Additional monetization: Personalized advertising on TV

Digital advertising emerged in 1994, when the company AT&T published the first advertising banner. Since its appearance on the Internet, a new promising industry has appeared, capable of achieving tremendous success. The first advertising banner placed on HotWired.com, owned by AT&T, in 1994 had an incredible conversion rate of 44%, the effectiveness of such integration showed extremely high results, thereby creating the prerequisites for the creation of an entire industry.

Over time, new opportunities for Internet advertising emegred, in particular, the ability to accurately target advertising messages according to the potential interests of the user is key. This significant advantage is not available (or significantly limited) in any other type of advertising.
Interest-based ad targeting is a key benefit as it allows you to pinpoint your target audience and deliver ads that match their individual preferences and needs. This approach increases the effectiveness of campaigns by providing more personalized and engaging content that helps to increase consumer engagement and conversion. As a result, companies can effectively spend their advertising budget, attracting and retaining the attention of the target audience.

Online monetization creates a separate niche for content creators, giving them a new way to earn money from showing their content. This form of monetization opens up unique opportunities for creative personalities and content producers, allowing them to generate income through the high demand for their unique and interesting content in the online environment.

Companies that began to build interaction with consumers through the Internet immediately understood its potential. The opposite was the case with linear TV, which for a long time remained distant from monetization through Internet advertising, because the revenues from the sale of traditional TV advertising were much higher.

In recent years, many projects received income from advertising on the Internet as additional, such as broadcasts of sports events, Eurovision, additional monetization of certain television projects. Although there was a linear television show on the Internet, it was not popular, there were no ready opportunities for monetization.

Recent events in the television market, such as the war in Ukraine and the constant increase of number of views via the Internet, the decrease in the number of consumers of classic linear television have led to the need and search for new ways of monetization. It is also worth to mention that the revenues from the sale of broadcasting rights are more stable for TV channels, but not all of them have them and they also fell with the start of a full-scale war.

This created the prerequisites for the intensification of the sale of television advertising in digital, and in this niche, significant players have appeared. They offer innovative solutions for TV channels in the field of selling personalized advertising on popular digital platforms.
The proposed approach involves labeling the regular linear broadcast of a TV channel with tags during its delivery to OTT and some IPTV platforms as they enable target advertising. This method of targeting advertising is characterized by flexibility, clear control of number of views and significant financial benefits for the TV channel.

Dozens of TV channels already use this approach and earn income from the sale of advertising, which not only compensates for all technical costs since the start, but also brings profit.

The process of functioning of this approach begins with the integration of SCTE-35 marks into the linear signal of the TV channel. In case of their absence or the impossibility of their generation by the TV channel equipment, you can use the service of the Cosmonova Broadcast company to create a signal with included marks.

In this case, the signal would be sent to a company that specializes in selling of advertising and takes into account the parameters of the channel and the available advertising inventory. Among these companies there are VIDZONE, ADTECH and others.

Further distribution of the signal with added commercials is provided by OTT platforms such as Megogo, You TV, Omega TV, SWEET.TV, Kyivstar TV and others, which provide subscribers with content with integrated advertising elements.

TV channels earn revenue from the sale of targeted advertising, which allows them to precisely direct advertising messages to specific audiences and optimize the effectiveness of advertising campaigns. This approach brings significant financial benefits to TV channels and contributes to the growth of their competitiveness.

Our team, together with partners, is ready to provide a full-fledged solution for TV channels, including the technical implementation of all the necessary tools, such as Playout, which will ensure the formation of a signal with marks and its sending to providers. Companies that are selling advertising will be able to analyze forecasted revenues, taking into account channel indicators, which will help in making informed decisions about launching a project.