Data activation in the traditional TV landscape is on the cusp of a transformation.
Between innovations in data application, targeting, increasing regulation, and consumer privacy initiatives, the TV landscape is preparing for change.
Activating data to move from a one-to-many model to a one-to-one model
Data activation in a secure manner continues to be a hot topic because of the value it brings to both advertisers and network broadcasters. From an advertiser standpoint, audience awareness and targeting is valuable because it, in theory, eliminates “wasted” impressions and improves overall media effectiveness.
On the flip side, broadcasters and platforms invest in data activation because it increases the value of their inventory with the ability to reach more specific target audiences.
For some time now, the most common targeting model for the traditional TV landscape has been a one-to-many model where targeting has been based on audience indexes, such as gender, age group, and geography.
With the shift toward over-the-top viewing, more “big screen” audiences are becoming addressable via programmatic and digital advertising infrastructures. Along with the shift, buyers and sellers are activating data to personalize ad experiences to the extent that they can provide relevant, impactful, and engaging experiences that drive awareness and bottom line results.
Learn more: 2019 Video Advertising Trends
In order to personalize ads, network broadcasters are working on emerging data models that allow for one-to-one targeting on a device or household level. Some broadcasters can already do this with their owned-and-operated apps and websites.
Others are striving toward being able to execute one-to-one targeting with their downstream partners, such as MVPDs (DirecTV, Time Warner Cable, Comcast) and virtual MVPDs (Fubo TV, Sling TV, Playstation Vue). These same downstream partners want to layer in their own first-party data on the broadcasters distributed linear feed to get the full value of their inventory as well.
The effects of regulation on data activation
While strides are being made to activate first-party data, discussions around data activation are not complete without touching on user privacy, government compliance, and data security.
In 2018, global companies that operate in or have web traffic coming from the Europe Union made significant investments in data privacy to comply with the General Data Protection Regulation (GDPR), the strictest user data privacy laws to go in effect to-date affecting advertising operations.
In the U.S., the California Consumer Privacy Act (CCPA) is set to go into effect on January 1, 2020, which is a bill that followed in the footsteps of GDPR to allow consumers to manage and opt-out from having their data stored, used, or sold to a third party. Ad tech platforms, whether or not they are based in California or the European Union, are subjected to these laws so long as they do business or reach people in these regions.
Another relevant data related concern is data security. While leveraging first-party data is ideal for many, data application poses concerns as it relates to data leakage and other ways stolen data could be leveraged or used to devalue said inventory.
SpotX responded to these concerns in-market with Audience Lock, a data protection and security product. The product allows buyers and sellers to activate data safely through a secure data escrow environment. As time continues, we expect further adoption of such data security products to ensure compliance and maintain the value and integrity of data sets.
New standards in linear TV quality and advertising
In the U.S., station groups like Turner Broadcasting and Sinclair Broadcasting Group are anticipating and planning for the 2020 launch of Advanced Television Systems Committee (ATSC) 3.0 — also known as “Next Gen TV” — a new FCC-approved standard that will enable broadcasters to deliver higher quality IP-based video and addressable, data-rich advertising to local users.
From an advertising standpoint, ATSC 3.0 will bring more metadata to the mix, which will improve station groups capabilities to reach and better monetize local audiences.
Not only that, it promises an increase in resolutions up to Ultra HD 4K TV, higher refresh rates, better reception indoors and on mobile phones for consumers ― all for free over-the-air.
In countries like the U.K., Australia, New Zealand, Germany, and Greece, the Hybrid Broadcast Broadband TV (HbbTV) standard has been heavily adopted in order to deliver free-to-air and IP televisions services to consumers across connected devices.
Both ATSC 3.0 and HbbTV 2.0 offer high-quality viewing experiences, while making it possible for advertisers around the globe to execute addressable advertising on a device or household level more effectively than previously possible before.
In the long term, the advertising industry is expected to develop solutions to personalize ads — including downstream — that honor consumer privacy while leveraging the full benefits of data-enabled, addressable TV.
Click here to learn more about the top trends in traditional linear TV for 2019.
This article was written by Lynn Koves, specialist of Advanced Solutions Group at SpotX.