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Advertising and the second screen

Advertising and the second screen

When TV becomes interactive and targeted

This report explores how live TV will need to change its advertising practices to handle growing competition from the Internet and protect its status as top mass medium.

It compares the way ad revenue is progressing for both TV and the Internet, and looks at the rapid changes in TV viewers' behaviour.

The report examines whether live TV needs to borrow certain recipes from the Web, to line up with viewers' new habits and advertisers' new demands.

It explores the new possibilities opened up by the simultaneous use of the second screen by TV viewers, to deliver a new, more interactive and targeted experience to users and advertisers alike.

It concludes by assessing the development outlook for these new brands of advertising, and details the obstacles that are likely to impede television's path to merging with the Internet.

1. Executive Summary
2. Methodology & definitions
2.1. General methodology of IDATE's reports
3. How much does ad revenue contribute to TV financing?
3.1. The weight of advertising in TV financing
3.1.1. At the global level
3.1.2. Regionally
3.2. Growing competition from new ways to watch videos penalising top commercial TV stakeholders
3.2.1. High ownership levels for Internet-ready devices...
3.2.2. ... which facilitates the rapid adoption of new viewing habits ...
3.2.3. ... at the expense of traditional TV
3.3. The ad market's move to the Internet
3.3.1. Top media groups vying for ad revenue
3.3.2. Internet advertising revenue growing steadily
3.3.3. Reasons for the switch
3.3.4. A challenge for both TV channels and content providers
4. Why TV industry players need to adapt to the new paradigm
4.1. Using second screens as the main tool for targeted and interactive advertising
4.1.1. Using hashtags in TV commercials to get a foot in the door
4.1.2. Use of automatic content recognition software
4.2. Big data and programmatic buying adapted to the TV universe
4.2.1. What is programmatic buying?
4.2.2. The switch to programmatic television
4.3. Advertiser strategies for TV and the second screen
4.3.1. Advertising on the second screen tied in with an airing commercial
4.3.2. Advertising on the second screen tied in with the TV programme
5. What does the future hold for TV advertising?
5.1. Strong belief in the potential of new targeted ad formats, especially in tandem with the second screen
5.2. Developing partnerships between the ecosystem's existing players
5.3. Still potential obstacles to the development of these new formats
5.3.1. Will consumers embrace these new formats?
5.3.2. Users' privacy concerns and willingness to identify themselves
5.3.3. More platforms means more challenges
5.3.4. The need to implement new measurement tools
5.3.5. The issue of editorial responsibility
Table 1: Growth comparison for the number of channels and TV ad revenue in Europe between 2009 and 2013
Figure 1: Evolution of media ad revenue around the world between 2009 and 2018
Figure 2: Evolution of the global TV market's different sources of financing between 2012 and 2019
Figure 3: How television's sources of financing will change between 2014 and 2019, by region
Figure 4: Comparison of fixed and mobile broadband density levels in a selection of countries, at the end of 2014
Figure 5: Comparison of ownership levels for laptop and desktop computers, tablets and smartphones in a selection of countries, in October 2014
Figure 6: Which devices are used to watch videos, in a selection of countries
Figure 7: Comparison of how many Internet users have watched films or TV programmes online during the past week, by type of service
Figure 8: Change in the top channels' audience share in a selection of countries, between 2003 and 2013
Figure 9: Comparison of ad revenue growth for Europe's top broadcasters between 2010 and 2014
Figure 10: Growth of media ad revenue worldwide between 2009 and 2018
Figure 11: Evolution of regional ad revenue between 2009 and 2018
Figure 12: Evolution of mobile's share of online revenue, 2009 to 2018 21
Figure 13: Evolution of ad revenue generated by social media and OTT video worldwide, and their share of total online ad revenue between 2010 and 2018
Figure 14: How much French TV viewers tweet, by type of programme, in 2014 24
Figure 15: Impact of Twitter on advertising effectiveness
Figure 16: The power of the second screen
Figure 17: How the Chirpify Actiontag Platform works
Figure 18: Use of the SDK Intrasonics solution for a second screen application from automotive manufacturer, KIA, during the Australian Open
Figure 19: How Viggle is used
Figure 20: Example of Beamly integrated into the BBC's catch-up solution, the BBC iPlayer
Figure 21: Examples of the Beamly app used in the UK
Figure 22: The Shazam Engagement Rate
Figure 23: Evolution of programmatic digital video ad spending in the US, 2013 to 2016
Figure 24: How TV Audience Sync from Teletrax works
Figure 25: Illustration of the Honda Jazz application at work
Figure 26: Coca Cola's Chok app
Figure 27: Illustration from the Weetabix second screen campaign
Figure 28: Illustration of the "Tag the ad, get a Pepsi" campaign
Figure 29: Screen shot of the Pillsbury "shazamable" spot
Figure 30: Screen shot of the Waitrose "Blippable" spot
Figure 31: The Heineken Star Player app tied with in Champions League matches
Figure 32: Illustration from a "shazamable" snowboarding competition, aired on NBC and sponsored by Red Bull
Figure 33: Illustration of the Chevrolet Game Time app designed for the Super Bowl 2012
Figure 34: March Madness 2015 live app sponsors
Figure 35: Screen grab from the Dove Men+Care campaign run during March Madness
Figure 36: Lexus sponsored exclusive bonus content for the second screen from the USA Networks series, Psych
Figure 37: Visual of the Verizon sponsorship of the Fox network's Xtra Factor application
Figure 38: Which forms of interactive advertising offer the best money-making opportunities for TV operators
Figure 39: What impact targeted advertising is likely to have on the TV industry
Figure 40: The most promising forms of TV audience targeting
Figure 41: Ad categories that are expected to enjoy the greatest increase in 2015
Figure 42: How ads fare with consumers
Figure 43: Users' ability to notice and be receptive to different ad formats
Figure 44: Market players' view of how consumers will accept new approaches
Figure 45: What kind of user data is currently being collected?
Figure 46: Market players' use of analytics

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