The changing dynamics of television advertising

  • Authors:
  • Herkko A. Hietanen;Marko Turpeinen

  • Affiliations:
  • Helsinki Institute for Information Technology, Cambridge, MA, USA;Helsinki Institute for Information Technology, Berkeley, CA, USA

  • Venue:
  • Proceedings of the 8th international interactive conference on Interactive TV&Video
  • Year:
  • 2010

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Abstract

Advertising on the online video platforms has yet to meet the expectations that advertiser and platforms have placed on it. However, the growing trend of using the Internet to access video offers advertisers the opportunity to target viewers more accurately than broadcast television ever has. The complicated commercial television broadcast dynamics are evolving to facilitate online distribution. Many actors in the broadcast value network are adjusting their value propositions and new nodes are emerging to pair viewers with programs, and advertisers with relevant viewers. These changes are occurring because the Internet as an interactive distribution channel does not recognize television channels, schedules or regional broadcasting areas. The changes will affect the way television networks and other video platforms sell advertisement spaces. Audience measuring changes and advertisers start dynamically serving advertisements unlike in the past when networks did the placement. The platform owners will evolve from sellers of static and predefined advertising inventory to providers of dynamic advertisement opportunities to targeted segments.