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Sunday, December 12, 2010

Who should control the TV advertising dollar?

Addressable advertising should be very valuable. It gives ability to sell the same 30 second spot to many different advertisers, to focus on their specific audiences. It should be more efficient and effective by appropriate targeting. With TiVo, tru2way, and other technologies, set-top boxes are achieving the necessary sophistication of hardware and software.

A larger problem is the market issue. Most advertising inventory is owned, controlled, and sold, by the programming networks. Addressable advertising is delivered through the infrastructure of the cable and satellite MSOs. The networks do not want to lose control of their inventory. The MSOs don't want to give up control of their infrastructure. Canoe Ventures is trying to negotiate to achieve progress in this space.

I believe that TV advertising dollars should be controlled by the group with the most power and the deepest pockets, the group with the most intelligence, who knows what the viewers want and has the viewers best interests at heart. I am talking about the viewers themselves. When all ads are skip-able and programs are time-shifted and locally recorded, the power and control of programming and advertising are in the hands of the viewers.

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