50 ROUND TABLE Linear Playout
FEED:WHATARE THEPROSANDCONSOFMONETISINGALINEAR CHANNELCOMPAREDTOVOD?
ERIC BOLTEN: One pro is that you have an engaged audience, and know what people are watching. This is particularly important for monetising those high-impact live sporting events that bring in high advertising rates and engaged, large audiences. You have a pretty good understanding of what your audience demographics and impression levels will be, and you can deliver that info back to sponsors to support spot rates. In VOD, you can make certain assumptions about the audience you expect for certain content in your library, but it is much harder to predict true audiences and consumption ahead of content going live. PAUL MARTIN: Linear viewing does have some specific strengths that should be leveraged.
The challenges are that linear is time- sensitive, which can lead to inconvenience in people’s busy lives. Linear simply won’t get the biggest audiences unless the content is unmissable at the time. Linear on a traditional TV platform is also hampered by a lack of real knowledge about who is watching, which reduces the impact of advertising efforts. But linear ’s time-sensitivity can lead to a must-see shared experience. Linear
can get much bigger audiences for the right content like sports, news and culturally important content. Linear can also draw
specific target audiences, which works well for advertisers who want to reach a general audience with their messages. For marketers looking to capitalise on an engaged audience, linear can be a place to leverage a live, ‘do-it-now’ sentiment.
FEED:WHATARESOME TECHANDTECHNIQUESFOR BETTERADVERTISING INLINEARTV?
PAUL MARTIN: One of the best ways for advertising to improve in linear television is for linear channels to be focused on OTT platforms. This could open up the market to smaller, niche players who would see more value in TV advertising if they could be more sure about the type of eyeballs their ads would reach. Using consumer metadata at the point of content delivery is going to bring more value to advertising. OTT services can already do this with the available technology. But consumers should be more incentivised to share information about themselves that they know will improve their experiences. It might seem Big Brother-ish to many, but to others it will be the way that they are provided with the things they really care about. STEVE REYNOLDS: I think the ability to do DAI is going to be a big piece of what drives the future for linear TV. One of the things that VOD has definitely
proven is that targeted and addressable advertising is a far more effective way to monetise audiences. With targeted advertising, the viewer doesn’t have to sit through a two-minute long ad break – instead, you get one or two 15-second ads that are targeted at you. You will see some of that innovation move to the linear side, where we will be able to do better addressability to tailor that advertising environment more towards the viewer, and that happens because of DAI. However, one thing that cannot be compromised when moving from traditional linear advertising to more targeted dynamic ad insertion is the quality of the viewing experience. We see the future of linear as taking the best elements from linear, such as brand safety and the premium viewing experience, and combining that with all the benefits of digital.
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