TV is more complex than ever The Ministry of Information & Broadcasting in India permitted 77 private satellite TV channels in 2009 to uplink /downlink. This takes the number of channels to 512 from 50 in 1995 – a growth of over a 1,000 percent in 15 years!! Advertisers and their media buyers are starting to realize that the growing number of channels, interactive services and soon digital video records (DVRs) are posing a challenge on their ability to reach their target audience. With hundreds of channels, existing measurement methods are not enough to give advertisers the complete picture. Advertisers and their media buyers are looking for a change. They want more accountability, more addressability and more interactivity in order to create an emotional attachment between their brand and its consumers. Digital TV Taking the Lead Digital TV providers like DTH are at the forefront of this change. These operators can offer three fundamental elements that can’t be found anywhere else today: new ad serving capabilities, effective measurement and knowledge of viewers. Digital TV services such as DVRs, already being deployed in India, will introduce advertising functionality including addressable video ad insertion on a household level. The DTH subscriber base in India is growing at an amazing rate – the fastest pace in Asia. In the next 12 months, the subscriber base is expected to grow 50 percent to reach 30 million. In Tata Sky and Bharti Airtel, India has two of the most advanced DTH platforms, who stand out with their innovative Electronic Programme Guides (EPGs) and interactive services offering subscribers a world– class viewing experience. NDS Dynamic NDS Dynamic, a suite of advanced advertising solutions At long last effective TV ad measurement Figure 1. Addressable Display Ads on a Channel and in the EPG from NDS, takes these innovations to a whole new level. It enables the digital TV operators and programmers to offer advertisers and media buyers measurable, addressable and interactive advertising. NDS Dynamic includes Audience Measurement for collecting precise audience and measurement data from set– top–boxes (STBs), Addressable Advertising for delivering the right ads to the right households with pre–defined profiles and Interactive Advertising which enables viewers to engage with brands via the TV. Audience Measurement STB level audience measurement is the foundation of more effective TV advertising. It supplements traditional TV measurement with critical information not available anywhere else such as: exactly how much time people spend in the EPG and interactive services, how do they use these services and which are the most popular. Soon to be available in India, STB measurement has changed the way advertisers plan their TV campaigns in more mature digital TV markets like the US and the UK. Display Ads Display Ads, like those offered in the EPG, have proved to be more effective for advertisers than traditional media platforms, like print, as they offer multiple exposures per individual, a greater impact (as the individual sees the ad on a big TV screen rather than a newspaper). They also offer greater efficiency at a more affordable cost to the advertiser. Once addressability is added, display ads like those in the EPG become even more effective. Addressability will allow advertisers to present different messages to different geographic, demographic or other groups using the STB. It will enable local advertisers to deliver messages only to the digital TV homes they want. Addressable Video Advertising EPG Ads are just the starting point. Advertiser’s opportunities will increase with the ability to introduce addressability to today’s broadcast video ads. DVRs can be used as a powerful engine for household level ad insertion and revenue growth, without in any way compromising the traditional process of TV advertising or the viewer experience. With nearly all DTH operators in India launching DVRs this year, growth is expected to continue. The vision of addressable advertising is about improving the existing way to place ads on TV to achieve better results. Statistics show that viewers are much less prone to tune away from addressable ads than from non–addressable ones (by a margin of 38 percent in one trial), improving their own viewing experience while being exposed to tailored marketing messages. Figure 2 indicates how with addressable advertising, wastage is reduced. The spot is better utilized and its value is substantially increased, by substituting an addressable ad for the live ad in target homes. Figure 3 shows two homes – one with a family with kids and the other with a single male. The Live Ad (KFC Pizza Ad) is replaced by an Addressable Ad (Puma Sports Shoes Ad) in the home with the single male.
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