[opendtv] Re: So Soon? Next-Gen Broadcast TV In Works | TVNewsCheck.com

At 5:52 PM -0500 5/2/11, Manfredi, Albert E wrote:
As far as I can tell, advertizers are still trying to figure this out. IMO, for example, web site ads are less successful at attracting my eyeballs than TV ads are. Furthermore, the demographics of the TV audience is easy enough to determine by the program itself. So if I find this to be the case, and I also asked my wife and she seems to feel the same way, I can't believe that the advertizers haven't figured this out too.
Until recently I would agree with Bert about the relevance of web advertising; However, lately many of the banner ads I now see are amazingly well targeted. TV ads are never targeted, other than to the demographic groups targeted by the program they are inserted into.
But demographic targeting is little more than aiming the shotgun at a particular audience. And most ads reach people who are not buying - this is especially true for automobile ads. And frankly, I have little interest in feminine hygiene ads...
What I am seeing now with banner ads is that when I search for products, I am seeing this reflected in the banner ads I see in the days that follow. That's meaningful targeting.
Maybe I watch only the weirdest programs, but quite honestly, I mostly see "local ads" at the movies. Before the previews and the feature presentation, that is. On TV, I see all manner of ads for products available nationwide, and not so much for local stores or local auto dealerships. You might see ads for Giant Food, but that chain is available all over the region.
Your experience is being heavily influenced by your behavior and geographic location.
TV advertising in large markets is very expensive; the number of ad slots that are available on the major network affiliates are limited and are too expensive for local mom and pop advertisers.
If you subscribed to cable you would see MANY more local ads - this is one of the major benefits that the local cable ad insertion companies bring to the table. I say companies because these are usually separate entities that are operated to keep the advertising revenues "off the books" of the cable company that has to negotiate rates with the local franchise authorities. 

Independent broadcasters also run a larger percentage of local ads.
As a consumer of TV, I don't see why "broadcasting" has to die first, to be "resurrected as a national service." I think that whether you are a subscriber to an MVPD, or watch FOTA, or use the web, the actual audience ALREADY thinks TV is a national service. So it's only a matter of doing what Michael Powell was advocating: raise the national caps. Nothing needs to die. Things need to adjust to realities. Everyone in the business needs to "get real."
Again, this is not a question of what the consumer wants. It is what the politicians and the broadcasters want. There is this little matter of "localism" that the politicians find very appealing. They WANT local stations for two reasons:
1. So they can advertise to their constituents (Congressional districts and States for the Senate candidates.
2. They want to stay in front of their constituents - they get plenty of free coverage in their districts between elections. IT would be far more difficult to get this exposure on a national service. 

And the station operators want to be local because of the perks this engenders:

1. Exclusive territorial rights to the content they offer;
2. The leverage this exclusivity provides in retransmission consent negotiations.
3. The audience that is available when there is a local event, weather or news story that causes viewers to tune in.
The recent tornados in Alabama serve as a good example. Would a national service bother to break away from programming to cover these weather events? You could argue that with a properly designed system only the transmitters in affect areas would break away for local coverage.
But if you did argue this you would be arguing FOR localism. And this capability would interfere with the operation of nationwide SFNs, as there would be interference zones when the content changed on a few transmitters.
The National Caps exist to create the perception of balance between the networks (media conglomerates) and the licensees (local affiliates). Is the concept still valid today?
Perhaps, but given the greed of the politicians for money from spectrum, it is fair to say that they would prefer to see broadcasting die. They now have many ways to reach their constituents...
We had a huge crowd at the Brewery Saturday for the release of our first bottled beer. The only promotion was Facebook, our web site, our e-mail newsletter, and word of mouth... 

Regards
Craig


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