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VAN Addressable TV Guide 2

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VAN Addressable TV Guide 2 FOREWORD interesting forays into content production. Vincent Flood This competition has been wonderful for Editor, Video Ad News consumers, who have been enjoying a golden age of TV whilst the various players compete for their viewership. At the time of writing, TV’s most popular show In putting together this guide, we decided to is HBO’s Game of Thrones, a story of shifting forgo much of the introduction to TV type alliances, the breakdown of traditional borders, content which has already been covered and old enemies joining forces to fight a greater with numerous reports elsewhere. Instead, threat. In those respects, the script-writers we wanted to partner with a number of the might well have been inspired by what has been companies leading the way in the industry to happening in the TV advertising industry over focus on how they see it evolving, whilst also the last few years. shining a light on what is happening in Europe today, with a nod to our friends in the US of Thus far the disruption of TV has mainly come in course where things are progressing quickly. the form of new services like SVOD and social, but regardless of which aspect of TV advertising, A final thanks to our sponsors – IPONWEB, from creative right through to delivery, you’ll Smartclip and Videology – and to our see a revolution of some sort taking place. The independent contributors, both for providing devices are different, there’s an array of new ad such valuable insights as well as being a pleasure formats, and user behaviour seems to change to deal with along the way. A few people also from year to year. took some time out to provide us with some additional guidance, particularly on the industry But the true game changer will be addressable map. TV advertising. Few would argue that applying data to campaigns will make TV adver sing more For the industry map, I’d particularly like to effective, yet it remains to be seen whether it thank the following for their insights, as well will strengthen the established TV players, or if as their willingness to contribute the names it’s more likely to open the door to new entrants, of close competitors: Rhys McLachlan, Global most notably in the form of the US tech giants. Head of TV Strategy at Videology; Henry Rivero, General Manager, Europe at Clypd; and Jeremy Whilst many commentators were writing the Brandley, Sales Director, WideOrbit. obituaries for the top broadcasters and pay TV operators years ago, the reality is that the future of TV advertising is still very much up for Vincent Flood, Video Ad News; grabs. Broadcasters and pay TV operators are Editor: Irene Palacio, Video Ad News; learning to adapt and to work together to offer Designer: Tim Cross, Video Ad News; data-driven offerings at scale, whilst the tech Writer: Mo Deghayes, Video Ad News; companies are similarly making equally Researcher: : Letizia Cennie, Video Ad News. Researcher 02 The Outlook for European Progressive TV Advertising Solutions John Tigg, SVP, Enterprise For commercial broadcasters, there is now a strong strategic imperative to invest in the Solutions EMEA, Videology development of progressive TV advertising solutions – data-driven addressability, automation of trading and placement, cross- The TV and video advertising market is media integration, and advanced analytics. experiencing a period of profound change, development and disruption, transitioning Furthermore, a greater number of viewers are towards a more diverse, data-driven and digitally- now moving seamlessly from screen to screen advanced ecosystem. and from device to device, making it ever harder and, perhaps, less relevant, to separate digital In much of Europe, linear TV viewing is under and analogue viewing. This transformation has, pressure, as audiences fragment across a range in turn, created a number of challenges for of platforms and devices, reducing the reach and the broadcast and advertising industry: on the volume of traditional TV spots. Digital businesses advertising side, how do brands take advantage are courting advertisers, with promises of better of the opportunity to engage people with targeting, attribution and pan-regional reach, advertising across all of these new devices and although some of these promises have deflated screens? For broadcasters, how should data in recent months. All the while, TV advertising be collected, managed and used in a way that has been relatively resilient. While there has enhances the viewing experience, complies been neutral or positive revenue growth in most with both local and regional privacy legislation, markets, executives are nonetheless seeing supports the creation of new advertising threats looming on the horizon, and there is a products, while also creating a level playing field widespread consensus that the industry needs to for measurement? invest and evolve, before it is too late. How Ready is Europe for Addressable TV? Earlier this year, Videology carried out an extensive research initiative in partnership with MTM. Our ambition was to take a Europe- wide view of the state of both programmatic automation techniques and the use of data in progressive television advertising. The results of the research provide fascinating reading. The report provides detailed insight into three critical areas. Firstly, what are the enablers required for advanced advertising in Europe to be a scaled reality? Specifically, what are the underlying factors required for progressive TV advertising solutions to thrive? Secondly, what are the accelerators that are going to unlock the additional value afforded by advanced 03 television advertising? Finally, what are the driving progressive TV advertising solutions, are working forces that will create compelling commercial on their strategies, and looking to understand opportunities for both broadcasters and more about the opportunity. However, there advertisers? are still barriers to overcome. Most executives feel the biggest barrier to adoption is the need What is clear, is that broadcasters and platform for collaboration around data and inventory, operators across Europe are actively developing especially in terms of commercial agreements solutions for addressable advertising and between TV platforms and broadcasters, and automation on the TV screen, looking to unlock consumer protection. In addition, regulation is significant benefits – chiefly, bringing new perceived to have slowed development in markets advertisers and new kinds of campaign to the TV such as France and Germany, but industry screen, increasing the value of previously under- participants believe this will change over the next monetised inventory, and providing enhanced few years. To realise the opportunity, we believe targeting opportunities. there are five main priorities for the TV industry: More Appetite, More Action 1. Establish common approaches to data protection, privacy and sharing. However, prospects for progressive TV advertising 2. Encourage collaboration through joint solutions vary, market-by-market, depending platforms and standardisation. upon factors such as broadband infrastructure, 3. Support the development of unified improved measurement of multiplatform TV measurement systems that are auditable and consumption, the costs of solutions, and the scale transparent. of the returns that can be generated by industry 4. Drive demand through testing, case studies participants. While participants in each national and ROI analysis. market face unique opportunities and challenges, 5. Develop a compelling set of consumer benefits a shared success factor is the willingness for TV and a clear value exchange. platforms and broadcasters to collaborate and cooperate. Whilst many of the obstacles to progress are recognisable, the positive outlook and ambition Progressive TV advertising is at very different of European broadcasters remains enormously stages of development across Europe and our encouraging. Making progressive TV advertising research suggests there will be greater challenges a reality will require an unprecedented level in some markets. However, appetite for solutions, of cross-industry collaboration. Broadcasters from both the buy-side and sell-side of the and distributors, buyers, sellers and finally market, is strong and growing. Markets that measurement bodies will all need to come have traditionally lagged behind are showing together. The willingness to do so will in many signs of development, and businesses that have ways determine the pace of adoption. lagged behind in investment are now focusing on Enablers Drivers TV & Spend € Infraestructure Commercial Regulation Meassurement Competition Demand Commercial structure opportunity UK 4.9bn Good Good Good Fair Fair Good Good Germany 4.6bn Fair Fair Fair Good Fair Fair Good Italy 3.8bn Poor Fair Fair Poor Poor Poor Fair France 3.3bn Good Poor Poor Fair Good Good Fair Spain 2.1bn Poor Poor Fair Good Poor Poor Fair Netherlands 1.0bn Good Fair Poor Fair Fair Fair Fair Sweden 0.5bn Good Fair Good Fair Good Fair Poor Norway 0.4bn Fair Poor Fair Fair Fair Fair Poor Denmark 0.3bn Fair Fair Fair Fair Fair Good Poor Prospects by addressable TV advertising: Good: few barriers Fair: minor barriers Poor: major barriers At the Addressable TV Coalface Jamie West, Deputy Managing Director Sky Media UK & Group Director of Advanced Advertising Sky PLC Earlier this year you announced a Most of Sky’s Adtech development is done “in partnership with Liberty Global, Europe’s partnership with…”. We developed AdSmart largest pay TV operator, who will be using with our middle-ware partners, Cisco. There the Sky AdSmart product. Could you were also a number of internal systems we had provide a bit of background on how the to enhance and build ourselves. partnership will work? What would you do differently if you This partnership is the first time that platforms started again today? have truly co-operated for the good of the advertiser, in essence it means that as targeted One of the most important factors facing any TV expands onto new platforms that there are organisation trying to build new products is to consistent capabilities, currencies and targeting, fail fast and learn.
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