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With all the talk about connected living at CES 2013, we cannot ignore the fact that the Internet is indelibly permeating all of the appliances we interact with everyday. An example of this is the television. We have all heard of Internet-compatible connected TVs and smart TVs. Feedback-compatible Hybrid Broadband TV (HbbTV) is no different–except for the feature which allows viewers to carry out actions defined by the program they are watching at specific points. As marketers and advertisers, we are constantly looking for better ways for our brands to engage with consumers. With broadband and Wi-Fi as widespread as ever, HbbTV could be the key to collecting feedback-based data from consumers at home. BBDO Proximity has explored the advent and intricacies of HbbTV in the Digital Lab’s newest thought piece, Push the Button, discussing the implications for a new social TV experience as well as what the future of marketing could look like with the adoption of this technology.

Text of PUSH THE BUTTON

  • 1.Push the button Hybrid Broadcast Broadband TVJanuary 2013

2. FOREWORD TV has shaped 20th-century culture more than any other technology. With the advent of television, we have been given the opportunity to witness major moments in world events, all the while enjoying fascinating entertainment. Unforgettable moments include Neil Armstrongs first steps on the moon in 1969 and the legendary fight between Muhammad Ali and Joe Frazier in 1971, broadcast live on TV in our living rooms. The Internet has also significantly expanded our communication options. The opportunity for dialogue now complements the ability to see moving pictures. However, what makes our present situation so exciting is not the establishment of an innovative key digital medium, but rather the merging of technologies: welcome to the age of Hybrid Broadcast Broadband TVCONTENTS (HbbTV)! HbbTV brings the Internet to the TV, providing viewers with countless fascinating applications and a whole host of new TV channels. Companies have unimaginable opportunities to expand the content of their TV commercials and enter into a dialogue with potential customers in a highly attractive environment. With this White Paper, we would like to provide you with an overview of the marketing and advertising opportunities this new technology provides. 1.Foreword3We will be familiarizing you with the latest developments and some best- practice examples taken from the global BBDO network. You will be inspired2.Internet-Compatible TV 4 by MAGGI, Mercedes-Benz, and Postbank, who are currently working on establishing mass-market applications following the successful HbbTV pilot3.A Brief Whats What in the New World of TV Flexibility7stage.4.HbbTV Opportunities for Innovative TV Formats16I hope you enjoy the brochure.5. HbbTV the Benefits for Advertisers 22Kind regards,6. The Global Role and Marketing Development 377. Summary42 Torsten Kgler, Consulting, BBDO Proximity Hamburg8. Sources432 3. Time Spent Watching TVRemains Consistently HighThe popularity of TV has been increasing sincethe 1950s, captivating people all over the worldwith fascinating moving pictures. TV has sincebecome an undisputed mass medium. The risingdemand for exciting programs has led the TVmarket to create more and more new channelsand formats. As a result, the average Americanspends 283 minutes every day watching TV,while in Germany this figure is 223 minutes.1Even in Sweden, which brings up the rear,people manage to spend 166 minutes a day infront of the TV. It is astonishing to think that,in spite of the Internet, these values havechanged very little over the years. For example,while Internet use in Germany increased from44 to 83 minutes in 2010, the amount of timespent watching TV remained constant, almostdown to the minute (cf. ARD/ZDF Massenkom-munikation 2010).To this day, linear TV still determines theprograms people watch: viewers can onlychoose from the content offered at that timeand very little has changed over the past50 years. Communication practices, however,have long since followed a different set ofideals. Brands such as Mercedes-Benz, MAGGIand Postbank initiate dialogue on Facebook,on Twitter, in blogs, and on private websites,while TV channels continue along their one-wayroads and only very timidly pursue dialogue.2. INTERNET-COMPATIBLE TV As we sit comfortably on the couch, the TV obeys our every command with the push of a button. On, off, changing the channel, browsing teletext you THE DECISIVE INNOVATION SHOVE: can do just about anything in a snap with the remote. Leaning back and relaxing, we flip through the channels and realize that nothing beats simpleFEEDBACK-COMPATIBLE TV operation. Nothing, not even the quantum leap to Internet-compatible TV with its new interaction options and numerous additional channels, can change that.4 5 4. The Future Lies inInternet-Compatible TV READY FORSeldom do we see as much change in the TVmarket as we are seeing right now. Just as A BRIEF WHATS WHAT IN THE TAKEOFFeveryone was talking about 3D TV at the 2011Consumer Electronics Show in Las Vegas,3. NEW WORLD OF TV FLEXIBILITYInternet-compatible TV also called connectedHbbTV has been up and running since 2010. TV2 is now all the rage, and very few who Although they may differ in the details, hybrid TVs, connected TVsBefore that, channels did not have thedeal with the technology professionally areand smart TVs are all basically the same thing: they link twotechnology required to adapt to changingwell versed in all the technical jargon. transmission channels that used to be separate namely, the linearcommunication practices. After all, broadbandsignal of the TV channel and two-way data transfer via a broadbandInternet access has only been available across Internet connection. There are, however, subtle differences in each.the board for a few years now, and Wi-Fi hasStrong Demand for Moreonly established itself in households gradually.TransparencyWithout these technologies, TV can be nothingmore than a receiver medium. It is only the Potential buyers do not know what to expectfeedback function that makes TV a future-prooffrom an Internet-compatible TV. From theirdialogue medium.point of view, the market is highly obscure:the glitzy technical terms do not exactly makeThere was another problem to contend with:it any easier to navigate, and the manufacturersuntil very recently, TV channels had refusedapps are difficult to classify and compare.3to take advantage of the new opportunitiesThe simplicity of conventional TVs that peopleassociated with digital media centers, andhave become accustomed to threatens to sinkthe trend of flexible media use, which is in a complex sea of individual solutions. Incharacterized by frequent replacement oforder to turn the hype into a foundation forterminals. To this day, media centers still onlygrowth, people need to understand whatrepresent supplementary offers for channels the new technology is all about. Clarificationand, by choice, play a minor role in the business is the order of the day.model.The feedback channel features provided byTVs are still only rudimentary when it comesto linear programming. Yet the high numberof shows using TED voting and promotinginteraction with live broadcasts demonstratesthat there is plenty of demand. And theseshows tend to attract a large viewing audience.In short, dialogue with viewers has long beena part of the entertainment landscape, even ifthat dialogues is not offered directly throughthe TV. These days, show concepts are limitedto simple call-in concepts and extensions onFacebook and Twitter.6 7 5. Hybrid TV Apple iTVThis is an umbrella term for Internet-The next big thing to emerge from the Californiancompatible TV. As the term suggests, hybrid cult brand. At the end of 2012 at the latest,TV refers to the linking of two technologiesApple will be revealing the secrets of its newlywith different origins: the TV with apps is developed TV. The new device with voice controlintelligently linked to a game console with a will, as always, be intuitive andWeb browser. The term thus describes theis almost certain to stir up theprinciple of connectivity in a general way TV market. Until then, Appleand in various compositions.TV allows you to enjoy contentfrom iTunes on the TV usingMore informationboth PCs and Macs.at techradar.comSmart TVA marketing term for individual manufacturersolutions. Many manufacturers have introducedHbbTVInternet-compatible TV with their own InternetThis represents the first in a new era of TV.portals and so the term smart TV was born. ForThe term Hybrid Broadcast Broadband TVexample, Panasonic developed VIERA Connect4represents a simple concept that facilitatesas a centralized portal for TV applications, such a whole host of new functions. The principleas Skype and Maxdome. Someis that, with the push of a button, viewersmodels even facilitate regularcan carry out actions defined by the channelInternet access. Internet offersat specified access points during the program.are very often managed by the Like basic teletext, a push ofmanufacturer and individually the red button opens up or More informationconfigured for each device series. at wikipedia.org closes the HbbTV applications.Based on a European standard,HbbTV is compatible with allMore informationIPTVmanufacturers.at wikipedia.orgA transmission alternative to cable, satellite,and antenna. IPTV allows you to receive TVsignals online, with solutionsoffered primarily by Telekomand Vodafone. In additionto the standard channels,pay channels are often also More informationavailable. at wikipedia.org89 6. Doomed to Failure: Cross.TV [email protected] and Cross.TV, relies on an independentset-top box. In addition to an extremely extensiveand [email protected] center, YouView offers options for recordingshows and pausing live TV. The first boxes wereIn the past 15 years, many companies havedelivered at the beginning of August 2012, just inattempted to revolutionize the TV. Infomatectime for the Olympics in the UK.Media AG gained notoriety with its Cross.TV.Using a set-top box, viewers could call upthe desired content in a way that is similar toTiVo: The U.S. Pioneer inInternet using a vertical blanking interval in theanalog TV signal, a solution that was doomedTime Shiftingto failure: the vertical blanking interval wouldTiVo had good prospects for successfullynot have worked with digital TV, as it had beenestablishing itself in the North American market.developed specifically for analog TV. And theBased on a digital video recorder, the systemproblems did not stop there: years ago, themakes it possible to define which shows shouldInternet was not nearly as widespread as it isbe recorded and subsequently enables thetoday and, because Wi-Fi was still in the distantskipping of commercials during later viewing.future, the TV had to be positioned in directTiVo offers another benefit in that it learnsvicinity to the phone jack, making it significantlyfrom

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