The iTV Doctor Is In!: Selling Interactive TV Advertising and Sponsorships

Dear iTV Doctor:

Our network's budget process is almost done, and we have put an ad revenue line into our 2010 budget for interactive television, starting right from launch. Problem is, we simply don't know how to sell interactive sponsorships and I worry that we won't generate sufficient usage to even attract an advertiser. Do you have
any suggestions?

Dug Myself a Budget Hole

Dear Dug:

As a matter of fact you're not alone. Most of the network families are firing up their interactive plans in 2010, and many of them don't have the sales infrastructure or process in place to generate revenue.

But there is help available. We are seeing renewed interest on the media side to aggregate advertising and sponsorship opportunities from a wide variety of interactive applications across any and all platforms.

But to hear how that process can benefit a television programmer like yourself, let's hear from Juli Black, who like me, is an Ensequence alum. Juli is putting together a consortium of television programmers that have interactive programs in need of a revenue boost. Here's what Juli has to say:



First of all, kudos to you and your network for not only executing iTV in 2010, but also going on the hook for ad revenue! The iTV Doctor is right. You're not alone, and that is the good news. There are several programmers that have decided to make their move and there is no denying that monetizing iTV is just another devilish detail.

In 2010 any single programmer may have a low volume of iTV opportunities. Since these programmers are only executing a handful of iTV opportunities, some will have anxiety over training a large sales force for what is such a small part of their overall revenue forecast. In addition, some may also feel trepidation over reception in the buying community for what are largely one-off opportunities. Programmers in these early stages may find that they do not have the ideal infrastructure in place to properly sell iTV advertising and sponsorships. And, some of these programmers may predict that the expected revenue from iTV is not large enough to warrant an investment in that infrastructure. Some are going ahead with unsponsored iTV experiences, others may bundle iTV opportunities with other media packages, and some will actively pursue monetizing their iTV efforts. Business models are evolving and a standard is not currently in place. One great benefit that will emerge from all of the activity, whether sponsored or not, is data and valuable information that will help craft a business model and a standard.

For the programmer, the advantage to aggregating inventory with other programmers is that the sum of the parts takes shape and becomes a part of a larger plan. As, the iTV Doctor mentioned, networks now can simply outsource the monetization of iTV to a third party and not worry about training or distracting their current sales force for such a relatively small and highly specialized sales function. A critical component to success for programmers is to plan these interactive events well in advance of scheduled airings, providing buyers and planners plenty of time to consider the opportunities for maximum success. Waiting until the last minute to mention your iTV opportunities to the buying and planning groups is going to generate far less revenue than if you had provided thoughtful notice. You can never be too early to a planning cycle.

Buyers and planners are inundated with all the latest and greatest opportunities and evaluating them for their clients. The sum of these assembled iTV opportunities, presented in a consolidated form, becomes more compelling and valuable, and a programmer's trepidation over buyer reception can now be minimized or eliminated. Buyers and planners are instead presented an entire ecosystem of iTV opportunities across 10, 20, 30+ networks, demonstrating the magnitude of volume and scale iTV is offering.

Efficiencies are amplified as a result of the consolidation of iTV opportunities for programmers, buyers and planners. A single ascertainment of brand needs can provide buyers and planners with a holistic view of the iTV ecosystem that clearly maps all or most sponsorships and advertising opportunities available in 2010, 2011 and beyond. Consider this efficiency advantage compared with 10, 20 or 30+ different TV programmers meeting individually with buyers and planners, with only a handful of iTV opportunities each...coupled with the complexity of availability of each of those opportunities on its own unique footprint of platforms. Programmers, buyers and planners can now be more efficient and spend a fraction of the time, because these opportunities are consolidated in one easy-to-digest form. And being able to present and purchase these opportunities more quickly and more easily is a benefit to all.

I founded Something Good Media to aggregate sellable iTV opportunities from ultramodern programmers, distributors and platforms, and offer them together for maximum cumulative value to the buying community. For more on how we can help, please visit us at www.somethinggoodmedia.com.


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The iTV Doctor is Rick Howe, who provides interactive television consulting services to programmers and advertisers. He is the recipient of a CTAM Tami Award for retention marketing and this year was nominated to Cable Pioneers. He is also the co-author of a patent for the use of multiscreen mosaics in EPG's. Endorsed by top cable and satellite distributors, "Dr" Howe still makes house calls. His services include product development, distribution strategy and the development of low-cost interactive applications for rapid deployment across all platforms. Have a question for the iTV Doctor? Email him at itvdoctor@itvt.com