Predictions for the year ahead…

From ANT CEO, Simon Woodward

With CES over for another year it’s clear that 2012 is shaping up to be another exciting year for the TV industry. Connected TV was very much a key theme at the show alongside some 3DTV advances and some pretty stunning new TV’s including the 55 Inch Samsung Super OLED.

TV technology has undergone a huge amount of transformation in recent years, with the evolution of screen form factors, display and image definition; and it’s not going to slow down in 2012. We’re seeing growing demand for connected TV services and consumers are turning their attention to the features of their set-top box (STB) and the services it provides to them.

2012 will be a tipping point for the connected TV market. Multiscreen TV services are the next step towards the ‘TV everywhere’ vision that the industry aspires to, where consumers will be able to access content whenever and wherever they want. Multiscreen services undoubtedly offer new opportunities when it comes to features and content – for consumers, device manufacturers, broadcasters and brands.

With some of the world’s biggest technology players looking to stake a claim in digital TV services during 2012, new doors are opening for brands when it comes to engaging with consumers. Up until now, we’ve been stuck in a chicken and egg situation when it comes to the development of interactive TV advertising. Marketers have been slower than expected when it comes to exploiting the direct-to-consumer presence that connected devices offer, with many waiting for consumers to show an interest. But without engaging content, the fact of the matter is that consumers have nothing to interact with.

The next generation of STBs is set to deliver a wealth of new services that will enable brands to interact in innovative new ways with consumers while they watch their TV. This means bringing to the table a greater variety of services that will enable viewers to shape their own viewing experience. For advertisers it’s important to remember that there’s a fine line between personalisation and ad-overload, so they must work with broadcasters to take advantage of these new technologies and deliver intelligent connected TV strategies.

It’s important that the experience we value most about TV watching – that opportunity to sit back, relax and escape – remains at the heart of these new services.

Sky launches ‘green button’ advertising service

Rapid TV News has recently covered Sky's news announcement of an innovative new on demand advertising service based on the green button of the remote control.

As traditional advertising revenues continue to fall it’s clear that the industry must find innovative ways to make adverts more appealing to the consumer. Initially new technology has damaged revenues as consumers tune into their favourite programmes 15 minutes late to enable them to skip the adverts by recording to their hard drive, this latest announcement is an interesting move to pull the viewer back in. The success of this type of approach will be determined by the quality of the additional content rather than the technology.

IPTV industry must also face up to scrutiny around behavioural advertising

The online advertising industry has launched a set of guidelines for a genre of web adverts that have been causing controversy.

The code of practice has been drawn up by the Internet Advertising Bureau and focuses on the emergence of behavioural advertising, a form of targeting consumers based on people’s browsing activity.

The TV industry should be listening closely to this news. It’s an issue that could soon spill into the TV world as service providers start to converge traditional broadcast channels with content from the web.

Telcos, other service providers and advertisers themselves have been talking about the convergence of the TV & the web for some time. In many ways, it’s a case of when, and not if, it will happen. Convergence will revolutionise the way people watch and use the TV, but it will also mean that broadcasters have to be much more targeted in their advertising. However, there’s a fine line to tread between offering consumers good, targeted services based on viewing preferences and what could be perceived as ‘snooping’. Whatever the outcome of this discussion, eventually the TV industry will have to face up to these issues and adopt some sort of guidelines or best practice of its own.

If you have any thoughts of your own on this – I’d be glad to hear more about them.

ITV takes on advertising challenge with Graffiti Advertising

ITV has made a bold move in developing a new form of unavoidable advertisement, nicknamed “Graffiti Advertising,” that can be embedded in television programmes. But ITV isn’t the only broadcasting industry player to be concerned about declining advertising revenues. In the US, cable networks and DVR makers have also been testing "speed bumps" that show an advertisement during fast-forwarding and billboards that appear on paused screens. Many more service providers and broadcasters must address the challenge of generating advertising revenue in the rapidly changing world of TV.

ITV has identified the ongoing challenges in attracting traditional advertising revenues, citing the rise of personal video recording and the fast-forward button as a significant contributing factor. The broadcaster is now trialing new technology, known as “automatically placed overlay advertising”, which uses complex computer algorithms to find clear space, such as blue sky or blank walls, in video footage in which to display advertising logos or messages.

ANT's Saleha Williams on TelecomTV

TelecomTV has sided with ANT Software agreeing that Microsoft’s application for a patent that will allow advertisers to target viewers via bio-sensors and cameras in their homes as 'scary'.

ANT believes that such big brother tactics are unlikely to work and suggests that sponsorship of programming, combined with one to one highly targeted IPTV based advertising, will be the preferred model for TV advertising in the future. To see the full interview with Saleha Williams, Executive VP Commercial at ANT, click here.

Microsoft barking up wrong tree for TV advertising

Microsoft has applied for a patent that it plans to use to help TV advertisers provide more targeted adverts by placing a camera that sits on top of a TV. It would be able to detect the presence of a person and maybe even identify them.

There’s no doubt that TV needs to look at its advertising model very seriously, as the way in which people consume television is changing rapidly. But we’re not convinced that people would welcome the presence of a camera like this in their homes.

However, we do support moves to look at alternative revenue streams within TV advertising. One option is using the user interface, or menu, to host advertisements. However people consume TV – via mobile, downloaded from the internet, pre-recorded using Sky Plus or an equivalent system, or the plain old fashioned front room / sofa way – there will always be a menu used to navigate through the choices. As TV schedules get more personalised, it stands to reason that menus will do so as well, so what is there to prevent targeted advertising around those menus?