The Future Of Broadcast TV - The Antenna and Internet?

I have had numerous conversations with industry experts about targeted digital TV advertising. There is no doubt it’s the next big wave of change with advertisers increasingly using data to better target at albeit higher CPMs and balancing a higher cost against the potential over spending that may be present on a standard TV buy with broad reach and frequency.

 For the local broadcasting TV ad business (approximately $20bn from a total of $70bn), one challenge is that part of the advertising is delivered through antennas. The antenna market is split, with some not having access to broadband at all and a new growth area— people like me that drop cable and satellite and have streaming channels only, using the antenna for over the air content as needed.

 This growth can be seen with the number of antennas in the USA growing from 16% of households in 2015 to 20% in late 2017; in addition 15% of all broadband homes use only an antenna for TV, no paid TV at all. So the market is significant and likely to continue to grow.

 For stations to maximize ad revenue and provide solutions for brands spending ad dollars, an advanced solution is needed.

 Help is at hand with the ASTC 3.0, however, is it too late?

 What is ATSC 3.0? 

ATSC 3.0 is a new transmission standard for broadcast and represents a significant overhaul for antenna-based TV. It provides better reception (maybe no antenna), 4K resolution, HDR, a major sound upgrade to Dolby AC-4, possible 8K extensions and an ability to watch on mobile devices, including cars and interactive TV.

 ATSC 3.0 will provide programming over the air and commercials over the internet, allowing targeting capabilities. It is a significant standard upgrade over the current version, 1.0.

 The user will need an ATSC 3.0 TV (none were announced at CES this year) or a tuner (small box) that will connect to your antenna and broadband internet, hence the ad targeting.

 Check out the NAB pilot program to see how this all works.

 The fact that there is a return data path in all of this creates a way for the station to know what you’re watching, providing an accurate count and hence targeted advertising. So, slotting by target becomes possible, a first for broadcast TV. Stations can also provide an app like environment as well.

For companies like Videa,  who provide software to make it easier to buy and sell local TV advertising, this will be a welcome solution, keeping more advertising money in the broadcast ecosystem.

 So, when will this be available? In 2020, 40 markets will receive this, but again, is it too late?

 If the OTT/connected TV watching market continues to grow at its ferocious pace, maybe fueled by Netflix and/or Amazon entering the fray, the availability of saleable, targeted local advertising will be possible for brands through these new media channels. This could leak current local advertising from current incumbents.

 ATSC 3.0 needs to be marketed to the consumer, quickly. They aren’t going to buy a new set for this, so an aggressive tuner program will be needed. Examples could be marketing with antenna manufacturers on the benefits of using an antenna with the ATSC 3.0 box, free or low-cost subsidies by stations to drive adoption and targeted programs at current antenna users or maybe linking with advertisers to incentivize usage.

The fact is that the antennas are out there and likely there will be more. It’s up to the broadcasting business to seize the opportunity and build aggressive marketing.

 Maybe start with giving it a cool name, not ATSC 3.0. The 4KAntennaRocket perhaps?