Broadcasting Becomes Interactive

Broadcasting Becomes Interactive

          
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Broadcasting Becomes Interactive

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  • In This Article
    • A successful DTV-Internet platform will enable viewers to gain access to integrate entertainment, information, products, and services in new ways.
    • It will let advertisers communicate directly with consumers they most want to reach, and allow consumers to hear only from the advertisers they choose.
    • Most important, it will create a lasting competitive advantage for broadcasters at a time when they are about to lose the only advantage they have.
     

    With the Internet already here and digital TV on its way, TV broadcasters must develop strategies for integrating their on-air and online offerings for consumers and advertisers. Although broadcasters are experimenting with the Web and digital TV (DTV), few have a strategy for integrating broadcast and interactive media. But such an approach—which would tap the potential riches of e-commerce—is crucial. It would permit broadcasters to develop major new revenue streams. And it would enable them to respond to a long-term trend: audience fragmentation and erosion, which is due to the proliferation of cable channels and the growing popularity of the Internet as an alternative to TV.

    Like the Internet, DTV will make it much easier for broadcasters to target—and deliver to advertisers—valuable niche audiences. Mass-market advertising won’t disappear, but because hundreds of channels and thousands of Web sites are competing for viewers’ time, few programs will attract mass audiences. Meanwhile, advertisers will continue to demand high returns on their investments—they want proof of the impact of their ad dollars. And in light of technological developments, they will increasingly expect to interact directly with consumers. The time to create a vision for DTV-Internet integration is now—before the rich cash flows from mass audiences slow to a trickle.

    Moving early to develop a DTV-Internet strategy may give broadcasters an advantage with advertisers eager for proven returns on their investments. Broadcasters need to craft a strategy for creating bundles of onair and online programming, advertising, and ecommerce offerings for specific segments of viewers.

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