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Programmatic Advertising to Play Growing Role in Margin Expansion for Pay TV Providers in 2021

Programmatic Advertising to Play Growing Role in Margin Expansion for Pay TV Providers in 2021 Image Credit:

As network service providers (NSPs) look beyond traditional revenue streams to address growing competition and changing customer expectations, new revenue generation opportunities are emerging from a powerful new source: programmatic advertising delivered via customer premises equipment (CPE) provided to homes by pay TV operators.

So say senior executives at Technicolor Connected Home, a leading and global provider of innovative next generation CPE solutions and Hoppr, a business and technology platform provider that provides turnkey advertising solutions to pay TV operators, in an interview for journalists.

 

“NSPs have been exploring ways to leverage the analytics of enhanced user engagement to stimulate new monetization strategies to address the implications of the post cord-cutter market,” says Christian Lefebvre, Senior Vice President of Global CPE Video at Technicolor Connected Home. 

“Targeted advertising that leverages CPE in the home without interrupting the viewing experience is materializing as an attractive means for pay TV operators to reclaim lost revenues with minimal CAPEX spending,” adds Hoppr Chief Executive Officer, Cyril Daoud.

While the prospects of being major players in the television advertising market may seem novel to many NSPs, there is growing interest from brands and advertisers to deliver tailored programmatic messages to connected home environments. These are audiences that can only be reached by pay TV operators. Moreover, the trend toward programmatic advertising via intelligent CPE is being spurred by new regulatory and technological developments.

These trends are contributing to the industry’s efforts to replace legacy CPE — which are typically based on complex Linux-based operating systems that are expensive and difficult to modify — with open platforms that are more powerful, configurable and responsive to changes taking place in the business landscape, says Technicolor Connected Home.

There is a growing set of solutions that have recently become available to NSPs seeking to implement programmatic advertising strategies. The challenge, however, is that many of these ad-tech offerings only address technical and low-level management issues. 

The combination of Technicolor Connected Home CPE with Hoppr’s flexible and scalable solution does not require NSPs to engage in any major redesign of current network architectures or business processes. The Hoppr solution is lean, flexible and pre-certified to work with Technicolor Connected Home STBs. This makes it possible to implement advertising initiatives — and generate brand new revenue streams — within a 24-hour period.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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