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CES 2014 in review: Monetising multiscreen

 

Neerav Shah,  Vice President,  ARRIS

Neerav Shah,
Vice President,
ARRIS

Guest post by Neerav Shah, Vice President, ARRIS

Enabling multiscreen was the first challenge, and as discussions at CES 2014 demonstrated, these services are already taking hold on devices around the globe. In the lead-up to CES, Strategy Analytics’ report “TV’s Not Dying, It’s Changing” garnered attention as it found that the overall global installed universe of TV addressable devices stood at 5.1 billion at the end of 2013, and the research firm predicted a further two billion TV devices to have been added by the end of 2017. David Mercer, VP and Principal Analyst, even states that “the multiscreen TV era is well and truly upon us and this research demonstrates that a huge new opportunity is emerging for those prepared to adopt multiscreen strategies.”

Given the undeniable presence of multiscreen solutions and services on display at CES, providers need to stay ahead of the competition and look towards the next step: monetization.

The challenge of monetizing multiscreen combines the complexities of delivering content across multiple devices with the demands of presenting more personalized, dynamic, and seamless content experiences that can drive revenue.

Approaching how to solve this two-pronged challenge requires innovation around the key integration points between the mobile experience and content marketing. This has led to four major monetization opportunities for service providers:

The first opportunity centers on merchandising & creating value from the operator’s vast content library.  Service providers should look at leveraging consumer data and usage patterns to enhance recommendation engines, create new revenue opportunities and inform the cross-sale of content, services, and more.

To be effective, merchandising must work with all content types across all device types. An integrated content marketing platform is required to directly engage into the entire catalogue of content—from video to music, games, and apps – and creates a very personalized experience. The results are compelling: Bouygues Telecom, for example, has already leveraged the ARRIS Merchandiser platform to help grow its video on demand service by over 50%.

The second opportunity focuses on localized, interactive advertising and programming that responds to environmental changes, feedback, and interest. We call this mobilized intelligence.

Relevance is the key to driving conversion in a competitive, content-rich environment. Today, big data – another key theme at CES this year– mixed with individual consumer insight enable us to provide solutions that give an unprecedented level of targeted, contextual content. The better the data—from things like previous purchases, location-based applications, and more—the better it informs the promotion of relevant content.  And this streamlined approach can reduce the cost of delivery of the content – a secondary benefit for the operator.  That’s why our approach is to provide a fully integrated delivery platform with a content management solution, to enable not only more relevant content but also more cohesive experiences across multiple devices.

The third monetization opportunity comes by enabling not only targeted of local and national ads, but also facilitating retargeting ads outside the TV environment.   This allows advertisers to do cross promotions and collect data across screens giving operators the ability to create custom sales packages while providing advertisers the ability to reinforce their messaging across multiple screens. Truly enabling multiscreen means that content must be customized to the screen on which it is delivered. That’s not only true for the size of the content, but the type, format, and presentation. A tablet isn’t just smaller TV.

And finally, more screens don’t just mean more places to roll out the same ads.  The second screen allows for a concurrent advertising approach (synchronized ads), with content and interface experiences that enable timely product promotion.  The second screen is direct gateway that leverages the subscriber’s television experience to reinforce the original message and drive immediate interaction between the advertiser and the consumer.

Companion experiences allow service providers to present and enhance the user navigation with personalized bundle marketing that encourages impulse purchases and cross sales with targeted ads, offers and pricing incentives. Providers must ensure they have technology in place to leverage the second-screen ecosystem to offer perfectly-timed merchandising and targeted advertising while consumers enjoy their content on the big screen. This approach not only improves navigation and reduces distraction, but uses analytics to improve relevance and personalization.

Our key takeaway from this year’s CES is that 2014 is the year of monetizing multiscreen. And video service providers need to evaluate their multiscreen monetization strategies in the coming year to keep ahead of the curve.

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