Why mobile TV is the linchpin for advertising success

For broadcasters and networks, mobile is becoming a necessary part of their distribution channels to meet the needs of consumers who want television content to be available on multiple platforms. Here lies the opportunity for brand advertisers.

With the increase in networks and broadcasters looking to mobile to give users additional bits of content and live streaming, marketers also have an opportunity to target mobile campaigns in new, non-traditional ways. The new slew of mobile initiatives also has implications for cable providers looking to lock consumers into TV services across multiple screens.

“Mobile will extend the reach of a TV campaign to places and times where users would not otherwise have access to watch it,” said Steve Lanzano, president/CEO of the Television Bureau of Advertising, New York.

“The bottom line is that mobile is additive to TV and is not cannibalizing the regular TV process,” he said.

Mobile views

Mobile TV is on the fast track with consumers, but one of the biggest hurdles for networks and marketers is being able to measure the mobile audience.

Although the opportunities to expand across multiple screens are available, without a solid way to measure the results of campaigns, companies are hesitant to tap into mobile initiatives.

However, consumers are willing to watch mobile content on their devices, according to research from TVB.
In a recent study from TVB, consumers were shown 30 – 60 second ad campaigns on a mobile device to gauge their thoughts on mobile TV.

Consumers who watched the 30-second clips were most receptive to the ads because they were short and users were able to recall the advertisement.

Additionally, 70 percent of the consumers surveyed watched the mobile video while out of the home, showing the opportunity that broadcasters and marketers have to give mobile TV to on-the-go users.

Ninety percent of the study’s respondents said they would be willing to watch mobile content if they were able to get it for free, showing how monetization will continue to be an issue for mobile TV in the future.

For in-home use, apps will continue to be important for service providers to offer consumers as an additional viewing opportunity while in the home, per Mr. Lanzano.

Companies such as Time Warner Cable and Cablevision have made mobile a priority by rolling out mobile apps, Web sites and other mobile offerings. Broadcasters are also developing apps for both tablets and smartphones that users can watch content on as long as they already use the company’s services.

Full-length streaming
When it comes to content, consumers are increasingly wanting to watch full-length TV shows on their devices and streaming will be a trend to watch in 2012 across both tablets and smartphones, per a mobile video executive.

“There are two main trends out right now surrounding mobile video – one is the idea behind TV Everywhere and getting a library of TV content to users across multiple screens,” said Harry Kargman, CEO of Kargo, New York.

“The other is watching something on a primary TV with an additional experience on mobile,” he said.
Second screen experiences can be a way for marketers to buy inventory with an audience that would not otherwise be available.

For example, Subway recently sponsored the PrePlay app to target Super Bowl fans (see story).

By sponsoring the app, Subway is able to get its brand at the center of consumer’s attention without being directly affiliated with the NFL or Super Bowl.

Although mobile TV monopolies are not ending, being able to get advertising messages to consumers in new places that are not associated with broadcasters is revealing flaws in the foundations that cable networks and broadcasters have established, per Mr. Kargman.

“The question is how innovative and outside of the box marketers can think to make sure that they do not lose out on these new opportunities,” Mr. Kargman said.

Live coverageAccording to research firm Strategy Analytics, 15 million users will access mobile TV in 2012, up from 12 million in 2011. The company also predicts that consumers will spend a total of $500 million on mobile TV services.

In particular, the rise in 3G networks has helped mobile streaming grow, especially with live coverage including breaking news and sports content.

“Clearly advertisers need to think about reaching target audiences across multiple device types as user behavior fragments,” said Nitesh Patel, London-based senior analyst for wireless media strategies, Strategy Analytics.

“Consequently advertisers will demand that TV companies are able to sell spots to reach their target audience across multiple device types,” he said.

Being able to buy across multiple screens will eventually become expected for TV marketers in order to reach the biggest group of viewers.

However, with the explosion of app markets, it has become difficult for operators to get control over their content and it will be a challenge in 2012.

“There will always be a need for wide area network coverage for accessing live events while away from a hotspot,” Mr. Patel said.

However, operators need to be strict over what traffic they can allow over their networks, even as they migrate to LTE so that will serve to limit mobile streaming,” he said.

Lauren Johnson - Mobile Marketing