Apple TV – the ‘game changer’ for the global TV ad industry
The re-launch of the Apple TV is a game changer for the global TV advertising industry argues Lee Stephens.
There have been a mountain of articles following last week’s Apple Worldwide Developers Conference announcements. Yet one of the least talked about innovations is a game changer for the global TV advertising industry.
In between iPhone announcements the conference took the time to re-launch the company’s underrated Apple TV. Tim Cook led the conversation by saying, “Our vision for TV is simple and perhaps a little provocative. We believe the future of television is apps.”
In a nutshell the highlights were:
1. The set-top box is bigger
2. The remote is sexier
3. Siri can now be accessed via Apple TV
And now the important ones:
4. Apple TV will be open to third party apps through the App store
5. Universal and ‘proactive’ search will be enabled across Apple TV Those two innocent announcements just created one of the largest programmatic TV networks in the world.
For the first time, companies can create compelling content for millions of Apple TV units plugged into lounge rooms around the world. Once consumers are within a third party App, they can be served TV advertising based on whatever targeting Apple chooses to release.
The Apple TV audience is compelling. They are wealthy, tech-savvy early adopters. They are families that are heavy TV viewers, but not necessarily commercial TV viewers. They have their credit cards already active through Apple TV at the click of a button.
In essence, Apple TV advertising is programmatic gold. How Apple TV regulates advertising within third Party Apps is still unknown.
iPhone App advertising is regulated only around its’ position on the screen. Other than that, App owners are free to sell advertising directly or through exchanges. A similar approach to advertising on Apple TV Apps is likely.
The move is positive for content creators who need to find additional ways to monetize expensive video content produced for websites. It’s also good news for non-TV publishers who develop video content but are unable to access high reach channels to engage consumers.
Imagine an Apple TV App for a big real estate website with a virtual walk through of the latest properties you are searching. From the personal experience of a mobile App, content is opened up for viewing and interaction with the entire family.
TV networks should watch this space very carefully. It opens up a new front in programmatic TV buying that is going to accelerate the transition to automated media trading.
It also risks lowering catch-up TV media rates as more video content (good and bad) is accessed via the big screen. If handled well, FTA TV operators can flourish within the Apple TV environment as quality content remains expensive to create at scale.
However, now is not the time for TV networks to procrastinate. If the cost of producing quality content is the only barrier, there are plenty of well-funded competitors to threaten their future.
One thing is certain–the industry is going to follow Apple TV’s lead into a TV environment that is fully controlled by the user.
Lee Stephens is the CEO of Switch Digital
“One thing is certain–the industry is going to follow Apple TV’s lead into a TV environment that is fully controlled by the user.”
I think Apple might be more than a little late to this party….users already control their tv environment via various IPTV offerings around. Apple may offer their take on it via apple tv but its nothing ground breaking.
Roku was (and still is) offering third party apps about three years ago….while Android tv boxes offer even richer content choices.
Apple’s customary ‘hey, we’re nothing original, but we are designed by johnny ives and do it better’ strategy is getting a bit worn now….this box will be for apple fans who are too scared to poke their heads outs and see what’s out there….the rest of the world is already enjoying TV through apps.
ReplyI believe that Apple’s formidable marketing machine, more than AppleTV’s specific features, will be the beginning of the end for traditional TV Providers. Cord cutters come in many shapes and forms and PopCorn Hour, Roku, KaiserBaas and the likes have indeed been around for years. And they had a mostlty technical audience who knew why and how. AppleTV though can be for the masses and deals with content providers via Apps or other formats will potentially reduce the Telcos to what they are: infrastructure providers.
ReplyHave your say