How To Make A Mobile Tv Service Successful

Transcription

1 Mobile TV advertising: principles and opportunities from an European perspective Gian Paolo Balboni Telecom Italia

2 Contents TIM TV service outline Business models for the Mobile TV The advertising market in Italy and Europe Multi-platform audience measurement in the convergent world Conclusions 2

3 TIM TV service outline

4 DVB-H service of Telecom Italia Mobile Launched in July 2006 (first cities: Milano and Roma) Grown during the year Now available in over 2500 Italian towns. Based on a broadcaster-operated network infrastructure Built by Elettronica Industriale, belonging to RTI-Mediaset group Very good coverage: over 75% of Italian population Carefully planned indoor capabilities Proven Telco s criteria and planning tools have been applied 4

5 TIM TV bouquet TIM CANALI TV Channels TIM TV: 1. Canale 5 2. Italia 1 3. La7 4. MTV 5. SKY Meteo SKY News SKY Sport Sport Italia Soccer included until the end of season la SERIE A TIM A TIMand e il the meglio best of del European CALCIO Soccer EUROPEO are available on PPV 5

6 TIM TV in a nutshell (1) Stand alone Mobile TV Stand alone Samsung UMTS/DVB-H P920 at 499 (includes the special 256kbyte DVB-H enabled SIM) Access to 8 channels basic TIM TV bouquet MonthlysubscriptionfeeforTIM TV is5 Customers can choose also other handsets: Brionvega 7100 and Samsung P930 All subscriptions done before June 30 th include Serie A TIM, and the best of European Football matches for the whole season 6

7 TIM TV in a nutshell (2) TIM TV Telefono relax is a combined Mobile TV + communication package Telefono relax allows the customer to get a UMTS/DVB-H handset paying one shot contribution of a monthly rate of 10 for 24 months Monthly subscription fee for TIM TV is 5, but If the customer, with a TIM TV subscription, is able to guarantee a minimum amount of 25 /month of traffic during the month, the 10 montly rate of the handset is reduced to 0. All subscriptions done before June 30 th include Serie A TIM, and the best of European Football matches for the whole season 7

8 TIM TV in a nutshell (3) TIM TV Tutto relax" is a combined Mobile TV + communication package TIM TV tutto relax allows the customer to get an UMTS/DVB-H handset paying one shot fee monthly fees of 1 each. All services are packaged into a flat monthly subscription of 49 /month. The package comprises: access to the basic TIM TV bouquet 1000 free sms/month 1000 minutes of voice calls and videocalls at 0 cent/min + fixed charge of 16 cents/call up All subscriptions done before June 30 th include Serie A TIM, and the best of European Football matches for the whole season 8

9 Business models for the Mobile TV

10 Mobile TV will have a scale factor Broadcasted mobile TV Today s 2,5-3g Mobile TV users: a few millions worldwide World users in 2011 (Millions) DVB-H MediaFLO T-DMB T-ISDB S-DMB Source: Informa Telecoms and Media report, November 2006 DVB-H is expected to be the first large scale test of business integration between broadcasters and telcos 10

11 Different ways to look at the convergent business Telco Content provider I produce content, you need them for your viewers, so you must buy them from me Handset manufacturer you need my handset to receive contents, so you must buy it from me you need my customer base to distribute contents to, so you must pay me for that Advertiser Why should I pay for advertising on a medium I do not know how much is used by viewers? authentication content protection billing content distribution usage metering service look and feel aspects the Mobile TV service has to manage Broadcaster I have got already a network able to transmit DVB-H and I have packaged contents too! 11

12 Business Model 1 TV mobilizer/reseller Pay TV station Commercial TV station Mobile ads DVB-H op DVB-H infrastructure Customer Customer pays a mobility premium subscription to access traditional TV channels Channels are re-broadcasted without any modification DVB-H op own customers DVB-H op invests (either directly or not) in infrastructure DVB-H op buys complete channels from TV stations (commercial or pay) and/or DVB-H op allows TV station to meter mobile TV audience to leverage on advertising in this case, special discount on price of contents is foreseen 12

13 Business Model 2 Pay TV distributor Pay TV station DVB-H op Customer DVB-H infrastructure Customer pays a mobility premium subscription to access Pay TV channels possible to integrate commercial offer with terrestrial/satellite Pay TV Pay TV channels are re-broadcasted untouched (PPV is possible if foreseen) PAY TV owns customers and manage them DVB-H op invests (either directly or not) in infrastructure Pay TV station buys DVB-H network capacity from DVB-H op 13

14 Business Model 3 Content packager Content producer DVB-H op Customer Rights holder Mobile ads DVB-H infrastructure Customer pays a mobility premium subscription to access content on mobile DVB-H op buys original contents, not packaged TV channels Contents are packaged in a unique way to produce a specific DVB-H offer DVB-H op owns customers DVB-H op invests (either directly or not) in infrastructure DVB-H op meters mobile TV audience and possibly sells directly adv spaces 14

15 Business Model 4 Free mobile TV Content producer DVB-H op Customer Commercial TV station Mobile ads DVB-H infrastructure Customer just buy a DVB-H device to access contents on mobile DVB-H op buys either original contents or packaged TV channels Contents and ads are packaged to produce a specific DVB-H program line-up Adv of TV station can be superimposed by DVB-H specific adv DVB-H op has no relation with the customers DVB-H op invests (either directly or not) in infrastructure DVB-H op meters mobile TV audience to monetize adv spaces 15

16 The most complete Business Model: New media producer Content producer Rights holder Mobile ads DVB-H op DVB-H infrastructure interactive contents production Customer Customer pays a mobility premium subscription to access content on mobile DVB-H op build or rent a DVB-H infrastructure DVB-H op owns customers DVB-H op buys original contents, not packaged TV channels DVB-H op invests in original contents, specially designed for mobile offer, possibly leveraging on interactivity Contents are packaged in a unique way to produce a specific DVB-H offer DVB-H op meters mobile TV audience and possibly sells directly adv spaces interactivity 16

17 The advertising hype Four out of five Business Models include selling adv spaces, but Advertisers need accountability if DVB-H is television, audience measurement should be measured using the same mechanism as television TV Advertisers are used to address mass audience groups smaller than 100k are usually not in target for Media Buyers analog broadcasting CPM (prime time) 20$ ( 0,0016 per viewer) e.g viewers 400$/ad TV Advertisers have no significant experience in dealing with niche audience yet reaching specific targets can increase CPM by a factor 2 or more this is no more a TV advertising model: more Internet alike 17

18 Advertising in Italy and Europe

19 The Italian advertising market (Nielsen 2006) Television Press Radio Outdoor Internet Cinema data in 000s Total market = What portion of revenues is adv on DVB-H expected to erode? 19

20 The Italian TLC market (data from ASSINFORM 2007) % % % % % % Data in Mln IT TLC 20

21 The UK advertising market Cinema Internet outdoor radio press direct mail TV which is the most direct competitor for Mobile TV advertising? source: The Advertising Association - London ,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 Mld 21

22 Multi-platform audience measurement in the convergent world

23 TV advertising in Italy: the stakeholders publicity concessionaire SIPRA PUBLITALIA advertising investors advertising agencies traditional FTA broadcasters RAI MEDIASET LA7 satellite pay TV Sky Italia media planner media agencies measurement consortium AUDITEL AUDISAT AUDIRADIO AUDIWEB AUDIPRESS measurement services and device public authority EURISCO - AUDISTAR MAKNO 23

24 Media Planner needs data adv spending proportional to audience audience measurement system must be reliable and accepted by all actors adv spending can become related to profiling geo-economics tools can introduce privacy problems adv spending can increase only if ROI increases from audience measurement to efficacy measurement Collecting Agencies needs automating tecnologies today they mainly rely on manual checking physical agents make controls, visiting both real and cyber places revenues distribution process uses quite an approximate algorithm small content producers tend to be penalized different agencies in different countries EU made for harmonization or unification 24

25 Why is a common metric needed? Audience research is a vital part of TV and radio broadcasting. It s a key element of doing business, helping to determine advertising rates and informing decisions on programmes, schedules and services. The digital era generates proliferation of platforms and services. These have brought new challenges for audience research, e.g. non-linear content or where you can access the same content by different means. ARENA Research Project (IST ) 25

26 The Arena consortium for more info: 26

27 ARENA project s aims To identify the metrics needed on new digital platforms, and to relate them to metrics on existing platforms. What metrics are needed, for example, to understand navigation in interactive applications, and how do you characterise mobile TV viewing? To create a consistent information scheme across platforms, based on open standards. To work out how to collect audience data. What features of the new platforms can be exploited? How do you work out which of the many devices connected to the TV is actually in use? Can you tell who is watching without making them push a button? What do you do when there s no obvious return path to upload the data? 27

28 ARENA s Technical Objectives To model and build a hardware/software reference model, that can be applied to any situation where the content is delivered to the user. Simulating the model and estimate implementation costs, keeping in mind that these will need to be as low as possible. Implementing the model in real scenarios, and testing it in field trials. 28

29 Collecting business requirements Approximately 36 major requirements. Essential: Must be able to track a user s content consumption across services, delivery platforms and receiving devices Must be able to track and consolidate consumption of a specific asset across services every combination of service, delivery platforms and receiving devices. Key questions: Over a particular time band, what is the total reach for a piece of content across all digital platforms? What are the relative contributions of each delivery systems to that total reach? 29

30 Producing functional requirements The information-gathering and other functions needed to determine the who, what, how, where and when, in order to meet the business requirements. So what parameters have to be recorded, and how do they relate? design of the proper data model 30

31 Scenarios the key aspects The distinction between assets and instances The metadata issue Thinking non-linear In-home versus out-of-home consumption Single users and households Embedded monitoring software or separate device Return paths 31

32 ARENA in the field 4 Trials ARENA is planning four field trials on different platforms (from DTT/SAT with MHP and interactive services to IPTV and DVB-H), linked through a common audience data collection system. The four trials cover a range of digital multimedia services as wide as possible. 32

33 Conclusions

34 Conclusions Advertising in Mobile TV is subject to a high expectation: most Business Models expect revenues streams from advertising The advertising chain is complex: several stakeholders several delivery platforms different business attitudes Traditional advertising model is quite strong: big players huge investments mass audience Telcos are newcomers! A new perspective is needed: common agreed metrics leverage on small profiled audience from CPM to ROI lower entry barrier wider market 34

35 Mobile TV advertising: principles and opportunities from an European perspective Gian Paolo Balboni Telecom Italia