Frager Factor

Tuesday, January 07, 2014

@CES Set Top Boxes, APPS and Addressable Ads Usher In End To Domain-Based Browsing

We've forewarning of the set top box (aka. the mot valuable digital real estate) for years. Now would be a good time to go back here and here and here and especially here to brush up on it.

It's because as data and technology become a more critical part of TV advertising, GroupM this week launches a buying and planning agency dedicated to digital distribution, addressable TV, hyper-local TV and interactive TV.

The unit, dubbed Modi, will have 20 employees and be led by Michael Bologna, GroupM's director-emerging communications.

Modi's focus will be addressable TV, which allows marketers to target at a household level and send commercials only to set-top boxes of households that fit specific characteristics desired by the advertiser, such as a particular income level. According to GroupM, 40% of U.S. households can receive addressable ads.

Ads can also be targeted on a hyper-local level to specific zones or ZIP codes, which is important to marketers highly concentrated in certain neighborhoods.

Mr. Bologna acknowledged addressable won't become the way all TV ads are bought. Bug A unit within Modi will work with entertainment clients to promote movies and programs when they become available via on-demand platforms like iTunes, Microsoft's Xbox, Amazon and Walmart's Vudu.

In FutureWealth: Investing In The Second Great Wave Of Technology two leading seers of the Internet predict the best investment opportunities for the next decade in FutureWealth. Francis McInerney and Sean White believe the plummeting cost of information is revolutionizing the world's economy and creating fantastic potential for wealth creation. "Throughout history, wealth has been generated by one fundamental force: the falling cost of information," write McInerney and White, advisers in the telecommunications industry for financial institutions and other investors. "Those who have known how to harness it have made fortunes. Those who have not have been destroyed.

In FutureWealth, we read this about portals (p. 279): "there will be millions of video Web sites to choose from. This is where portals come in: helping viewers navigate through unlimited choices, and consolidating audiences for advertisers."

FutureWealth calls (p. 278) set-top boxes valuable real estate. The more "plots" the better.

They note two key questions (pp. 276-8 of FutureWealth): (1) how will people find what they want and how will they pay for it? (portal for the first half, price competition will drive the second). (2) What will make companies a winner in an Internet-TV world? Answer again is portals. And with the majority of homes to have broadband access to the Internet for their TVs, PCs, and a variety of other devices, FutureWealth (p 280) sees "The next generation of Internet portals and Internet billionaires will be at their service."

Hence, p. 278: "The set-top box is valuable real estate." I would suggest that the purple box is as well. And this is where portals come in: helping viewers navigate through unlimited choices, and consolidating.

Source: AdAge and Future Wealth

About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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