When it comes to dividing up advertising revenues, the cable industry wants to take a much bigger bite of the pie than it currently does.
During Tuesday’s “Advanced Advertising Technology: Driving the Next Growth Engine” session at the SCTE Conference on Emerging Technologies, the panelists and moderator took a look at what cable needs to do in order to stop some of the advertising revenues from bleeding off to the Internet.
“The goal is really simple: How do we increase cable’s share of the ad business?,” said Arthur Orduna, Advance/Newhouse Communications’ (Bright House Networks’) SVP of policy and product and the session’s moderator. “The final tenet, from an MSO perspective, is this is not a tomorrow thing. This is a yesterday thing. We have to begin now.”
Currently, broadcast advertising accounts for $70 billion of the advertising revenue pie, while cable’s spot advertising slice is $5 billion. The opportunity for cable is to come up with a standardized platform that will allow MSOs to sell, track and profit off of the new platform with broadcast networks, cable networks and ad agencies, in order to eat into the Internet ad revenues of $19 billion.
“Traditional TV advertising is under siege,” said John Morrow, Scientific Atlanta’s VP of strategy and business development. “This is a call on the industry to engage our broadcast network and cable partners to usher in a new era of advanced advertising.”
In order to win over the Internet ad dollars, cable needs to provide a system that replicates some of the best online features – most notably accountability and reporting and campaign management.
Morrow said cable has one advantage over the Internet because it’s a preferred form of viewing by consumers, but it needs to marry that viewing experience with the best tools from Internet ad campaigns.
The SCTE’s DVS 629 standard, which is now known as SCTE 130, will be a big part of building a unified platform for addressable advertising. SCTE 130 is an XML-based tool that will work in traditional cable advertising deployments, as well as with the expanded opportunities on a unified platform.
In short, SCTE 130 provides inventory and placement definitions. It also brings together content and subscriber metadata for targeting zones – or, in a unicast environment, for targeting individuals, to bring the right ad to the right consumer at the right time. From an ad agency point of view, ad placements across a wide area and precision measurements are desirable elements of SCTE 130.
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