Push the button

Hybrid Broadcast Broadband TV

January 2013

2

TV has shaped 20th-century culture more than any other technology.

With the advent of television, we have been given the opportunity to

witness major moments in world events, all the while enjoying fascinating

entertainment. Unforgettable moments include Neil Armstrong’s first steps

on the moon in 1969 and the legendary fight between Muhammad Ali and

Joe Frazier in 1971, broadcast live on TV in our living rooms.

The Internet has also significantly expanded our communication options.

The opportunity for dialogue now complements the ability to see moving

pictures. However, what makes our present situation so exciting is not the

establishment of an innovative key digital medium, but rather the merging

of technologies: welcome to the age of Hybrid Broadcast Broadband TV

(HbbTV)!

HbbTV brings the Internet to the TV, providing viewers with countless

fascinating applications and a whole host of new TV channels. Companies

have unimaginable opportunities to expand the content of their TV

commercials and enter into a dialogue with potential customers in a highly

attractive environment.

With this White Paper, we would like to provide you with an overview of

the marketing and advertising opportunities this new technology provides.

We will be familiarizing you with the latest developments and some best-

practice examples taken from the global BBDO network. You will be inspired

by MAGGI, Mercedes-Benz, and Postbank, who are currently working on

establishing mass-market applications following the successful HbbTV pilot

stage.

I hope you enjoy the brochure.

Kind regards,

Torsten Kägler,

Consulting, BBDO Proximity Hamburg

FOR

EWO

RD

CONTENTS

Foreword 3

Internet-Compatible TV 4

A Brief “What’s What” in the New World of TV Flexibility 7

HbbTV – Opportunities for Innovative TV Formats 16

HbbTV – the Benefits for Advertisers 22

The Global Role and Marketing Development 37

Summary 42

Sources 43

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4 5

INTERNET-COMPATIBLE TV

As we sit comfortably on the couch, the TV obeys our every command with

the push of a button. On, off, changing the channel, browsing teletext – you

can do just about anything in a snap with the remote. Leaning back and

relaxing, we flip through the channels and realize that nothing beats simple

operation. Nothing, not even the quantum leap to Internet-compatible TV

with its new interaction options and numerous additional channels, can

change that.

Time Spent Watching TVRemains Consistently High

The popularity of TV has been increasing since

the 1950s, captivating people all over the world

with fascinating moving pictures. TV has since

become an undisputed mass medium. The rising

demand for exciting programs has led the TV

market to create more and more new channels

and formats. As a result, the average American

spends 283 minutes every day watching TV,

while in Germany this figure is 223 minutes.1

Even in Sweden, which brings up the rear,

people manage to spend 166 minutes a day in

front of the TV. It is astonishing to think that,

in spite of the Internet, these values have

changed very little over the years. For example,

while Internet use in Germany increased from

44 to 83 minutes in 2010, the amount of time

spent watching TV remained constant, almost

down to the minute (cf. ARD/ZDF Massenkom-

munikation 2010).

To this day, linear TV still determines the

programs people watch: viewers can only

choose from the content offered at that time

and very little has changed over the past

50 years. Communication practices, however,

have long since followed a different set of

ideals. Brands such as Mercedes-Benz, MAGGI

and Postbank initiate dialogue on Facebook,

on Twitter, in blogs, and on private websites,

while TV channels continue along their one-way

roads and only very timidly pursue dialogue.

2.

THE DECISIVE INNOVATION SHOVE: FEEDBACK-COMPATIBLE TV

6 7

HbbTV has been up and running since 2010.

Before that, channels did not have the

technology required to adapt to changing

communication practices. After all, broadband

Internet access has only been available across

the board for a few years now, and Wi-Fi has

only established itself in households gradually.

Without these technologies, TV can be nothing

more than a receiver medium. It is only the

feedback function that makes TV a future-proof

dialogue medium.

There was another problem to contend with:

until very recently, TV channels had refused

to take advantage of the new opportunities

associated with digital media centers, and

the trend of flexible media use, which is

characterized by frequent replacement of

terminals. To this day, media centers still only

represent supplementary offers for channels

and, by choice, play a minor role in the business

model.

The feedback channel features provided by

TVs are still only rudimentary when it comes

to linear programming. Yet the high number

of shows using TED voting and promoting

interaction with live broadcasts demonstrates

that there is plenty of demand. And these

shows tend to attract a large viewing audience.

In short, dialogue with viewers has long been

a part of the entertainment landscape, even if

that dialogues is not offered directly through

the TV. These days, show concepts are limited

to simple call-in concepts and extensions on

Facebook and Twitter.

The Future Lies in Internet-Compatible TV

Seldom do we see as much change in the TV

market as we are seeing right now. Just as

everyone was talking about 3D TV at the 2011

Consumer Electronics Show in Las Vegas,

Internet-compatible TV – also called “connected

TV”2 – is now all the rage, and very few who

deal with the technology professionally are

well versed in all the technical jargon.

Strong Demand for More Transparency

Potential buyers do not know what to expect

from an Internet-compatible TV. From their

point of view, the market is highly obscure:

the glitzy technical terms do not exactly make

it any easier to navigate, and the manufacturers’

apps are difficult to classify and compare.3

The simplicity of conventional TVs that people

have become accustomed to threatens to sink

in a complex sea of individual solutions. In

order to turn the hype into a foundation for

growth, people need to understand what

the new technology is all about. Clarification

is the order of the day.

A BRIEF “WHAT’S WHAT” IN THE NEW WORLD OF TV FLEXIBILITYAlthough they may differ in the details, hybrid TVs, connected TVs

and smart TVs are all basically the same thing: they link two

transmission channels that used to be separate – namely, the linear

signal of the TV channel and two-way data transfer via a broadband

Internet connection. There are, however, subtle differences in each.

3.READY FOR TAKEOFF

8 9

APPLE iTVThe next big thing to emerge from the Californian cult brand. At the end of 2012 at the latest,

Apple will be revealing the secrets of its newly

developed TV. The new device with voice control

will, as always, be intuitive and

is almost certain to stir up the

TV market. Until then, Apple

TV allows you to enjoy content

from iTunes on the TV using

both PCs and Macs.

HBBTVThis represents the first in a new era of TV. The term Hybrid Broadcast Broadband TV

represents a simple concept that facilitates

a whole host of new functions. The principle

is that, with the push of a button, viewers

can carry out actions defined by the channel

at specified access points during the program.

Like basic teletext, a push of

the red button opens up or

closes the HbbTV applications.

Based on a European standard,

HbbTV is compatible with all

manufacturers.

HYBRID TVThis is an umbrella term for Internet- compatible TV. As the term suggests, hybrid

TV refers to the linking of two technologies

with different origins: the TV with apps is

intelligently linked to a game console with a

Web browser. The term thus describes the

principle of connectivity in a general way –

and in various compositions.

SMART TVA marketing term for individual manufacturer solutions. Many manufacturers have introduced

Internet-compatible TV with their own Internet

portals – and so the term smart TV was born. For

example, Panasonic developed VIERA Connect4

as a centralized portal for TV applications, such

as Skype and Maxdome. Some

models even facilitate regular

Internet access. Internet offers

are very often managed by the

manufacturer and individually

configured for each device series.

IPTVA transmission alternative to cable, satellite, and antenna. IPTV allows you to receive TV

signals online, with solutions

offered primarily by Telekom

and Vodafone. In addition

to the standard channels,

pay channels are often also

available.

More information

at wikipedia.org

More information

at wikipedia.org

More information

at wikipedia.org

More information

at techradar.com

10 11

HbbTV: Fulfilling All the Requirements Essential for Success

The biggest hurdles standing in the way of HbbTV acceptance have been overcome. Today,

a cable is no longer necessary for connection to the telephone network. On a global scale, Wi-Fi

is as widespread as the broadband connection, allowing the TV to connect more quickly to the

necessary data line and call up the content required for HbbTV. The minute-based plan was

replaced by flat rates years ago, and DSL connections have taken the place of ISDN. But let us

not forget that HbbTV is a technology standard that is compatible with all manufacturers and

not the new development of any one company, making it a future-proof concept that is ideally

prepared to cope with evolving communication practices.

Doomed to Failure: Cross.TV and met@box

In the past 15 years, many companies have

attempted to revolutionize the TV. Infomatec

Media AG gained notoriety with its Cross.TV.

Using a set-top box, viewers could call up

the desired content in a way that is similar to

Internet using a vertical blanking interval in the

analog TV signal, a solution that was doomed

to failure: the vertical blanking interval would

not have worked with digital TV, as it had been

developed specifically for analog TV. And the

problems did not stop there: years ago, the

Internet was not nearly as widespread as it is

today and, because Wi-Fi was still in the distant

future, the TV had to be positioned in direct

vicinity to the phone jack, making it significantly

more difficult to connect. What is more, TV

channels did not accept the Cross.TV license

model, as they would have had to pay a fee for

each show based on viewer volume. The efforts

of met@box AG came to a similar end around

2000, when the company failed to establish itself

in the new market.

Proprietary Solutions in the UK: MHEG-5 and YouView

The MHEG-5 standard has been available in the

UK for several years and combines many of the

functions that are available through HbbTV.

Buttons in red and other colors call up various

applications, expanding standard TV formats

to include Internet content. Combined with

home-shopping applications, media centers, and

video-on-demand services, MHEG-5 is currently

integrated into five million devices in the UK.

Nonetheless, some channels have opted for

HbbTV, and are most likely to benefit from a

uniform European standard and the mutual

developments associated with integration into

TVs and set-top boxes. YouView represents

another British project, which, like the former

met@box and Cross.TV, relies on an independent

set-top box. In addition to an extremely extensive

media center, YouView offers options for recording

shows and pausing live TV. The first boxes were

delivered at the beginning of August 2012, just in

time for the Olympics in the UK.

TiVo: The U.S. Pioneer in Time Shifting

TiVo had good prospects for successfully

establishing itself in the North American market.

Based on a digital video recorder, the system

makes it possible to define which shows should

be recorded and subsequently enables the

skipping of commercials during later viewing.

TiVo offers another benefit in that it learns

from individual user habits and the user’s

corresponding recording behavior and can thus

suggest shows that the user might like. TiVo

boasted hybrid technology early on: the link to

the Internet facilitates a dialogue-compatible

feedback channel, allowing the user to operate

any number of interesting applications, such

as simple games and surveys. With TiVo, users

can even take part in sweepstakes and call up

coupons, opening up interesting opportunities

for interactive advertising for companies.

In English-speaking countries, in particular, TiVo

has demonstrated that viewers appreciate

time shifting in conjunction with the added value

that comes from the Internet connection.

Still, the number of users is currently falling.

The subscription commitments discourage

price-sensitive customers in particular and may

prove to be a major hurdle to surviving in the

market over the long term.

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HbbTV: a Recognized European Standard

HbbTV is a technological standard that many

major hardware and software manufacturers

support and promote for use in TVs and

set-top boxes. Companies such as LG, Philips

and Sony play a key role in further developing

and establishing HbbTV technology. Other

companies such as Panasonic, Samsung and

Sharp also support the technology with their

latest generations of devices and sometimes

even with software updates for older devices.

HbbTV was standardized by the European

Telecommunications Standards Institute (ETSI)

in June 2010.

HbbTV: Managed Freedom for Manufacturers and TV Channels

In the past, a desire for exclusivity motivated

all TV manufacturers to develop proprietary

solutions. As an alternative to this temporary

benefit, HbbTV offers a future-proof solution

and the market opportunities of a standard that

is compatible with all manufacturers. Here is an

overview of the benefits:5

» There is an pen standard as a general

foundation for all manufacturers and

companies based on free technology

» Support is compatible with all broadcasting

distribution systems (cable, satellite, antenna)

and all standard Internet connections

» Minimal requirements and extremely simple

components ensure that all companies can

support functions

» Broadcast programs can manage and

distribute information to prevent the

uploading of additional services and the

overloading of the TV screen

» There is an option to replace standard

teletext with high-quality content

HbbTV is intuitive and easy to use, ensuring

that users will find it no more difficult than

basic teletext, which HbbTV will replace.

As such, HbbTV fulfills the key acceptance

criterion: ease of use.

PETER KUHLMANNChief Operating Officer, OMD Germany

(Omnicom Media Group Germany GmbH)

We can go online anywhere and at any time with smartphones, netbooks, laptops, and touch pads, which are small enough to accompany us wherever we go. Numerous studies reveal an increase in parallel use of media, so does it even make sense to integrate a digital feedback channel into TVs?

The high degree of innovation in the mobile terminal segment clearly raises the question of whether or not HbbTV technology is even necessary. Due to the high number of alternative interaction options already available, media consumers are spoiled for choice when it comes to choosing the right technology. Smartphones and tablets simply represent a further alternative. For HbbTV, it is more an issue of whether or not the technology is practical or will establish itself. The most convenient option will prevail.

With HbbTV, TV commercials can be expanded to include more extensive information. Whether it be simple participation in sweepstakes or an explanation for more complex topics exceeding 30 seconds, there is no end to what is possible. Could HbbTV reshape the TV landscape for advertisers?

The parallel use of TV and Internet is no longer a dream and now contributes to shaping the communication content. It will always be considered a push technology, even if new dialogue functions are constantly added.

If there is an HbbTV button in every commercial, the option will soon lose all of its appeal for the consumer. Would it make sense from a media point of view to introduce restrictions and thus maintain the quality of HbbTV?

General and advertising interaction will continue to be a purely supplementary option. TV is and always will be a medium for relaxation. The fact is that click rates for online advertising are less than 0,1 %. These figures will be even smaller when it comes to TV but, based on the high number of viewers, could still play a key role.

We still do not know what the networks’ marketing terms will look like and, more importantly whether HbbTV placement fees will be based on click rates or a flat fee. Both models have their advantages and disadvantages. From the media’s point of

view, which model currently seems to be more suitable?

Providers will slightly prefer predictable and calculable flat-rate offers, while the advertising industry will want to choose a plan based entirely on click rates. The service performance will ultimately decide how high the demand is and who can impose which price model in the advertising market.

ADVERTISING INTERACTION WILL CONTINUE TO BE A PURELY SUPPLEMENTARY OPTION.

BillboardDISPLAYPOSTER

BACKLIT POSTER

WEB

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HbbTV: Website Display in TV Quality

The form of processing information typical of

TV is also used to call up Internet pages, which

means the distracting URL will not be visible as

it is in the Web browser. A blocking mechanism

also prevents any terminals other than the TV

from accessing the technology, which conceals

a unique version of HTML developed specifically

for entertainment devices. Web pages are called

up using an application information table (AIT),

which is sent as an additional signal attached

to the radio signal. When the user activates the

“red button” function, the AIT is read and the

predefined URL appears on the screen without

any irritating embellishments.

HbbTV: Technological Progress as a Challenge

Paradoxically, technological development could

become a stumbling block for the success of

HbbTV. While manufacturers trust that their

portals will work properly in a tested environment,

open standards can cause problems. New test

scenarios are being developed, but will they

be able to cope with technological progress?

As development has demonstrated in the

computer market, technological progress cannot

be stopped. Every couple of years, new systems

appear in the market. But people do not tend to

buy TVs as often as computers.

The industry organization BITKOM reports that,

on average, people only buy a new TV every six

years6 in Germany. In North America, the cycle is

seven years,7 which is likely to be the case in the

rest of the world. When you consider that a

newer TV has a computing capacity similar to

that of a 15-year-old computer, it becomes clear

that HbbTV devices could have difficulty keeping

pace with developments in the computer market,

as long as the willingness to buy a new TV does

not increase. In short, an increase in outdated

HbbTV devices could hinder seamless system

operation in the long term. To counteract this

negative scenario, developers, designers, and

marketing strategists will do everything in their

power to increase purchasing frequency by

adding attractive, innovative features.

Breathing New Life into the Social TV Experience

Watching TV is, and has always been, an

experience for the entire family or for a relaxing

evening with friends. In the Digital Barometer

study (June 2011), IP Deutschland emphasizes

that most people prefer to watch live TV shows

and movies with others. Only about 13 percent

of those surveyed admitted to preferring to

watch them alone. However, this is not the case

when it comes to documentaries, reportages,

news shows, and daily soaps: 30 percent say

they like to watch these types of shows alone.

Many viewers are sure to agree with these

empirical findings: people watch TV in the

early and later evening in order to “switch off”

together. It is all about sitting back, relaxing,

and enjoying entertainment. This finding is also

confirmed by the “Medienradar: TV-Content im

Web” study conducted by Mindline media in

2009.8 Over 72 percent agree entirely or at least

for the most part that “watching TV on a TV is

more relaxing and enjoyable [than online].”

In other words, viewers appreciate the comfort

of watching an actual TV. They simply have to

press a button to find their entertainment of

choice, which they can influence at any time to

meet their specific needs with the selection of

channels and the corresponding settings.

HbbTV perfects the relaxation experience.

Additional functions are conveniently available

at any time but, like teletext, remain discreetly

in the background. They do not overwhelm you.

And if you need additional information, you can

call it up while continuing to watch your show –

but only when you choose to. More complex

applications and interactions with social media

services can be carried out with secondary

devices, as your iPhone and netbook are never

far away and can be activated more quickly than

the corresponding TV applications. HbbTV will

significantly shape the multiscreen use of several

devices at the same time.

16 17

Teletext as an Interactive Companion to Viewers

As older TVs are replaced with HbbTV devices,

interactive teletext will quickly establish itself

as the new standard and be presented more

attractively than the teletext before it. That

the functions can be accessed just as easily as

before with the push of a button will increase

acceptance. Access via the red button and

manual selection will be a thing of the past,

enabling many users to automatically enjoy

the new offerings. Many channels will also allow

users to adapt the teletext to meet their

individual requirements. The sky is the limit

when it comes to the design, as the color

display, font and window size, zoom function,

colors, and category shown can be specified –

an advantage that will benefit the sight-impaired

in particular.

EPG – the New TV Experience Program

The electronic program guide (EPG) is the

TV guide 2.0. Teletext indicates shows and show

times in a purely static format, but the EPG

facilitates the integration of interactive elements.

As is already the case at ARD, the page displays

the programming for both the next and past

seven days. Users will find inspiration in show

pictures, descriptions, trailers and teasers. The

connection to media centers is particularly

attractive. Past shows can be accessed digitally

via HbbTV without a recorder – if the channel

chooses to offer the option.

Centralized Information Portal with Its Own Formats

The simplest form of media-oriented self-

presentation using HbbTV is the channel’s own

information portal, which can be accessed by

clicking on the red button located in the area

above the TV signal. In this navigation level,

many different applications can be conveniently

opened and used.

Public channels are currently focusing on

improving and expanding their range of offers

for users, while private channels are following

suit and attempting to expand and “extend”

their formats; i.e., increase appeal by offering

more information.

ARD EPG: Good Programming Requires Structure © ARD Digital/BR/Christian Schulz

ARD Text: Rediscover Teletext. © ARD Text

HBBTV – OPPORTUNITIES FOR INNOVATIVE TV FORMATSInternet-compatible TV provides channels with new opportunities in terms

of format design. The range of entertainment offers, which is now limited

by the separation of Internet and TV, will soon be expanded considerably.

Channels have had to make do with separate websites up to now, but

HbbTV will allow them to display the corresponding offers directly on the

TV in the future.

4.

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Generally speaking, the centralized portal displays

news, weather, program announcements, and

a media center. Page and content design are the

responsibility of the channel.

n-tv – Exciting News from the News Channel

News channel n-tv launched its new HbbTV

portal at the end of 2011, which is basically the

standard teletext redesigned and therefore

closer to digital text than an actual HbbTV

portal. There is a good reason for this strategy:

teletext strengthens the core area of expertise

of news channels, as it provides viewers with

more in-depth information based on their

requirements. In the future, n-tv will be

providing a digital presentation and faster

availability: at a glance, users will be able to

see which show is currently on and which is

next. The live picture is visible all the while.

There will also be breaking news and teasers

for accessing news videos. The offer is rounded

off with an exchange ticker and the option to

browse the individual categories.

As of 2012, n-tv will be expanding its live ticker

in the live picture to include relevant videos

and text. The channel will also be incorporating

more individualized content. You can call up live

sporting events and stock exchange updates at

any time. It is still unclear whether it will also be

possible to personalize ticker content over

the medium- to long-term. n-tv CEO Hans

Demmel explains: “The new n-tv digital text

offers our viewers the best of both worlds by

combining the positive aspects of standard

teletext with the benefits of the digital world

in a contemporary, high-quality format. Our

news portal n-tv.de has been enjoying success

for years. Now viewers can also access our

online content directly on their TV.”9

Nearly all major channels already have an

online media center, where with just a few

clicks users can call up the channel’s own

formats free of charge for a limited time.

It is no wonder that the use of online media

centers is increasing, despite the fact that the

Web delivers a comparably low resolution.

That will change with HbbTV, as all the content

can now be displayed in HD quality. Thanks

to broadband connections, even large volumes

of data can be accessed without any problem.

This means a brand-new range of marketing

concepts for advertising companies – from the

advertising block as a break to using content

for a fee.

Pay-per-View Content via HbbTV

TV channels are sure to find new forms of

marketing extremely attractive, and HbbTV

will provide them with lucrative sales channels.

HbbTV now enables regular channels to offer

their content directly on the TV for a fee and

thus take advantage of an opportunity that

has primarily benefited pay-TV channels such

as Sky with Sky Select and online pay-per-view

suppliers such as Maxdome. Access is simply

granted following purchase by phone or via

an HbbTV application. This additional sales

channel could even prove to be a profitable

model between existing service providers such

as Maxdome and channels such as ProSieben.

While TV channels provide access to their own

Tagesschau: Always Well Informed. © Tagesschau.de

formats for a fee, pay-per-view suppliers can

offer the latest blockbusters directly on TV

and thus attract new purchasing groups.

The Trend of Watching What You Want, When You Want

Is there anyone who is not familiar with the

ritual? Tagesschau kicks off the TV evening

punctually at 8 p.m., followed by Tatort and then

a myriad of late-night shows. But the willingness

to let TV programming dictate your free time

is waning. Viewers want to be able to choose

themselves when they watch what. Media

centers accommodate this time-shifting trend

and, with the help of HbbTV, free us from the

confines of linear programming.

TV channels will have the opportunity to

increase viewer loyalty. For example, if a viewer

does not feel like watching a three-part movie

when it is actually being shown on TV, they can

watch the entire thing when they have the time,

thanks to flexible availability. Back in 2009, GfK

Consumer Tracking revealed that 52.6 percent

of those surveyed (14 years of age and older)

were already interested in time shifting and

48.6 percent in high-resolution programming,

which is why Pay-TV suppliers such as Sky with

Sky Anytime also offer time-shifting formats,

which allow viewers to start shows when they

want to.

Interactive Entertainment: the Evolution of Participatory TV

More and more TV channels are incorporating

Internet channels for news shows and live

educational broadcasts. There are countless new

opportunities for interaction, from Facebook

pages to e-mail addresses that allow viewers to

write in. This trend is likely to grow, as HbbTV

offers the option to send out independent

signals for individual formats. In the future,

anyone who pushes the red button while

watching stern TV can submit a question

directly to the live show. Direct viewer

participation could also breathe new life

into discussions, political debates, and

live surveys.

The HbbTV feedback channel will eventually

replace TED, the process currently used to

carry out viewer voting, and significantly

optimize the process of conducting opinion

surveys. However, it will not replace the

profitable business of call in voting for shows

such as American Idol.

The HbbTV Home Page. © ARD Digital/WDR/Uwe Stratmann

ARD HbbTV Media Centers: TV on Demand. © ARD.de

20 21

The Preferred Format with an Even Higher Level of Experience

HbbTV offers exceptional opportunities when

it comes to TV format extension in particular.

For example, VOX already offers an HbbTV

application for its cooking show, Das perfekte

Dinner, which is visible off to the side during

the show. All the recipes ever demonstrated

on the show can be called up in the Kochbar

app and sent to an e-mail address. The

opportunity to intelligently process viewer

information makes HbbTV an amazing loyalty

tool. The term used to express this focus is

audience relationship management (ARM),

inspired by the well-known concept of

customer relationship management.

Added Value for Documentaries, Reportages, Shows and Series

HbbTV is particularly attractive whenever

content is accompanied by supplemental

inspirational information, as is the case with

documentaries and reportages. Even

making-ofs, which are usually only available

online, are more appealing when located

on the same channel. For example, take the

Gold Rush series on the Discovery Channel,

which is shown on Fridays and extended

with an online after-show. The additional

content could soon be viewed directly

through HbbTV. Even for show formats such

as Deutschland sucht den Superstar, HbbTV

offers new presentation opportunities for

providing viewers with an inspirational

look behind the scenes of the live show.

An extension of the content can complement

the channel’s limited capacity, as special

wishes can be taken into account without

changing the channel.

The Future: the Viewer as the Director

The sky is the limit when it comes to the

interactive possibilities of HbbTV. As the

technology becomes more common and

achieves market maturity, there is nothing

to say that viewers could not influence

the stories of TV series with their votes.

As with video games today, they could vote

on alternative endings and thus play an

active role in the directing.

INGO SCHÄFERHead of Marketing Communication and PR,

MAGGI GmbH

The food segment is dominated by intense competition. MAGGI competes with Knorr particularly in Germany, their core market, which is why it is so important to manage advertising budgets and media spending wisely.

In times of targeted Internet advertising and the increasing role of dialogue in communication

to offer is right. Our offer of cooking assistance based on product and service is certainly so attractive that people develop an interest on their own. HbbTV could truly be a platform on which the product and service go hand in hand.

Stationary Internet with brand websites and social media pages, the mobile Web, and now a growing percentage of Internet on TV: is there a danger of brands having to be active on too many different digital platforms in the future?

Because communication budgets will not be getting any bigger, the abundance of opportunities provided by digital media should force marketers to consider the role and benefit of a presence more carefully.

Agency partners are also obligated to advice their clients correspondingly and look beyond short-term business.

Marketers have not yet defined the invoicing models for HbbTV supplements. Should invoicing be based on performance or a fixed rate?

In principle, performance models are only attractive if they can be reconciled with the aims of the campaign. There is still too much to learn for everyone involved to say with any certainty what a campaign can achieve for me. Especially at the beginning, I think it would be fair for the agency and marketer clients to share the costs of the learning curve.

HBBTV COULD BE A PLATFORM ON WHICH THE PRODUCT AND SERVICE GO HAND IN HAND.

measures, is TV advertising still the right choice or is push communication outdated?

Efficiency is always a matter of objectives and the business model behind them. If entering into conversation with people directly benefits my business, the digital world offers fantastic opportunities. However, not all business segments necessarily require direct dialogue. If it is essential to deliver a message to an extremely large, heterogeneous group of people as quickly as possible, incorporating TV into the media mix is exceptionally efficient.

HbbTV supplements are intended to offer viewers added value. In its simplest form, a brand encourages viewers to get to know a product by having them take part in a sweepstakes. For MAGGI, the expertise of MAGGI KOCHSTUDIO could be used to create an HbbTV supplement designed to offer added value, ranging from recipes to the ingredients used. Does HbbTV provide incentive for MAGGI to reassess TV advertising?

If I want to motivate someone to develop an interest in me, I should first think about whether what I have

23

HBBTV – THE BENEFIT FOR ADVERTISERSHbbTV can only establish itself if the channels ensure relevance with the

corresponding extensions and supplements. If the frequency of use and

the level of interest increase, advertising agencies will also benefit. This

should not change the viewer’s relaxation experience much. There needs

to be a method for measuring how well new concepts manage to combine

TV as an enjoyable experience with new content offers. People watching TV

do not want the experience to be tedious, like browsing through a catalog.

They want to relax and enjoy attractive offers.

5.

Marketing NEW

ADVERTISING

Display Surfaces: the Classic HbbTV Option

The simplest and most currently feasible

advertising form is a display ad on the channel’s

HbbTV pages. Like online media advertising,

a wide variety of formats and placements

is available. Depending on the format, the

advertising surface may link to a landing page

or expand via an interactive application,

representing a concept that is very similar to

advertising formats in teletext. However,

it remains to be seen if display advertising

fulfills the demand for relevance and is suitable

for counteracting increasing ad blindness.

As is the case with online formats, it is likely

that placement and relevance will ultimately

determine success and failure. It must also

be taken into consideration that users are

navigating an environment different from

the Internet. Internet users are accustomed

to actively dealing and interacting with

information. But TV screens work differently.

Interesting triggers need to be used to attract

the attention of viewers and encourage them

to acknowledge advertising messages.

Example Applications and Sponsoring through Interactive Content

In the future, it may be possible for advertisers

to collaborate with channels, which could

prove to be an attractive option especially when

there is a common theme. For example, Kicker,

the German soccer magazine, could sponsor

soccer events and run its own advertising

through HbbTV. The channel, in turn, would

benefit from the incorporation of interesting

content for the viewers. In the U.S., ESPN

Sports could collaborate with Nike during NFL

games and offer football statistics and relevant

information as part of the partnership. The

connection among the environment, added

value, and product is sure to be a highly

attractive marketing foundation for all involved.

Collaborations that benefit all parties involved

are most worthwhile. For instance, TV channels

could achieve higher viewing numbers if a

powerful partner added its content to the

HbbTV channel. Special placements, ranging

from the free TV content of a partner to the

channel’s own applications, would also be an

option. However, placements purely for the

sake of advertising, like those already found in

iPhone and Android apps, will likely only prove

effective when they contain relevant content.

Media Revolution: Interactive TV Commercials

HbbTV is attractive for advertisers primarily

owing to the interactive potential of TV

commercials. Dialogue options open up

fascinating opportunities for turning passive

consumers into active contributors. An

indicator of any size can be positioned

anywhere on the screen to inform them about

the interactive option. The indicator is only

visible on HbbTV-compatible devices,

which means viewers without HbbTV will not

be distracted by irritating information or

disappointed that they are missing out on

something. Advertisers can therefore gain

experience with interactive commercials

during the pilot and evaluation phase without

disturbing viewers with conventional devices.

PUSH

24 25

Endless Options Available to Everyone

Pressing the red button during the TV

commercial provides access to the dialogue.

There are as many possibilities as there are

advertised products. The open CE-HTML

standard allows users to call up a whole host

of target pages, particularly those beyond the

limit of the channel. In particular, compatibility

across the board represents a major advantage

of the new technology. However, this does not

entirely extinguish the efforts to develop a

proprietary solution. Some networks now rely

on independent concepts so that they can

offer their advertising customers attractive

environments and the required technological

solutions.

Customized Concepts for Consumers

In the next few years, concept and strategy

departments will likely increase their focus on

the opportunities provided by HbbTV. The

current situation is characterized by a sense of

new beginnings. The associated challenges are

immense and cannot be overcome with standard

solutions, as no experience has been gathered

through past use. As a result, market potential

is currently being analyzed with a focus on target

groups so that relevant strategies for addressing

them can be developed and integrated with

precision into the existing information

architectures. Creative minds will also have to

familiarize themselves with HbbTV. The bar for

future concepts has been set high. The unique

media characteristics of HbbTV need to be taken

into account to ensure potential advertising

effects can be exploited over the long term.

The Learning Curve – Ready for Takeoff

Even technologically minded viewer groups

are unlikely to have had any experience with

HbbTV. Even if their TV at home already

incorporates the new technology, they first

have to discover the concealed features before

they can use them. In short, the industry

will have to undergo a learning curve before

the benefits of the new standard are fully

available. Only through ongoing testing,

learning, and optimizing can HbbTV make it

to the homestretch and establish itself as an

accepted key element of the media mix.

Commercials that demonstrate the potential

have already been aired. The Kolle Rebbe

agency developed an HbbTV campaign with

product offers for Otto Versand. In order to

break through the aversion to interaction, the

commercial focused on the call to action:

a remote control featuring the corresponding

instructions and red button was presented

to emphasize the tool that provides the viewer

with access to the dialogue. Unfortunately,

the augmented ten-second commercial was

simply too short. Our first lesson: if a viewer is

not sufficiently familiar with HbbTV, they are not

going to find the on-screen button within ten

seconds. In the current learning phase, the

viewer needs considerably more time to navigate.

An Issue of Reconciliation: Positioning the Button Correctly

It’s safe to assume that it could take months,

or even years, for HbbTV to achieve full

acceptance. Until then, instructions will need

to be provided for viewers to ensure success.

To both communicate the commercial message

and indicate the dialogue button to viewers,

30- to 45-second commercials are recommended.

It will also be necessary to determine where

in the commercial to display the call to action.

This could represent a real challenge for standard

commercials: how do you combine the button

with the advertising message so that the

commercial works both with and without HbbTV

support? Reconciliation will only be an issue

once the technology has established itself. But

at that point, it will play a key role in success.

A Bright Future for the Remote Control?

The primary challenge posed by TV-based

dialogue is the method of controlling

applications. Though you can use the mouse

and keyboard for the computer, you must rely

entirely on the remote for the TV. For those

of us who can remember when T9 and

autocomplete were foreign words, this

challenge is nothing new: how do we design

HbbTV pages so that they are easy and

convenient to navigate with the remote? Not

all manufacturers offer autocomplete, and

channels have yet to find a practical solution.

Not even the next generation of control

options based on gestures and voice is likely

to fully replace text entry by hand.

Field tests have demonstrated that consumers

react to excessive complexity with refusal.

For instance, blood-type surveys are less

successful using HbbTV than they are online,

as viewers are relaxing when they watch TV.

They are more interested in being entertained

and avoid any tasks that demand too much

of them. Anyone who requires a lot of text entry

or, in the case of a sweepstakes, a full address,

is probably asking too much. It would make

more sense to initiate first contact on the TV

and then carry out all subsequent CRM measures

using other media. In other words, name, sex,

additional data, and contact options should be

collected by e-mail or phone. The ideal solution

could also be determined through coordination

with the customers in question – the unique

requirements of the segment should also be

taken into account.

ATSUO MURAKAMIKachidoki, Tokio

YOU MISSED THE FIRST QUARTER OF A MOVIE THAT STARTED AT 8 P. M. ON TV. NOW YOU JUST PUSH A BUTTON ON YOUR REMOTE, OPEN THE “FREE TO VIEW” SECTION, AND START IT AT THE TIME YOU WANT. HOW DOES THAT SOUND TO YOU?

I would love to use the service because it would

let me watch the movie whenever I wanted

or skip a part if I didn’t want to watch the whole

thing.

26 27

AUTOMOTIVE SECTOR

From the New-Car Configurator to the Accessory Consultant

Almost no other industry survives to such a

degree on emotive images and high-quality

cinematic staging as the automotive industry.

Anyone who watches the TV commercials of

major brands is sure to experience the pinnacle

of creative imagination. Maintaining the

emotionally charged suspense curve from the

commercial to the brand/model website or

dealership represents a real communication

challenge. Thanks to HbbTV, this abrupt break

is a thing of the past, and it is much easier to

pass leads on to dealerships.

New Model for Effective Communication Motivation

Online vehicle configurators established

themselves as an indispensable marketing tool

for car manufacturers long ago. The functions

are now so sophisticated that customers

looking for a new car routinely consult the

configurator before heading to the dealership.

By the time they meet with the dealer in the

showroom, they have often already planned

their car down to the smallest detail. Now it

is primarily up to the dealer to persuade the

customers to make a purchase.

HbbTV provides presales communication

with an innovative form of motivation: if the

TV commercial contains a button that

links to a landing page, inspirational brand

experiences can be combined with product

interaction without a time delay. After all,

the landing page is the ideal place for a

streamlined configurator, which at the very

least determines viewers’ basic preferences.

Offering additional brochures in this phase

and possibly even conducting preliminary

qualification are options for bringing viewers

closer to a purchase. Integrated scoring

processes make it possible to inform dealerships

about potential customers who are likely to buy

or suitable for a test drive.

In this way, it is possible to significantly increase

the degree of individualization of the

communication. Once on the phone, the dealer

can address the customer’s specific preferences:

“We have your model in anthracite ready for you

to test drive.” Or the previously sent brochure

might feature pages containing the car as

configured by the customer. These example

approaches demonstrate that HbbTV offers

impressive opportunities for boosting the existing

CRM program with communication motivation.

ANDERS SUNDT JENSENHead of Brand Communication at Mercedes-Benz Cars

Emotionally charged product differentiation plays a key role for car manufacturers, especially when it comes to TV commercials. For Mercedes-Benz marketing, in particular, Daimler AG employs an emotionally charged method of addressing potential customers rather than employing offer-oriented

advertising messages. Is expanding TV commercials through the use of HbbTV even necessary?

Yes. Especially during the launch phase, when TV commercials are aired, it is necessary to encourage the target group to take action: generating addresses, arranging test drives, boosting footfall at dealerships, ordering brochures, and increasing interest in a new car through the car configurator. Extending the emotionally charged product experience and strengthening the brand experience should also be taken into consideration, as they ultimately add to the brand value of Mercedes-Benz. During the launch of the C-Class Coupe, Mercedes-Benz showcased the model in an elaborate Drive & Seek online special.10 The film with interactive control would also be possible with HbbTV. Does

this represent a new concept of focusing on the experience factor of TV commercials lasting over 45 and 60 seconds?

In terms of technical feasibility, the future of TV is really exciting terrain. Because there is a lack of standards and various technologies on the side of TV manufactur-ers and TV networks/stations and no clear, recognizable future prospects, this communication platform is not currently in the Daimler AG advertising channel portfolio.

With HbbTV, TV could facilitate a new method of measurement. In addition to broadcasting a commercial, criteria could also include the access of HbbTV specials and the generation of leads. Does this warrant a reassessment of TV advertising?

In principle, we still see TV advertising as a mass medium with a broad impact. It is ideal for rapidly achieving a wide reach within our target groups and emotionally charging our messages. In our opinion, this will continue to be the case for the foreseeable future. We now consider the HbbTV dialogue function to be “added value.” However, this added value must be evaluated in a pilot project.

Up to now, marketers have not suggested any invoicing models. Should the mutual aim be to invoice HbbTV integration based on performance or a flat fee?

Depending on the goals of a campaign, both models are possible in principle. A credible marketing model also requires the confidence essential for offering performance-based models, as is generally the case in the digital dialogue media already available.

From the perspective of advertisers, performance-based invoicing would be preferable. This “fair” invoicing model guarantees a reliable ROI prognosis and includes the marketer in the investment risk.

WE NOW CONSIDER THE HBBTV DIALOGUE FUNCTIONTO BE “ADDED VALUE”

PUSH

28 29

FAST MOVING CONSUMER GOODS

Brand Loyalty through Involvement

In the fast-moving consumer goods (FMCG)

segment, TV represents the backbone of the

media mix for new products and innovations.

No other medium makes it possible to

combine fast reach and awareness with such

a high profile. At the same time, the past

few years have also demonstrated that Internet

is indispensable for FMCG. Accordingly, the

GfK market research company and Mediaplus

media agency (“Successful product innovation

and related media strategy”) emphasize the

importance of interactive campaign extensions

from TV to the Internet. Entertaining approaches

are key and represent the optimum method

forencouraging customers to get to know the

brand and product. HbbTV offers better solutions

for doing just that, from the entertainment

factor provided by games to targeted samples.

Samples: Accompanying the Product into the Market

More than half of those surveyed in the “Word

of Mouth and the Internet” study (Google

and Keller Fay, 2011) indicate that they are more

interested in purchasing a product if it has

been personally recommended. The study also

reveals that 82 percent of those surveyed

(n = 6.747) are most likely to remember a

product recommendation made face to face

in their personal environment. These findings

are confirmed by the insight provided by

Martin Lindstrom, who takes a closer look at the

effects of personal recommendations in his

book Brandwashed.10 From this perspective,

samples are not simply a product giveaway,

but instead will hopefully pave the way for

personal recommendations.

When carrying out sample promotions, it is

important to uphold the quality of the brand,

and HbbTV commercials provide the very

best conditions for doing just that, as they offer

an intelligent solution for combining the

brand message with the rewarding effect of

the sample. After calling up the landing page

through the TV commercial, interested viewers

are offered the opportunity to request a sample,

in addition to receiving important production

information. Playful elements that encourage

interaction can boost the experience of getting to

know the product and brand. In the FMCG

segment, in particular, this method provides

greater motivation to purchase. And this also

applies to target groups who are not influenced

by the interactive practices of the Facebook

community.

Samples: the Doorway to Follow-Up Measures

There are also exceptional opportunities for

generating long-term interest in the company’s

offers among interested viewers. This can

be achieved by attractive product portals and

by obtaining declarations of consent to

receive follow-up communication; for instance,

via e-mail. Interested viewers can also be

asked to provide reviews and other contributions

once the product package has been sent.

Combined with social media monitoring, sample

campaigns can be carried out without TRND

or similar formats.

Inspiration: Expanding Product Ranges with Relevance

Attracting consumers through sample promotions

and sweepstakes can unfortunately come with

unwelcome side effects: people are enticed by

the reward and less often by a genuine interest

in the product and brand, making the freeloader

phenomenon a possibility. In the future, HbbTV

will allow companies to benefit more from

relevant information and reach more desirable

target groups with additional information.

An example: if a food manufacturer is advertising

a new product, the commercial can be extended

using HbbTV. The commercial could, for instance,

mention that the red button provides access

to recipes for the product, which can then be

sent to the viewer by e-mail. This positive brand

experience serves as a starting point for lead

generation and can promote long-term loyalty

to the brand. In the food segment, in particular,

expertise and trust are important values that

establish themselves in the consciousness of the

customer – regardless of the initial incentive.

Naturally, not every interested viewer is converted

into a loyal customer, but persistent communication

with relevant information can lead to long-term

loyalty, especially with those strategically

important customers who contribute the most

in terms of share of wallet.

A Closer Look at the Brand

In addition to targeted product information,

broader themes can also be addressed with

the support of HbbTV. Background information

about manufacturing methods and dedication

to social issues can help strengthen the brand’s

positive image. Promises that are usually only

hinted at on seals or in a short text can be

validated with substantial data: How are the

foods manufactured? Where do the ingredients

come from? What does the company do to

fulfill its social responsibilities? Fine-tuning the

communication will allow the answers to flow

until they present the company in the right light –

with a focus on the target groups.

PUSH

ERIKO SUGIYAMAKachidoki, Tokio

THERE’S A NEW TASTY-LOOKING INGREDIENT FOR COOKING. YOUR TV OFFERS YOU THE CHANCE TO SIMPLY PUSH THE HBBTV BUTTON AND ORDER A FREE SAMPLE OF THE PRODUCT. WOULD YOU USE THIS OFFER OR REJECT IT?

That would be wonderful.

30

FINANCIAL SERVICES High-Content Subjects Presented in an Interesting Way

TV provides a rather inadequate platform for

advertising consulting products and services.

Nevertheless, the gross TV advertising

expenditure that financial service providers

allocate to addressing the private sector has

continually increased over the past several

years – from 36.6 percent in 2005 to an

impressive 44.1 percent in 2011.11 However,

these commercials focus on unspecified

content, raising awareness about general

subjects. This strategy is primarily the result

of limited commercial time and the wide

focus of the information.

In addition to brand image, current major

themes in the industry, measured in advertising

expenditure, are primarily real estate financing,

account management, and private loans.12

HbbTV makes it possible to extend all four topics

beyond the commercial and present them in

more detail.

Image Advertising: Transparency Promotes Trust

Over the past several years, the global financial

crisis and devastating media coverage have

tarnished trust in financial service providers over

the long term. Institutes now face two major

challenges: drastically reduced media budgets

for repairing damaged reputations and the

successful acquisition new customers as well as

the retention customers who are looking to leave.

With HbbTV, classic image commercials can be

extended to include more detailed content.

Rather than the story simply ending with a concise

slogan, HbbTV takes viewers to a landing page

with interesting supplemental information:

Which values does the institute represent? How

do specialist publications and independent

institutes rate it? How do you prepare to deal

with the challenges associated with the national

debt crisis?

Relevant information can be rounded off with

the opportunity to intensify contact downstream.

With a callback function or information access

via mail or e-mail, potential new customers

in particular can obtain more detailed answers

to their questions.

The challenge is combining the required depth

of knowledge with easy-to-process information,

as they require an equal amount of consideration.

People who are relaxing and watching TV would

like to obtain information that is straight to

the point on the landing page, so 20-minute films

would be as ineffective in holding attention

as a long-winded personal consultation with the

customer.

Retirement Provisions: Responding to a Lack of Knowledge

These days, many people make private retirement

provisions a top priority. In Germany, home

ownership is traditionally an extremely popular

form of retirement provision, a tendency

only intensified by the financial crisis. A study

published in the newspaper Die Welt (November

26, 2010, page 17)13 reveals that 86 percent

of those surveyed consider real estate to be a

good to very good form of retirement provision.

No other form of security enjoys such a high

level of support across the board.

Many of the commercials currently on the air

take the approach of combining the topic of

retirement provisions with real estate financing.

However, potential customers are generally

uninformed, making detailed information and a

personal consultation absolutely necessary

before a contract can be signed. According to the

German retirement index, the Riester retirement

plan (83 percent) and home ownership savings

plans (82 percent) are the most commonly

known forms of retirement provision. As such, it

is surprising that people interested in retirement

plans know so little about Wohn-Riester home

annuities, a product variation that few Germans

are aware of.

In conjunction with image-boosting components,

HbbTV could effectively shed some light on

Wohn-Riester home annuities. The TV commercial

extensions provide interested viewers with the

option to learn more about the topic and possibly

arrange a consultation, or alternatively request

additional information materials. Due to the

wide focus, products requiring explanation in

particular, including Wohn-Riester, can achieve

positive results early on if HbbTV is incorporated

into the media mix.

PUSH€

32 33

Personal Loan: Successful Calculation with HbbTV

As everyone knows, anyone who visits a

bank’s website these days can calculate loan

installments, interest rates, and durations

with an integrated calculator. These interactive

tools can impressively be incorporated into the

world of HbbTV commercials: once attractive

loan rates have generated initial interest, viewers

will find it easy to put together a preliminary

offer in no time using the calculator – while

sitting comfortably on the couch. The functions

are extremely easy to use, as number entry is

effortless with the remote.

The Coherence of the Concept Plays a Key Role in Success

Agencies and advertising companies should be

aware that TV campaign planning needs to

include an additional briefing point: in the future,

HbbTV should be incorporated into the budget

allocation. Campaign tracking will reveal whether

or not it pays off. Existing concepts will certainly

need to be readjusted in order to achieve

return on investment early on. Regardless, the

following criteria should be considered to ensure

successful use of HbbTV.

In today’s media world, attention is an extremely

limited resource and HbbTV is no different.

Why? One reason, in particular: viewers expect

clearly recognizable added values. If these are

not present, they ignore the advertising message

and turn their attention to other things.

Pithy advertising statements and intrusive

sweepstakes risk falling flat in our media world

overloaded with information. If every company

incorporates an HbbTV extension into their

commercial in the future, the novelty will quickly

wear off, which is why intelligent mechanisms

are required to trigger the access of more

detailed information.

It will be interesting to see which factors the

marketers rely on to ensure that HbbTV

represents an attractive extension to the

campaigns. It is too early to say how the media

model will make the technology profitable over

the long term and the content relevant for

viewers. This might be one of the major challenges

facing successful HbbTV implementation.

Strategy-oriented planning is therefore more

important than ever before. The aim of the TV

commercial and approach of the extension could

lead to different solutions every time. The first

time viewers see a commercial, they tend to focus

on the image of the brand, while the second

time they are more likely to take notice of the

HbbTV call to action and press the red button.

Fulfilling Expectations – Creating Added Value

These days, every brand message requires a

door opener that generates a measurable

reaction. Direct mailings only survive the first

throw-away phase if the envelope is inviting

enough to make the recipient open it. And you

can only expect a reaction if the content is

truly relevant for the addressee. Thanks to

HbbTV, the TV is now capable of dialogue, but

its genuine function has nothing to do with

that. First and foremost, it is still only a push

channel that floods target groups with “classic”

advertising messages at a specific time. At

the beginning, in particular, meaningful symbols,

such as the red button, and the corresponding

instructions will have to support the dialogue

and interaction functions. They act as the door

opener that provides the new medium with

the necessary motivation to make use of its

concealed functions. Creative solutions will

be required to integrate attention-grabbing

calls to action into the TV environment with

sensitivity.

It is important that users know what to expect

when they push the red button: Will I obtain

more information about the brand? Can I

take part in a sweepstakes? What else will

I be offered? Standardized instructions are

generally insufficient for generating action.

The added value should be presented clearly

and unambiguously and then delivered.

Confidence-Building Measures via HbbTV

A trend towards consumer democracy is now

visible throughout the segment. Responsible

consumers question grandiose product promises

and are often critical of brands. They do thorough

research online and share their experiences

with each other to ensure they make the right

purchasing decision. This behavior increasingly

results in advertising skepticism, particularly

when it comes to TV. The Nielsen Global Online

Consumer Survey14 indicates that 51 percent

of those surveyed in the European Union trust

TV advertising “very little,” with similar figures

around the rest of the world: 39 percent of those

surveyed in North America and 33 percent in

Asia admit to having “very little” trust in TV

advertising. The corresponding average value

worldwide is 38 percent. Nonetheless, everyone

agrees that TV is still the leading medium for

increasing reach. Converting trust into direct

purchasing intention is increasingly difficult with

conventional TV advertising, as many consumers

demonstrate a critical attitude that makes it

impossible to turn motive into action. Thanks to

HbbTV, this will change in the future: relevant

information can be provided in a TV commercial

extension, which can expertly answer questions

about products and brands..

Difficult Balancing Act: Favorite Show Versus Advertising

Regardless of how relevant an advertising

message may be, it has to contend with a myriad

of entertainment offers competing for attention

in the TV environment. An unrepresentative

survey carried out at select BBDO offices around

the world revealed that HbbTV extensions within

the advertising block were considered to be

thoroughly interesting. However, viewers

KENTA TAKAGIKachidoki, Tokio

YOU SEE A COMMERCIAL ON TV FOR AN EXCLUSIVE BRAND. YOU’RE INTERESTED IN THEIR NEW CATALOG AND CAN ORDER IT SIMPLY BY PUSHING THE HBBTV BUTTON ON YOUR REMOTE AND TYPING IN YOUR CONTACT DETAILS.

I don’t think catalogs are a good idea. I think I’d

be more interested if the clothes were featured

on TV programs, contents, or worn by actors

(for example, “The coat worn by this actor in this

movie/drama,” etc.).

34 35

generally left the advertising content once the

regular show resumed. Those surveyed also

expressed a desire for the TV screen to remain

visible during the HbbTV extension.

At least in the case of themes that require a

lower level of attention, displaying the TV

programming in a split screen could reassure

the viewer that they will not miss the show

once it starts again, as they learn more about

the HbbTV offer. On the other hand, there

is also the danger that the high volume of

information in the HbbTV section presented

alongside moving pictures could lead to an

information overload; out of frustration, the

viewer might leave the commercial information

page. The right timing is key: companies that

offer access to an interaction at the end of an

advertising block risk losing the user soon after,

once the regular programming starts up again.

Not Only Easy to Use for Digital Enthusiasts

For a long time, innovations in the pilot stage

were only considered to be a playground for

experimental technophiles, with mass-market

application occurring much later.

HbbTV will likely conquer the market in a much

different way. The initial hype will probably lead

to mainstream use considerably sooner. Why?

All the channels are currently expanding their

HbbTV options extensively and a larger

target group is also starting to notice HbbTV

in manufacturers’ glossy brochures. For this

reason, it probably will not be long until a wider

group of buyers is interested in obtaining

HbbTV-compatible devices. There is also the

fact that Wi-Fi and Internet connections are

so widespread that the technical requirements

for HbbTV success are already met.

MARGRET DREYERDirector Corporate Brand/Marketing

Communications

Like customer acquisition for retirement provision plans and real estate financing, new customer acquisition in the checking account segment is also a significant focus. In its TV commercials, Postbank demonstrates its full range of products. Is that a sign that TV plays a key role in brand communication?

The central role of TV advertising in Postbank AG’s media mix has not changed in the past several years. There may have been a shift in

the individual channels and thereby the budget, but mainly from print to online media.

After TV, online advertising is now the second-most important element in the media mix. A campaign-oriented extension of TV campaigns in digital channels, and an even closer interlinking, always pose a challenge.

With its wide range of products, Postbank benefits from high stability within its target reach, thanks to TV campaigns. In conjunction with intelligent interlinking with digital channels, the opportunity presents itself to utilize content links, along with reach, and to position central messages as targeted.

For consulting services, TV advertising is a door- opener, encouraging consumers to contact the bank. There is no getting around the loss of potential customers that occurs as a result of the gap between the end of a TV commercial and the customer’s need to obtain information online or going to a branch. With HbbTV, you will have the opportunity to initiate a lead straight out of the TV commercial.

A gap between media only poses a problem if it causes us to lose interest in a brand or product. In reality, the ROPO (research online – purchase offline) effect seems to apply especially in the field of financial services.

Approximately 60 percent of all new contracts are the result of online research. But the purchase funnel shows that consumers naturally obtain their information from a wide range of media. The sequence is a buildup of and shift between individual channels instead of an abrupt break in media. The method of obtaining information through the increasing parallel use of media can actually be fluid and occasionally simultaneous – a fact which is confirmed by search engine entries at the time of the broadcast.

HbbTV offers the opportunity to call up additional information directly through the TV. However, the degree of use will depend on the brand, product, and placement as well as consumers’ desire for immediate Internet research. HbbTV does not replace the Internet, but can represent a practical extension of it.

Stationary Internet with branding and social media, the mobile Web, and now a growing percentage of Internet on TV: is there a danger of brands having to be active on too many digital platforms in the future?

It is not about the establishment of a new media, but two channels coming together that belong together, thanks to HbbTV. After all, many people already use the Internet while they are watching TV – whether with a laptop or a tablet. It is much more about consistently linking two channels that complement each other extremely well. The fact that this does not reduce the demand for resources is a challenge that we will have to overcome with our agencies. In terms of budget, we would have to focus on reallocation, rather than an increase. While media opportunity appears to be endless, budgets are not.

IT IS NOT ABOUT THE ESTABLISHMENT OF A NEW MEDIA – TWO CHANNELS ARE COMING TOGETHER THAT BELONG TOGETHER.

36 37

Yet information architects face a major challenge.

All HbbTV functions are carried out using the

remote, and this should be as simple as possible.

The colored buttons play a key role, in particular,

with the red button launching the portal. The

green, blue, and yellow buttons can be assigned

to additional functions, such as calling up

sub-pages or taking part in a promotion. Assigning

functions to colors will make the system easier

to learn. Using the directional pad of the remote to

navigate from a higher to a lower page section,

however, may prove to be more difficult. The

functions must be arranged clearly enough that

pressing up, down, left or right will carry out the

corresponding function.

Making control more convenient in the future

will require thinking outside the box. Users

expect a clear, extremely simple-to-operate

structure that will allow them to take full

advantage of everything HbbTV has to offer.

Changes Resulting from Gesture and Voice Control

Over the next few years, established uses of the

TV may change rapidly. At the 2012 Consumer

Electronics Show, many manufacturers presented

initial concepts that clearly demonstrate how

the TV will be controlled without remotes in the

future. What will that mean for HbbTV? How will

the innovative solutions be incorporated into

the new standard – and more importantly, is the

corresponding support compatible with all

manufacturers? The trend of combined gesture

and voice control, in particular, will pose complex

challenges for the manufacturers if they attempt

to take the abundance of individual solutions

into account.

Pursuing the Radio Experience with HbbTV

Not much attention has been paid to the secondary

topic of HbbTV: the radio. After all, most TVs are

also capable of receiving radio stations. Radio,

which up to now has been limited in its functions,

will be available with a whole new level of

quality thanks to the extension option of HbbTV.

With their own HbbTV portal, radio stations can

not only make playlists accessible to listeners,

but can also share experiences in the studio and

other live events with their audience using a

webcam.

TOSHIHARU TAKAHASHIKachidoki, Tokio

THERE’S A COMMERCIAL BREAK AND YOU’RE SITTING IN FRONT OF YOUR TV. THERE’S A NEW CAR COMMERICAL FEATURING THE ALL-NEW MODEL YOU’RE INTERESTED IN BUYING. YOUR NEW HBBTV DISPLAYS A MESSAGE SAYING “CONFIGURE YOUR CAR NOW ON HBBTV AND CONTACT US FOR A FREE TEST-DRIVE.” WOULD YOU BE INTERESTED IN DOING THIS ON YOUR TV SCREEN?

I feel a bit uncomfortable about being

approached. I’d rather gather some information

myself first if it’s something I really want to

buy. Sending out my personal information on

the TV screen feels kind of creepy.

THE GLOBAL ROLE AND MARKET DEVELOPMENTThe entertainment industry benefits from technological innovations from

North America and Asia, where the latest consumer electronics trends tend

to originate.

HbbTV is currently being developed almost entirely in Europe, but the

standard undoubtedly has the potential to establish itself all over the world.

6.

3938

A European Phenomenon

HbbTV is gaining ground in Germany and France,

in particular. Development was extensively

promoted by public channels, and increasingly,

private channels, in the two countries mentioned

above, so that the pilot phase is now coming

to an end. The support of TV networks has

proven to be beneficial because, when it comes

to Internet-compatible TV, technological

development and especially content play a key

role. Rather than the manufacturer of the TV,

the channel known to the consumer sends the

content.

In a familiar setting, and because it is as as

simple as the well-known teletext, HbbTV has

the very best prospects for generating interest

and enthusiasm on a global scale. Even if

HbbTV should remain a European phenomenon,

Europe represents an exceptional foundation

for developing a domestic market, as it is the

second-largest regional market measured by

value creation in audiovisual media that focus

on the editorial responsibility of providers of

media services.15

Germany: Green Light for the Red Button

Since IFA 2010 and 2011 at the latest, it has been

demonstrated that HbbTV is one of the next

big trends in the German TV industry. ARD, in

particular, has done a lot of pioneering work over

the past few years. The result is a comprehensive

range of functions, ranging from video-on-

demand, network media centers, and news

applications to the new digital text and

an extensive EPG (electronic program guide)

offer. Many private channels waited until the

last moment but launched powerful platforms

at the end of 2011/the beginning of 2012 at

the latest.

The range of offers provided by most of the

channels is comparable to that of ARD.

Throughout development, a generally accepted

standard gradually established itself, although

the range of services, which is already extensive,

could expand and ultimately lead to the

establishment of a second generation of portals.

Then, at the latest, more interesting innovations

and company-owned developments will attract

the attention of the industry. Predictions indicate

a bright future for Internet-compatible TV.

In its “Digital Visions: Connected World”16 study

in 2010, Goldmedia forecasted there would be

5.7 million Internet-compatible TVs in Germany

by the end of 2011 and as many as 22.9 million

by the end of 2015. The figures released by

PricewaterhouseCoopers International Limited

(PwCIL) are similarly positive. The consulting

company predicted there would be more than

five million households with Internet-compatible

TVs by the end of 2011. There are few official

figures about the reach of HbbTV. SevenOne

Media recently published figures on technological

reach,17 quoting over 400,000 devices in the

ProSieben channel’s HbbTV portal for the first

time in January 2012. A look at the 2011 figures

reveals a continuous rise in actual users, with an

increase of 9.93 percent from December 2011 to

January 2012. Kabel eins has recently recorded

even stronger growth at 13.49 percent, although

the total number of devices is lower.

France: the Innovation Factor of HbbTV

The market in France is developing along the

same lines as in Germany. The innovation came

primarily from France’s public TV network,

France Télévisions. The first pilot projects were

held in France in 2009 during the Roland Garros

tennis event, better known as the French Open,

during which viewers could call up additional

information via HbbTV for the first time as part

of a live demonstration.

Developments are considerably further along

now and improved functionality was presented

in 2011,18 making it possible to call up additional

information about the matches to come, previous

games, and the athletes – all in real time. This

French example impressively demonstrates

the relevance of networking TV content and

online information, and that the drive for

innovation comes from the TV channels and

the public networks, in particular. While in

the past, development was promoted by TV

manufacturers, suppliers of content are now

setting the trends in order to offer their services

in the market.

The UK: the Classic Pay-TV Market

In the UK, pay TV makes up a large percentage

of the TV market. The BBC’s public channels

and the channels financed through advertising,

on the other hand, are highly outnumbered.

Most TV viewers tend to opt for channels with

less advertising, which is what makes HbbTV as

a form of expanded programming so attractive

in the UK. In the first few weeks of 2012,

networks increased their efforts to establish the

corresponding services and offers in the market.

freesat – a supplier of free TV signals – is one

of the first companies to incorporate HbbTV into

its own set-top boxes.

It is worth emphasizing that the HbbTV

standard will be integrated alongside the British

MHEG-5 format, which already facilitates

video-on-demand services, home shopping, and

interactive features through landing pages

and additional programming content. freesat’s

use of HbbTV (alongside MHEG-5) is only one

example of the acceptance of the new standard.

Another example is the Digital TV Group,

which is a sort of central authority for digital TV,

integrated HbbTV into its D-Book, that serves

as a foundation for developing digital TV for

manufacturers and channels – a step that is likely

to secure regional support.

40 41

Netherlands: HbbTV Replaces Application Development

In the Netherlands, the public channels

Nederland 1, 2 and 3 already support the

preliminary functions of HbbTV, gradually

replacing application development for the

application platforms of TV manufacturers.

The European standard is based on existing

technologies and does not demand any new

requirements, which makes the management

extremely happy.

Austria: Digital Pioneers and ORF Are Testing HbbTV

More than 97 percent of the population already

enjoys digital TV. According to the “Satelliten

Monitor” study (GfK), most Austrians –

1.91 million households – watch satellite TV,

while 1.32 million rely on cable. According

to data compiled by ASTRA, 225,000 TVs in

Austria are already Internet-compatible,

representing the ideal conditions for an ORF

HbbTV pilot.

Spain: the First Two Million at the Starting Line

In Spain, the number of Internet-compatible TVs

should reach two million sometime in 2012.

Panasonic points out that 60 to 70 percent of

the TVs on offer are Internet-compatible,

although use is probably low, as there is little

demand for additional services.

However, Spanish TV channels are already

developing HbbTV offers. Mediaset España

will be working with Telefónica to establish the

first HbbTV services, the functions of which are

based on European standards. wKey features

include video on demand, such as the Movistar

video service; the Telefónica over-the-top

solution;19 and content provided by the network,

which is managed by Mediaset España. It is

worth mentioning that content previously only

available on a computer or tablet will be

accessible through TV.

North America: HbbTV with Potential in the World’s Largest TV Market

No HbbTV projects are currently in the pipeline

in North America, although this innovation may

one day generate high interest in the world’s

largest TV market. According to Institut für

Rundfunktechnik, which belongs to the HbbTV

Consortium, initial inquiries have already been

submitted.20 HbbTV functions offer high-reach

networks in the US and Canada excellent

opportunities for boosting their own content

and revolutionizing advertising formats.

During major events such as the Super Bowl,

HbbTV support offers attractive opportunities

for expanding TV commercials. However, there

is a major hurdle to overcome: it may prove

difficult to capture the attention of viewers during

programming featuring attractive highlights.

Goal-oriented approaches will probably only

establish themselves following a longer learning

curve. On the other hand, content suppliers

can also increase the quality of their content by

enhancing sporting events, such as the NASCAR

races with interactive inserts featuring lap

times and current positions. In this way, the U.S.

could soon play a pioneering role in the global

establishment of HbbTV. But there is an aspect

that needs to be considered: concept success

requires there being a sufficient number of TVs

with the hardware, which poses the key challenge.

Asia: China’s CCTV Turns to HbbTV

The situation in Asia is similar to that in North

America: HbbTV has experienced initial interest,

but no pilot projects have been launched –

except in China, where the state-run TV channel,

China Central Television (CCTV), supports the

extension of linear content. However, there is

very little documentation about the range of

offers. The volume of use is unlikely to increase,

as analog TV is widespread in China, especially

in the countryside. The first positive signs to

come out of the Far East confirm that HbbTV

has the potential to establish itself outside of

Europe.

42

Contact:

Helge Grüttke

Director of Business Development

BBDO Germany

+49 211 1379 8323

helge.gruettke@bbdo.de

1 (http://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr11/icmr/ICMR2011.pdf“ \t„_blank“ International

Communications Market Report 2011, page 146)

2 (http://news.bbc.co.uk/2/hi/programmes/click_online/9677630.stm)

3 (http://mashable.com/2011/01/11/smart-tv-flop/)

4 (http://www.panasonic.de/html/de_DE/7242/9524/27736/289964/38422/83622/83627/2500581/7893503/

index.html)

5 (“WHITE BOOK HYBRID TV,” German TV platform, 2011)

6 (http://www.bitkom.org/files/documents/BITKOM_Presseinfo_Verkuerzte_Austauschzyklen_von_

TV-Geraeten_31_07_2011.pdf)

7 (http://www.nytimes.com/2011/12/27/business/tv-prices-fall-squeezing-most-makers-and-sellers.html?_r=1)

8 (http://de.statista.com/statistik/daten/studie/72224/umfrage/nutzung-von-tv-content-im-web-und-am-tv-

geraet-in-2009/)

9 (http://www.n-tv.de/technik/n-tv-Digitaltext-startet-article5064486.html)

10 (http://www3.mercedes-benz.com/mbcom_v4/de/c-class-coupe/de.html)

11 (Nielsen Media Research, 2005 to 2011 (January to April) http://de.statista.com/statistik/daten/studie/204557/

umfrage/werbeausgaben-fuer-finanzdienstleistungen-fuer-privatkunden-mediasplit/)

12 (http://de.statista.com/statistik/daten/studie/38128/umfrage/werbeaufwendungen-im-bereich-finanzdienstleistungen/)

13 (Die Welt, November 26, 2010, page 17, http://de.statista.com/statistik/daten/studie/167657/umfrage/haltung-

der-deutschen-bevoelkerung-bezueglich-altersvorsorgemoeglichkeiten/)

14 (Nielsen Global Online Consumer Survey July 2009, page 3; http://de.statista.com/statistik/daten/

studie/154132/umfrage/vertrauen-der-konsumenten-in-fernsehwerbung-nach-weltregionen-2009/)

15 GREEN PAPER on the online distribution of audiovisual works in the European Union: opportunities and

challenges towards a digital single market (http://ec.europa.eu/internal_market/consultations/ docs/2011/

audiovisual/green_paper_COM2011_427_de.pdf)

16 Digital Visions: Connected World study, Goldmedia (June 2010/http://de.statista.com/statistik/daten/

studie/160408/umfrage/prognose-zur-verbreitung-und-nutzug-von-internetfaehigen-tv-geraeten-bis-2015/)

17 SevenOne Media: figures on technical reach (http://www.sevenonemedia.de/c/document_library/

get_ file?uuid=44bb4d92-c70e-45ea-b193-87234dad6b1c&groupId=10143)

18 (http://www.youtube.com/watch?v=evoJugYXL7c)

19 (http://www.broadbandtvnews.com/2011/05/21/mediaset-and-telefonica-spain-to-pilot-hbbtv/)

20 (https://docs.google.com/viewer?a=v&q=cache:drdYa70C0SkJ:www.irt.de/webarchiv/showdoc.php?z%3DNTEw

OSMxMDA1MjE0I3BkZg%3D%3D+usa+hbbtv&hl=de&gl=de&pid=bl&srcid=ADGEESgMFhFCqZzUjd38KS4IzMpU

SO-lf3xMH19_etzpHCr-Jru_rREDJki6v5naIkdSSFoto2w9sK4E9WZgcU4p-ESwLDxHRssLz72u6dgHTdtyR97Jry_

sC11AhNlwinYjeZ8B52age&sig=AHIEtbSRusi7yuZjAXeCfEZ1gqXwpJgPng&pli=1)

SOURCES

1. Successful Pilot Stage

While in the past, HbbTV was primarily tested by the public channels in pilot projects, more and more

private channels are following suit, which is an important indicator that HbbTV is establishing itself as a

recognized standard. The ever-increasing number of users reported by SevenOne Media confirms the

findings: following the successful pilot stage, HbbTV is well on its way to becoming a European success

story with exceptional prospects for global expansion.

2. More Detailed and Individualized Content

TV use has changed significantly over the past several years. More and more viewers demand the

opportunity to watch shows when it best suits them, and they are increasingly unwilling to put up

with inflexible show times. There is also a demand for the added value provided by the Internet and

interactive offers that accommodate individual requirements. And HbbTV offers the ideal solutions.

For example, through media centers and the electronic program guide (EPG) – features which extend

the program with attractive content in the channel-managed environment.

3. Parallel Use of Terminals

HbbTV is not intended to replace the parallel use of TV and Internet, which is now commonplace.

Using smartphones and laptops – to access social media, in particular – while watching TV will

continue to set the tone. In other words, the TV can provide access to HbbTV-specific content that

supplements and expands the current program in line with viewer demands.

4. Gaining Experience in the Pilot Phase

Companies that now opt to participate in an HbbTV pilot project will be gaining valuable experience for

the future. As long as the number of participants is low, pilot projects can be conducted cost-effectively

and with a focus on goals. Because only HbbTV-compatible TVs are addressed, there is very little risk

of irritating viewers with concepts that are not yet fully developed. The pilot phase serves as a test run

for optimizing conceptual strategies.

5. Recommendation: Take the Plunge Now

HbbTV is just about to start the pilot phase for market maturity, representing the ideal time to adapt

communication to meet the challenges and opportunities of the new technology standard. Companies

that now choose to test and optimize concepts will be ahead of the game once HbbTV has conquered

the mass market. I would like to take this opportunity to invite you to discus with us potential solutions

for preparing your company for HbbTV.

SUMMARY

IMPRINTAuthor:

Torsten Kägler

Consulting

BBDO Proximity Hamburg

+49 40 27852 4260

torsten.kaegler@bbdoproximity.de

Dr. Friedrich August Wagey

Concept and Design:

Falk Schaar

Ann-Marie Aring

WRITTEN BYHRISTIAN KOHLHASE

ENRICO POEGEJORG JELDEN

KATHARINA MICHALSKIMECHTHILD BROENS

TIM KELLER

WWW.BBDO.COM

WWW.PROXIMITYWORLD.COM

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