Interactive TV operators will then be able to offer an attractive service to advertisers and gain additional revenue from such collaboration.

1. INTERACTIVE TV
ADVERTISING
– THE SHIFT TO
SECOND SCREENS
WHITE PAPER
PUT
YOUR AD
HERE!

2. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©2
1. Introduction 3
2. Advertising - Television as the right media 4
TV’S INFLUENCE AS AN ADVERTISING MEDIUM 4
THE CHALLENGES FACED BY INTERACTIVE TV OPERATORS 5
2.1. The First screen 7
TYPES OF ADVERTISING 8
HOW BEESMART BY BEENIUS CAN HELP OPERATORS PREPARE 9
EFFECTIVE ADVERTISING CAMPAIGNS
THE SHIFT TO SECOND SCREENS 10
2.2. The Second screen 11
ADS ON A SECOND SCREEN: THE ADVANTAGES 14
AND BENEFITS FOR INTERACTIVE TV OPERATORS
3. Conclusion 16
About Beenius and the Authors 17

3. 3 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
Introduction
TV is still the first choice for advertisers to reach their target groups of audiences
and to build brand awareness. Its audio-visual format is especially suitable
for creating a bond between the brand and the consumer and focusing of
the importance of having the product advertised. On average, TV consumers
spend around 4 hours daily watching Live TV in the home, compared with
same amount of time – but on a monthly basis – watching video on the Internet,
according to Nielsen1
and Deloitte2
. TV is still the main media through which
customers get to know new products and what influences their decision to
purchase them. On the enormous TV advertising market, US advertisers spent
$66.35 billion in 2013, an increase of $2 billion compared to 2012, and this
figure is set to rise to over $75 billion by 2017. Expected growth is for digital
video, but it is predicted that the mobile share will continue to increase at a faster
rate. By 2017, 29.7% of all digital video ad spending will go toward mobile ads.3
Due to demographic differences and technology disruption, the user experience
is changing and TV viewing as we knew it a decade ago is not the same. The
oldest segments of the population continue to increase their viewing time, while
younger segments are changing their habits and supplementing traditional
TV with new experiences on new devices. Mobile devices are becoming an
increasingly common part of our daily TV routine.4
In the US, tablet ownership
increased in the last two years from 18% to 42%.5
Second-screen devices are
not just more useful but also increase TV consumption, while more than one-
third of UK tablet users say that they consume more TV than they did five years
ago, and most of them say that they use tablets alongside a TV.6
All this points
to new opportunities for advertising on the new platforms. Apps on smart
devices offer users’ a better user experience for social networking, obtaining
in-depth info about TV content, and even advertising is more acceptable when
it does not interfere with the content on the first screen.
What is most important and essential for Interactive TV operators is to have a
diversified portfolio of supported clients and that their Interactive TV platform
ensures, for no additional costs to 3rd
parties, also support for efficient advertising.
Besides the in-stream advertising already provided by broadcasters, also
operators can have efficient campaigns on their platforms. They own a large
share of the resources, which enables good targeted and customized digital
advertising in the form of banners or video clips. This is very useful not just for the
big advertisers on the market, but also for geographically local advertisers, which
can more easily target preferred groups of potential customers from a local area,
e.g. a neighborhood. Also operators themselves can advertise their commercial
offers, specific content, or just new opportunities for special purchases. All this
enables operators to increase revenue through cooperation with advertisers.
> 1.
1
Nielsen (http://www.nielsen.com/us/en/reports/2014/an-era-of-growth-the-cross-platform-
report.html)
2
Deloitte (http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/
Industries/TMT/uk-tmt-what-television-is-2013.pdf)
3
eMarketer (http://www.emarketer.com/Article/TV-Advertising-Keeps-Growing-Mobile-Boosts-
Digital-Video-Spend/1009780)
4
Nielsen (http://www.nielsen.com/us/en/newswire/2013/action-figures--how-second-screens-
are-transforming-tv-viewing.html)
5
PewResearch (http://www.pewinternet.org/2014/01/16/tablet-and-e-reader-ownership/)
6
BBC (http://www.bbc.co.uk/mediacentre/worldnews/news-consumption.html)

4. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©4
> 2. Advertising - Television as the Right Media
Advertising still has prospects, especially on television, according to the Nielsen
Global-AdView-Pulse Report.7
The global TV ad budget grew by 4.2 percent on
a yearly basis for the first half of 2013, accounting for 57.6 percent of total ad
spending. Global TV advertising expenditure will reach $219 billion in 2018 for
the 55 countries covered in the TV Advertising Forecasts Report of Digital TV
Research, up by 32% – or $53 billion – from 2012. The marketing budgets of
almost all regions are challenging the growth in TV ad spending. We can relate
these figures to telecoms and cable operator’s revenues from their triple-play
subscriptions reaching US$144 billion in 2018, according to new research by
Digital TV Research.8
7
Nielsen (http://www.nielsen.com/us/en/reports/2014/global-adview-pulse-lite-q3-2013.html)
8
Digital Tv Europe (http://www.digitaltveurope.net/126201/triple-play-revenues-to-reach-us144-billion/)
9
Nielsen (http://www.nielsen.com/us/en/newswire/2014/tv-remains-the-reigning-champ-but-
display-internet-ads-are-the-mvps-of-3q.html)
10
MarketingCharts (http://www.marketingcharts.com/wp/television/affluents-still-highly-engaged-
with-traditional-media-23583/)
11
Financial Times (http://www.ft.com/intl/cms/s/0/c02669da-5ec3-11e3-8621-00144feabdc0.
html#axzz2wylGG2Oq)
Source: 9
Media - % share
of spending -
year to date
TV’S INFLUENCE AS AN ADVERTISING MEDIUM
In reviewing some of main reasons why TV advertising is so important to
advertisers, broadcasters, and operators, we found out that advertisements
actually have a positive impact on the brand owner and the targeted viewer. It
is also important that TV advertising is the main way in which Americans learn
about new products and brands and the affluent are more receptive to TV ads
than to any other traditional ad types.10
This indicates that TV advertising is still
an effective way to provide information about a product to potential customers.
Additionally we should realize that digital advertising (digital marketing) is on
the rise11
, especially on mobile devices, which increasingly are also used as
second-screen devices while simultaneously watching TV. TV for now is still
more effective than digital advertising in bringing in new customers, although
digital is better at securing sales from existing customers.
Television
57,6 %
Radio
5,4 %
Cinema
0,3 %
Internet
4,5 %
Magazines
9,9 %
Newspapers
18,8 %
Outdoor
3,5 %

5. 5 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
THE CHALLENGES FACED BY INTERACTIVE TV OPERATORS
Although at first glance it would seem that operators have little presence in TV
advertising, advertising represents a great opportunity for operators, and they
are very suitably positioned in the TV eco-system to achieve success. They can
deliver targeted advertising messages more efficiently and monitor ad efficiency
very precisely, and still preserve the privacy of their customers.
Namely, this can be achieved with an effective TV platform offering modern
services with popular Live TV and On-Demand content for which users are also
willing to pay. It is also increasingly obvious that a cross-platform is a must-
have.12
All changes in Interactive TV have led to new ways of using and watching
Live TV and On-Demand content. OTT technology, the implementation of Social
TV features13
, support for second screen devices14
, etc., enable operators to
have a key role in a system that delivers content and advertisements.
Each of the many players in advertising strives to increase their role in the TV
advertising market; each has its own challenges and advantages. Broadcasters
can partner with ad producers to create offerings that promote deep interactions
based on content. Operators have a direct relationship with customers. They
collect vast quantities of customer data, which they can use to develop profiles
of their subscribers, including demographic characteristics, personal attributes,
and preferences.
12
BeetTV (http://www.beet.tv/2014/02/hohmancrossplatform.html)
13
Beenius (http://www.beenius.tv/resources/files/doc/Beenius_White_paper/Social_TV_White_
Paper.pdf)
14
Beenius (http://www.beenius.tv/resources/files/doc/Beenius_White_paper/White-Paper-
Second-Screen.pdf)
15
MarketingCharts (http://www.marketingcharts.com/wp/television/data-dive-us-tv-ad-spend-
and-influence-22524/)
Source: 15
The Most
Influential forms
of Advertising
(% of global online
consumers, indicating that
thay allways or sometimes
take action on each form)
September 2013
% point change
from 2007
Recommendations from people I know 84% --
Ads on TV 68% 6%
Branded websites 67% -2%
Ads in newspapers 65% 4%
TV program product placements 58% 3%
Billboards and other outdoor advertising 57% --
Ads on radio 55% -2%
Ads on social networks 55% 7%
Ads before movies 53% -3%
Online video ads 52% 4%
Online banner ads 50% 8%
Display ads on mobile devices 49% 4%

6. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©6
% of respondents
Friends/relatives/word-of-mouth 49%
Ads 30%
-On TV 23%
Social media sites (Facebook, Twitter, etc.) 26%
Search results 24%
Listings on websites/apps offering TV shows 20%
Note: n=495 ages 18+; network TV series found online on sites such as ABC.com, HBO.com;
*who watch TV SHOWS ONLINE MONTHLY OR MORE
Source: Interactive Advertising Bureau (IAB), *45 million Reasons and Counting to Check Out
the NewFronts* conducted in partnership with Gfk,
April 29, 2013
16
eMarketer (http://www.emarketer.com/Article/Social-Digital-Video-Drive-Further-Growth-Time-
Spent-Online/1009872)
Operators are also well placed to enable the advertising experience practically
anywhere, on any device, and at any time. Operators with an Interactive TV
platform who know the opportunity presented by targeted advertising and TV
commerce can complement such services and increase their revenues.
One advantage of operators is that they can provide ads on all devices with
excellent usability. Through effective delivery of ads, recognition of the ad
content is more successful and has a greater impact on consumers. With wide
knowledge of the viewers and their habits and desires, it is possible to create
effective targeted advertising. By knowing what is being watched by a viewer
at a given moment, operators have a great opportunity to also offer context-
dependent advertising. This can be additionally upgraded with a second-screen
solution that connects content and social networking and delivers content-
related information. All this enables a compelling interactive experience and
increases the reach of advertisements.
Source: 16
Ways in Which
US Digital
Video Viewers*
Learn About
TV Shows that
Are Available to
Watch Online,
March 2013

7. 7 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
A commercial on TV 53%
An advertisement in a newspaper 32%
An advertisement in a magazine 30%
An infomercial on TV 18%
A banner or other advertisement on a website 18%
An advertisement on the radio 16%
An advertisement on billboard 8%
A video advertisement on YouTube 8%
(commercial, ad player prior to start of video, etc.)
Source: 20
Ads With the
Most Influence on
Purchases
(% of respondents indicating
ad has influenced them
to purchase a product or
service in past 12 months)
April 2012
The First Screen
When we assume new market shifts, we must first take a look at the existing
primary TV advertising device. Although the number of second-screen devices
is rapidly increasing and users’ habits in front of the first screen are changing,
currently 95% of “eyeballs” are still on the first screen while watching TV,
according to UK regulator Ofcom.17
Interactive TV operators have the ability
to easily manage advertisements delivered to their installed base of set-top
boxes connected to the TV known as the first screen. The TV platform provides
them additional advertising options. Operators can simply choose to deliver
additional ads as a banner inside the user interface (UI) on places like the
electronic program guide (EPG) or VOD library. Ads in the form of a banner can
also be delivered along with linear TV channels or VOD content. In the latter
case, ads can also have the form of a short advertising video clip.
Thus far, managed with existing platforms, operators have successfully
maintained Pay TV subscriptions as the largest sources of revenue. With the
arrival of new technology and the changing user experience, changes in the
market are starting to show. The younger generation of users are increasingly
interested in options that allow them to select and pay for exactly the content
they want, no matter on which device.18
While we have to be aware of the
coming changes, some time is still needed before users change their habits
and technological changes create major changes on the market. It is certain
that changes with second screens are evolving, but the market is not quite
clear and opportunities are still evolving.19
> 2.1
17
Digital Tv Europe (http://www.digitaltveurope.net/155302/influence-of-second-screen-still-
negligible-says-ofcom/)
18
Accenture (http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2013-eyes-have-it-
who-controls-future-of-television-media.aspx)
19
Deloitte (http://www.deloitte.com/assets/Dcom-Colombia/Local%20Assets/Documents/El%20
futuro%20de%20la%20publicidad.pdf)
20
MarketingCharts (http://www.marketingcharts.com/television/most-online-consumers-say-tv-ads-
influence-purchase-decisions-21743/)

8. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©8
Global IPTV market revenue has been increasing since the arrival of the Internet in
the TV world.21
While advertising on IPTV platforms is still in the makeshift phase,
operators still have great potential to gain revenue also from advertising. Some are
even of the opinion that operators should be aggressive in adopting new advertising
approaches and explore the revenue potential thereof. Along with monetizing multi-
screen TV service, an advertising service should also be one of the revenue drivers.
Operators have an excellent chance to attract advertisers especially with contextual
targeted personalized advertising, based on a good understanding of customers.
TYPES OF ADVERTISING
While broadcasters prepare ads within the stream, operators need a slightly
more sophisticated solution. There are quite a number of approaches by which
operators can create efficient advertising campaigns on their platforms.
One of the solutions is advertising along with the content (linear TV or VOD) or inside
the UI in the form of banners. The platform must enable ad presentation on STBs
and flexible administration, which can create a schedule of advertisements for
particular content. Ads as banners, overlaid inside the UI, should be also “clickable”
- Interactive Ads, so that when the viewer sees such an ad, he or she can “jump”
directly to the content, such as VOD, promotions, an app, or a detailed description.
When watching IPTV, viewers will be able to pause the program in order to interact
with the advertisement that attracts their attention, submit their details to obtain
further information on a brand, or in some cases, make online purchases. In the
same way, operators can also easily advertise their own TV services and content.
Another solution is an advertising option within VOD, where advertising video
clips can be inserted before, in the middle of, or at the end of VOD content.
Operators also have the option, the same way as broadcasters, to be a channel
creator. They can compose their own TV channels with different VOD content
and advertisements. This channel is actually a playlist channel with scheduled
VOD content and advertisements typically provided by local advertising agencies.
An Interactive TV platform can also provide a great amount of data that can
be measured precisely. Beside content measurements, this can also be used
for advertising, for example data on how many people have seen a particular
advertisement. This enables statistics to be collected on viewed ads and
reports to be made thereon. With this feature, an advertiser can know who (the
group of viewers), when, and how many times each ad has been seen.
With contextual targeted advertisements you can target customers by their viewer
profile and tailor entire campaigns with personalized ads (a registration process gives
more options for consumers). Targeted advertising presents specific ads to selected
groups of individuals. Consumers see the ads that are more relevant to them and/
or are related to content currently playing. Targeting is accomplished by segregating
particular groups based on demographic or geographic characteristics, consumers’
viewing habits, personal attributes, preferences, etc. Based thereon, an intelligent
recommender engine automatically recommends the best ads for each viewer.
Several studies have confirmed that consumers are more likely to respond favorably
to advertisements if the topic is of interest to them.22
This is also a great opportunity
for advertisers to deliver their message to target audiences more efficiently.
21
PR Newswire (http://www.prnewswire.com/news-releases/global-iptv-market-internet-protocol-
television-revenue-to-rise-at-118-cagr-from-2013-18-248880741.html)
22
Deloitte (http://www.deloitte.com/assets/Dcom-Colombia/Local%20Assets/Documents/El%20
futuro%20de%20la%20publicidad.pdf)

9. 9 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
HOW BEESMART BY BEENIUS CAN HELP OPERATORS
PREPARE EFFECTIVE ADVERTISING CAMPAIGNS
Probably the basic approach for an operator is to put ads in the form of banners
into their Interactive TV UI. Beesmart provides the option that operators choose
particular UI screens in which ads are to be shown. Upon particular viewer
actions (e.g. the opening of a specific UI menu) ads pop-up on the screen.
For better effect, ads can be configured to be interactive, so confirmation of
a particular ad links to another section of the UI. These are again configurable
and are usually a VOD library, a screen with a detailed movie description, or a
section with TV promotions.
Another effective option that Beesmart enables is to present ads in the form of
video clips. These kinds of ads are played out along with VOD content. They
are configured to start at a particular point within a movie, so the clip can start
at the beginning of a movie, at the end, or at some other time in between.
Operators can also define whether their viewers will be able to fast forward or
skip the ad or not.
A Beesmart integrated targeting engine ensures that ads are targeted at specific
groups of viewers. Viewers can state their preferences for a particular topic and
dislikes for other topics. Based on this data, the engine will display particular
types of ads to particular groups of viewers first; in other words, if a viewer has
stated his or her preference for some types of ads, there is a higher probability
the he or she will receive an ad of that type. In the same manner, if someone
dislikes several types of ads, there is a smaller probability that he or she will
receive them on their screen.
The Beesmart Playlist Channel feature allows operators to create entire channels.
They are able to schedule when their existing VOD content will be automatically
played out. A Live TV channel produced in such a manner will also have an EPG.
The option to also schedule advertisements (i.e. between particular movies or
programs) makes it even more attractive for operators. They can thus obtain
another means for advertising, one that is under their full control.

10. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©10
1 Free from ads
2 HD quality
3 On-demand/timeshift
4 Super simple
5 À la care TV/vodeo content
Top 5
THE SHIFT TO SECOND SCREENS
Technology disruption is bringing new challenges, and along with it users’ habits
are changing. By expanding TV service to also include second-screen devices,
operators provide a better TV experience. People want to have additional program
information, buy related video content, or simultaneously post their opinion on
social networks while watching TV – and all this can be done more comfortably
on a second screen due its better user experience.
In any case, viewers are increasingly engaged with such devices and their
attention is not 100% devoted to the TV screen. This is even truer for TV ads;
viewers with mobile devices in their hands probably do not pay much attention
to traditional commercials on the first screen. If viewers’ attention has moved at
least partly to other devices, advertising has to move to such devices as well.
Among people who use their mobile devices in front of the TV, about one-third of
TV ad viewing time is spent looking at their devices.23
Research done on TV consumers’ preferences and complaints showed that
“free from ads” is the most important or preferred service on TV screens.24
Of
course, on one hand there are people who are less fond of advertisements on
their TV, while on the other we know that most people decide to purchase a
particular product according to an ad seen on TV.
Other research indicates that ads on a second screen are more easily accepted,
have a greater effect, and TV viewers can find second-screen ads more
interesting.25
Also ads can be more precisely positioned inside an app’s UI to
enable a better UX and still ensure a good advertising campaign.
Source: 24
Ericsson
ConsumerLab
TV and Media
study 2013
23
MarketingCharts ( http://www.marketingcharts.com/wp/television/are-people-watching-tv-ads-
or-looking-at-their-mobile-devices-28929/)
24
Ericsson (http://www.ericsson.com/res/docs/2013/consumerlab/tv-and-media-
consumerlab2013.pdf)
25
IPTV News (http://www.iptv-news.com/2013/05/getglue-ceo-people-can-find-second-screen-
ads-interesting/)
5
4
3
2
1

11. 11 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
> 2. 2 The Second Screen
Use of second-screen devices while watching TV on a first, big screen is already
widespread and is even increasing. Second-screen usage and companion
applications are becoming important components of the TV viewing experience.
End users can obtain additional information while interacting with Live TV and
the program itself. It transforms a traditionally passive viewing experience
into active entertainment. Interactive TV operators usually also provide their
customers applications for second-screen devices. These applications become
part of the operators’ TV service.
Viewers use second-screen applications in different ways, including the
following:
In a sequential manner, when viewers first find the content (using a powerful
search function, recommendations, and EPG) on the second-screen device
and then fling the content to the TV screen.26
Or viewers simply use the second-
screen application as a remote control for the TV set. So viewers combine the
convenience of a touch screen with the comfort and quality of watching the
content on a big screen.
Another way of using second-screen device is in asimultaneous manner,
which can be either related or unrelated to the content on the TV screen. In
the first case, viewers explore information on the web, shop at web stores,
or use social networks, but every activity is related to the content on the first
screen. Information related to the current show being watched on the TV is
pushed to the second-screen application. Since Interactive TV providers
control both the TV screen and the application on the second-screen device,
delivery of additional information is easy without the need to use technologies
like Automatic Content Recognition. In the latter case, viewers browse the web,
check e-mails, or are engaged in social networks, but without any relation to
the content on the TV screen.
Since the shift to a second screen, the next logical step is that Interactive TV
operators consider opening their second-screen applications to advertisers. In
other words, operators will show ads within the applications and also target
viewers focused on the device at that moment. So if a viewer is constantly
engaged in social networks, tweeting or reading twitter feeds, or chatting with
Facebook friends, he or she will be shown an ad directly on the device.
Ads are specially designed to be shown exclusively on devices and are displayed
as banners. Banners may or may not provide interactivity. Interactive ones
provide additional possibilities, so when they are clicked on, viewers can, for
example, earn credit points, be routed to further web resources, or are asked
to vote on something. Special care is taken to ensure that ads are presented in
a way that is not annoying for subscribers and is acceptable for broadcasters
or content owners.
26
Google (http://www.thinkwithgoogle.com/research-studies/the-new-multi-screen-world-study.html)

12. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©12
2012
2013
Source: 27
Multitasking-
devices used
regularly while
simultaneously
watching TV
(on tv set)
Source:
Accenture Video
Solutions Survey
2013
50%
Com
puter/laptop
M
obile/sm
artphone
Book/new
sletter
Tablets
G
am
es
consoles
Foractivities
unrelated
to
TV
content
Searching
contenton
TV
Forsocialm
edia
activities
aboutTV
program
50%
Com
puter/laptop
M
obile/sm
artphone
Book/new
sletter
Tablets
G
am
es
consoles
27
Accenture (http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Video-Over-
Internet-Consumer-Survey-2013.pdf)

13. 13 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
28
Nielsen (http://www.nielsen.com/us/en/newswire/2013/action-figures--how-second-screens-are-
transforming-tv-viewing.html)
Tabletow
ner
Sm
artphone
ow
ner
50%
Source: 28
Tablet or
smartphone
activities while
watching TV
Looked
up
inform
ation
in
general
Surfed
the
w
eb
Visited
a
socialnetw
orking
site
Look
up
inform
ation
on
actors,
plotlines,athlets,orteam
s
Read
converstions
abourthe
program
on
socialnetw
orking
site
Buy
a
product/service
that
is
being
advertised
W
atched
certain
TV
program
m
ing
because
of
som
ething
you
read
in
socialm
edia
w
ebsiteVote
orsend
com
m
ents
to
live
program
Purchase
coupons
ordeals
related
to
TV
program
W
rite
blurbs
on
the
program
you
are
w
atching
Ads on a second screen: The advantages
and benefits for Interactive TV operators
Interactive TV service providers will formulate advertising campaigns in
cooperation with advertisers. The benefits of such advertising are also mutual.
TV service providers gain an additional source of revenue through some form of
revenue sharing with advertisers or web shop owners, a mechanism to award
credit points, and voting elicits more subscriber involvement in the TV service
and thereby a more loyal and satisfied subscriber base. Advertisers generally
gain an effective means of addressing second-screen users.
Ads can also be placed on other tablet or smartphone applications that are
not part of the operators’ service. However, it is better for advertisers if they
collaborate with operators and provide ads within the operator’s second-screen
apps. Advertisers (and consequently also operators) will benefit from several
advantages that operators have:
- leveraging the large subscriber base of the TV service provider, who usually
provides the second-screen application as part of its basic services, so every
subscriber with a device is a potential application user;

14. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©14
- knowing exactly which content is playing on the first screen, so there is
no need to use technologies such as Automatic Content Recognition when
displaying an ad that is closely related to the current content on the first screen
– so-called contextual advertising;
- even more effective targeted advertising since ads can be targeted directly
at selected subscriber groups – but not only based on user data, personal
preferences, or location (which are common in targeted advertising), but also
on the subscribers’ viewing habits. Operators can also use data they have on
a subscriber’s search history, VOD purchase history, and Linear TV viewing
history to make ads even more tailored to the viewer’s personal preferences.
Target engines can either be built into the Interactive TV platform or integrated
with the external one used;
- interactivity – ads can be “clickable” and contain links not only to additional
information on the web or to web shops, but can also include links to ad-related
shows which are part of the TV service provider’s offering. Shows can be VOD
titles from a VOD library, shows that were broadcast several days before and
available as catch-up TV recordings, or shows that will be broadcast in the
future and viewers are prompted to set reminders for them;
- accountability – there are statistical measurements that show how many
ads have actually been displayed and to what type of targeted audience. So
operators have exact data on ads and advertisers are able to measure, for
example, campaign efficiencies or similar;
- TV voting is a feature that Interactive TV providers can already offer that can
be easily linked with interactive ads – in this manner viewers can give feedback
on certain products or services advertised. Viewers become more involved with
the product and service, the ad gets more attention, so advertisers achieve a
deeper reach with the ad and can have the extra benefit of knowing the voting
results;
- credit points are earned by subscribers when watching and clicking on an ad
and can later be spent on, e.g., VOD purchases or other purchases within the
TV service – it is a means of giving a reward to viewers who have consumed the
information the ad provides. Advertisers benefit because a credit points option
entails a higher probability that an ad will not be overlooked;
Interactive TV platforms, such as Beesmart by Beenius, represent the
technological foundation for TV service providers to make the shift to second-
screen advertising.

15. 15 INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©
Source: 29
The Importance
of Integrated
Multiscreen
Campaigns
Now vs. in Three
Years, According
to US Marketers,
Aug 2013
(% of respondents)
29
eMarketer (http://www.emarketer.com/Article/Multiscreen-Advertising-Audience-Targeting-Lead-
Way-Mobile-Ad-Targeting/1010658)
1% Very unimportant
2013
1% Somewhat unimportantNeither important nor
unimportant
3%
47%
Somewhat
important
48%
Very
important
Neither important nor unimportant
1%
Somewhat unimportant
10% 1% Very unimportant
88%
Very
important
2016

16. INTERACTIVE TV ADVERTISING –THE SHIFT TO SECOND SCREENS Beenius ©16
Conclusion
Second-screen devices are becoming increasingly popular among TV viewers. It
is vital for Interactive TV operators to also include in their overall TV service offer
attractive applications for second-screen devices. It is namely in each operator’s
interest that its viewers use apps offered by the operator and not other widely
available applications (for accessing, e.g., social networks, TV guides, sports
information, etc.). Operators will make their applications attractive when they
include attractive features, such as the following: advanced content discovery
(e.g. searching through all available content, recommendations based on a
particular end user’s viewing habits, recommendations from friends), finding
content-related resources on the Web (e.g. web pages or web shops related to
the content), and last but not least, as a TV set remote control.
Furthermore, operators should be able to show ads on the first screen and
also on the second screen within their apps. The latter is becoming increasingly
important because the more a viewer uses a second-screen device, the less of
his attention remains on the big screen. And this is especially true for TV ads.
Moreover, TV operators can offer advertisers the possibility to make advertising
campaigns that are narrowly targeted at a selected audience, either according to
location, demographics, TV viewing habits, or personal preferences. And thereby,
ads can also be interactive, so viewers can, e.g., vote for a certain product, take
part in a contest, or simply earn credit points for viewing an ad. The ads should
be contextual, i.e. related to the program being watched at the moment.
Deploying an Interactive TV platforms that enables ads to be displayed is of key
importance for TV operators. Platforms should support that the same ads be
displayed on multiple devices, from first-screen TVs with Linux - or Android-based
STBs, to various types of second-screen devices. And ads should be contextual,
targeted, and interactive, as well as attractive for viewers and acceptable for
content owners and broadcasters.
Interactive TV operators will then be able to offer an attractive service to advertisers
and gain additional revenue from such collaboration. For advertisers and brands,
Interactive TV advertising and its shift to second-screen devices entails an even
better opportunity to address potential customers.
> 5.

17. About Beenius
Beenius is the developer of Beesmart, interactive TV middleware for modern
TV service operators that deliver the most exciting interactive TV experience
to their subscribers. Beesmart empowers the uniqueness of every operator
by providing a TV platform along with the tools for extensive upgrades and
prompt customizations in a cost-effective manner. Beenius has a proven track
record of successful customers and partners, and is committed to continuously
delivering the means for their sustainable growth. For more information about
Beenius, please visit our website: www.beenius.tv
About the Authors
Beenius writes its own White Papers and does not outsource such services.
This allows us to focus on market requirements and increase knowledge and
experience while sharing such with our market. We write these papers for you
– so that you can make better decisions.
The team that contributed to this paper among others includes Dejan Pavšek,
Product Manager at Beenius and Miha Cerar, Junior Product Manager at
Beenius. For additional inquiries specifically concerning the topic of this paper,
please contact us at marketing@beenius.tv.
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