How Addressable TV Benefits Premium Video Distributors

These factors can and will contribute to the growth of the overall revenue from and effectiveness of advertising for all players in the premium video ecosystem as well as help push back against the march of the global digital playersThese obvious benefits have driven the adoption of addressable advertising and can even be considered mainstream in the US and UK albeit with an awful lot of headroom for growth New initiatives are also starting in many territories across APAC Europe and LATAM where the benefits are starting to be recognized For all partners in the premium video ecosystem who aren39t using addressable TV to its full potential there39s a considerable sum of money being left on the tableThere is also a less talked about set of benefits which aren39t as easy to quantify in shortterm business case projections but provide an equally compelling rationale for service and content providers to consider addressable TV initiativesOne such example is the ability to refine and optimize the enduser experience By making ads addressable viewers see more relevant ads lowering the perceived intrusiveness of ad breaks Sky recently reported analyses revealing that channel switching was nearly halved reduced by 48 percent when addressable ads were in the first three positions of a break compared to standard linear TV adsUsing addressable to ensure that ads are contextual to the viewing experience lowers the perceived intrusiveness and helps meet the challenge of adfree SVOD alternatives Context can be applied in the form of tailored ad loads or ad maps based on criteria such as device geography location or even how many people are watchingProgrammers can experiment with ad formats to adapt to changing consumption behaviors as opposed to simply airing a number of 30second ads around their content Working with Cadent Advanced TV Platform programmers can evaluate different business models and experiment with different ad loads around the same content specific to a device Using a variety of ad models and new less intrusive ad formats such as sponsorship can improve overall user experience reduce tuneaway and potentially drive incremental dollarsFor a premium TV service provider even one that doesn39t own or sell any inventory giving programmers a greater ability to monetize their adfunded content via addressability or new ad products should give them greater leverage to secure broader distribution rights access deeper content libraries or even lower carriage fees Access to more content consumption options is essential to maintaining subscription value satisfying subscribers and lowering churn rates Some may even be able to share the incremental addressable revenue in the form of data or technology feesEach year over the past three years nearly a fifth of US households with broadband canceled an overthetop video service Smaller OTT streaming services have a harder time reducing churn after free trials or several months of a subscription Even traditional payTV operators face similar challenges with the churn rate for the largest satellite TV service going up from 47 percent in 2017 to 75 percent in 2018 Using addressability to improve the subscriber value and viewer satisfaction leading to even a small percentage reduction in churn would have a significant impact on service provider bottom lineSmart innovative subscriber pricing and packaging can be introduced by tailoring ad loads the proportion of ads shown to entertainment content to balance the ability or the willingness of the subscriber to pay monthly fees Some premium video services have already started to experiment with this and have seen some surprising results Subscribers could even be offered rewards for greater engagement loyalty or spend with a service provider by limiting ad loads on timeshifted contentCadent Advanced TV Platform facilitates innovation and helps many different parts of the premium TV ecosystem derive greater top and bottomline value across their businesses Our solution is proven at scale and is flexible enough to be deployed in many different territories It is based on a single centralized ad platform as opposed to separate siloed technology stacks that can be enabled across all types of video services including broadcast and unicast linear as well as timeshifted services such as VOD and cDVRThe benefits of an addressable TV platform strategy aren39t just for largerscale operators such as Charter Liberty Global or Sky The Cadent model scales to the size of larger payTV and OTT video services but it also works well for smaller distributors that want to take advantage of the addressable TV initiatives that the larger companies are leveragingClick the social buttons to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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How Addressable TV Benefits Premium Video Distributors

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Paul Ranger

Jim Lecinski | Clinical Marketing Professor | The Insomnia Cookies Case - The GOST Model Taught at Northwestern - By Mike Linton

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