Category: Interactive TV

Memo to Acting FCC Chair Michael Copps on Cable TV “Branded Storytelling”: A Tour of Embedded TV Advertising

Dear Mr. Chairman:

We are emailing you the link to this week’s Advertising Age’s story called “Designing a Custom Fit: Cable Offering more integrated, multiplatform deals.”  If you needed any additional evidence that the business model that further merges programming content with advertising requires scrutiny, debate, and safeguards (especially in the youth market), we offer the following article excerpts as evidence.  Clearly, the comedy writers are creating the marketing strategies for some of the cable programming networks.  But I’ve put a few of the best lines in bold:

Call it extreme sponsorship.

As advertisers look for maximum returns on their media investments, cable networks are offering an increasing number of creative, customized and multiplatform ways to partner with marketer brands—and to make sure viewers are paying attention.

The options for integrated marketing have gone far beyond a title sponsorship or a simple product placement. Today the buzzwords are “content-mercials,” “intromercials,” “branded storytelling” and custom marketing. Network series stars are featured in marketers’ commercials—and marketers’ products have a starring role in hit series…USA Network’s approach is to treat an advertiser’s brand as a supporting character in its multiplatform “Characters Welcome” credo. “Our network is not about one genre or one demographic. We are about characters. We celebrate the character of your brand,” says Chris McCumber, exec VP-marketing, digital and brand strategy for USA Network…

USA’s hottest show right now is “Burn Notice.” In its inaugural season, “Burn Notice” partnered with Saab 9-3 for an online game, “Covert Ops,” that allowed users to “drive” a virtual Saab all over Miami…In “Covert Ops,” “while you are playing the game, you are using the elements of Saab. The game drew more leads to Saab.com than the number of cars available to sell,” Mr. McCumber says. “The gaming area has incredible opportunities for brand integration.”…USA’s on-air integrations include using Hoover vacuums to “sweep” graphics off the screen during “Clean House.”…

On A&E Television Networks’ History, Subaru is a presenting sponsor for the upcoming “Expedition Africa: Stanley & Livingstone.”…

“We provided the explorers at certain points in the expedition [in four episodes] with the Subaru—where it made sense,” says Mel Berning, exec VP-ad sales for A&E Television Networks.

The integrations highlight features such as trunk space capacity and vehicle toughness off-road. Thirty-second “content-mercials” will run in every episode…AMC is promoting its Branded Storytelling—a way for advertisers to tell their brand stories through AMC’s programming, says Bill Rosolie, AMC exec VP-sales….Examples include: Takeovers, where marketers can own an entire episode, movie or day with their messages; Matching Moments, where AMC breaks the action with a sponsored pod that directly follows relevant content; and “Matching Attributes,” where brands’ messages are connected to key movie content by using custom creative to run within the film…

Nickelodeon has made multiplatform integration central to its ad sales efforts. This year Nick teamed with Walmart for an integrated effort celebrating the 10th anniversary of the No. 1 kids show, “Sponge Bob Square Pants.” The plan included TV, print and online media backed by in-store support. The Happy Place inside its Walmart stores offered exclusive Sponge Bob merchandise. A microsite (www.spongebobhappyplace.com) requests a sign-on code, only available at Walmart stores, to allow visitors access to exclusive content.

In 2008 Nick and AT&T joined efforts on a Web site where kids could text “iCarly,” get an iCarly ringtone, view cool gadgets (such as the Palm Centro or the AT&T Slate) and see a sneak peek of the iCarly movie “iGo to Japan,” which aired last November.

source:  Designing a Custom Fit.  Nancy Coltun Webster.  Ad Age.  May 4, 2009

Cable TV’s Targeted & Interactive Ads: Benefiting from a “enormous fire-hose of data”

excerpt from Advanced Advertising.  Linda Hardesty.  Cablefax.  April 1, 2009:  “There’s a lot of technology in place for data collection,” said Ross [Doug Ross, Cisco’s VP of business development in the service provider video technology group]. “We can collect almost an unimaginable amount of data at a granular level. The industry grapples with what’s the right architecture that would make this enormous fire-hose of data more useful.”

“The challenge is the enormity of that whole set of data,” agreed Woidke [Paul Woidke, SVP and general manager of advanced advertising at Open TV – and chair of SCTE Digital Video Subcommittee (DVS) Working Group 5]. “Eighty-five percent of homes in the U.S. have some kind of satellite or wired connection with a potential return path.”

Instead of just getting Nielson data for a selected sample of homes, a cable operator could gather data from all its subs and know what people watched, when they watched it, and how they behaved in terms of pausing, rewinding and fast- forwarding.

Ad Industry Lawyer Spins in Ad Age that Privacy Will Be on “Back Burner.” Not Only Incorrect–but self-serving

This week’s Advertising Age has a “Legal Issues to Watch in 2009” column.  Written by Douglas J. Wood of Reed Smith, it claims that: “PRIVACY TO THE BACK BURNER- Congress and regulators are in a Catch-22: While under constant pressure from constituents and consumerists to curtail the use of personal information or behavioral targeting, they recognize that advertising is the backbone of the internet. So while there will be occasional skirmishes, the war on privacy will continue in its stalemate. Regulators will also see browser makers offering more control to consumers to block ads and the collection of personal information as adequate progress.”

Mr. Wood, it turns out is “a member of Reed Smith’s Executive Committee and the firm’s Advertising Technology & Media Group…and is General Counsel to both the Association of National Advertisers and the Advertising Research Foundation.”

Perhaps Mr. Wood is too busy to really follow Hill and FTC developments, because he is wrong.  There will be considerable activity on the Hill and elsewhere.   His column should have been labeled as written by the lawyer for the ad industry lobby group.  But it does reflect a lack of insight about the online ad industry’s problems related to privacy and consumer protection.

Interactive Ad Bureau to Congress and Public: If Your Privacy is Protected, The Internet Will Fail Like Wall Street!

It’s too disquieting a time in the U.S. to dismiss what a lobbyist for the Interactive Advertising Bureau said as merely silly. The IAB lobbyist is quoted in today’s Washington Post saying: “If Congress required ‘opt in’ today, Congress would be back in tomorrow writing an Internet bailout bill. Every advertising platform and business model would be put at risk.” [reg. required]

Why is the IAB afraid of honest consumer disclosure and consumer control? If online ad leaders can’t imagine a world where the industry still makes lots of money–while simultaneously respecting consumer privacy–perhaps they should choose another profession (say investment banking!).

Seriously, online ad leaders need to acknowledge that reasonable federal rules are required that safeguard consumers (with meaningful policies especially protecting children and adolescents, as well as adult financial, health, and political data). The industry doesn’t need a bail-out. But its leaders should `opt-in’ to a responsible position for online consumer privacy protection.

Behavioral Targeters Use Our Online Data to Track Our Actions and, They Say, to “Automate Serendipity.” Attention: FTC, Congress, EU, State AG’s, and Everyone Else Who Cares About Consumer Welfare (let alone issues related to public health and ethics!)

NPR’s On the Media co-host and Ad Age columnist Bob Garfield provides policymakers and advocates with an arsenal of new material that support the passage of digital age consumer protection laws. In his Ad Age essay [“Your Data With Destiny.” sub required], Garfield has this incredibly revealing–and disturbing–quote from behavioral targeting industry leader Dave Morgan (Tacoda) [our emphasis]:

“Now we have the ability to automate serendipity,” says Dave Morgan, founder of Tacoda, the behavioral-marketing firm sold to AOL in 2007 for a reported $275 million. “Consumers may know things they think they want, but they don’t know for sure what they might want.”

Garfield writes that “In 2006 Tacoda did a project for Panasonic in which it scrutinized the online behavior of millions of internet users — not a sample of 1,200 subjects to project a result against the whole population within a statistical margin of error; this was actual millions. Then it broke down that population’s surfing behavior according to 400-some criteria: media choices, last site visited, search terms, etc. It then ranked all of those behaviors according to correlation with flat-screen-TV purchase…“We no longer have to rely on old cultural prophecies as to who is the right consumer for the right message,” Morgan says. “It no longer has to be microsample-based [à la Nielsen or Simmons]. We now have [total-population] data, and that changes everything. With [those] data, you can know essentially everything. You can find out all the things that are nonintuitive or counterintuitive that are excellent predictors. … There’s a lot of power in that.”

There’s more in the piece, including what eBay is doing. As the annual Advertising Week fest begins in New York, we hope the leaders of the ad industry will take time to reflect on what they are creating. You cannot have a largely invisible system which tracks and analyzes our online and interactive behaviors and relationships, and then engages in all manner of stealth efforts to get individuals (including adolescents and kids) to act, think or feel in some desired way. Such a system requires rules which make the transaction entirely transparent and controlled by the individual. The ad industry must show some responsibility here.

Privacy Issues for Interactive TV and Personalized Targeting Should Be on Congress Agenda

Deep packet inspection and other online marketing techniques are not the only privacy concerns with digital media. So are, in my opinion, the evolving world of more precisely targeted and viewer tracking television ads. Here’s an excerpt from today’s MediaDailyNews on advances in interactive television:

“… a leading developer has created an open standard that will enable advertisers and agencies to easily and seamlessly integrate any method they use to target TV viewers, and then have those ads served to specific dayparts, programming genres, geographic zones, or even individual households. The breakthrough…allows advertisers to utilize any source of data they use to define their consumer targets, and then have those ads served to any platform capable of delivering targeted TV advertising, including…broadband, as well as household-specific addressable television outlets…

…Visible World is disclosing deals with both Acxiom and Experian, two of the leading sources of data used by agencies to target consumers across media, but… the system will easily port data from virtually any source…and… is capable of serving TV ads to as “granular” a target as an advertiser can define…”

source: Addressable TV Ad Developer Hits Target, Creates Open Standard For Advertisers. Joe Mandese. MediaDailyNews. Aug 21, 2008.

Tivo’s “Watch” Service: The evolving TV tracking and ad targeting system

How the TV business tracks viewers/users will eventually be part of the privacy debate. So, for the record, here’s a service Tivo provides to the industry:

“TiVo’s Power||Watch(TM) ratings service provides advertisers access to second-by-second program and commercial ratings data, with demographic segmentations, for 20,000 households who have volunteered to take part in a “passive” consumer panel. The Power||Watch(TM) ratings service provides subscribers the ability to look at TV viewing broken down by standard household demographics including income, geography, ethnicity, number of children and tenure of TiVo subscriber, among others. TiVo can associate household data with the viewership data then produce program and commercial viewership reports by aggregate demographic and behavioral audience groups. All reports prepared by TiVo using this data are anonymous.

Subscribers to TiVo’s Stop||Watch(TM) ratings service and Power||Watch(TM) ratings service include: Omnicom Media Group, NBC Universal, CBS Corporation, The Interpublic Group, Starcom, Carat USA, MPMA, Crispin Porter + Bogusky, Media IQ and Euro RSCG New York.”

source: TiVo Announces Latest Results of Its Stop||Watch(TM) Commercial, Program Rankings. PR Newsire. August 20, 2008