Ask The Experts

Chief Architect,
IPTV

John Reister is shaping BigBand Networks' IPTV solution. Prior to joining the company, John Reister was chief technology officer with Copper Mountain Networks, a leading DSL access platform vendor. While there he managed video distribution and regulatory strategy, and developed several new technologies. John has also held positions at Bain & Company and Sun Microsystems. He holds a bachelors of science degree from Pennsylvania State University. He also has a masters of science degree in mechanical and aerospace engineering from Princeton University, and a masters of business administration from the Wharton School of the University of Pennsylvania.

Q. Targeted addressable advertising is getting a good deal of attention at the moment. What's it all about?

A. Unlike legacy advertising that sends the same advertisements to all subscribers in a large geographic 'zone', targeted addressable advertising delivers promotional messages to subscribers that more closely match their interests. Instead of subscribers receiving advertisements chosen based on assumed demographics, ads are selected based on inferential and more personally relevant data such as channel viewing preferences, hobbies, interests and personal demographics. For example, within the same ad slot, one advertiser may buy space to broadcast low-cost winter cabins in Lake Tahoe, targeted at an avid snowboarder in his early twenties while another advertiser may buy ad space on the same slot to reach an older couple planning a second honeymoon, who receive information about cruises in the Caribbean. Addressable advertising maximizes the digital TV network operators' revenue, since it can command higher amounts to reach a more targeted audience.

Q. What are the driving factors behind targeted addressable advertising?

A. Several TV viewer studies have confirmed that subscribers are more likely to respond favorably to advertisements if the topic is of interest to them. So, contrary to concerns that the effectiveness of television-based advertising is falling, targeted addressable advertising enables service providers to increase revenues by giving advertisers guarantees that their promotions will reach more interested viewers and achieve higher response rates.

Q. Does targeted addressable advertising allow television to compete more effectively with Internet-based advertising?

A. Absolutely. Addressability and accountability have been the silver bullets for internet-based advertising successes. Addressability enables television to compete on a level ground. Next generation network platforms such as switched broadcast increases the ability to target advertisements while efficiently managing precious network bandwidth. Switched broadcast is an enabling environment for targeted addressable advertising. Switched broadcast provides an intelligent method of delivering selected broadcast programming to nodes, or small service groups (known as "microzones"), where subscribers actively request that programming. A switched broadcast environment tracks subscribers viewing habits, enabling viewing habit profiles to be developed. This information enables operators to target specialized ads to subscribers based on their viewing patterns, which in turn, paves the way for operators to charge a premium to marketers reaching out to consumers. This way, subscribers receive personalized ads that are of interest to them.

Q. This all sounds great, but how does it work?

A. The SCTE (Society of Cable Telecommunications Engineers) has adopted various DPI (Digital Program Insertion) standards for advertising in digital TV systems. Two of these standards, SCTE 35 and SCTE 30 are of particular relevance to targeted addressable advertising. When an insertion opportunity is signaled by the arrival of a SCTE 35 trigger in the video stream, the ad sever references the schedule to determine what ad set, the ad based on the viewers preference, to play, and when to play it. The ad splicer, which seamlessly splices digital ads into live digital programming, communicates with the server through the SCTE 30 interface, telling the splicer when to insert the ads into the video stream. The ad server and splicer also embed targeting metadata in the stream. The embedded metadata carries ad targeting and splice timing information to ensure a frame accurate splice is inserted into the correct ad at the STB (set-top box) based on a preloaded STB profile.

Q. What additional benefits can be achieved by using the BigBand Targeted Addressable Advertising solution?

A. One of the features of our solution is that network operators will have the opportunity to deliver telescoped advertising, allowing viewers to jump from short ads to long-form versions. This is achieved using visual cues layered on top of the content. The subscriber may be watching a preview of a new movie, during the ad, the subscriber is presented with a visual cue, inviting them to watch behind the scenes footage of how the movie was made. Once the ad has been viewed, the subscriber can return to the same spot where the programming was paused.
The effectiveness of addressable advertising will be further enhanced by the ability to deliver interactive advertising, where viewers directly engage with the advertising message, for example, by scheduling a test drive of a new automobile shown in an advertisement, or an ad for a new skateboard that will offer a demonstration at the closest retailer. The BigBand Targeted Addressable Advertising solution provides a level of viewer interactivity by enabling purchasing executions to be made from the comfort of their homes using their remote control, placing viewing control directly in the hands of the subscriber.

BigBand Networks' Targeted Addressable Advertising solution, fuels the next level of advertising sophistication by allowing viewing habits to match personal preferences, thereby improving customer retention while maximizing advertising revenues for operators.