Interactive Media and
Interactive TV Advertising
Aguinaldo Boquimpani
Digital TV / Interactive Media Specialist
Brazil
Agenda
1. TV and Internet
2. DTV in Brazil and Latin America
3. Ginga: a World-class DTV standard
4. TV Interactivity
5. Why Interactive TV Advertising
6. What is Interactive TV Advertising
7. Current Offerings
8. Example: Verizon Widget Bazaar
9. Convergence Paths
10.Multiple Screens
11. IBB (Integrated Broadcast-
Broadband) – real world samples
12.Relevant Points
TV is…
• Communication
• Entertainment
• Marketing
Watching TV is…
• A lean-back experience
• A group experience
• Getting content (push)
Internet is…
• Information
• Entertainment
• Marketing
Using Internet is…
• A lean-forward experience
• A solo experience
• Seeking content (pull)
Will Internet replace TV?
• Recent Nielsen’s 3 Screen Reports (USA) say that:
• Internet content viewing is growing significantly
• But.. TV content viewing is NOT decreasing
• Use of both platforms at the same time is increasing
drastically
Are Connected TVs the perfect solution?
• Google TV was branded as the killer “Connected TV”
solution and it was a spectacular failure.
• In the connected TV scenario the broadcaster is out:
TV manufacturers want a piece of the action!
• Viewers may not want to search the Internet or
otherwise have an Internet experience on the TV.
• But… what about smartphones and tablets? They
will be secondary screens in the home.
What would be the solution to integrate
both worlds?
• An inclusive scenario, with manufacturers (devices),
broadcasters (content), sponsors and marketing
(money), all in the same boat.
• A platform that integrates the main TV screen and
the secondary, personal screens (tablets and
smartphones)
• A unified user experience in all different screens
• An easy user interface: usability is fundamental.
• Technologies based on open standards, not
proprietary solutions.
Let’s go back to the beginning
• TV today means… Digital TV
• How is the adoption of Digital TV and what
can be expected?
DTV in the World and in LATAM
0
200
400
600
800
1000
1200
1400
1600
2006 2010 2016
Analog Homes
Digital Homes
Source: Digital TV Research Ltd., June 2011
2010 :
- 42.5% digital
- Only Finland
fully digital
2016:
- 80.0% digital
- 33 countries
fully digital Millions of
Households
The World Is Switching to Digital TV
Emerging Markets Will Drive DTV Sales
Source: IMS Research, August 2011
In the next five years, TV set shipments will: grow 2.2% per year in Latin America, Eastern Europe, MEA & Asia Pacific decline in Japan & Western Europe be flat in North America
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015 2016
Primary pay DTT
Primary FTA DTT
Analog terrestrial
Digital free DTH
Pay DTH
Pay IPTV subs
Analog cable subs
Digital cable subs
Source: Digital TV Research Ltd., June 2011
Free to Air DTT will grow faster than DTH or digital cable
Millions of Households
Free-To-Air TV Will Lead in Latin America Free To Air will Lead in Latin America
Brazil
In 2016, Brazil Will Be 5th Largest DTV Country Brazil will be #5 DTV country in 2016
(1) Computer Industry Almanac / IBGE (2) Telecom/ IBGE (3) WWW.eletros.gov.br
FTA TV: 96% of Brazilian households(3)
Broadband: 18% of Brazilian Households (2)
PC penetration: 55% of Brazilian households(1)
TV in Brazil
Highlights
Total current number of TVs: 100M+
Coverage: Around 65M households
More than 13M TVs CRT sold on the last 3 years not equipped to receive DTV
Around 7M LCD/PLASMA TVs sold before 2010 not DTV-ready.
3M+ LCD TVs already sold with Interactive System (Ginga).
Quick view: still a long way to go,
but advancing fast
8,00
4,90 4,00
3,00
3,60
4,30
-
0,30
2,00
2008 2009 2010E
iDTV
LCD/PLASMA
CRT
Source: 2008 and 2009 (SUFRAMA) / 2010 (estimate)
(*) in millions of units
DTV in Brazil
(1) http://www.dtv.org.br
Cities: 47, 23 capitals (1) Broadcasters: 100+ broadcasters, including headends and affiliates (1)
State penetration: 23 of 26 states (1)
DTV adoption in Brazil
(1) http://www.dtv.org.br (2) http://pt.wikipedia.org/wiki/ISDB-TB
11 countries in LATAM + Philippines in Asia (1)
ISDB-T adoption in LATAM
Population: 354 Million in LATAM (2)
The Ginga Standard for Interactive TV
Ginga, the Brazilian Terrestrial Digital TV System
interactivity standard, is part of ISDB- Tb (ISDB-T
Japanese standard, Brazilian version) that has been
adopted for terrestrial and mobile DTV in 11 countries
representing over 350 million people, including Brazil,
Uruguay, Peru, Argentina, Chile, and Venezuela.
Ginga is a modern, world-class interactivity system that
was recognized by ITU (the United Nations agency for
Telecommunications and TV Standards) as an
international standard.
Today there are more than 3M TV sets in Brazil already
deployed with full Ginga products from brands like
Sony, Panasonic, Philips, LG and Samsung.
Ginga: A World-Class Interactive DTV
Standard
Source: http://www.dtv.org.br
LCD TVs will have to include Ginga to keep tax breaks
Convergência Digital :: 23/09/2011
A change to the Processo Produtivo Básico (PBB) is in public consultation for TV
sets with liquid crystal display (LCD) that will require inclusion in these devices of
the DTV interactive middleware, Ginga.
In other words, manufacturers who wish to continue enjoying the tax benefits for
the production of these devices will have to incorporate Ginga mandatorily. Under
the proposal, until the end of next year 75% of the devices must come with the
middleware.
Starting in 2013, all LCD TVs benefiting from the exemptions will have to include
Ginga. Moreover, it is prescribed that all models that support IP connectivity
middleware must not have the possibility of access restrictions on interactive
applications for the communication channel.
http://convergenciadigital.uol.com.br/cgi/cgilua.exe/sys/start.htm?infoid=27802&sid
=7
Brazilian Government: TV Interactivity and Ginga
are key technologies to the country
Interactive TV Advertising
22
Viewer chooses interaction pressing OK button in the remote
Interactive TV Advertising Model
© Copyright TQTVD / TOTVS
23
Modelo Interatividade
Viewer is asked if he wnats to receive a free sample of the product. It could also be a discount code, a code to participate in a lottery, etc.
© Copyright TQTVD / TOTVS
Interactive TV Advertising Model
24
A dialogue is shown to get viewer’s permission to store his data.
© Copyright TQTVD / TOTVS
Interactive TV Advertising Model
25
If the user agrees, his data is sent to the broadcaster and the broadcaster can forward
this data to its marketing sponsor.
© Copyright TQTVD / TOTVS
Interactive TV Advertising Model
26
From this point on the viewer can access more information with a rich interactive
experience inside the marketing campaign.
© Copyright TQTVD / TOTVS
Interactive TV Advertising Model
Interest is Growing in Interactive TV Advertising
Why Interactive TV Advertising
28
Who already offers interactive TV marketing in the world?
Source: http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5-9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D
Why Interactive TV Advertising
29
Who is already sponsoring Interactive TV marketing?
Modelo de Comercialização de Interatividade na TV
Source: http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5-9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D
Why Interactive TV Advertising
Interactive TV Improves Advertising Value
Makes TV Advertising More Measurable & Accountable Traditional commercial spots are not nearly as valuable in homes with DVRs Q3 2009: In Tivo households, 39% of programs were time-shifted Addresses, Engages & Empowers the Consumer Transforms TV ad messaging into a lean-forward experience with scale, customization, addressability & localization Consumer chooses when and how long to engage De-Clutters the Ad Environment Offers a rich, singular brand experience that cannot be replicated with commercials or online advertising
Why Interactive TV Advertising
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
Interactive TV Advertising is Effective
Canoe Ventures Study on Interactivity & Advertising (March-Sept 2010)
Goal: - Measure impact of interactivity on brand metrics - Measure recall, opinion, purchase intent Scenario #1: “Request for Information” (RFI) - An interactive call to action during a TV commercial - A request for a product sample, a coupon, or informational brochure - Viewer simply uses their remote and “clicks” to receive Scenario #2: In-Program Poll - Advertiser-sponsored interactive poll or trivia quiz - Poll displayed during program, then followed by commercial
Why Interactive TV Advertising
Results Interactivity improves brand recall - RFI in commercial increased unaided recall of test brand 132% - Unaided brand recall rose 167% for interactive poll following ad Interactivity results in a higher brand opinion - Favorability increased in viewers who noticed interactivity (42% to 51%) - 91% who accepted offer had “a more favorable opinion about the brand” Interactivity increases purchase intent - Interactive Poll + commercial raised brand purchase intent scores 40% - Just noticing interactive ad without clicking raised purchase intent
Why Interactive TV Advertising
Interactive TV Advertising is Effective
Entry Points
What Is Interactive TV Advertising “Entry Points are the place
within the TV viewing or
interactive experience where
the viewer is first exposed to
the interactive advertisement.”
Main Menu Banner
Interactive Guide Banner
Interactive Tags in Commercials
(a.k.a. Triggers)
Pause/Delete Screen Banner
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
Destinations / Capabilities
“Destinations are the follow-on engagements that
the consumer experiences once they have initiated
the interaction.
Technical Capabilities are applications or
functionality that can be interacted with.”
Examples
Branded
Showcases/Microsites
(a.k.a Dedicated Advertiser
Location/Virtual Channel)
Branded Theme
Promotions on Demand
Broadband/VOD
Sponsorships
Click to Call
Customized Applications /
Games / Commerce
Lead Generation Capability
(a.k.a. Request for
Information (RFI))
Survey/Voting/Polling
Telescoping to VOD
What Is Interactive TV Advertising
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
What Is Interactive TV Advertising
Destinations / Capabilities
Destinations / Capabilities
What Is Interactive TV Advertising
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010
What Is Interactive TV Advertising
Destinations / Capabilities
Verizon: Widgets are Key to Advertising
Use case: Verizon Widget Bazaar
Source: "Verizon focuses on widgets-based advanced advertising", John Moulding, Videonet, 10 Nov 2010
Verizon, the US quad-play provider, is focusing its advanced advertising attentions on its Verizon Widget Bazaar...Tellingly, the TV apps platform is a much bigger priority than advanced VOD advertising like dynamic VOD ad insertion. ...A good example of the advertising opportunity with the Widget Bazaar is provided by Victory Motorcycles, which includes video about its products that amounts to a television brochure, plus a gallery of product photos. This is complemented by an interactive dealer locator that presents the nearest five dealers to a viewer, based on their ZIP Code. Viewers can also request a brochure to be emailed to them. All the apps within the Widget Bazaar will benefit from the fact that Verizon can use its own 30 second advertising spots to promote the concept and make sure consumers know the applications exist. … “I would argue that our widgets provide the most advanced dedicated advertiser landing page available in the US today,” Jason Malamud, General Manager of Verizon FiOS Advertising declares. “Advertisers can pull video from our VOD servers and they can pull text and graphics from web servers so they can be dynamically updated. They can offer interactive features like a dealer locator [for car dealers, for example]. That information is not sent to us separately but is available from the advertiser so data can always be fresh.” Usage data can also be delivered straight back to the advertiser.
39
SKY ACTIVE
SKY Active is a model of Interactive TV launched in
the UK and Ireland in 2001.
Business models for interactive marketing:
• Interactive Airtime – it is the transmission time
used to exhibit an ad associated to interactivity, which
is accessed inside the context of the video content.
• Interactive Airtime Premium – It is an additional
fee which enables an interactive spot in the video
content. The price depends on the number of
insertions but only households that support
interactivity pay for the insertions.
• Hosting Charge – Fee to store and transmit the
interactive content.
Source: http://www.t2dgroup.com/downloads/Guide%20to%20Interactive%20TV.pdf
Use case: Sky Active
Paths of Convergence
Source:
DisplaySearch
Q2’11 Quarterly
TV Design and
Features Report
Connected TV shipments to exceed 138M in
2015
1. The Internet on TV Sounds Confusing (to the user)
For average consumers, the thought of hooking up the Internet to their television set
sounds confusing. Many wonder what they will have to do to make a smart TV work
2. The Internet on TV Is Confusing
They want to watch their new television without a call to tech support, and that is
understandable. Delivering products that are simple to set up and easy to use should be
a main concern for television manufacturers.
3. Fear of Obsolescence
4. Customer Support Concerns
5. Poorly Defined Value Proposition
Most Smart TVs are being touted for their technology rather than the benefits they
provide.
5 Reasons why Connected TVs can be a flop
Source: http://mashable.com/2011/01/11/smart-tv-flop/
• This is the true question.
• Most of Internet scenarios will not be successful in the
TV screen and for the TV lean-back experience.
• Convergence then can really exist including:
– Different ways and places to consume content
– Interactivity on TV and multiple secondary screens
– Interactive advertising
– Rich content
– Integration between all of the features
above
Where is the convergence?
• There is a growing offer of broadcaster’s applications on
tablets.
• But apart from accessing the same content, what can the user
do?
• There is currently no integration between TV and devices. This
huge potential for the simultaneous and complementary use of
TV and devices is still not explored by broadcasters and the
advertising market.
Caminhos de Integração: Múltiplas Telas
Connected Devices and Multiple Screens
Caminhos de Integração: Múltiplas Telas
With a convergent model that includes interactive services a huge
horizon of possibilities is opened in the Connected TV home:
• Changing content viewing from the TV to the device, with
access to a rich interactive content interspersed with sponsors
information, product marketing etc.
• Direct real-time feedback from the user to the broadcaster and
to its sponsors using the broadband channel when present.
• Same user interface and user experience.
Connected Devices and Multiple Screens
Two worlds that complete each other. It is not a battle for the home
screen anymore:
– Linear content viewing can be transferred from the TV to the
device.
– Non-linear content can be accessed on the device or on the
TV.
– For the majority of the broadcasters this will mean converging
existing solutions. For manufacturers this will mean revenue-
sharing models with broadcasters and their sponsors.
Paths of Convergence: Connected TV + Ginga
IBB (Integrated Broadcast & Broadband)
a Ginga-based solution
© Copyright TQTVD / TOTVS
Advanced Interactive and OTT Framework
Multi-screen content distribution with an advanced IBB/OTT framework
© Copyright TQTVD / TOTVS
Sticker Center: a Ginga-based solution
Sticker Center integrates a flexible Application Store model and can work in TVs and in Android platforms.
© Copyright TQTVD / TOTVS
Integrated Broadcast & Broadband:
real world sample applications
© Copyright TQTVD / TOTVS
T-banking: access bank accounts on the TV or on multiple
screens, connected with TV bank advertising.
T-Banking
© Copyright TQTVD / TOTVS
T-Commerce: access to a Walmart product portal.
T-Commerce
© Copyright TQTVD / TOTVS
Complete rich content product information: QR-code access on a
Walmart portal.
T-Commerce
© Copyright TQTVD / TOTVS
Access to social benefit agencies and retirement pension plans.
T-Government
© Copyright TQTVD / TOTVS
Public health-care agencies information and programs.
T-Government
Access to news portal on Brazil’s largest Internet provider (UOL).
Distribuição de conteúdo OTT OTT Content Distribution
© Copyright TQTVD / TOTVS
Access to a SBT Videos broadcaster’s content portal.
OTT Content Distribution
© Copyright TQTVD / TOTVS
Access to TV Globo’s broadcaster’s content portal.
OTT Content Distribution
© Copyright TQTVD / TOTVS
Social TV
Recommendations and content information sharing among viewers.
Social TV
© Copyright TQTVD / TOTVS
Relevant Points
• Internet and traditional TV are not about to battle for the home
screens.
• They are about to converge and integrate, enabling seamlessly
unified user experience across different screens and enabling
the viewers choice and freedom.
• There is a huge potential to explore Interactive TV scenarios
using standardized and open solutions like the Ginga standard
for Interactive Digital TV.
• Content is king and marketing will always be about selling a
good product within a rich content experience.
• Welcome to the new TV!
Aguinaldo Boquimpani
Consultant
Digital TV Media
Interactive TV
Mobile Media Technology
http://br.linkedin.com/in/aguinaldoboquimpani
Contact Thank you!