netherlands media day - gfk · pdf filenetherlands media day 27 november 2015 hilversum niko...

1 © GfK November 30, 2015

Netherlands

Media Day 27 November 2015

Hilversum

Niko Waesche


Questions surrounding programmatic TV

When programmatic TV is discussed today we see confusion,

fear and uncertainty

But we also see opportunity. Broadcasters who take the data initiative will not only benefit from

new growth opportunities but can improve the audience experience.

1. Confusion

What is programmatic TV really? 1

2. Fear

Programmatic might adversely

impact the broadcast business model.

2

3. Uncertainty

How quickly will change happen and

are there unknowns in the future?

3


Source: Lumascape.

The programmatic industry is largely to blame for the confusion

that exists, and these kinds of charts do not help.


When we speak of programmatic today, we cannot focus on

DSP and SSPs alone any more but need to include DMPs

CRM/other systems

(booking capacity)

Segmen-

tation

Other third

party data

(purchase)

Cross

media data

(TV)

Real-time

campaign results

Audience Grid/DMP Consumers Programmatic/Adtech Advertisers

In House

Agency

Systems

DSP

(Demand)

SSP

(Supply)

Activation

Publishers/Media (Premium)


Addressable TV Programmatic Video

TV inventory sold in more

granular segments.

For example, SKY AdSmart

(geo-targeting, household

composition, advertiser data).

TV planning can also be

synchronized with digital content

and advertising in smart ways.

Facebook, YouTube

AVOD/ OTT – For example Hulu

(with Oracle and LiveRail).

Programmatic TV does not really exist, we should talk about

Addressable TV

Differences between Addressable TV and Programmatic Video


Combining broadcast TV with digital

Many exciting projects today have the objective of combining

broadcast TV with digital in smart ways

Simulmedia – Buying undervalued TV

inventory, driving analytics across viewer

data and reselling for a higher price.

TVSmiles – Linking TV advertising to

digital and “extending” advertiser‘s value.

7TV (ProSieben), Zattoo, Molotov and

Magine – Running the TV programme on

an app.

Media planning systems – Including richer

data in TV planning SW.


What we will see is that with time is that free TV programs will

be “embedded“ in digital apps on all devices, all the time.

Free TV will be embedded in digital

Digital

TV


CPM of €35 for 100,000

viewers and €5 for the

rest (1.9m) =

€13,000 for an ad

We need to take fears seriously that revenues will erode and

margins will decline when programmatic takes over.

Raisin picking of most attractive viewers

There is a clear awareness that adjacent revenue streams such as media for equity,

ecommerce and subscription revenues need to be developed.

CPM of €20

for 2m

viewers =

€40,000 for an ad vs.


Based on our findings, we are not afraid for the future of the TV industry

Nothing creates intent and long term brand effects better than TV

Cross-media combinations

Many studies show that television and online advertising

works hand in hand moving consumers from intentions

to purchase

Here, a GfK analysis which measured traffic flows across

several media and online visits to a major ecommerce site

Especially powerful combinations

are achieved when branding (TV) and performance (real

time bidding and search) are combined. Over 40% of web

site visits due to advertising were triggered by this cross

media strategy

Under 5% of visits by TV, search

or real-time bidding each as singular effect of that one

media channel alone

37%

63%

All visits on site

15%

22%

Effect type

3%

4%

5%

1% 2%

7%

9%

1%

5%

Other

Advertising

No interaction

Interaction TV

Other

Display

Retargeting

Search

TV


Uncertainty, however, remains. The power of TV is

uncontested, but this does not mean we can be complacent

TV is big, but data is bigger than TV

Content

licensing/

creation

Content

discovery

personal

-isation

Churn

reduction

Improved

ad targeting

Targeted

promotions

Cross selling/

ecommerce

Locational

relevance

Reduced

costs Revenue growth Audience experience


However, different types of players are competing for consumer

data advantage

The battle for consumer data

Digital

platforms eCommerce

giants

Subscription

entertainment

Programmatic/

data collectors

Snapchat

Google

Facebook

Apple

Twitter

Amazon

Zalando

Spotify

Netflix

Radium one

Bluekai

Axiom

Cross-device Profiles Preferences Location

Consumer

brands with

in house

DMPs/ DSPs

Deutsche

Telekom

P&G

Kellogg’s


And the “gloves are off…”

Fighting for the data advantage

Apple allows ad

blockers on iOS

Facebook publisher

ecosystem and

ad network

Data collectors

tapping into

location based data

Amazon removes

Chromecast and Apple

TV from its shop

Google launches

Android TV Apple re-launches

Apple TV


Matching technologies and data are important beyond the

media industry

John Battelle argues that what is adtech today will evolve into a far more encompassing platform for

personalised processing of transactions

Source: John Battelle, "Why the banner AD is heroic, and adtech is our greatest artifact," November 17th 2013.

See also: K. N. C., "The backlash against big data," The Economist, Apr 20th 2014

Walk into a retail store

Today's example:

Seven Eleven savings app for stores

Enter a doctor’s office

Today's example:

MyFitnessPal food logging and exercise tracker

Sit down at a

steering wheel

Today's example:

Via Michelin guide to restaurants and hotels


There is a consumer backlash against the use of personal data

Ad blockers and the Customer Commons movement

Use of ad blockers (%)

Belgium

USA

UK

Sweden

Germany

Poland

Greece

0% 10% 20% 30% 40%


Three trajectories for personalised transaction platforms

Source: Creative Commons illustration from an online course of Barbara Buchegger and Christian Nosko. Fortress from Dragoart

There are three possible trajectories that transaction platforms

could develop into

3 “The Wild West”

2 “Data Fortresses”

1 “Customer

Commons”


In the end, the consumer will decide where to “turn the dial”

Consumer choice and personal data

Minimum

privacy and

security

Maximum

privacy and

security

Maximum

convenience

Minimum

convenience

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