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TV Connect 2015 Day 2 highlights: AdSmart provides future glimpse

Adam Thomas,  Lead Analyst, Global TV Markets,  Ovum

Adam Thomas,
Lead Analyst, Global TV Markets,
Ovum

Ovum analysts relate their day-by-day highlights at this year’s TV Connect

Adam Thomas, Lead Analyst, Global TV Markets, Ovum: In a keynote address at TV Connect today, Jamie West, Deputy MD at Sky Media, provided evidence of good progress with AdSmart, the company’s targeted advertising service. It now has 465 advertisers actively using the service, of which 78% are new to TV or new to Sky. The metrics also suggest that when an advertiser uses the service they are impressed, with a 64% return rate.

This positive progress report is important because AdSmart represents one of a handful of real-world examples that provide a clear view on how a next-generation TV advertising service will work. Traditional TV players like Sky are increasingly meeting consumer demand by making content available online. Ovum’s view is that this should be exploited by creating a compelling cross-platform advertising proposition that combines the reach of traditional linear TV with the targeting, addressability, and accountability capabilities of online video advertising.

At present, ratings agencies are not adequately capturing activities such as catch-up viewing, dynamic ad insertion, and the cross-platform behaviour of audiences that increasingly flit between devices, services, and distribution technologies. Sky has overcome this by creating its own 600,000-strong viewing panel but, in the main, the failings of established industry measurement methods are penalizing those broadcasters that are responding to consumer demand for more flexible viewing arrangements.

The extrapolation of TV audiences from a limited number of panel households is sorely outdated. Better and more granular data is available and advertisers are unable to make full use of emerging platforms until they are provided with reliable data upon which to base their purchasing decisions.

Ovum believes that TV and online advertising technologies are increasingly merging: This is one of the defining trends of the current era of TV advertising. Broadcasters and pay-TV operators must increasingly co-opt relevant technology and strategies from online advertising in order to offer broad, integrated campaigns across linear, on-demand, DVR, and catch-up – via all the device types used to watch visual entertainment.

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