The revenue opportunity of targeted advertising

The data from an integrated video platform has huge potential to make advertising more effective.

Updating their video infrastructure makes it possible for telecoms companies to supply the flexible and personalised services that their customers increasingly expect.

That’s a pretty big deal – but it’s just the start. An integrated, cloud-based platform like the Cisco Infinite Video Platform can also be the springboard to a wealth of further revenue opportunities.

We now live in a world of big data. Service providers know a huge amount about their customers’ viewing habits – what content they have watched, and when and where they have watched it. As the volume of content and number of devices used to consume it grows, these businesses are able to understand what makes people tick in ever-greater depth. And they’re now beginning to explore the potential of this insight.

A detailed picture through integrated data

Typically, service providers use separate distribution pipelines for broadcast, cable, on demand and over the top content. But the Cisco Infinite Video Platform brings all of these together into a single platform. As well as making it possible to deliver services more efficiently, this brings together all the customer data into one place, providing richer information that is easier to analyse.

This means they can develop a sophisticated understanding of people’s tastes, personalities and interests. And this can be combined with demographic information from billing data to create an even more detailed picture – which allows them to show people advertising that’s likely to interest them.

If a service provider knew that someone was keen on watching health programmes, they could advertise them fitness DVDs and nutritional supplements. And by linking this information to their location, they could also promote relevant businesses in the viewer’s local area. Data on age, income, and other interests could be used to personalise the advertising even more specifically.

A growing revenue opportunity

Seeing the potential in this area, some service providers are now creating their own advertising platforms.

Sky’s AdSmart allows companies to target advertising using 90 attributes such as their life stage, affluence and local area. We are familiar with this kind of precision for advertising on websites. But the difference with video is that it is linked to some of people’s most intense and enjoyable experiences – whether that’s a thrilling live sports broadcast or the latest must-watch TV show. And the lower costs compared to traditional advertising mean that this is now possible for emerging brands as well as major players.

Jamie West, the deputy managing director of Sky Media, explains the appeal by saying: “What brands are really trying to capitalise on is that amazing brand-building power of TV. AdSmart enables advertisers to target who they want, when they want, and how they want”.

Some companies have already achieved real results using the platform. An AdSmart audience were 62% more likely to have bought Lego after seeing advertising, and a Ford dealership saw a 100% rise in sales following a campaign.

A mutually beneficial relationship

But we’ve only begun to glimpse the possibilities of targeted advertising. As systems generate more data and we get better at understanding it, we’ll increasingly see the business benefits being realised.

The better you know people, the easier it is to let them know about products and services they are likely to want. And viewers are less likely to find advertising intrusive when it’s of genuine interest. So an integrated video platform brings service providers the opportunity to create a mutually beneficial relationship with customers, that’s always improving.

An investment in the Cisco Infinite Video Platform can pay dividends in more ways than one.

Find out about the integrated video technology that can enable you to develop significant new revenue streams. Get more resources here.