In a guest post for AllThingsD, RBG Networks CEO Jef Graham argues the TV Everywhere concept can help cable companies fight Netflix, YouTube and Amazon — and add up to $12 billion in total revenue over the next three to five years.
Graham explains how traditional television advertisements are ineffective, as they are not focused. Yes, advertisers can choose specific shows, time slots, and, in some cases, can target viewers by area code, but these types of advertisements are still less focused than Internet-based advertising.
TV Everywhere allows advertisers to track IP addresses to better understand viewers, and thus better cater the advertising experience to particular interests.
“Men aren’t seeing ads for women’s shoes, for instance; someone doing Web searches in advance of a trip to Hawaii might see pitches for hotels or rental cars,” explains Graham. “And since there are now often multiple Internet-enabled devices in a given home, ads can be targeted directly to the device that a particular family member uses most often.”
TV Everywhere also helps to solve problems with DVRs and commercial-skipping technologies. People are more inclined to watch advertising while viewing on-demand content on a laptop or tablet than when they DVR a program, so this helps drive advertising dollars back into television programming.
“And as the technology side of the house has worked through its issues and stands poised for broad deployment, we see the barriers breaking down on the content side as well,” concludes Graham. “We expect to see a similar pattern for targeted advertising — the technology is in place, and the new ad model will follow as the stakeholders work through their negotiations, with everybody coming out a winner.”
In a guest post for AllThingsD, RBG Networks CEO Jef Graham argues the TV Everywhere concept can help cable companies fight Netflix, YouTube and Amazon — and add up to $12 billion in total revenue over the next three to five years.
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