How to integrate advertising into a Pay TV offer? | Thought Leadership


For one, access to high-quality content has never been more abundant or accessible. Movies and exceptional episodic television are available through a growing number of content providers leveraging a range of business models to market their entertainment experiences through subscription and ad-supported video-on-demand services (SVOD and AVOD) .

On the other hand, effectively and efficiently finding content to enjoy has never been harder. A growing number of consumers are expressing frustration with a “tyranny of choice” that has not only significantly increased the time it takes to discover – and then deliver – content for consumption. Adding insult to injury, the cost of subscribing to multiple SVOD services has drastically reduced the savings many consumers were able to realize when they decided to cut the cord and ditch conventional cable video services. .

As we enter an uncertain economic future fueled by global inflationary pressures, consumers are embracing AVOD offerings. The challenge is that while the strategy eases the financial burden on households, it exacerbates the complexity associated with content discovery.

The convergence of these critical – and sometimes contradictory – trends has created a strategic opportunity for network service providers (NSPs) and pay-TV operators to reintroduce themselves as managers of complexity and arbiters of experiences. This opens the door for NSPs and Operators to play an important role in supporting two key components.

  • For consumers, many telecom and cable providers are rolling out new solutions that address the challenges associated with “search and discovery” across multiple content service providers.
  • For advertisers, network service providers and pay TV operators appear as a logical point of data aggregation and analysis of consumer behavior. This is a feature that will only grow in importance with the impending “cookie apocalypse,” making first-party data under NSP leadership extremely valuable.

Network service providers who want to avoid betting the future of their business on simply providing commoditized high-speed broadband access are implementing strategies rooted in content aggregation and personalization. It is increasingly seen as the key to retaining current customers while attracting new subscribers.

Beyond content curation, relevant personalized product recommendations

In the short term, immediate success will depend on operators presenting and curating a mix of content and streaming services that consumers want by reducing the complexity caused by today’s highly fragmented streaming environment. today. In the long run, however, high-quality personalized user experiences are likely to include a combination of relevant content and product recommendations delivered at the right time to the right user in the right context.

There is little doubt that user satisfaction increases when consumers are exposed to relevant content recommendations across all the services they subscribe to. There is growing evidence to suggest that consumers appreciate being exposed to “products and services” that match their interests based on content choices.

This requires a much more sophisticated approach to ad delivery than current digital advertising practices. As the number of AVOD services increases – with the same content often available through multiple content providers – advertisers’ ability to connect effectively will be determined by “which” ads are shown “when” and for “how long”. Relevant content and product recommendations should be delivered seamlessly and naturally to the viewer.

Creating these personalized experiences will force pay-TV operators to rethink how advertising is presented on their platforms beyond the standard “ad break” in order to achieve a user experience that works seamlessly in a seamless way. “human-centered”.

Technological advancements in digital advertising, first seen in web and mobile search, can now be applied in the ever-changing television and streaming landscape. Leveraging new technologies to introduce personalized advertising experiences in today’s crowded video content market will be key to retaining customers while generating new revenue.

Taken together, these trends explain why European pay-TV operators and network service providers plan to increase investment in digital advertising initiatives to generate high-margin revenue streams from brand managers and marketing agencies over the coming months and years, according to a BTR-100 survey commissioned by Hoppr.

Just over three-quarters (75.7%) of NSP executives surveyed said they expect to generate more programmatic ad revenue in the next twelve months compared to the prior year. As a result, 72.8% of organizations surveyed in the European survey plan to invest more in the development of digital advertising programs and platforms.

In doing so, leaders are exploring new business models, advertising technologies, and personalization solutions that will allow consumers to access relevant offers without disrupting end-user entertainment experiences.


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