MIXX and Convergence of Advertising and Business
Convergence of Advertising and Business Models
Like most areas of marketing, advertising is rapidly changing and convergence is one of the largest trends. But this convergence is two fold. First it is in the form of convergence of media outlets which continues to blur the lines between mediums. The second is the convergence of business models where publishers are becoming agencies, agencies becoming publishers and consumers becoming both. This panel will discuss the future of media and advertising and the implications for marketers, agencies and publishers. With walls coming down, more windows, faster pipes and a deluge of cross pollination the media landscape will absolutely change.
Moderator:
Steven Levy, Chief Technology Writer, Senior Editor, Newsweek
Panelists:
Matthew Carr, Display Product Marketing, Microsoft Digital Advertising Solutions, Microsoft Corporation
Todd Juenger, VP/GM of Audience Research and Measurement, TiVO
David Clark, Executive Vice President, Global Advertising General Manager, North America, Joost
Jason Hirschhorn, President, Sling Media Entertainment Group
SL: starting with Mathew, getting ads on these devices, how broadly does MS look when creating platforms for advertising?
MC: MS position on ad tech is straightforward..we want all to find audiences. we want to extend AdCenter to game, video, mobile, it’s extensibility, development, make it broader. It is about having a seamless way to buying across the platforms.
SL: you are involved in selling ads on Facebook. Anything different there? Easier to do that now?
MC: we do display inventory..our sales force has that inventory..we collaborate with the FB team on the bigger stuff..we step up to with our tech and salesforce. We have a great relationship and hope that will continue.
SL: are there efforts for targeted search like ads…
MC: Content ads has been launched and we will talk to FB about extending..ultimately it comes down to advertisers, the best experience. the balance between contextual and display..not too much..just a different ad type.
SL: how is Joost?
DC: we have 40 advertisers on the platform. it is an interactive tv platform over the internet, a lot of players. aot of content out there..only a little has moved in line..early days still…a lot of experimentation..we think we are in a good position. We look at the 3 constituencies and try and figure out how their lives changes when marrying TV reach with targetability of the web..how to pull it together in one experience that scales…a big, big task but we are excited about it
SL: Tivo..ability of Tivo to measure by the second..how does that work
TJ: we have 2million subscribers…people thought it would bring about the end of the 30′..but it has not ness. 60-70% zap through most…the variation on that number is huge..depends on creative and how good it was targeted…lost of things..demo, time, network, category. A by-product, wonderful, now we can measure commercials second by second..we are the only people who have commercialised this..the biggest reason why this matters. We have a relationship with IRI..I can measure if people watched the ad, and IRI can measure purchase..we can do a design to see who has bought, with the only difference is the TiVO. We can measure the impact of ads…on purchase intent
SL: are we entering an era where advertising is something that people want? Measuring, targeting helps this..
JH: look at it as content… if good, if targeted, more likely to watch it. this scares me a little..targeting means you may only see things that an advertiser thinks you want then you will see only certain things…same with content..you will see only certain views, ie political views, you will never be open to other POV
DC: advertisers and consumers have a deal for 50yrs…TV..the deal has changed..consumers want to do it on their own terms. Ratio of time content vs ads will change. the 30′ spot is an elegant way to tell a short spot. but serving 30 * 30 in an hour is not good..let them stand on their own..the right 30 at right place..with somewhere they go after that..it’s going to be fine. Now we serve midroll ads and marry them with interactive components…
SL :are they using the interactive?
DC: response rates have been terrific..but the caveat is that this is always the same for new designs of ads. There is lot of experimentation that still needs to happen. When it comes to video, you have to think about the pricing model..there are a lot of things that need to be sported out.
JH: the content needs to be sorted..there is content, metadata, commerce..different layers. The elements in the show can take you into interactive components.. a problem is that how do the CPM work. they need to test and try things to work out…
MC: there will still be the need for a broad reach..but the targeting and niche..increasing. users are opting in and providing more information…get ads in a more constructive way. Targetability will expand to broader setting
SL: will it change..no longer buy ad against content but buy by target. Help me understand target and get them across the platforms
JH: still buys that are blanketed..mass media buys..the choice will there as it has never been before.
SL: no networks here so let;s have some fun..do they get it?
JH: CBS get it. a recognition with recent changes that there is an audience beyond their shores. They have been able to create more content than the one channel allows..we will see some interesting stuff. Disney is interesting…Viacom interesting in what have done on convergence.
DC: they have a little bit of time to figure this..my view is that the broadcasters OK long term if they understand the core asset - storytelling - create and market. If they think they are unique because they have this talent..there is a lot of new entrants..if they take the talent..apply to niche audiences..can they go global..get global distribution..apply talent to different ways..monetise the libraries..there are all sorts of things they can do.
JH: rights issues are a problem..the user base does not care about this..you see this in the negotiations now…as they open to distribution and want to do niche audiences the cost structure is a problem,you cannot spend 3mill/episode
TJ: there is a trend in their favour to increase an audience for TV. DVR people, create bigger audiences for the shows..that is the first time it has happened for a while..but the bigger audience fast forwards..so how do I monetise that? becomes a lot of good thinking about using a digital platform like Tivo to let users get the info from marketers in their own terms. Telescoping experiences, optins at different times..swapping out ads in the recorded shows…
SL: how much is there to watch shows with no ads at all…it should be a revenue stream to sell there stuff. so NBC wants to distribute..put ads in it
JH: I want to say that the best case is they are experimenting…anytime you pull back access in this world you are asking for trouble…
SL: you prevent them watching on the most popular portable device,…
JH: you can suggest a price but apple can sell for what they want. Content is a loss leader for hardware for apple…we think they should distribute all over and let the user decide. this is arguments about power and windows and price tags and the users are just running away with the value.
TAJ: there is a market. it poses a challenge for marketers…there will be a segment of society that will may to avoid adds - subs or PVRs…the other society segment, who cannot afford to avoid are the ones being exposed to the ads.
DC: we have done a lot of research on this…ad supported or subscription…if you offer users the opportunity to get ad free, then you remove the most valuable customers, potentially. But a lot of research say that people will often go for free ad supported…it’s about getting the ad model right.
MC: if you think it can go to ad supported it will go to ad supported….majority will chose ad supported over subscription…
SL: I used to write for Video Magazine…I did a story about advertising on cable..it was novel to have ads on the network..HBO kept their promise form 20 years ago. Normally you would end up paying and get the ads. you get a slice pf people who get the DVD…prefer to see it without ads.
TJ: the higher rated a show, the more timeshifted it will be on a tivo…up to 70-80% of the show on a timeshifted basis…24, Lost, have most timeshifting and most fast forwarding…
DC: there are few programmes that people really care about…if I miss 24 that is a problem for me…I get them.
SL: you may watch somethings live…to watch it first….
JH:most is timeshifted…to fit into time
MC: tonight most people will be playing Halo 3, not watching TV
SL; there’s no ads in there.
JH: there will be…when you are killing people you want a gatorade!!!!!!
Tags: IAB, MIXXRelated Stories
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