The third panel that took place during the first day of Nextv Series Mexico, on its virtual edition 2020, was entitled ‘Addressable TV Advertising in OTT and Pay TV’, in which topics related to spot replacement in linear TV and OTT ; pre roll to monetize the catch up and the channel switching; and the new monetization opportunities with Android TV and connected devices were discussed.
For the discussion, Dataxis gathered a team of industry experts, made up of Rodrigo Hernandez Garcia, Director of Corporate Advertising Sales at Megacable; Chris Pizzurro, SVP, Global Sales & Marketing at Canoe; Hector Pita, Addressable TV Product, Head of Ad Sales at Totalplay; and Eduardo Peniche, Sales Director at Dish.
Regarding the addressable TV advertising project developed by Totalplay in Mexico, Pita explained that ‘at Totalplay we have been working for five years to develop an addressable TV advertising platform, with technology partners and a large internal team, who are responsible for building the bases that support this type of advertising. The aim is to deliver an ad to a particular audience, depending on the different attributes that the advertiser is looking for’. The executive also reported that ‘the main problem we faced in this process was related to market adoption, since many disbelieved in our initiative, but, finally, we have found great acceptance. We launched a trial version in 2018; then in 2019 we achieved a fairly mature product; And in 2020, with the pandemic, everything was digitized, and that helped us a lot to build credibility in this great product, which is addressable TV advertising. We are now in a learning and modernization of our audiences phase, using the latest technology tools that exist in the world market, and implementing them in Mexico. I believe that addressable TV advertising is here to stay and is a real phenomenon in the Mexican market’.
In relation to what advertisers accustomed to Internet advertising strategies are currently demanding from pay TV, Hernandez Garcoa explained that ‘although they demand several things, they emphasize what content our subscribers are consuming; how relevant this content is to them; the reach of the content; and the coverage that can be offered in the campaigns’. The executive also explained that ‘due to the Coronavirus pandemic, they ask us for a lot of flexibility to be able to expand their reach, and their frequencies. They also ask us for a lot of empathy and responsiveness, because brands, in this time of uncertainty, do not have the budgets available immediately’.
Regarding the precautions that need to be taken so that the introduction of advertising sales in addressable does not create neglect in traditional advertising sales, Pita stated that ‘after a year of facing this problem, for a time we made it mixed and we gave between 20 and 30 percent addressable, but it has grown, until we decided to make our inventory 100% addressable. But we face many lessons to make that decision’. Likewise, Peniche stated that ‘the trend must go towards addressability, because, when talking about addressability, we talk about efficiency and being relevant in the message. We really have a lot of questions to ask ourselves. In Mexico, the addressable model represents 30% of our total sales, but I would like to see more and more customers joining in and seeking to send a relevant message. From there we have a challenge as an industry. Brands still have a hard time getting out of the traditional spot model, which allows them to have the greatest reach and cover the largest number of people, and does not really focus on generating segmentation. The rule should be that everything goes towards the addressable model’. According to Pizzurro, ‘this is a tool like every other tool that a seller ad inventory has in their toolbacks. It is a complement to the big scale of TV, so now we have pay TV operators or TV networks that are going with an extra tool box that can give them big reach’.
Hernandez Garcia expressed himself on the new monetization opportunities that Android TV introduces to the advertising world, and reported that ‘we have three great facilities to try to monetize, and we are already doing it with some of the brands. On the one hand, by having the Xview hybrid platform, we have access to more than 80 live TV channels in HD, where we can do traditional spot communication on networks or international channels, and we keep commercial minutes. On the other hand, we are also able to record up to 48 hours of content and, as of today, we already feature more than 20 million monthly reproductions by our subscribers who go and search for this content, consume it, and that constitutes another monetization possibility. Finally, we have the possibility to interact with the VOD content on our own channels. We can have pre rolls, or interact with the content we have on our channels, for example, movies’.
‘It is not just about segmenting the audience according to demographic and attitudinal issues. Having a clear and achievable geosegmentation allows brands to optimize and make their resources efficient, and direct their investments towards where the audience is in a captive way; and it allows them to generate relevant information to manage and continue their campaigns ”, added the executive. In addition, Peniche added that ‘now, our aim is to work according to the KPIs of our brands business. From here is the relevance of whether a strategy is to be made for a specific geographical area, but, if we want to measure the mobile geolocation of a person, geolocation already becomes quite relevant. Technology and data are our best partner, and, without a doubt, we must take advantage of them to send the correct message through the correct channel’.