Tuesday, July 16, 2013

What If Media Companies Got Paid For Viewers Skipping Commercials?

That’s the question Apple is asking with their new TV service. 

According to this article, Apple will pay media companies for skipped views as well as non-skipped views.

Why is this idea brilliant?

Because it puts the viewer in complete control.  Which, as yesterday’s post indicated, puts the advertiser in complete control.

The advertiser still pays for ad placement.   Distribution should cost an advertiser money.  Whether anyone watches or not is not a distribution issue.  

It’s a creative issue.

By giving the viewer the opportunity to opt-in to a commercial or opt-out, Apple TV gets data that allows advertisers to hold their agencies – both media and creative – accountable for what is truly important.

A viewed commercial.  Not a placed commercial.  A viewed commercial.

Two sets of data are gathered.  How many viewed the commercial.  How long was each view of the commercial.

If the opportunity to engage the viewer is thirty seconds, how many of those seconds were actually consumed by viewers?  Ten million out of sixty?  Or, fifty million out of sixty?

Two million impression at :30 each delivers an Opportunity to Engage totaling 60M seconds.  Apple will be able to figure out the Engagement per Opportunity of that buy.

Opportunity to Engage is media.

Engagement per Opportunity is creative.

In the future, an advertiser’s Return on Involvement of their marketing campaign (which is their real ROI on marketing dollars spent) will be a factor of these two things:  Opportunity To Engage and Engagement Per Opportunity.

By allowing viewers to skip commercials, Apple will be the first to combine creative and media into a buying platform that will deliver true accountability to the advertiser.

That’s where the money is.

And, it’s going to be a hell of a lot more than a $20 CPM.

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