More IPTV and its affect on Advertising
I'd like to point you to an interesting article entitled Addressable IPTV Advertising: Dramatically Increasing Advertising Revenue per Viewer. It has some good stats and thoughts regarding the IPTV world and addressable advertising.
The author states:
One aspect of the radical change envisaged with IPTV is that TV advertising will become much more personalized. Whilst viewers are watching the same content, the ads that are played out to them can be varied according to demographics, shopping habits and personal preferences, so that advertising becomes a lot more relevant.
Why? Because of addressability in the IP world. Yes I agree, but many other things have to change as well. First we have to start with how ads are sold, some national and some spot. The real question is, how is the IPTV model different than the current cable TV and network TV models?
First of all, in an IPTV world, theoretically there will be an explosion of content beyond the programming we currently see. Networks will continue to generate content, but they will face even more competition with more specialized content providers. I suspect it'll even get into the user created content arena. After all, the Internet really is the great equalizer! But the service providers will control the funnel early on and thus control the content available. After a while, even more innovative ways will be developed to make more, if not all content available through this medium. I don't know how the FCC plays in all of this, but they'll try. I'm sure there will be a ruling somewhere down the pike that classifies IPTV as they do the Internet today. In this world, ads probably won't follow content, but content will follow ads. Instead of attaching their ads to specific content in order to reach their audience, advertisers will attach their ads to targeted lists of consumers whatever they might be watching. The content providers will get their cut, but the way ads are bought will be quite different.
This is speculation on my part, but this is a scenario that to me has merit.
-Andy
posted by Andy Huckaba @ 4:34 PM
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