Set-Top-Box Data: Don't Miss the Big Picture - David Hutchinson - MediaBizBloggers

By Thought Leaders Archives
Cover image for  article: Set-Top-Box Data: Don't Miss the Big Picture - David Hutchinson - MediaBizBloggers

In 1977, Ken Olsen, the CEO of Digital Equipment Corporation (DEC) said "there is no reason for anyone to have a computer in his home." In 1981, Bill Gates proclaimed "640K of memory should be enough for anybody."

 

As I read the latest round of set-top box naysayers and GoogleTV sand kickers, I'm reminded of these memorable quotes, and simultaneously fascinated by the willingness of so many of today's pundits to extol similar examples of myopia about the value of television set top box data. Even in their current, creaky form, set-top boxes can already communicate what advertisers have been hoping to achieve for the last 50 years; namely a reliable way to know which TV sets are "on" and what programs and commercials are being received.

Today, STBs specifically provide daily measurement of programs and commercials in over 17 million homes and can tell us:

· Which shows are being broadcast and in how many homes

· Which homes are tuned to which programs by station, network and day part

· Which programs and commercials are recording the highest (or lowest) levels of audience retention

Since this data is collected on an on-going basis, and reported second-by-second, it can be cross-referenced with other channel marketing and database outputs (Ex: Simmons, CORE, Google Analytics, etc.) to create a more holistic and contextual view of television's contribution to an advertiser's media mix. In the case of Google TV Ads (GTVA "On Television" in this case), access to 24/7 STB data can also inform satellite and cable TV ad campaigns, allowing advertisers to continually learn from their results and move money into higher yielding, programs, networks and day parts – on a daily basis! Such performance-driven campaign management practices are commonplace in the online world and are coming quickly to television…courtesy of STB data.

As this is happening, more and more local broadcast stations and ad agencies are signing up with Rentrak, a leading supplier of STB data, reporting and analytics, while companies like TRA are genuinely, and at long last, "connecting the dots" between set-top box information and in-store purchases helping measure the real influence television is having on consumer spending. Equally fascinating are companies like Simulmedia who are uncovering premium television advertising opportunities from historically moribund commercial inventory simply by extrapolating and cross-referencing viewer profile data gleaned from these seemingly innocuous edge servers.

One year since its official entry into the data sphere, it's become clear that television is, in fact, "digital" and is therefore just as accessible and measurable as any other binary packet in the bit stream. This stark FACT is going to rattle the incumbent power brokers in ways that will be fascinating to watch. Those who bark the loudest will clearly be those with the most to lose. Prices will change, empires will fall, new players will emerge, and the relentless wave of creative destruction that made mincemeat out of the music industry will transform the economics of television, quite literally, before our eyes.

Sure it's still early in the curve, but those who remember the Mosaic web browser (…er, that would be the one that came before Netscape, which came before Internet Explorer, Firefox, Safari and Chrome) know how fast "internet time" can move. Those who don't are missing the big picture and can either change the channel or get with the program.

David Hutchinson is Senior Vice President of Operations and New Media for Program Partners. He can be reached at hutch@programpartners.com.

Copyright ©2024 MediaVillage, Inc. All rights reserved. By using this site you agree to the Terms of Use and Privacy Policy.