the connected world supplement special report Supplement sponsored by
Yariv Erel, co-founder and CEO of
JustAd.TV, reports on the challenges of attracting and delivering advertising in the new TV world.
1940s it marked the start of a highly influential - and profitable - new advertising medium that ultimately
W
Harnessing ad- skipping behaviour in a Connected TV world
hen NBC and CBS in the US first
pioneered the idea of funding television channels with advertising in the
spread right across the globe. Despite concerns among the great and the good that ad breaks would trivialise the previously formal and authoritative tone of broadcasting in Europe, Scottish Television boss Roy Thomson famously went on to describe the awarding of an independent television (ITV) franchise as ‘a licence to print money’. However the revenue prognosis for ads-supported linear television looks very different today, as the biggest shift in media consumption patterns in the history of television takes hold - a migration to online viewing, poised to accelerate rapidly as the number of connected screens increases. According to Kurt Scherf, vice president & principal analyst at Parks Associates, 23% of all HDTV receivers sold last year could be connected to
44 l ibe l the connected world supplement march/april 2011 l
www.ibeweb.com
the Internet, and this figure is set to rise to 76% in 2015.
It’s not just TV sets either - an army of Internet-connectable Blu-ray disc players, game consoles and digital video players are joining the battle for eyeballs in the biggest confrontation to the media status quo since the invention of television itself. A host of Internet assisted or delivered programme services are either at or near deployment in the US and Europe, including the much- vaunted YouView service (formerly ‘Project Canvas’), backed by all of the UK’s terrestrial broadcasters plus major telecoms and infrastructure partners slated for launch this year. Scherf also predicts that transactional revenues from online video consumed via connected TV devices will grow to some US$8 billion by 2015. All of which presents a clear and present danger to the revenue printing press of conventional TV, because viewers can simply hit fast forward on the remote control to skip the ads. This is already a problem with
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