Advanced TV Advertising

Part
01
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Part
01

Advanced TV Advertising: DirecTV

DirecTV's next-generation content delivery solution and advanced TV advertising are capable of providing DirecTV linear satellite and broadband over-the-top (OTT) content for enhanced entertainment and advertising experience including Video on Demand (VOD) that enables viewers to select and watch content whenever they wish. Xandr sells addressable TV across DirecTV’s 19 million satellite homes that also reaches 1.6 million OTT subscribers on DirecTV Now.

DIRECTV'S CAPABILITIES AROUND ADVANCED TV Advertising

  • DirecTV changed the way they go to the market to reach TV viewers across new channels like TV Everywhere, streaming services like DirecTV Now, and new AT&T platforms like WatchTV, for both regional and national advertisers alike.
  • Following AT&T’s approved acquisition of DirecTV, the combination creates the industry leader in TV audience targeting.
  • AT&T AdWorks now combines the precision of DirecTV’s addressable TV targeting capability, which is the largest addressable TV advertising platform in the U.S., with the reach of AT&T AdWorks TV Blueprint data-driven solution.
  • This industry-leading combination, which is called AddressablePlus, gives advertisers the ability to reach their target audiences, delivering a better ROI than traditional approaches to national TV buying.

VOD

  • DirecTV Now which is a Video on Demand service has been tormented with mistakes in the month and a half since the spilling administration was propelled by AT&T.
  • Subscribers have complained of being unable to watch shows, frequent interruptions, missing features, billing issues, and more pretty much nonstop since the service’s November 30th launch. Many say it’s simply unusable. Active gathering strings on AT&T's site is griping about DirecTV Now issues. DirecTV Now was not prepared for complaints and blunder messages they were getting.
  • The service is meant to be a substitution for cable, offering access to around 60 channels for $35 every month and up to around 120 channels $70 every month. Dissimilar to conventional DirecTV, a satellite administration, DirecTV Now streams totally over the web.
  • A significant element guaranteed at the dispatch of DirecTV Now is the capacity to watch whatever broadcast inside the most recent three days in excess of 40 unique channels.
  • A support delegate ensures that the company is progressing in the direction of getting the issues reestablished as quickly as time permits.

OTT

  • DirecTV proprietor AT&T says it's finished purchasing satellites, denoting a change to OTT conveyance.
  • While touting their robust subscriber growth, operators of virtual pay-TV platforms have been met with a collective “meh” from investors, who see the low-priced, low-margin skinny vMVPD bundles as poor replacements for fast declining linear video businesses.
  • AT&T said it intends to progress its TV client base to the OTT model at any rate, and the edges will come.
  • According to AT&T CEO Randall Stephenson, the new gadget likewise will have capabilities unrealistic through third-party streaming devices today.
  • Some extra capabilities of the up and coming gadget is that it will have a voice-controlled UI with an incorporated inquiry highlight and will enable clients to look over any streaming video service to which they subscribe in including DTVN, Netflix, Amazon, Hulu and You.

LINEAR

  • According to Stephenson, the company is not what he would call a significant player in the computerized promoting market. But he believes that they have the capabilities to be one.
  • For the quarter, AT&T included 312,000 DirecTV Now clients while losing 187,000 clients over its Linear DirecTV satellite and U-stanza IPTV stages. The virtual stage presently represents about 17% of AT&T's 25.4 million pay-TV clients, up from just 1% every year prior. The transition demonstrated that the company is ready to do it in any instances.

MARKET REACH

  • Xandr sells addressable TV across DirecTV’s 19 million satellite homes, and last quarter, it signed exclusive deals to represent addressable inventory from Altice (for the tri-state area) and Frontier (for small and medium-sized markets).
  • The bargain conveys Xandr's span to 18 million homes.
  • Xandr-owned AppNexus can likewise enhance its TV supply with cross-stage media, and approaches premium supply through WarnerMedia, including Turner Networks, which as of now initiating AT&T set-top box information.
  • Xandr additionally achieves 1.6 million OTT endorsers on DirecTV Now.
  • Live linear inventory is currently more appealing to buyers than video on demand (VOD).

NEW TECHNOLOGIES

  • During an ongoing income call, AT&T Chief Financial Officer John Stephens unveiled that the organization will add another Internet TV offering to compliment DirecTV Now.
  • According to Stephens, AT&T is arranging an Apple TV-like streaming box to deliver live programming to the TV.
  • Referred to as the “AT&T/DIRECTV Wireless 4K OTT Client,” the product is based on the Android TV platform and can run the Google Play store and YouTube app. The item will be marked under DirecTV, as opposed to DirecTV Now.
  • DirecTV built an office that incorporates innovative design and technologies that will bolster cooperation, development, imagination, and efficiency inside its association and over its venture. This venture incorporates a refreshed traditional corporate work spaces as its Technology Consultant, Vantage, provide telecommunications and information technology services.

COMPANY LEADERSHIP QUOTES/COMMENTS

  • AT&T, the owner of DirecTV says the company is done buying satellites. This marks a switch to OTT delivery. “We’ve launched our last satellite,” John Donovan, CEO of AT&T Communications, said in a presentation to analysts.
  • Donovan and other AT&T executives said that the growth of internet-delivered video services is now the future of the company.
  • We are seeing shifts in viewing from traditional TV viewing — cable, satellite — to on-demand viewing, and streaming on-demand viewing,” said Randall Stephenson chairman and CEO of AT&T Inc.
  • Stephenson added that those shifts hastened a revamp of business models among all media companies that are “recognizing that they no longer have the luxury to rely exclusively on wholesale distribution of their content to customers going through satellite and cable companies.”
  • Also, Stephenson said the company would "aim to transition its traditional DirecTV linear video offering delivered over satellite to instead be delivered over a broadband connection using the same platform that supports the company’s over-the-top DIRECTV NOW (DTVN) mobile-centric video offering".
  • As the DTVN evolves, AT&T outlined upcoming enhancements including "cloud DVR and a third concurrent stream".
  • Stephenson added that before end of the year, "we plan to launch the next-gen product in a home-centric configuration with a very thin hardware client". He described it as much like an Amazon, Roku, or Apple streaming media player. He explained that "It’s a very small inexpensive streaming device plugged into your TV and then you connect it to any broadband service".
Part
02
of seven
Part
02

Advanced TV Advertising: Dish Network

Dish Network next-generation content delivery solution and advanced TV advertising is capable of providing Dish linear satellite and broadband over-the-top (OTT) content for an enhanced entertainment/advertising experience including Video on Demand that enables viewers to select and watch content whenever they wish.

Dish Network’s LINEAR TV ADVERTISING CAPABILITIES

  • Dish Network via Dish media serve unique targeted ads to its targeted audience.
  • With cutting edge technologies such as cross-platform reach, Dish Network’s advertiser puts the message in front of audience efficiently and effectively.
  • Dish Network targeting capabilities work with precision by combining first-party viewer data with third-party geographic, demographic, and psychographic data to work to identify the ideal audience.
  • Dish Network’s Linear TV created 80.78% of total impressions, which means ads telecasted on Linear TV create 80.78% of total advertising.

Dish Network’s VOD ADVERTISING CAPABILITIES

  • Dish Network provides Video on Demand Service, and it has a library with 80,000 titles which include the latest TV shows and popular movies.
  • Additionally, Dish Network delivers movies on the same day of its release.
  • Ads on DVR/VOD are displayed along with Playback, which means live advertisements are telecasted to the viewers.
  • DVR/VOD has 19.2% of total impressions delivered, which means ads telecasted on DVR/VOD create 19.2% of total advertising.

Dish Network’s OTT TV ADVERTISING CAPABILITIES

  • Dish Network provides OTT/over-the-top service by its product “Sling TV” where the content is delivered via an internet connection rather than through a traditional cable/broadcast provider at $10/month with 20 available languages.
  • Dish Network’s OTT has exceptional features such as Non-Skippable advertising for its premium content.
  • Dish Network’s OTT offer brand-safe, fraud-free, high-quality programming, and performance reporting which shows view rates across all screens.
  • It has zero ad blockers with a 97% completion rate.
  • Dish Network’s Sling TV has OTT Subscribers with 47% growth rate.

Dish Network’s Penetration

Dish Network’s NEW TECHNOLOGIES

Dish Network’s COMPANY LEADERSHIP AROUND THEIR ADVANCED TV EFFORTS

  • Charlie Ergen, Co-Founder and Chairman Of The Board of Dish Network comments on adopting 5G Network as a paradigm shift of Dish Network. His comments are He said that with 5G the next 'paradigm shift, and Dish’s spectrum position' -- a limited amount of uplink spectrum -- the company is in a 'little bit of an awkward position' and will have to build the businesses in phases."
  • Erik Carlson, President and Chief Executive Officer of Dish Network comments on acquiring nine direct broadcast satellites that “With this transaction, we will vertically integrate all the elements that define our customer experience—one team will deliver the full Dish and Sling TV experience end to end.” (Source #11)

Research Strategy

Initially, we searched for information on Dish Network’s capabilities around advanced TV advertising. We found that Dish Network's next-generation content delivery solution and advanced TV advertising is capable of providing Dish linear satellite and broadband over-the-top (OTT) content for an enhanced entertainment/advertising experience. This includes Video on Demand (VOD), that enables viewers to select and watch content whenever they wish. We found this information after deep diving into multiple sources of the Dish Network website and its related news articles, reports (annual/financial) and among other such as Dish.com, Venturebeat, Bizjournals, Multichannel, Fiercevideo, Liveramp, and others.

Part
03
of seven
Part
03

Advanced TV Advertising: Comcast

In the advanced TV advertising, Comcast is capable of finding the right audience for the advertising message across its premium linear digital TV, premium Video on Demand (VOD), and premium over-the-top (OTT) services. Comcast has a reach to 97 markets and more than 50 demographically unique TV networks.

Comcast's Linear TV Advertising capabilities

  • With dozens of demographically targeted networks and thousands of shows, Comcast can find the right audience for the advertising message.
  • Comcast Spotlight unites the status of a TV with cutting-edge technology, giving advertisers a branding platform that puts its messaging to the audience effectively.
  • Comcast Spotlight’s targeting capabilities work with precision by combining anonymized first-party viewer data with third-party geographic, demographic and psychographic data to work to identify the ideal audience.
  • Comcast provides non-skippable advertising for its premium digital TV on connected TV devices.
  • Comcast offers brand-safe, fraud-free, high-quality programming, and performance reporting which shows view rates across all screens.
  • Comcast delivers engaged audience and the most valuable impressions by running ads on top-quality content. Impression rates for connected TV devices are 45%.


Comcast's VOD capabilities

  • Advertising on VOD puts the message of the advertiser directly to an engaged audience. It aligns the brand with powerful programming enabling a potential customer to watch whenever and however they want.
  • Comcast provides non-skippable advertising for its premium digital TV on Xfinity set-top boxes.
  • Comcast runs ads on top-quality content. Impression rates for premium digital TV on Xfinity set-top boxes are 33%.


Comcast's OTT TV Advertising capabilities

PREMIUM DIGITAL TV
  • Comcast allows the advertiser to engage with customers watching TV and digital programming on their computers, phones, tablets, and connected TV devices.
  • Comcast's reach extends to customers watching non-skippable advertising on Xfinity Video On Demand and on OTT-connected TV devices.
  • Comcast delivers geographically at the market and cable zone level, providing premium efficiency.
  • Comcast offers brand-safe, high-quality programming, and proof-of-performance reporting.

PREMIUM DIGITAL VIDEO
  • Comcast puts the advertiser's message in front of the desired audience across devices. It runs the advertiser's video on brand-safe and high-caliber content.
  • Comcast provides high-visibility pre-roll and mid-roll placement in professional-quality video content. Hundreds of custom-created audiences are available in a range of categories to provide exceptional targeting opportunities.

DIGITAL DISPLAY
  • Comcast's Xfinity is the high-traffic, content-rich destination, where more than 23 million internet subscribers go to stream long- and short-form videos, check email, manage their accounts, read the latest news and more.
  • The advertiser can reach the desired audience through streaming video ad placement, well-positioned banner ads and text links, all in a clutter-free environment.
  • OTT impressions delivered across desktops/laptops are 53%, mobiles/tablets are 39%, and connected TV devices are 8%.


Comcast Penetration Data

  • Comcast has a reach to 79 markets.
  • Comcast has 50+ demographically unique TV networks.
  • Comcast has a reach to 42 million households with TV services and 26 million households with broadband internet service.
  • Comcast has a reach to 20 million Comcast set-top boxes used by the audience.
  • Comcast Digital Premium TV impressions by device in 2018 are 47% for connected TV, 30% for Xfinity set-top boxes, 15% for mobiles/tablets, and 9% for desktops/laptops.


COMCAST NEW TECHNOLOGIES

  • AdSmart Technology: NBCUniversal and Sky, both owned by Comcast, announced AdSmart, a global advanced advertising platform that will combine solutions and tech from both companies. The combination of NBCU and Sky’s advanced advertising technologies comes ahead of Comcast’s expected 2020 launch of a new ad-supported streaming service.
  • Blockgraph Technology: Comcast Cable Advertising, a division of Comcast Corporation, launched the next phase of Blockgraph, an industry initiative designed to create a secure way to use data and share information. Blockgraph platform, a blockchain-enabled software, incubated to date within Comcast’s FreeWheel group, which allows TV and media companies to control, connect, and safely activate their data at-scale. The goal of this software is to improve the effectiveness and efficiency of data-driven TV advertising and marketing.
  • Automated Content Recognition Technology by Inscape: Comcast’s ad tech division FreeWheel is partnering with Inscape, a smart TV data company owned by Vizio. The partnership is made to gain access to the company’s more than 10 million smart TVs in the U.S. FreeWheel can use the opt-in smart TV viewership data of Inscape that uses automated content recognition technology for consumer audience segments used for selling national TV advertising. That model will cover the U.S.


Quotes / Comments from company leadership around COMCAST'S advanced TV efforts

  • Hank Oster, COO and Senior Vice President at Comcast Spotlight: “Contrary to the accepted industry narrative, TV today is thriving, with time spent viewing video reaching new highs, and it remains the most powerful way to reach consumers. It’s just a new TV, one that has evolved with more content and more consumer access”, “It’s important we help advertisers understand the way the medium has evolved and how to harness the abundant time spent and its reach to grow their businesses.”
  • Linda Yaccarino, Chairman of Advertising and Partnerships at Comcast's NBCUniversal: "The world is getting smaller, and the opportunity for international marketers to make an impact with consumers is getting bigger. The industry has demanded a global premium video offering, and now, one will finally exist", "NBCUniversal and Sky are committed to setting the highest possible standards and transforming the ad experience. Bringing our advanced advertising solutions under one global structure is the first step in our journey."
  • Marcien Jenckes, President of Comcast Cable Advertising: “Comcast has invested in building the Blockgraph technology, but we do not want this to remain solely a Comcast-led initiative. We are inviting the entire TV industry to participate in Blockgraph so that it becomes a true industry undertaking”, “When scaled, non-personably identifiable data becomes available to all, the focus shifts to what a provider is able to do with that data and how it can be used to drive outcomes. We believe that when advanced data capabilities are paired with TV and premium video’s awareness and engagement advantages, results will be difficult to beat.”
Part
04
of seven
Part
04

Advanced TV Advertising: Charter / Spectrum

Charter Communications' advertising sales division is Spectrum Reach with advanced advertising solutions including AudienceApp, AudienceTrak, Addressability and Ads Everywhere which are available in VOD, OTT, and Linear TV.

Charter Communications advertising services -SPECTRUM REACH

  • Spectrum Reach is the advertising sales division of Charter.
  • It offers local, regional, and national businesses the opportunity to advertise in individual and multiple service areas on cable television networks and digital outlets.
  • In 2018, they began deploying advanced advertising products such as Audience App, which uses their proprietary set-top box viewership data (all anonymized and aggregated) to optimize linear inventory.
  • In 2019, they will be ramping up their deployment of household addressability, which allows for more precise targeting within various parts of their footprint.

Advertising Solutions

  • AudienceApp — Creates highly-optimized TV campaigns that reach targeted audiences and is accessible from a mobile device or computer.
  • AudienceTrak — A digital planning and reporting tool with a new level of transparency into TV and Digital campaigns’ performance, 24/7, 365 days a year.
  • Addressability — A digital and soon-to-be linear in select markers and to put a message in front of specific audiences with greater flexibility, deep insights, and dependable data.
  • Ads Everywhere — An advertising solution that dynamically inserts ads in cable programming, both live and on-demand and can be viewed on tablets, smartphones, laptops, and Roku devices. It increases brand impact and retention via a multi-screen campaign on 7 viewing platforms, 52 VOD networks, and 59 third-party app networks. It also helps to reach engaged and affluent consumers locally and nationally across 94 DMA.

Charter Comunications Operating Statistics — 2018

CUSTOMER RELATIONSHIPS
  • Residential: 26,270,000
  • Small and Medium Business: 1,833,000
  • Total customer relationships: 28,103,000
  • % of Residential non-video customer relationships: 38.7%
  • Single Play Penetration: 41.6%
  • Double Play Penetration: 27.0%
  • Triple Play Penetration: 31.4%
PRIMARY SERVICE UNITS
  • Residential
1. Video: 16,104,000
2. Internet: 23,625,000
3. Voice: 10,135,000
4. Residential primary service units: 49,864,000
  • Small and Medium Business
1. Video: 502,000
2. Internet: 1,634,000
3. Voice: 1,051,000
4. Small and Medium Business primary service units: 3,187,000

FOOTPRINTS
  • Estimated video passings: 50,824,000
  • Video penetration of estimated video passings: 32.7%
  • Estimated Internet passings: 50,652,000
  • Internet penetration of estimated Internet passings: 49.9%
  • Estimated voice passings: 50,086,000
  • Voice penetration of estimated voice passings: 22.3%

technology spectrum is developing or planning to incorporate

  • Addressability — Helps in working on the linear platform in select markers and to put a message in front of specific audiences with greater flexibility, deep insights, and dependable data.
  • Blockchain-based ad platform — Spectrum Reach is working with Comcast, NBCUniversal, and Viacom to have Blockgraph which can provide a secure platform for sharing information without disclosing identifiable user data to third parties in the TV industry.

Quotes on advanced TV efforts

  • "This new group within NCC Media has the ability to make a major impact for all players within the advertising landscape," "It has the power to transform the way we measure advertising effectiveness across linear and VOD through best-in-class data and technology." — Thomas M. Rutledge, chairman, and chief executive, Charter Communications (on partnering with Comcast Corporation and Cox Communications)
  • “Part of our goal in launching AudienceApp was to differentiate ourselves in the market by bringing the ease and functionality of traditional digital platforms, paired with our proprietary household viewing data, to linear television,” — David Kline, Executive Vice President for Charter, and President of Spectrum Reach.
  • “It’s imperative that the use of data prioritizes the privacy of consumers’ personal information...Blockgraph technology offers enhanced security and privacy protections by allowing all players within the TV ecosystem to directly share insights derived from anonymized and aggregated information. We support this initiative believing it will help set the standard for secure information sharing in the years to come.” — David Kline, executive vice president and president of Spectrum Reach (about rolling out blockchain-based ad platform with Comcast and Viacom)

your Research team applied the following Strategy:

Despite an extensive search, we were unable to find the company's penetration data specific to advanced TV advertising and their advanced TV advertising capabilities categorized to VOD, OTT and Linear TV. However, we found next available information which is general penetration data of their TV services from their annual reports which have been presented in this brief.

We made a deep dive on the company websites (both Charter and Spectrum Reach) to see a pre-compiled categorization of their advanced TV advertising capabilities for VOD, OTT, and linear. However, the website does not have categorized descriptions of their advanced TV ads instead they have presented the information generally and on the basis of advertising solution.

We looked for annual reports and Sec filings for the parent company Charter Communications Inc, and Spectrum Reach to see if they have detailed penetration reports on their advanced TV ads. But, Spectrum Reach does not have a separate annual report. Therefore, we had to rely on the annual report of Charter Communications. The annual report of Charter only provides general penetration statistics and they do not present the penetration specifically for their advanced TV advertising solutions.

As our third strategy, we looked into market reports on advanced TV advertising to see if there are any segmentation on the share of Spectrum in the advanced TV ads (VOD, OTT, Linear types) but we were not able to trace any relevant data. We were only able to find general statistics and trends.

Further, we searched for news articles and press releases to find mentions about the penetration of Spectrum advanced TV ads, but we were not able to gather relevant data. We searched in Multichannel.com, BussinesWire, advertising websites, etc but they only provide us an overview and descriptions of the offered solutions of Spectrum. We were also unable to triangulate the information due to lack of relevant and sufficient data points such as the percentage of advanced TV ads or percentage of consumers receiving advanced ads in VOD or OTT or linear segments.

To summarize, we were only able to describe the Advanced TV Advertising capabilities in terms of advertising solutions offered and the general penetration statistics of Charter.
Part
05
of seven
Part
05

Advanced TV Advertising Spend

In 2019, 3.7% of the total US TV advertising spend comes from advanced TV advertising.

ADVANCED TV ADVERTISING SPEND IN THE US

  • In 2019, advanced (addressable) TV advertising spend is estimated to account for 3.7% of the total TV advertising spend in the US.
  • The total estimated advanced TV advertising spend in the US is $2.54 billion.
  • This segment is expected to increase by 32.7% to $3.37 billion in 2020.
  • According to a 2018 survey of US agencies and marketers, the top three challenges associated with advanced TV advertising are scale (44% of the respondents), quality of inventory (39%), and return on investment (ROI) measurement capabilities (36%).

Part
06
of seven
Part
06

Advanced TV Advertising Categories

The top five categories of products or companies most likely to purchase commercials in advanced TV advertising platforms are retail, automotive, telecom, political and organizational, and CPG. More information on the topic has been presented below, along with the research strategy and calculations.

FINDINGS

TOP CATEGORIES OF COMPANIES IN THE US MOST LIKELY TO PURCHASE COMMERCIALS IN ADVANCED TV ADVERTISING BASED ON CALCULATIONS (shown in the research strategy section):

1) RETAIL
  • Retail companies are likely to spend $234,960,000 on advanced TV advertising.
2) AUTOMOTIVE
  • Automotive companies are likely to spend $188,760,000 on advanced TV advertising.
3) TELECOM
  • Telecom companies are likely to spend $113,520,000 on advanced TV advertising.
4) POLITICAL AND ORGANIZATIONS
  • Political companies and organizations are likely to spend $88,440,000 on advanced TV advertising.
5) Customer Packaged Goods (CPG)
  • CPG companies are likely to spend $38,280,000 on advanced TV advertising.

Research Strategy:

your research team applied the following research strategies:

We started our search by looking for a publicly available list of the top products/companies that are likely to purchase commercials in advanced TV advertising. However, we did not find such lists. Our next approach was to look at the information on news databases, such as AdAge and Business Insider, to identify any possible companies that could be fully explored to determine the top companies most likely to purchase commercials in advanced TV advertising platforms. We found a few companies (clients) that were big clients associated with fast-growing advertising agencies in the US. Therefore, we tried to categorize them. We then conducted a search to find relevant information on the companies. The categories obtained from this search were CPG (KFC, Johnson & Johnson, and Pepsi), automotive (Volkswagen and BMW), and miscellaneous (Travel, Sports, and News Insurance). Since these categories were based on the big clients of the fastest-growing companies, we assumed that the companies in the respective categories were also the top ones for ad spending. Thereafter, we tried to identify some market reports about the individual categories. Our main goal was to find some direct information that could be used for triangulation and calculation. We were successful in finding the required information. Our definition of the categories of companies that are most likely to purchase commercials in advanced TV advertising platforms was based on the categories having the highest advanced TV ad spend.

CALCULATIONS

We found that $2 billion was spent on advanced TV ad in 2018 in the US. Similarly, the total ad spend in 2018 amounted to $151 billion.
Therefore, we were able to calculate the advanced TV ad spend for each category by findings the percentage of each category's ad spend.
We used P&G (the top 2018 advertiser) as a proxy for the CPG category and calculated the advanced TV ad spend.
In this way, we were able to complete this research and present our findings.








Part
07
of seven
Part
07

Advanced TV Advertising Trends

Key trends expected to impact advanced TV advertising in the US over the next 3-5 years will include less fragmentation, infrastructure upgrades, and increasing obstacles for industry growth.

CUSTOMERS WILL WANT LESS FRAGMENTATION

INFRASTRUCTURE WILL be upgraded

  • In order for advanced TV to comprise a double-digit share of the overall TV ad spend, infrastructure will need to be upgraded to allow for such complexity.
  • Programmers will switch from Excel to more sophisticated cloud applications and analytic platforms that can create a TV schedule in minutes rather than weeks.
  • According to Ramp Up, the "shift towards being truly data-agnostic, in a way that stringently respects consumer privacy" can be a reality within the next 5 years.
  • Recommendation and search carousels will be used more frequently in the over the next few years.
  • Data and behavioral insights will permit content providers to distribute consumer-specific content packaged in UI to prevent information loss.
  • Data usage for analytics will become automated and targeting required for advanced TV advertising will shift TV into the digitized cross-channel world and align the substantial reach of TV with the precision and speed of the digital channels to include OTT, display and mobile.
  • Comcast, which owns Freewheel, is leading the market.
  • According to Business Insider, Google wants to "own the future of TV ad infrastructure" and is attempting to gain share in the market.

THE INDUSTRY WILL FACE OBSTACLES FOR GROWTH

  • The future of advanced TV faces many industry challenges including limited available inventory, a lack of consumer knowledge as to how the technology operates, tranparency issues, consumer hesitation in trying a new technology, and a lack of understanding about how the technology works and the devaluation of present-day TV ad inventory.
  • Advanced TV is also facing delivery and viewabity challenges. These include keeping up with innovations in technology, personalization issues since any member of the household may view the ad (not just the individual that is targeted), and accuracy in the calculation of engagement rates.
  • According to Emarketer, in a recent survey 44% of respondents reported that scale, followed by quality of inventory at 39%, were the biggest future challenges.
  • Comcast and Xandr are industry forerunners, thus face the above challenges.

RESEARCH STRATEGY

Our research team scoured the internet to find you some key trends expected to impact advanced TV advertising in the US over the next 3-5 years. We defined trends as a general direction as to which the industry is developing or changing. We only included trends that appeared in at least 3 reputable sources and were notated by at least one industry expert. We considered C-level executives at leading companies such as Comcast and Xandr to be industry experts. Our team included increasing obstacles for industry growth as a trend, since it was particularly asked for as a topic of interest and because it is affecting the speed in which the industry is developing.
Sources
Sources

From Part 01
Quotes
  • "As video and TV increasingly converge and viewership becomes more fragmented, Xandr is creating a simplified solution for marketers to reach their audience multiscreen and drive results. Xandr is made up of three business units: Xandr Media, its advanced TV and addressable solutions business; Xandr Data, its consumer insights and analytics business; and AppNexus, its advertising platform. "
Quotes
  • "The combination of 12 million addressable DIRECTV homes with the 70 million homes in the TV Blueprint audience network puts us in a unique position,” Welday said. “We will continue to reduce wasted spend in traditional national TV ad buys and provide best-in-class post campaign measurement to prove it.” "
Quotes
  • "Many subscribers are also frustrated by AT&T’s refusal to grant refunds. At launch, AT&T offered a free Apple TV to anyone willing to pre-pay for three months of service or a free Fire TV Stick to anyone willing to pre-pay for one month of service. Many did. But the assumption was that the service would work. "
Quotes
  • "“We’ve launched our last satellite,” John Donovan, CEO of AT&T Communications, said during a presentation to analysts, reports Space News. He and other AT&T executives said the rampant growth of internet-delivered video services that bypass satellite and cable networks is so significant that it is now the company’s future."
Quotes
  • "Yong said AT&T has a “sizable opportunity” to monetize 200 billion impressions annually with programmatic advertising—a bounty that will be “compounded” by the addition of 750 billion Turner Networks impressions, should AT&T be able to close the Time Warner Inc. acquisition. “We expect [AT&T] could compete with Google and Facebook in a $100 billion U.S. digital ad market,” she wrote. "
Quotes
  • "The shift to the thin client device also will improve the economics of AT&T’s traditional offering, Stephenson said. Shifting to the device, he said, will “drive the cost structure of the traditional video product down so that you could preserve margins in the traditional linear video as you grow in the over-the-top applications and video services.” "
Quotes
  • "Xandr’s inventory is mostly live linear and makes up “the largest representation of live inventory in the linear addressable marketplace,” said Amy Leifer, head of sales planning and operations at Xandr. "
  • "Sources tell AdExchanger that NCC’s and Xandr’s methods of aggregating addressable inventory and insights are very different. While NCC is more collaborative, trying to work with cable operators to develop a data management platform-like solution for TV, Xandr is on the hunt for exclusive deals. "
Quotes
  • "The manual for the product, hosted on the FCC’s website, says that it will include a remote with voice control and a touch pad. In a photo of the remote in the manual, it also has a number pad—a dissent from other, minimalist streaming remotes. "
Quotes
  • "DIRECTV Campus Launch project represents the construction and re-stacking of 806,000 square feet of headquarters space in El Segundo, California. Originally occupied by the Hughes Aircraft Co., the campus is spread over 4 buildings, and a total of 36 floors. Phased construction of the campus began in 2012 and was completed in 2015. "
From Part 02
Quotes
  • "Watch when you want, where you want, and how you want with Dish on Demand. Get access immediately to a library boasting over 80,000 titles. Choose from the latest movie releases, your favorite TV shows and more at the touch of a button! All it takes is becoming a DISH subscriber to get this and more."
  • "We even have some available the same day as theatres! Forget finding showtimes and buying tickets. Get comfortable and turn on the latest flicks"
Quotes
  • "Sling TV is a revolutionary, over-the-top (OTT/IPTV), television service that delivers live TV and on-demand movies and shows over the Internet. Sling TV gives our Retailers the ability to maximize new opportunities with live TV packages starting at $10/month, offering programming from over 20 different language groups."
Quotes
  • "The Right Ad to the Right Household at the Right Time "
  • "Engage audiences across DISH and Sling TV with targeted solutions that transcend viewing habits, platforms, and devices. "
Quotes
  • "Dish Network said that its over-the-top Sling TV product has 2.212 million subscribers, up 47% from a year ago."
  • "In its fourth-quarter financial report, the company also said it had 11.03 million Dish TV satellite subscribers, for a total of 13.242 million. Dish said the total was up 39.000 in the fourth quarter including 75,000 reactivations as Puerto Rico recovers from Hurricane Maria. In the fourth quarter of 2016, the company added 28,000 subscribers."
Quotes
  • "Dish ended March with more than 12.06 million subscribers, including nearly 9.64 million Dish subscribers, down from 9.90 million as of the end of 2018, and more than 2.42 million Sling subscribers, up slightly."
Quotes
  • "Non-skippable, full-screen ads 97% completion rate Premium content only Zero ad fraud Zero ad blockers"
Quotes
  • "Addressable Distribution: 9 million homes across DISH and Sling TV. • Inventory Types: Live TV, VOD, and DVR. • Number of Addressable Networks: 110+ across DISH and Sling TV. • Return Path Data Availability: ~40% of HHs on DISH and all HHs on Sling TV."
  • "• Average Reach for Final Delivery: 85-95% average Addressable Reach: Across every major US DMA. • Addressable Expansion: Our company is actively upgrading set-top boxes to grow number of addressable-enabled households."
Quotes
  • "Ergen is now suggesting a $10 billion 5G network buildout is its “Plan A,” with the sale of its existing 5G spectrum as “Plan B,” apparently switching its prior priorities."
Quotes
  • " While the viewer is viewing the content, an image of the viewer is captured and analyzed to detect the viewer's emotion and environment. Supplemental content is selected based on this detected viewer emotion and environment and presented to the viewer, which allows the supplemental content to be tailored to the emotional state of the viewer. "
Quotes
  • "Ergen signaled the company's spectrum aggregation was not a hold-and-sell play. He said Dish has already "signed some master lease agreements with tower companies" for building out the network."
  • "He said that with 5G the next "paradigm shift, and Dish's spectrum position" -- a limited amount of uplink spectrum -- the company is in a "little bit of an awkward position" and will have to build the businesses in phases. "
Quotes
  • "With this transaction, we will vertically integrate all the elements that define our customer experience—one team will deliver the full Dish and Sling TV experience end to end,” said Carlson to the Denver Business Journal at the time the deal was announced. "
  • "“Not only do we gain full control of the product development roadmap for [satellite] and Sling TV, but we also anticipate achieving operational efficiencies.”"
Quotes
  • "DISH Network will be among the first pay-TV providers utilizing INVIDI's technology to sell addressable and targeted advertising according to specific household viewer geographic and demographic and other pre-determined viewer metrics."
From Part 04
Quotes
  • "Spectrum Reach’s audience dataset encompasses nearly 100 markets. It combines insights from more than 9 million households and 16 million set-top-boxes, and data from third-party partners like Epsilon and IHS Markit Polk data. "
  • "AudienceApp, which creates highly-optimized TV campaigns that reach targeted audiences like never before, accessible from a mobile device or computer. "
  • "AudienceTrak, our exclusive digital planning and reporting tool that lets you forget the guessing game. You gain a new level of transparency into your TV and Digital campaigns’ performance, 24/7, 365 days a year."
  • "Addressability, digital and soon-to-be linear in select markers, to put your message in front of specific audiences with greater flexibility, deep insights, and dependable data. "
  • "Ads Everywhere, which dynamically inserts ads in cable programming, both live and on-demand, viewed on tablets, smart phones, laptops, and Roku devices."
Quotes
  • "Thomas M. Rutledge, chairman and chief executive, Charter Communications said: "This new group within NCC Media has the ability to make a major impact for all players within the advertising landscape," "It has the power to transform the way we measure advertising effectiveness across linear and VOD through best-in-class data and technology.""
Quotes
  • "AudienceApp is now available in over 80 markets since first launching in Austin in August of 2017. The state-of-the art tool allows marketers to execute more effective advertising campaigns by utilizing Spectrum’s proprietary household viewing data to better identify and target the right consumers."
  • "To date, AudienceApp has led to the production of nearly 4 million ads that have run across top categories from automotive, healthcare, retail, legal, education, and real estate."
Quotes
  • "At Spectrum Reach, we stay ahead of the trends so your business is seen on every viewing platform, from network apps and Video On Demand, to live cable programming on multiple devices."
Quotes
  • "“It’s imperative that the use of data prioritizes the privacy of consumers’ personal information,” said David Kline, executive vice president and president of Spectrum Reach, in a statement. “Blockgraph’s technology offers enhanced security and privacy protections by allowing all players within the TV ecosystem to directly share insights derived from anonymized and aggregated information. We support this initiative believing it will help set the standard for secure information sharing in the years to come.”"