Invision: Advanced Television Advertising Business Models: No Consistent Precedence from the Web - Michael Stoeckel - MediaBizBloggers

As I try to make sense out of addressable interactive and other emerging advanced television advertising models I often seek parallels to similar evolutionary points in Web advertising This does not imply that we always got things right with Internet advertising In fact I often draw on these analogous stages in order to avoid many of the faulty steps and assumptions that were made on the long road to successful Web business modelsIn an earlier blog August 10 2009 I claimed that advanced television advertising was being held back by amongst other issues the followingamp183 Ad seller anxietyamp183 Lack of frontend tools to sell and manage deals of such complexityamp183 Unresolved business model issuesIn that piece I did attempt to provide solutions to ad seller anxiety and promised some direction in the future regarding the other two points As I contemplate the relationships between advanced television ad delivery providers ie technology vendor specialists and multichannel distributors and the sellers of national television advertisements though my amp8220Internet parallelamp8221 model severely breaks downIn order to offer advanced ad products almost all national television ad sellers have to rely on third party partners who specialize in addressable or interactive ad serving In exchange for building these advanced ad delivery capabilities and incorporating them into the television ecosystem these third parties require and deserve compensation There are several potential sources of that recompense includingamp183 Paid by the ad selleramp183 Paid by the ad buyeragencyamp183 Paid by both the ad seller and buyerOver the years Web advertising developed several similar models in which third party providers were required to enhance publishersamp8217 ad product capabilities includingamp183 Ad targeting specialists geographic behavioral semantic etcamp183 Agencyadvertiser third party ad servers dynamic copy splits centralized campaign reporting etcamp183 Rich media ad servers enhanced ad creative such as animation video etcHowever sometimes for logical reasons but often dictated by the economic environment that existed while the business models were being forged there is no compensation consistency among these three With few exceptions youamp8217ll find the followingamp183 Ad targeting specialists ad seller paysamp183 Agencyadvertiser third party ad servers ad buyeragency paysamp183 Rich media ad servers both the ad seller and buyer payWithout an established winwin Internet model to use for comparison I am faced with quite a conundrum My suggestion here is to simply stick with amp8220logicalamp8221 reasoning From an ad seller perspective be willing to pay for services that you choose to incorporate into your technology suite in order to upgrade your ad offerings From my Web examples I believe that ad targeting specialists properly fit this model In other cases though ad sellers may integrate with new technologies simply as a customer service to agencies and advertisers In these instances the effort put forth to improve customer relations should suffice without the need of paying the provider Again from my Internet ad examples and based on my experiences agencyadvertiser third party ad servers seem properly aligned As for the rich media vendors who provide tools typically chosen by the agency to optimize ad creative Iamp8217ve always felt that Web publishers caved during their darkest days after the Internet ad bubble collapsed allowing for this dual payment model I am sure that those in the rich media vendor market dispute my claims but Iamp8217ll leave that debate for a future blogIt will be very interesting to see how this plays out for advanced television advertising Whether I agree with the final comp settlements or not I expect that these business models will get ironed out Otherwise advanced television advertising on a national level will never reach its full potential That would be a real shameMichael Stoeckel is Vice President Digital Products for INVISION IncRead all Mike39s MediaBizBloggers commentaries at Invision MediaBizBloggersFollow our Twitter updates MediaBizBlogger

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Invision: Advanced Television Advertising Business Models: No Consistent Precedence from the Web - Michael Stoeckel - MediaBizBloggers

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