Analysis on the present situation and future of program TV

194 1 year, the first TV advertisement was broadcast in the United States, which opened a precedent for TV advertisement purchase. Today, TV advertising has made great progress and achieved remarkable results. However, due to the limitations of TV advertising, it still relies on a wide range of demographic data (such as age and gender) to maximize advertising coverage, which leads to problems such as lag and unclear audience information. With the development of program technology, we find that introducing more digital means and data into TV advertisements can greatly improve the pertinence of TV advertisements. The time is ripe for the digital transformation of TV advertising industry.

At present, in the TV programmatic buying market, there are many players involved, and there are various forms of programmed TV, which makes people easily confused: What is programmed TV? In this paper, Shunfei Technology will popularize the development status and future development trend of programmed TV.

What is programmed TV?

Programmed TV is to use software automation to buy and sell planned TV advertising inventory on the basis of display. It can create value for buyers and sellers through audience data and improve operational efficiency.

As a video streaming media, program TV attracts viewers through two forms of advertisements:

1. broadcast TV/linear TV: traditional TV viewing requires viewers to play programs on the broadcast network as planned, and viewers cannot pause or replay the content.

2. Nonlinear TV: With the development of TV and the increase of audience demand, the audience can choose what they want to watch without watching it at the planned time and place.

At present, there are three types of program TV inventory:

1. linear inventory: TV advertisements are purchased through an automated platform and sent through wired or network connections. Its positioning and reporting are based on traditional TV indicators. Representatives are ABC, NBC and CBS.

2. Addressable inventory: TV advertisements targeted at specific home users through the use of first-party or third-party data and through set-top boxes.

3. Connected inventory: TV advertisements provided through OTT devices or Internet smart TVs. Its report is based on video indicators, such as frequency and completion rate. Representatives include Roku, Amazon Firetick and Apple TV.

The present situation of TV programs: beauty and challenge coexist

At present, there are five main types of participants in the ecological chain of programmed TV industry: TV advertisers/advertising agents, demand-side platforms, seller or supplier platforms, data management platforms, TV companies/TV networks.

In foreign countries, in this ecological chain, traditional TV companies and super internet platforms are the most eye-catching for the development of programmatic TV, and various forms of programmatic TV solutions have been launched. In China, however, the situation of program TV market is different, and the form is not as rich as that of foreign countries. Radio and TV stations rarely innovate programmed TV, mainly including TV advertising trading platform, TV advertising oriented service and internet TV related services. This is partly due to the influence of policies and regulations.

OTT TV is the main form of program TV purchase in China at present. OTT is the abbreviation of Over The Top, which refers to providing various application services to users through the Internet, that is, using the operator's network, providing services by a third party other than the operator. OTT TV, that is, Internet TV, refers to Internet-based video services, such as video content of PPS, UUSee and other platforms transmitted to the display screen. The terminals can be televisions, computers, set-top boxes and so on.

Because they are optimistic about the development prospects of Internet TV, major domestic video media such as iQiyi, Youku and Tencent have seized the OTT market, and LeTV and Mango TV have also occupied a place. In addition, many TV manufacturers (Hisense, Skyworth, Sony, Panasonic, etc. ) have joined the industrial ecological chain and actively cooperated with Internet media while producing hardware.

However, the development of Internet TV is not optimistic. It touches on the traditional business model. No TV network wants its programs to be commercialized. At the same time, whether TV networks can embrace data to a large extent is still a topic under discussion.

The audience characteristics of OTT TV are more obvious, generally in the middle and high-end audience, concentrated in the more developed areas of the first and second lines. Theoretically, DSP can cooperate with operators in data docking, analyze and identify based on DMP, and push programmatic buying and targeted advertisements through PMP and PDB. The unique advantage of OTT is that most audiences actively search for what they want to see, which makes it easier to target through content preferences, and at the same time get more consumer data for precise marketing.

However, it is not easy for advertisements to find consumers, which needs to span multiple advertising trading platforms, content parties, licenses and display terminals, which also means that the most important consumer data are scattered in their different permutations and combinations. It is the key to open up the ecological chain of programmed TV purchase and master as much data as possible from different demanders to different suppliers.

Future Programmed TV: Open the Ecological Chain!

According to eMarketer's forecast, by 20 18, the expenditure on TV programs will continue to increase to 4.4 billion dollars, which will probably account for 6% of TV advertising expenditure. Although programs still account for only a small part of the total TV advertising expenditure, with the accelerated development of program TV and the continuous inflow of investment funds into the TV industry, the future of TV will be bright.

In the United States, many TV companies are now changing to addressable TV, which reflects that traditional TV companies are aware of the threat of digital advertising and need to take some actions to join the competition of automation efficiency. But in the short term, the main business of these TV companies is aimed at small and medium-sized advertisers. However, this will pave the way for the largest advertisers to increase their spending on program TV.

In China, the prospect of OTT TV will show explosive growth in recent years, and it is considered as the most innovative and potential marketing method, which is more flexible than traditional TV advertisements and more visual and interactive than network TV. According to relevant data, at the beginning of 20 17, OTT terminals have covered 36% of households, and it is expected to expand to 45% of households this year and explode to 72% of households in 2020. OTT big screen shows huge market potential and promotes the purchase of TV programs in China.

However, the problem facing the industry will be how to use technology to connect the data owned by hardware manufacturers, content providers and licensees. Moreover, DSP will play a more important role in solving the problem of data connection, and at the same time explore more perfect cross-screen technology, and realize the cross-screen connection and accurate delivery of PC, mobile, Pad and TV through cross-screen data analysis and technical support on the Internet. Data connection and multi-screen delivery will be the biggest challenges faced by domestic and foreign programmatic TV purchase.

On the other hand, at present, both in China and the United States, program TV is mainly traded through PMP. On the one hand, the inventory resources of programmed TV are relatively better, and the audience behind it is more valuable. On the other hand, due to the negative impact of programmed display advertising, it can not be completely sold in the open market. Display advertising inventory is like an ocean, and TV is relatively like a pond. Therefore, in the future, it will be possible for TV or Internet media companies to provide better inventory and orientation through technical means to avoid programmatic TV advertisements being questioned like display advertisements.

We can expect that all TV stocks can eventually be sold on an open trading platform. In the next three years, we can see that TV is extremely digital and data-driven. Marketers of enterprises of different sizes need to make preparations in advance, start learning and gradually adjust their marketing strategies.