Increasing online viewership intensifies competition

As U.S. video viewers increase their multiplatform viewing habits, advertising firms’ demand for an integrated tool to measure both TV and online video viewing will intensify over the next year. A new report, Cross-Platform Ad Metrics & Reporting, shows 71 percent of U.S. broadband households access videos online, compared to 87% who watch traditional TV content. Younger audiences, ages 18-34, are even more inclined to watch online video, with 88% watching online compared to 90% who watch traditional TV.

Online video viewing is approaching parity with traditional TV, especially in key audience segments, which is increasing pressure on the top firms to develop a comprehensive tool to quantify and evaluate the impact of online video content. Right now, Nielsen, Kantar Media, TiVo, Arbitron, and Rentrak are the primary cross-platform digital video audience measurement firms in the U.S.

Mixed media are increasingly important to a key and growing segment of consumers, and companies need to get ahead of this trend with cross-platform metrics in order to assess, assign, and evaluate the overall media mix. Nielsen plans to release an integrated TV and online video product in 2011, but it is unclear how the industry will receive the combined video metric and, more importantly, if the firm will meet its expected deliverable goal. In Cross-Platform Ad Metrics & Reporting, Parks Associates lists universal metric definitions, standards, and data collection methods as necessary to ensure industry-wide adoption of a new metric.

Cross-Platform Ad Metrics & Reporting provides a competitive analysis of the leading digital TV and online video audience measurement firms in the U.S. The study employs a competitor analysis framework, using competitor profiling, to determine which digital video audience measurement firms are strategically positioned to provide an industry-recognized, cross-platform digital video audience metric standard. In addition to the competitor analysis, the report examines multiplatform video usage trends based on key audience demographics.

Parks Associates supports Future TV Advertising Forum, London

Parks Associates is supporting Future TV Advertising Forum from December 2-3 in London.

The Future TV Advertising conference will bring together broadcast and advertising to analyze and debate the evolution of TV advertising. Television is inexorably losing ground to online that is gradually offering greater accountability. The conference will address how the advertising community can work with broadcast so that this threat, embodied by new technologies and user behavior, becomes an opportunity. The event will provide a great opportunity to hear and network with key stakeholders in TV advertising: Brands, Media Holding Companies, leading European Cable, Satellite, IPTV, Pay-TV providers and Content Owners.

More more information, visit http://www.futuretvads.com/.

Parks Associates Releases a New White Paper Regarding Digital Media & Advanced Advertising Techniques

According to a new white paper released by Parks Associates, there is a way to deliver more tolerable advertisements to consumers.

Research findings indicate that nearly one-half of U.S. broadband households are neutral or open to the idea of receiving personally relevant ads, but response depends on who you ask.

The majority of consumers open to receiving personally relevant ads fall within the 18-34 age range. These consumers comprise 27% of those open to targeted ads. In contrast, only 6% of consumers 55+ are accepting of personally relevant ads.

To download this white paper, please click here.

Bye, Bye IMMI. Hello, New and Improved PPM.

As I finalize a new Parks Associates report assessing the digital video ad metrics market, I’m reminded of a blog I posted two years ago, New Audience Measurement System? What about the PPM?

In the blog, I compared Integrated Media Measurement Inc’s (IMMI) mobile phone-based digital monitoring technology to Arbitron’s Portable People Meter (PPM). At the time I questioned, “What does IMMI’s product mean for Arbitron’s PPM?” and “Do these two services compete for the same market?”

I made the point that IMMI was a potential threat to Arbitron’s business. I argued IMMI’s technology was superior to the PPM and until the PPM measures media across multiple platforms as it is was designed to do then strategic opportunities will be created for companies like IMMI.

While I realize its old news, I think it’s safe to say Arbitron shared this point-of-view. In June, Arbitron announced the acquisition of IMMI’s technology portfolio, patents, and trade name. Immediately following the announcement, Arbitron rolled out a new version of the PPM, the PPM 360. The PPM 360 extends the original technology to the mobile wireless platform.

Hmmm…looks like Arbitron hasn't quite given up on its initial goal to track audiences across multiple media platforms.

*Effective October 2010, IMMI’s CEO, Bill McKenna was named SVP of New Media Ventures at Arbitron. Per IMMI’s press contact on November 9, 2010, the company has been officially absorbed by Arbitron.

Parks Associates is supporting DiscoveryBeat

Parks Associates is supporting DiscoveryBeat 2010 on October 18th 2010 in San Francisco, CA.

DiscoveryBeat 2010 is an event focused on the “secret recipe” for application discovery and monetization. We’re gathering the movers and shakers in the emerging app discovery ecosystem to take an in-depth look at these issues, and why their strategies are working.

The event will attract 300+ mobile and social developers, major platform providers, advertising players, venture capitalists, and press. For more information, please click here.

Advertising Analyst speaking at Digital Hollywood Fall

Parks Associates is supporting the 2010 Digital Hollywood Fall in Santa Monica, California.

Heather Way, Research Analyst, Parks Associates will be moderating the session, "Advertising on Tablets and SmartPhones - the Immersive Commerce and Communication Experience" on Thursday, October 21 from 2:15 PM - 3:30 PM.

Digital Hollywood is the premier entertainment and technology conference in the country. For more information about this event, click here.

Loss of Control or Good Business?

I'd be willing to bet there are two distinct schools of thought regarding Apple’s recent review of its App Store developer guidelines. One: Apple is backing down and losing control. Two: Apple’s doing what Apple does best, practicing good customer service.

Apple prides itself in taking a consumer-centric business approach. So, it’s no surprise that servicing its community of app developers would be any different from how the company protects and supports its faithful/fanatic end-user customers.* Even if that means backing off its firm idea of how the mobile app market should develop. It’s just good business.

Apple’s review of the App Store developer guidelines isn’t all that shocking. In a nutshell, the company is ensuring quality content with an eye to the bottom line. The relaxation of existing developer guidelines not only serves to satisfy developers and app consumers, but also tightens its strong hold on the mobile app market and gives a boost its newly launched mobile ad network, iAd.

What does this mean for mobile advertising? No doubt, ad revenues will continue to line the pockets of developers, Apple, and subsequently initiate a “second wave” of interest for the emerging advertising platform.

What about mobile app consumers? Is it really a good idea to push more ads in apps?

Based on our most recently published report, Monetizing Downloadable Mobile Applications, consumer appetite for free mobile apps will continue to grow as well as consumer acceptance of in-app advertising strategies. Our consumer research reveals 46% of adults 18-34 are either indifferent to in-app ads or willing to endure ads in free mobile apps. Okay, great, but that also means that 54% are resistant to ads in apps.

The question is, will consumer attitude shift especially among young mobile users who are more open to ad targeting tactics? Particularly in light of the fact that ad buyers and sellers have the ability to deliver more relevant in-app ads – ones that are innovative and more engaging (this, by the way, is one of Apple’s main drivers for launching iAd).

*Disclaimer: I’m a Mac. Unlike our research analysis, this is a blog where I am free to voice my opinion, which may be altered with bias. I, in good humor, regularly defend myself against my colleagues, who often mock my loyalty. I’m often referred to as the bear in the popular viral video, iPhone4 vs HTC Evo. And guess what? “I don’t care.”

Mobile app market will reach $2 billion in 2010

Consumer demand for mobile applications will wear down resistance to in-app mobile ads, propelling the North American market to $2 billion by the end of the year, according to a new report by Parks Associates. Monetizing Downloadable Mobile Applications shows North American in-app ad revenue will surpass $860 million in 2014 and paid mobile app profits will exceed $4 billion.

As appetites for mobile apps grow, consumers will become more accepting of in-app ads. Our latest report shows 46% of adults 18-34 are either indifferent to in-app ads or willing to endure ads in free mobile apps.

New digital technologies will give companies an edge with more creative and personalized advertisements. Apple's iAd mobile advertising ad network is a good example of using novel and captivating ads to keep consumers engaged. The launch of this ad network has experienced early growing pains, with slow development and controversies over Apple’s control of the creation process, but at least one advertising partner, Nissan, has reported better engagement with its interactive ads.

Right now, consumer demand for mobile devices and applications shows no sign of abating, and the big players are responding. Research In Motion (RIM) recently acquired Cellmania in order to expand the BlackBerry App World storefront, and we will see more acquisitions in this market as companies seek to enhance their offerings and their ad platforms.

Parks Associates supports Music & Advertising 2010

Parks Associates is supporting the Music & Advertising from September 15-16 in Chicago, IL .

Join Billboard and Adweek in Chicago to explore how the worlds of music and advertising are intertwined, and examine how big brands, artists and music supervisors are benefiting from working together during captivating keynotes interviews, informative case studies, and interactive panel discussions. More Info

U.S. online video advertising revenue will exceed $1.3 billion in 2010

Steady growth in online video viewership, combined with the ability to target specific viewers based on preferences and viewing history, will push U.S. revenues for online video advertising over $1.3 billion in 2010.

Online Video Advertising: Strategies & Results, finds large percentages of consumers, especially younger consumers, have yet to form a strong opinion regarding targeted advertising. These advertisements include commercials shown before an online video or overlays displayed during the show, with the content based on the user’s Internet, TV, and mobile usage and viewing habits.

Among U.S. broadband households, almost 50% of heads-of-household aged 18-34 are indifferent to targeted advertising, while 42% aged 25-54 and 25% aged 55 or older are similarly neutral. The younger age groups are more receptive to the concept of targeted advertising, and advertisers place a premium on the ability to reach these demographics.

While online video does not yet have the same audience reach as traditional broadcast and cable TV, the medium continues to grow its user base, and increased content offerings via TV Everywhere initiatives will bring in more viewers and boost advertising revenues. Currently over 50% of heads-of-household 25-54 watch online video at least weekly, and the percentage jumps to 75% for ages 18-34.

CONNECTIONS™ addresses business strategies and new technologies that leverage consumer interest in TV Everywhere services

Parks Associates reports TV Everywhere services are gaining popularity, with over 40% of U.S. broadband households very positive on these services, which will be a prominent topic at the upcoming CONNECTIONS™: The Digital Living Conference and Showcase.

CONNECTIONS™ includes multiple sessions on New Media and Digital Content:

• TV Everywhere and Online Video
• Mobile Internet and Cloud Services
• Trends in User Interfaces
• TV and Online Video Advertising Metrics
• DRM, Conditional Access, and Payment Models

Other Event Sessions:

Entertainment Platforms & Value-Added Services

• Digital Home Technical Support Services
• Digital Lifestyles
• Service Provider Innovation
• The Service Provider and the Connected Home
• Innovations & Investments: Venture Capitalist Insights

Consumer Electronics

• Design Elements for Connected CE
• Monetizing Connected CE
• The Future of the Set-top Box
• 3DTV
• TV Technology in the New Age of Consumer Buying

Home Systems & Controls

• Residential Energy Management
• Getting Consumers to Care about Home Controls
• Business Models for Energy Management
• Architectures and Implications for the Home Area Network
• Energy Management as a Key Application for Home Controls

For more information, visit www.connectionsus.com or contact sales@parksassociates.com, 972-490-1113.

Addressable, interactive TV advertising revenue will reach $133 million in 2010

Sixty seven percent of all U.S. TV households (HHs) subscribe to a digital TV service. Digital cable and satellite television cumulatively account for over 65% of the pay TV market in the U.S. At the end of 2008, there were approximately 2.9 million Telco/IPTV subscribers. Parks Associates estimates addressable, interactive TV advertising revenue will reach $133 million in 2010. By 2014, U.S. addressable, interactive TV advertising revenue will reach approximately $4.3 billion.

Register today for the webcast on March 25 and learn more about advanced TV advertising.

Advertising dollars shifting from traditional formats to addressable advertising

Ad budgets and consumer video viewing are shifting to the Internet, and emerging digital media platforms are threatening the traditional television advertising business. In 2010, 40% of ad or media agency buyers will shift 11 to 15% of total traditional or cable TV budgets to addressable advertising campaigns while 16% will move more than 20% of total TV ad budgets.

Register today for the webcast on March 25 and learn more about changes in the TV advertising industry.

Twitter Decides It’s Time to “Cash In”

With signs of increased social networking ad spend in 2010 along with a solid user base; it’s no surprise Twitter is positioning itself to ‘cash in’ with its soon-to-be launched ad platform. And it’s time…because advertisers are waiting.

Based on Parks Associates survey of top-level media decision-makers, Advertising Outlook: Shifting Dollars, social network advertising will experience a boost in 2010; – 76% state increased ad budgets while 56% project an 11% or more increase over 2009.

Paramount to the success of the monetization strategy is developing a consumer-centric ad approach. Twitter must develop relevant, non-invasive advertising solutions that seamlessly integrate into the social media experience. One way to do this is to probe select Twitter users to determine format preferences (e.g., what delivery solutions make the message seem less like an ad?). Having said that, I don’t suggest Twitter is unaware of the implications of introducing ads. I think Twitter executives will tread lightly as poorly placed ad messages will cause massive user backlash.

While we know brands are biting at the bit to engage Twitter users and followers, the real question is, “Are users ready for Tweet Ads?”

Coming to a TV Near You: Addressable TV Advertising?

I firmly believe once household-level addressability is available on a meaningful scale, advertisers and media agencies will quickly shift traditional broadcast and cable TV media budgets to the advanced advertising solution. This opinion comes from both a research and practical perspective (based on my current work and previous experience as a media planner/buyer).

And, yes, I remain bullish in spite of the technical and planning/buying challenges…but that’s a whole other discussion.

It’s a no brainer. If given a choice, why would an advertiser continue to buy a mass TV audience (albeit targeted based on Nielsen demographics) when they can address a specific TV audience who is more likely to purchase a product/service and less likely to avoid the commercial? More importantly, why would an advertiser turn down the opportunity to improve the cost efficiency of a TV advertising campaign?

I've been following Starcom MediaVest and Comcast's addressability trials. The findings of their second addressable TV trial include:
· Homes receiving addressable TV ads tuned away 32% less of the time than non-targeted TV households
· Addressable TV campaigns were 65% more cost efficient than traditional TV ad campaigns

These recent findings echo their 2006 addressability trial results, which found:
· Homes receiving addressable advertising tuned away 38% less of the time than non-addressable households
· Addressable TV campaigns were 56% more cost efficient than non-addressable TV ads


Our survey of top-level U.S. ad and media executives, Advertising Outlook: Shifting Dollars, found a majority would pay a premium for addressable TV ads, with almost 40% willing to pay upwards of 20% more over traditional TV ad costs.

While I take an optimistic position, do I think 2010 or even 2011 will be the year of household-level addressability? No, I don’t. At this time, key advanced TV advertising investors are still in the technology roll out and testing phase. However, once household-level addressability scales to at least one major digital TV service provider, I predict addressable TV ad dollars will instantly cannibalize traditional broadcast and cable TV ad expenditures.

Parks Associates is Supporting Digital Hollywood at CES

Parks Associates is supporting Digital Hollywood at CES from January 6-9, 2010 in Las Vegas, NV.

Heather Way, Research Analyst, Parks Associates will be moderating the session, "Internet Video, Advertising & Marketing: The Next Generation of Consumer Reach" on Saturday, January 9 from 10:30 AM - 11:30 AM.

Video on the Internet has finally passed the critical threshold of acceptance by the advertising and marketing communities as a more than viable alternative to traditional media. Internet delivered video has not only entered the advertising space, it has invaded it and in a very short number of years, Internet delivered video will be a dominant entertainment and communications consumer medium. The scary part for traditional media, Internet delivered video may end up on a PC, a mobile device or on a TV and for the advertising and marketing industries, an emerging and maturing delivery system to an ever elusive audience is exactly what they are looking for.

For more information, please click here.

Advanced TV ad revenues to top $4 billion in 2014, as digital TV providers capitalize on demand for VOD and DVRs

The pay-TV industry will start to see success in advanced TV advertising beginning mid-2010, with U.S. revenues topping $130 million by year-end, according to the new Parks Associates report Addressable, Interactive TV Advertising in the U.S.

Consumer demand for time-shifted TV viewing on VOD and DVR service platforms, combined with the broad deployment of Canoe Ventures’ national addressable TV advertising platform, will drive the growth in advanced TV advertising. By 2014, U.S. addressable, interactive TV advertising revenue will exceed $4 billion, accounting for nearly 12% of total cable, DBS, and telco TV ad revenue.

Advanced TV advertising includes traditional linear 30-second ads and non-linear ads that include VOD and DVR advertising and interactive formats, such as overlay, tags, IPG banners, microsites, RFI, showcases, and telescoping.

Addressable, Interactive TV Advertising in the U.S. highlights the key advanced TV advertising industry players and examines the business and technology drivers shaping the advanced television services segment. In addition, the report studies the existing business models and discusses how the models will change to accommodate addressable and interactive TV advertising solutions. The report concludes with advertising revenue forecasts, implications, and recommendations for industry investors.

CONNECTIONS™ Summit at CES to focus on connected products and services and business strategies for 3D TV, advertising, and energy management

Parks Associates today released the preliminary agenda for CONNECTIONS™ Summit at CES, which focuses on new business strategies for connected CE, service providers, 3D video, Smart Grid technologies, and other connected home solutions.

The international research firm will host this event on January 7, 2010, in the Las Vegas Convention Center, on the first day of 2010 International CES. Parks Associates’ expert analysts will moderate the Summit sessions, presenting consumer research on buying habits, purchase intentions, and interest in a variety of connected home solutions. The sessions also feature executives in the digital living markets, who will discuss the challenges of today’s business climate and the areas of service and innovation that fit best with the changing needs of households throughout the world.

Summit Sessions:
• Consumer Electronics Purchases: Are Consumers Back in the Buying Mood?
• The Connected TV – Displays and Beyond
• Service Provider Strategies for the Connected Home
• The Mobile Aspect of Unified Infotainment: Opportunities and Challenges
• Advances in Television Advertising
• Bringing the Smart Grid to the Smart Home
• 3D: Adding New Dimensions to Entertainment

For more information, visit www.connectionssummit.com.

Parks Associates is also hosting CONNECTIONS™ Europe Summit, in Amsterdam, Netherlands, on November 4, 2009.

Smartphones, Data Plans, New Apps to drive Mobile Advertising Revenues to $1.5 billion in 2013

Revenues for mobile advertising in the U.S. and Canada will grow from $208 million in 2009 to approximately $1.5 billion by 2013, according to the new Parks Associates report Mobile Advertising: Analysis and Forecasts. Adoption of smartphones, 3G network data plans (or newer wireless services), and downloadable applications will spur this growth in ad revenues, with significant increases beginning in 2010.

Parks Associates estimates there were 62 million smartphone users in North America in 2008, with user penetration to reach 239 million in 2013. Parks Associates projects U.S. 3G network data plans will reach 95% penetration by 2013, with Canada achieving 70% penetration.

Mobile advertising is poised to take advantage of opportunities presented by the diffusion of 3G networks and devices such as the smartphone. Advertisers will begin to incorporate mobile into their media campaigns as this medium matures into a viable marketing space.

Way cautions that advertisers could encounter early resistance from consumers. Parks Associates’ Mobile Entertainment (Second Edition) found 38% of respondents do not want to receive mobile ads, while 37% remain neutral to the idea of ads on their mobile phone.

However, teens and young adults are more receptive to ad-supported mobile content, particularly in entertainment genres. Advertisers need to develop innovative ways to reach these consumers.

Mobile Advertising: Analysis and Forecasts examines the current mobile advertising market. It includes a market overview and analyzes effective mobile ad formats and current pricing models. The report examines opportunities driving overall growth and inhibitors threatening continued expansion and includes mobile advertising revenue forecasts through 2013.

For the full press release, click here.

CBS Increases Mobile Value-Proposition - Will They Score or Draw a Foul?

NCAA March Madness is underway, and while I’m not a sports fan, I am interested in digital media strategies of traditional media companies particularly from an ad-focused research perspective. And it looks like CBS is making a play for mobile.

In partnership with Apple, CBS has created an iPhone application featuring mobile video streams of NCAA March Madness basketball games. While AT&T and Verizon mobile customers have access to the March Madness games via a $15 per month mobile TV subscription, this sports app is affordable and includes interactive features and capabilities (however, one must have a WI-FI connection to receive video). For example, the app provides game statistics as a transparent overlay of the video.

CBS’ mobile value-proposition is two-folded:

• Consumers get on-the-go access to March Madness basketball updates and games (albeit at a price - $4.99 per mobile application).
• Advertisers/brands receive free cross-platform ad exposure within the app.

CBS is providing free ad space, as a bonus offering, within the application to current NCAA March Madness advertisers on broadcast TV. One can safely bet CBS will charge advertisers for the space in the future especially if the app is a hit among iPhone owners.

Taking advantage of dual-revenue stream models is an increasingly popular business strategy for mobile content publishers/providers. First, get consumers to pay for the content (or charge distribution fees) and then supplement the content with advertising. The arrangement has already been accepted by consumers when considering cable TV, so why not employ the same strategy on the mobile channel?

To date, CBS has been committed to the enhancement and monetization of consumer experiences across digital media platforms. CBS’ NCAA iPhone application is just another example of these efforts as the network provides access to March Madness on broadcast TV, online, and now, mobile. Kurt Scherf posted a blog regarding the recent CBS online video offering, NCAA March Madness On Demand.

When considering CBS’ current mobile media strategy and its true value-proposition, the following questions must be answered.

• How many mobile consumers paid for this application? How many engaged and used the application?
• Is current ad exposure via the mobile app significant enough to justify future media spend by advertisers? (I assume this application appeals to a relatively small group of avid college basketball fans.)
• Moving forward, will advertisers insist mobile ads be offered as a value-added offering to complement their existing broadcast NCAA March Madness buys - especially now that they’ve received the app-ads for free?

Even if the app is downloaded by only a few thousand mobile users, I’d say, “CBS scored with their NCAA March Madness app!” Why? Because the network is hustling after the consumer while making key digital media plays – ones that will hopefully increase CBS' out-of-home audience ratings and brand affinity for advertisers.

Note: To date, the App Store has received 900 reviews of the application. The application has a 3 (of 5) star rating.

UPDATE: Per MediaPost on 3/24/09, the CBS NCAA iPhone app is the second-most-popular paid program in Apple's App Store. In addition, in the first four days of coverage, NCAA March Madness via CBS' on-demand digital service attracted 5.6 million unique visitors, a 60% increase year to year.