by Robert Riopelle
THE NEW WORLD OF television means big changes for viewers, advertisers, and broadcasters. What’s happening? More people are watching TV shows online. They’re recording their favourite shows on their DVRs and in the process, skipping commercials. And since they have hundreds of channels to choose from, viewing is far more fragmented than ever before.
Back when there was just a handful of channels, prime-time viewing encouraged the entire family to huddle around the TV. At one time, a popular top ten show would average a rating of 44.8, but as of 2005, such a show scored only 13.4.
It’s no wonder that advertisers are decreasing their budgets for conventional commercial spots; one estimate has TV ad revenue declining by US$18 billion by 2009. But other things are happening, too. As technology allows for TV consumption anywhere, at anytime, adults spend more time simultaneously watching TV and surfing the web. Viewers as a whole want greater involvement with TV shows, and with each other to enhance their viewing experience.
Today, people have more power and more choice because technology is able to give them what they want, when they want it. We’re seeing this more than ever in our business. Because viewership is heavily diluted over hundreds of channels and web sites, the traditional 30-second spot is on its way out.
But broadcasters need not panic, because people are still watching TV. According to Nielsen Media Research, the average viewer is still watching for more than four hours a day. So if people are still watching the same amount of television, they must be watching differently. Why?
First, with the vast increase in the number of channels available, we have seen the emergence of niche programming. This gives advertisers the ability to reach targeted demographics. Second, one in five American households has a DVR and this is expected to reach 50% by 2010 (it’s growing in Canada, too). As a result, viewers are increasingly skipping through commercials and threatening the existing revenue model.
Third, streaming online video has taken off; a phenomenon like YouTube means more ‘on demand’ content for viewers, and companies are looking for ways to monetize this new media. Viewers are comfortable with media multi-tasking, (e.g., surfing the web while watching TV), which allows for greater consumption in less time. Real-time interactive technology can help broadcasters address these issues as well as monetize their web properties.
A few years ago, I was watching a football game in a bar with three of my engineering friends. We noticed that people were predicting what would happen on the next play. Is the team with the ball going to run or pass? Will they get a first down or score a touchdown? This is communal activity that can be used – and monetized – by broadcasters.
(Full disclosure: The author is the co-founder of LiveHive Systems, which specializes in interactive gaming for television broadcasters through its product, NanoGaming.)
Interactive entertainment solutions that allow information about a TV show to be accessed through the Internet via a mobile phone, laptop or desktop PC where the content of the computer is synched with live TV programming or online media, so viewers can interact with the shows they are watching, in real-time, keeps viewers tuned in.
During the recent National League Championship Series, viewers went to the TBS HotCorner on the MLB.com web site while watching the game on their TV. After logging in, the could answer trivia questions about baseball in general, and about the game they were watching as it happened. For example, a viewer would answer questions such as:
– What is the correct spelling of D. Ortiz’ nickname?
– Who committed an error in the first inning?
– What year did Fenway Park open?
A leaderboard was updated in real-time so gamers could see how they were doing against other viewers. It’s a game within a game, and it was made possible with a corporate sponsor.
For a Canadian example, Global Television Network used interactive gaming for the show Big Brother 8. Branded as Big Brother ‘In The House’ – viewers were able to play by visiting www.globaltv.com/bigbrother. As the show unfolded, viewers answered real-time prediction questions and trivia, while chatting and competing with other fans for prizes and a position on the leaderboard.
What this type of interactivity does is help reduce ad skipping, since viewers must watch the shows in real-time to participate. Second, the viewing experience is enhanced so viewers are less inclined to switch channels. Third, the viewers’ desire for media multi-tasking is met head-on, and Generation Xers, in particular, are very big on this.
In a survey of Big Brother 8 fans, we compared viewers who played ‘In The House’ with viewers who just watched the show, it found:
• 26% of players channel-surfed during commercials versus 67% of non-players
• 94% of players watched the entire show versus 77% of non-players
• 83% of players said they would like to do this with other reality TV shows
• 94% of males who played said they would like a similar interactive experience with a sporting event.
We all know that advertisers will pay for a chance to reach those elusive viewers who are skipping TV commercials using their DVRs and spreading their attention across many channels. But what’s also important is that real-time interactive technology means effective and flexible advertising where the advertisers can choose the type of ad or sponsorship that will be most effective for their brand or product. It’s a win-win.
Robert Riopelle (left) is co-founder and vice-president of business development for LiveHive Systems, a software development company that specializes in interactive entertainment technology for TV broadcasters, fantasy sports sites, and web portals. www.livehivesystems.com.
