Advanced TV – the digitalization of TV

Advanced TV – the digitalization of TV

Thorsten Schütte Gravelaar, CEO of Mercury Media Technology and former founding member of the digital video marketing and ad-tech platform smartclip, gives his thoughts about the development of Advanced TV and how it is affecting the TV advertising landscape.

How is video consumption shifting?

The global Covid-19 pandemic is having a significant impact on society and the global economy as well as on media usage behavior worldwide. The past few months have shown just how high demand is for video as a source of information and traditional entertainment.

The audio-visual appeal, as we have known it from traditional television, has long been regarded in the advertising industry as one of the highest quality advertising environments. Nevertheless, one of the most intense transformations in the media industry is taking place in this area: the fundamental digitalization of media. Not only the format (high-quality, long-form content is still standard, but new types of shorter videos could generate significant reach and impact as well) but above all the transmission and consumption of content as well as the mode of delivery have changed.

Today, a wide variety of video delivery technologies and platforms have come together. Whether we are talking about OTT, SmartTV, ConnectedTV, HbbTV or direct delivery via apps on TV sets or third-party set-top boxes (e.g. Roku, Chromecast and Apple TV), a large number of technologies and possible uses for other video formats have emerged.

This is where Advanced TV comes in.

It is good to have a collective term that pulls together the many different technical subtleties, making the concept much easier to understand.

What is Advanced TV?

Basically, Advanced TV distinguishes between 4 core areas:

  • time-shifting: ad placed in replay or VOD of linear TV
  • addressability: buying linear TV ads within digital/programmatic solutions
  • interactivity: ad delivered in the streaming app environment
  • interoperability: via set-top devices (connected TV or game consoles), which can deliver ads in the TV environment.

What is key here is that the earlier approach to consuming video content, universal broadcasting at the same time with the same content for everyone, is being replaced or even improved upon by new technologies. This creates new opportunities for broadcasters, users and the advertising industry.

Is traditional TV advertising no longer a participant in innovation?

We are seeing the same development around the world; the turning point in the use of video content does not stop at traditional television. Although the user ranges available in linear TV are becoming considerably more narrow, they remain the most important investments. Linear TV has, however, upgraded its technology in recent years as innovations like Addressable TV and Total TV clearly show. With new possibilities such as interaction, addressability and individual measurement, linear television can be increasingly integrated into the overall change towards Advanced TV. It is therefore essential to take all video content media, whether offline or online, into consideration, even for holistic media management.

How is Advanced TV affecting the TV advertising landscape?

“Advanced TV is not just a change in transmission technologies or possible uses.”

Advanced TV is also a new kind of video advertising. Video advertising is being created, planned, booked, optimized and analyzed more dynamically. In the past, considerable attention has been paid to the supply side of media. Agencies had to follow the new usage and product requirements of their users and develop ad technology solutions accordingly. Now buyers are becoming increasingly aware that new technologies and application solutions are also necessary on the media planning side in order to be able to use these changes for their own success.

Advanced TV brings additional intelligence to the TV advertising world that is customized and data driven. It is also being used by new groups of advertisers whose business models are increasingly digitally driven. Advanced TV is being used in a way that is much more tactical and more outcome-oriented (ROMI = return on media investment) and is being controlled more regionally. The density of campaign planning is steadily increasing in TV planning activities and optimization practices are becoming increasingly similar to digital media planning. The shift is understandable, as Advanced TV makes more data available, even in real-time, and can effectively expand smarter media management practices.

How is media management changing for advertisers and agencies?

Advanced TV is significantly changing the media process buy side. Video advertising is being planned, booked, optimized and analyzed differently. More and more advertisers are replacing their analog practices and the systems used.

New requirements include:

  • data management: impact and performance of video activities are monitored with tech solutions that provide quantifiable results
  • automation: TV buying and procurement optimization are evolving towards increased automation such as programmatic solutions and spot-by-spot optimization
  • transparency: real time results and access to data create the perfect playing field for monitoring, which creates transparent buying processes

New media management systems need to be able to connect all media plans and the data relevant to them in a central system in order to enable their activation for future media activities. An effective media management system is also a necessary prerequisite for other intelligent systems such as AI if you are looking for media that will significantly improve overall performance in the advertising world. Those who can intelligently combine previous brand and media planning information with new data-based, dynamic campaign management will be able to enjoy an outstanding competitive advantage going forward.

How is MMT helping to address these challenges?

Mercury Media Technology provides a solution to these challenges and is precisely designed for the connected and digital video advertising world. The basis of any technological advancement is that the entire media workflow for all media be automated, accessible and transparent for all stakeholders. Our MMT enables the future-oriented merging of all essential peripheral technologies as well as internal and external data sources with your own media strategy.

By linking media activities and investments, immediate media results, recommendations for action and optimization options can be displayed and visualized. Everything in one system to quickly and comprehensively manage and implement all your media activities, whether offline or online.

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