tool to use. Don’t get me
trusted friend: the
ly different. IPTV reaches 2 million people
wrong: BARB is an incredibly sophisticat-
in France (2). Spain, Italy and Sweden are
ed animal, capable of robust statistical
30-second spot’
catching up quickly. Russia, China and
analysis. But because it is geared towards
© World Advertising Research Center 2008
April 2008 • Admap 49

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internetprotocolTV
seek. If a brand is a statement about the
consumer, it works only when a group
beyond the consumer is able to acknowl-
edge it. So ‘waste’ is not waste at all, but a
powerful tool to achieve brand-building.
Another argument in favour of scatter-
ing commercial messages more widely is
that there is always a chance of cross-polli-
nation. Your audience may be wider than
you thought. Of course there are some
advertisers for whom such theory does not
hold. A local business doesn’t need the
whole country to know that it has a spe-
cial deal on weekend prices, for example.
Similarly, niche and premium businesses
that have not previously considered TV
advertising because of concerns over cost-
effectiveness may now also turn to IPTV to
IPTV means the delivery of TV, typically to a standard television set (whether SD or HD), over a
deliver targeted, addressable campaigns.
fixed-line network (whether DSL or fibre) using Internet Protocol (IP)
The message here is that targeted TV
advertising over IPTV doesn’t replace the
suggests that properly engaging the building commercials for clients from
existing regime; it integrates with the
viewer is at least as important as reach
pre-produced video components.
opportunities available to media planners
and frequency.
That is half of what these companies
and with the strategies they currently
The data returned through an IPTV
do. The other half is to aggregate niche
employ. For those advertisers, fmcg
network will inform the advertiser in real
opportunities across networks, and act as
brands for example, that want to run
time exactly which profiles have seen
media planner on behalf of local and spe-
traditional nationwide campaigns, noth-
their message, how often they have seen it
cialised business. As an example of
ing changes, but the range of tools
and where they are located. Cross-tabbing
long-tail economics within television, the
available to media planners working for
against sales or measured response to
business model is compelling.
such brands increases.
direct marketing will allow advertisers to
The flexibility inherent in IPTV func-
track the results of a campaign and then
Evolution not revolution
tionality will persuade new businesses to
refine the messaging or targeting accord-
We know that TV advertising works.
step up and participate in advertising’s
ingly. Increased accountability results in
Years of IPA Award winners, research and
most powerful medium, while those
increased efficiency, which in turn results
brands sold as a result of advertising prove
already familiar with TV advertising will
in greater return on investment. It makes
this point unequivocally. The increase in
be able to try new techniques aimed at
television a more attractive medium. number of impacts noted recently by
greater engagement with audiences
The more money spent on advertising
Thinkbox is buoyed by the fact that 16–24
and improved return on advertising
over IPTV, the more information the
year olds were finding enough time away
investment.
media planners gather for future from the web to consume an average of 31
IPTV not only allows TV to mitigate
campaigns, and the more sophisticated
impacts per day last year – an increase of
the influence of the internet, but also
advertising using IP functionality
1.5% on 2006. As a mass-media experi-
enables media planners to introduce a
becomes.
ence, television is currently without rival.
further layer of refinement to an old and
A TV ad achieves impact. There’s simply
trusted friend: the 30-second spot. ?
New business
no question about it.
Because IPTV allows advertisers to seg-
What is in question is how much
1. www.guardian.co.uk/media/2008/jan/24/
ment audiences within the same
‘waste’ advertisers can countenance when
television.advertising
advertising avail, TV advertising is afford-
looking to TV to deliver their messages.
2. www.lightreading.com/document.asp?doc
able for local and niche business. The cost
Waste is a tricky word and I use it hesi-
_id=142594
of producing a TV commercial, which
tantly. There is a persuasive argument to
3. www.channel4sales.com/audience_insight/
was previously a barrier to entry, is being
the effect that waste builds brands. In
c4_demographics/light_viewers
dealt with by companies such as Spot
other words, advertisers rely on an audi-
Runner and Spotzer. They have pioneered
ence beyond their target market in order
More on internet protocol TV at
a new type of plug-and-play production,
to instil their brands with the values they
WARC.com
50 Admap • April 2008
© World Advertising Research Center 2008

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