At the close of September,
The Wall Street Journal published an article about the cable systems operators' best-kept secret, Project Canoe. The article stated that the industry effort led by
Comcast and Time Warner -- though we suspect that other operators whose names begin with a "C" are also involved -- reflected the operators' recognition that they're all in the same boat -- a canoe
per chance -- and must standardize the interactive technology in the thousands of cable systems throughout the country -- the paddle metaphor, we imagine -- in order to garner a greater share of the
national ad dollars, the current(cy) "that flows almost exclusively to TV networks." Then again the codename "canoe" could simply have been chosen to reflect the operators' sensitivity to diversity
and ethnicity, and therefore is an homage to the American Indian.
The article stressed a couple of directional leanings:
create a national ad sales organization to
sell national ads or useexisting industry bodiesadvertisement
advertisement
We'd like to proffer a couple of suggestions regarding the aforementioned:
Involve the ad agencies early on in the process so that the end
product meets the needs of the ad community rather than the "theoretical" applications that consulting firms and members of the individual organizations' sale teams think they have garnered from their
"30,000 foot" dialogue with advertisers. Oftentimes the translations have been hypothetical and supporting management's pre-ordained stance on issues, and not a true reflection of ad personnel
mentality, needs and desires.The local cable markets, where there has been deployment of interactive technology, claim to have launched myriads of experiments with local advertisers.
If this is true, which we imagine it is, why has so little information on best practices been disseminated throughout the community? Many of us have a sense of the applications -- don't need another
road show -- but are not comfortable with the value proposition. Directional learnings would be invaluable -- even without disclosing the identities of the participants -- and provide enticement to
dip our ad toes in the stream. Please do not create yet another sales team to approach advertisers and their agencies. So far in the local cable universe we have local sales teams,
national sales teams, NCC reps, category specialists, agency specialists and cross agency category verticals and horizontals. There must be a way to effectively combine the knowledge of the national
sales teams with the skills, market intelligence and reach of the NCC guys and gals to create an effective sales organization truly empowered with the knowledge of advertisers' local and national
needs that is immersed in the interactive television realm. Do not be fooled by the ad agencies' use of the term scale -- the Mecca when reached that permits all deals to be
consummated -- barring pricing scrabbles. Ad agencies often use this mythic term as a holy grail never to be attained. It's indefinable, personal to the buyer and their client, and truly amounts to
the optimal number of undefined persons or households that could possibly view or interact with content. Every scale debate requires its own adjudication. Although we applaud the cable
operators for trying to standardize applications across all of their footprints and extend their reach into every home and set top, we are concerned that if the goal is attained the operators will be
disappointed when the national advertisers do not clamor for all available inventory. The ad community still views the operator's iTV applications as experimental. Clients allocate minimal dollars, if
any, for trials. It is affordable to some national advertisers. However, when the cable operators deploy across their footprints and extend throughout the entire cable realm, these opportunities --
though internal intelligence has reported standardized and scalable -- could become unaffordable to national advertisers or will necessitate the cherry picking of markets. As an example, many
experiments that we have been involved with cost upwards of $50,000 to $100,000 for one month's activity in one market. Fits within a client's parameter of experimentation. If however, the cable
operator expected or attempted to force an advertiser to utilize their whole footprint or the entire canoe-able route, it would be cost prohibitive. A word of caution to management expectation. We know what we will propose next is anathema to some operators, but we recommend that you engage with the national cable networks. They have content that advertisers wish to be
associated with. If their inventory becomes interactive, then it is a way to glean more revenue from the allusive national advertisers. A good one-stop-shop experience will spill over to local unwired
cable system deals that are not tied to national programs but rather feel local but extend nationally -- multiple markets at a time. The national guys already have a financial relationship with the
national advertisers, who are investing more in cross platforming and digitally extending their reach. Revenue splits could garner more for both network and local organizations.In the
interim as we all paddle forward, we would ask a special favor - one that we think everyone would appreciate. Could we receive the following information in a standardized form:
When we
ask for household penetration, can that simply be translated as number of households with access to a service or application rather than number of set top boxes engaged.It seems that
depending on which cable operator or local system or cable network we query, there is different information available concerning gross views and unique views. Can someone standardize that. It
shouldn't be an enigma. Rentrak swears it is available. Would appreciate the help.In closing, we've been trying to come up with some play on the word "canoe." Tippecanoe and Tyler Too
keeps ringing in our ears. So we decided to check out the association. Tippecanoe was the battle in which future president William Henry Harrison bested tribal leader Tecumseh. Harrison used it as the
campaign slogan for himself and vice presidential hopeful John Tyler. However after the election, in which Harrison and Tyler were the victors, its meaning morphed into standing for the shortest time
an elected president of the U.S. held office -- one month -- and the delivery of the longest inaugural address in the history of the U.S. at 2 hours and 45 minutes.
Hopefully, history
will not repeat itself.
