The acronym may never be as well-known as CPM or GRP. But EBIF is starting to find its way into industry vernacular. It refers to a tech function, but Canoe Ventures executives might be wise to brand it as "Extended Brand Inventory Fulfillment" -- a reference to expanding opportunities that it can provide advertisers. Canoe was founded by the six leading cable operators to develop new revenue streams by providing advertisers with cutting-edge options. The company is scheduled to launch a national interactive advertising system -- driven by the EBIF platform -- by the end of this year. "As traditional media starts to diminish, the operators and programmers are going to need to find ways to create new inventory," said Mark Janes, marketing director at Alcatel-Lucent. Janes, who is involved in Alcatel's interactive TV applications, delivered the user-friendly twist on EBIF's phrasing last week at an industry event. In fact, EBIF signifies Enhanced Binary Interchange Format. Simply put, it allows digital set-top boxes to offer advanced advertising. For Canoe, interactive advertising is the first planned use of the EBIF platform. Down the road, viewers could be offered the chance to participate in voting and polling. And ultimately, EBIF software can trigger "t-commerce," allowing for direct purchases of products via the remote control. When Canoe taps EBIF, it will serve as a lead-generation engine for advertisers. Five seconds into a 30-second spot, the system will allow an overlay or banner to appear along the bottom of the screen. The drop-down would offer a viewer the opportunity to have a coupon or brochure sent to them with just several clicks of a remote control. That's known as a request for information (RFI). A positive response can lead to a dialogue with a consumer. EBIF-enabled set-top boxes would facilitate the ads running in homes served by all six MSO members. But each operator is moving at a different pace in deployment, so launching the national iTV platform remains a challenge. For example, Comcast is moving faster than Charter. The four other Canoe members are Time Warner Cable, Cox Communications, Cablevision and Bright House Networks. Comcast COO Steve Burke has been outspoken about the potential for iTV ads to increase the bottom lines for Canoe members, and the need to move quickly. "It's a big opportunity, so we're pushing hard," he said at an industry event. Rolling out EBIF software is made easier, since the MSOs don't have to install new boxes. The code was written so boxes already in the field can be EBIF-enabled electronically, without home-by-home visits. But with the MSOs using various systems, questions remain about a national launch date and the number of homes advertisers will initially reach. Canoe's lead-generation offering is not markedly different from other iTV applications already launched. Satellite operators DirecTV, Dish Network and TiVo offer RFI programs. Members of the Canoe consortium, such as Comcast and Time Warner Cable, have used it in local markets. Last week, Cablevision said it will launch a program this fall in and around New York. But Canoe promises advertisers a chance to run spots on national cable networks in tens of millions of homes. EBIF-enabled boxes would allow a Procter & Gamble to run an ad offering a coupon for Scope on ESPN or HGTV. "Anything moving to national is a great starting point," said Jen Soch, vice president and activation director for advanced TV at MediaVest. Canoe says it will provide some details by late October or early November, although the murkiness frustrates ad executives. And there is some skepticism, in light of Canoe's failed attempt to offer addressable advertising earlier this year. "We never know what the timetable is with Canoe, and that's been a concern," said Mitch Oscar, executive vice president of televisual applications at MPG. Last week, Oscar organized a Collaborative Alliance meeting, where there were several introductory presentations about EBIF. Among the six Canoe operators, Comcast appears to be the furthest along with EBIF deployment. EBIF-enabled boxes are allowing the MSO to sell RFI advertising in 2 million-plus homes in Chicago and San Francisco. More homes are being added in Detroit. Time Warner Cable has run an iTV ad trial in more than 1 million boxes in New York. And it is now converting them to the EBIF platform. It is also dropping the EBIF agent into boxes in upstate New York and Hawaii. Among the other four Canoe members, Cox would not comment on EBIF deployment. A representative for Charter said the operator is looking for a "healthy" EBIF rollout in early 2010. Bright House Networks says it will have 200,000 EBIF-enabled boxes ready to go by the end of the year. Cablevision is expected to have EBIF boxes synched with Canoe, but the iTV system it announced last week will use proprietary technology. The company declined further comment. Comcast COO Burke said he expects the six Canoe operators to have a combined 10 million EBIF-enabled boxes deployed soon, and 25 million by the end of 2010. Potentially, Canoe could use all of them to flow its iTV ads, but how many it can access is unclear. (MediaPost incorrectly reported that Burke suggested Canoe would launch in 25 million homes by the end of this year.) While Canoe will bring revenues to the MSOs, EBIF also could help markedly strengthen their flagging local sales. Comcast has had some success in attracting advertisers to use its iTV platform in San Francisco and Chicago. And it is running an EBIF-based "t-commerce" offering in partnership with HSN. Beyond advertising, EBIF allows operators to offer a range of iTV functions -- from caller ID on the screen to restarting programs to setting DVRs. "If Canoe didn't exist, all six MSOs would be using EBIF to set up their own interactivity within their own footprints," said Arthur Orduna, Canoe's chief technology officer. Still, the operators believe there is s certain imperative in turning Canoe into a needle-moving success. Potential subscribers to their core TV business may have peaked, while local ad sales may continue to suffer. Burke expects Canoe to yield some revenue in 2010 and to "become more material in the future." Interactive advertising, he said, can offer "the kind of target-ability and measurement" the Internet does, helping operators stem dollars flowing to the Web. An RFI platform can bring advertisers a form of customer contact that can also compete with direct mail. But while Canoe tries to muscle together its national footprint, it faces another potential obstacle in getting its interactive platform launched: cable networks. At some level, networks will have to be convinced it is worth their time and money to cut deals with Canoe for rights to sell the interactive spots. Are advertisers eager enough for RFI capabilities to pay a USA or MTV a premium to run one of the ads? A top executive at a cable network said he doesn't think the current climate would permit such experimentation. "If I were spending a $1 million on all my cable networks," said MPG's Oscar, "and then to do this, they wanted to charge me $1 million more? They make it financially impossible, so that's an issue." Canoe would not comment on revenue models. Comcast's Burke said the consortium has some "general ideas" about pricing, but would "evolve as we get closer" to launch. Earlier this year, Time Warner Cable rolled out a lead-generation interactive application --- not with EBIF -- in Los Angeles. The pricing structure would seem to be enticing to a network. Advertisers such as Carl's Jr. pay once to run a 30-second spot, a second time to integrate the RFI function, and again per lead received. When Canoe does debut its EBIF system, it will act as a middleman in producing and serving the ads. In-house campaign managers will use both a Web interface and one-on-one communication to activate the spots. RFI spots can run only 30 seconds, and an EBIF trigger drops the interactive banner down 5 seconds into the commercial, which continues to run behind it. After a network and agency reach a deal to run one of the ads, they will designate a "creative lead" (an account manager) to work with Canoe. A phone conversation between the two follows, where they would explore several generic templates for the ad on a secure Web site. When a version is selected, the creative provides RFI material: copy, graphics, logos, etc. The Canoe manager will essentially build the spot. The creative and Canoe manager will then reconvene over the phone and review the commercial -- the look and feel, the drop-down motion, the click-through process, etc. Any requested changes would be made by Canoe until the advertiser and network are satisfied. Canoe will then run the spot through its EBIF-enabled system and send the finished product to the network, which will insert it into its pre-recorded broadcast stream. The network provides Canoe with a schedule of when the spot(s) are slated to run, so it can ensure that its system delivers them over the length of a campaign. Viewers of the RFI spots encounter a so-called double opt-in. A person responding yes to an offer is sent to another screen asking whether he or she indeed wants to receive something in the mail. In order to protect privacy, Canoe then sends the positive responses to a traditional fulfillment house -- the kind used in direct mail -- to process the orders. While Canoe preps its iTV platform, Verizon has 2.5 million EBIF-enabled boxes already deployed for its FiOS TV service. Last summer, the company ran a trial with NBC Universal in Portland, Ore. during the Beijing Olympics. On-screen overlays allowed viewers to click on prompts to view athlete bios, medal counts and the latest news. Now, Verizon is conducting tests to also launch lead-generation ads. The spots could run in individual markets, or on national networks across its expanding footprint that now stretches from Tampa to Seattle. NBCU could use the system for next year's Winter Olympics. "We expect to be available for advertisers and programmers shortly," said Jason Malamud, director of ad sales for FiOS.
Google TV Ads may not have received a figurative "standing O" from all cable networks, but Ovation TV will begin selling inventory via the platform next month. Ovation, which focuses on performance art and targets an upscale audience, has programming stretching from a reality series about students at Juilliard, to the L.A. Philharmonic, to one-time hit films such as "Dead Poets Society." Through the deal, Ovation will offer advertisers inventory on the online exchange, reaching all its 33 million homes. Some networks have been resistant to allowing Google to sell spots on the auction-based platform, believing it could turn their inventory into a commodity and devalue it. Still, the system does allow networks to reject prices that are deemed to be too low. NBC Universal sells inventory for six networks on the platform, including SyFy, which is in 96 million homes and among the top-20 highest-rated cable networks. But NBCU has not put inventory for two of its highest-profile channels, USA and Bravo, up for bid on the system. No other owner of a large portfolio of cable networks has a Google deal. Advertisers benefit from TV Ads, Google says, by receiving second-by-second reporting on the viewing of their spots, which is gleaned from set-top-box data. That can provide a gauge about when -- or if -- viewers tune out during a 30-second spot. At a gathering last week of the Collaborative Alliance -- an industry group organized by agency MPG that meets to discuss emerging TV technologies -- Google TV Ads engineering manager Dan Zigmond offered some findings in that arena. He said tune-out patterns are fairly consistent, and major drop-offs in viewership generally begin at second three of a 30-second ad. Strikingly, he said that while appealing creative does retain viewers longer, retention rates do not increase markedly. "That quantifiable effect is less than many of us expected," he said at the event. Zigmond also said Google schedules several thousand spots a day via TV Ads, although most run within inventory provided by Dish Network to a subset of the 13.6 million homes it serves. But spots can also appear nationally on what will be 13 networks next month. For networks that are not rated, the second-by-second tracking TV Ads offers can provide a performance gauge. In addition to Ovation and the NBCU group, other networks on TV Ads include the Hallmark Channel, Outdoor Channel and GSN.
Touting the benefits of all television -- and of Comcast's own TV programming and technology -- the big cable operator notes that the coming season still has a pulse with TV viewers. Comcast, the biggest U.S. cable system operator, says that 81% of viewers plan to watch network prime-time TV this fall, with nearly 60% saying the fall TV season is important to them. In its "TV Pulse Survey," Comcast also said 85% of those surveyed plan to watch the shows live. In regard to DVR usage, 78% of viewers under 35 will use either time-shifting, video on demand or Internet media platforms. For older viewers over 35, this number is 50%. Comcast says consumers are familiar with technologies, should they miss the initial airing of a TV show. More than 67% say they could watch it elsewhere. For its part, Comcast says there was a nearly 25% increase in viewing fall TV series through Comcast's On Demand VOD service from 2007 to 2008. As to the type of shows consumers will watch, the survey says they will turn to drama series "the most" -- at a 68% rate. Comedy comes next at 67%; then movies at 61%; news and educational programming at 47%; sports programming comes in at 43%; and reality TV programming at 41%.
This week brought even more activity in the digital out-of-home video space, with the acquisition of RippleTV by TargetCast Networks. The deal brings Ripple's network of digital displays in local retail establishments together with TargetCast's place-based networks, which reach diners in casual restaurants, including Applebee's and Chili's. Terms of the acquisition were not disclosed. Altogether, the combined assets of TargetCast and RippleTV give advertisers access to 3,425 screens in 1,400 locations, according to the companies. RippleTV's displays in casual dining locations and nearby retail outlets will be rebranded by TargetCast, which will also integrate them into its own network with hardware and software modifications. Ripple's former CEO, John McMenamin, is joining TargetCast as chief revenue officer. Industry observers have long been predicting a wave of consolidation in the digital out-of-home space, which they say will only be accelerated by the recession and global credit crunch. Patrick Quinn, CEO of research outfit PQ Media, had predicted a shakeout in 2008-2009, with smaller or over-leveraged DO companies getting swallowed by larger, better-funded peers, followed by a surge in the medium's revenues in 2010 and beyond. Consolidation can assume other shapes in addition to outright acquisitions. For example, last week, TCN announced a partnership with Premier Retail Networks, which operates a number of in-store video networks serving "big box" retailers like Wal-Mart and Costco, giving the latter responsibility for ad sales in some key categories. Praising PRN's sales staff as "the most experienced sales organization in the digital out-of-home space," TargetCast Networks president and CEO Jerry Hall said TCN will benefit from "PRN's deep relationships with clients and agencies." For its part, PRN can now offer advertising on TCN as a "strategic complement to our existing retailers," according to PRN chief of sales D. Scott Karnedy. The partnership between PRN and TCN Media is part of a growing trend toward consolidation of ad sales between independent DO networks, allowing newer, smaller, or less sales-oriented networks to leverage the experience of veteran sales forces of their older, larger and more established counterparts. In return, the latter can bundle their partners' ad sales with their own, offering advertisers greater reach, frequency and cost efficiency. In some cases, they can also expand their own content distribution.
Harbinger Capital Partners has sold roughly 18% of its stake in the New York Times Co., the hedge fund revealed in a regulatory filing Tuesday, in circumstances that suggest it may divest itself of more NYTCO shares in the future. If true, this would seem to imply that Harbinger -- a dissident shareholder that has tried for several years to shake up NYTCO's management -- is throwing in the towel. The sale of 5,000,000 shares on Thursday, Sept. 17 took advantage of a recent bump in NYTCO's stock price, which rose from just under $7.20 in early September to $8.25 on the day of the sale. However, the price was far lower than what Harbinger paid when it acquired its stake in 2007, at prices ranging from roughly $15 to %20. The sale reduced Harbinger's stake in NYTCO to 23,538,434 shares, or 16.38% -- down from 19.94%. Originally, Harbinger invested over $500 million in the NYTCO before it sold part of its stake in the company last week, the value of its holdings was about $235 million. Recent moves suggest that Harbinger is increasingly focused on getting out of NYTCO. In May, when the share price was hovering between $5.00 and $6.90, Harbinger executive Scott Galloway tried to sell the company's stake in NYTCO to mogul David Geffen and Larry Page, but these potential deals were derailed by Harbinger's demand for a premium, according to media reports. If Harbinger does cut and run, it will be an embarrassing reversal for the hedge fund, which aimed to accomplish what other "Class A" shareholders failed to do -- exercise real authority over the company's management. The NYTCO's two-tiered share structure gives the majority of seats on the board to owners of special "Class B" shares, including members of the Sulzberger family. In March 2008, Harbinger and its ally, Firebrand Partners, forced NYTCO to add an extra director to the board in March 2008, elected by "Class A" shares. The Sulzbergers maintained control of the majority of the board, with 10 seats to regular shareholders' five. In previous years, the two-tiered share system came under fire from investors and investor advisement services, including Hassan Elmasry, an outspoken portfolio manager with Morgan Stanley. He ended up dumping Morgan Stanley's shares in NYTCO in October 2007 after a war of words with the Sulzbergers. In the first six months of 2009, total NYTCO revenues declined 19.9% compared to the same period in 2008, to $1.19 billion, due largely to steep declines in newspaper ad revenues.
Showing that NBC's Hulu isn't the only game in town, Comcast's Internet video platform Fancast is launching a major advertising campaign to kick off the fall season. The campaign "See It For Yourself" -- through a series of five spots -- will "recap" popular shows, including "CSI:Miami," "Glee," "NCIS," "How I Met Your Mother" and the classic television show "Gilligan's Island." The cross-platform effort -- encompassing TV, online and outdoor -- was created by Goodby, Silverstein & Partners, San Francisco. Three of its TV spots will debut on CBS, which is a Fancast partner. The campaign will run for 13 weeks, starting with Wednesday night's season premiere of "NCIS." All television spots will also run on national cable networks. CBS is the only one of the big four networks that is not a partner in Hulu.com., which is co-owned by NBC Universal, News Corp. and Walt Disney Co. Fancast is about one-third the size of Hulu in terms of unique visitors a month -- with an estimated 5 million. Earlier in the year, Hulu started a big TV campaign, including one highly visible spot in the Super Bowl featuring Alec Baldwin of "30 Rock." Hulu currently pulls in around $80 million in advertising revenue, according to a number of research executives, with YouTube.com -- the industry leader in terms of ad revenue for Internet video -- generating an estimated $100 million. Through a distribution deal, Fancast also services some of Hulu's programming. Fancast.com has more than 10,000 hours of online video programming. The Fancast creative illustrates that water-cooler talk with friends and business colleagues about TV is no match for actual TV clips and programming. The online part of the campaign will feature one-click online video banners, offering cliffhanger clips of shows that provide instant access to Fancast. Comcast will also use its owned online properties, such as E!, Style and Daily Candy, to build Fancast awareness online and offline. For the outdoor portion of the campaign, there will be interactive bus shelter messaging. Four interactive bus shelters around the San Francisco area will let commuters search, choose and watch a variety of TV clips on outdoor screens as they await transport.
Starting the new season, Fox's "House" picked up right where it left off -- and then some. On the first night of the new season, a special two-hour "House" on Monday rocketed to a Nielsen preliminary 6.6 rating/16 share among 18-49 viewers, up 14% from a year ago -- easily the top-performing show of the night. This carried Fox to an opening-night win among all 18-49 viewers, with a 6.5/16. CBS came next with its strong comedy lineup, earning a 4.0/10 among 18-49 viewers for the night -- now featuring "The Big Bang Theory" as its best performer, on this particular Monday. It earned a 4.6/10 at 9:30 p.m., its new time period, up 28% from a year ago. This bested usual comedy leader "Two and a Half Men," which earned a 4.4/10. At 8:30 p.m., new CBS comedy "Accidentally on Purpose" did a decent, but not stellar, 3.2/8. Another heavy hitter of the night, ABC's "Dancing With The Stars," posted a decent 4.1 rating/10 share -- but it was down a sizable 24% from its fall premiere of a year ago. The real 10 p.m. hour began to show its colors after the "Leno" premiere week. The season premiere on this Monday of "CSI: Miami" posted a 4.3/11 rating, winning the frame (although down versus last season's starting episode), with ABC's "Castle" scoring a low-ish 2.3/6. NBC's "The Jay Leno Show" sank to a 1.8/5, down two-thirds from its big start a week ago. That said, most analysts -- including those at NBC -- were figuring on a 1.7 rating or so for the show to be a success. NBC says the 1.8 rating was over the 1.4 average rating that "The Tonight Show with Jay Leno" received for a 2008-2009 season. While the "Leno" numbers were expected, what happened to NBC's "Heroes" was not. It dropped a massive 46% at 9 p.m. versus last year's debut; it's now at a middling 2.7 rating/6 share among 18-49 viewers. CW's "One Tree Hill" and "Gossip Girl" mostly survived under all the fresh competition -- earning a 1.2/3 and a 1.1/3 among 18-49 viewers. For its key women 18-34 viewers, both shows each earned a decent, but not great, 2.4/6. TimeNetwork ShowAdults 18-49 Rating/ShareViewers (Millions) 8:00 FOX House 6.2/16 15.76 ABC Dancing With the Stars 4.0/10 17.43 CBS How I Met Your Mother 3.5/9 9.22 NBC Heroes 2.8/7 6.27 CW One Tree Hill 1.2/3 2.48 8:30 CBS Accidentally on Purpose 3.2/8 8.99 9:00 FOX House 6.9/16 17.25 CBS Two and a Half Men 4.4/10 13.59 ABC Dancing With the Stars 4.2/10 17.64 NBC Heroes 2.7/6 5.77 CW Gossip Girl 1.1/3 2.09 9:30 CBS The Big Bang Theory 4.6/10 12.83 10:00 CBS CSI: Miami 4.3/11 13.73 ABC Castle 2.3/6 9.43 NBC The Jay Leno Show 1.8/5 5.67 Source: Nielsen Media Research
I know why you're all so giddy. Someone gave you tickets to the Facebook GenerationNext Wrap Party on Thursday night. Only a parade of college students making beer money by dressing up in silly icon costumes and parading down a New York City street rivals that for excitement, I think. But won't it be strange seeing all your online BFFs in the disgusting flesh? Don't you prefer getting up close and personal without ever actually being up close and personal? Social media memes about community and human expression are such an Orwellian crock. In the history of the world, nothing has divided people more than the Internet. And yet here you are, chasing consumers all over social networks like busy little digi-beavers oblivious to the giant redwood you just chewed through that's about to come crashing down and turn you into beaver borscht. Giving everybody a voice doesn't make anybody worth listening to, my puckish little cyber-slaves. And that's why I know which half of your online advertising is wasted --both halves. We're underwhelmed by oversharing, besieged by impersonal personal pleas and hounded by false Friends. Now that I know what people I know do every second of every day, I don't want to know them. Moreover, how is a blogger I have never met writing about one of my columns and talking about what "Jack thinks" any less impersonal than getting a letter addressed to "Dear Occupant?" And why is ceding complete control of your communications to nerds, retirees and trolls a good idea? By what alchemy does a Web browser turn every user into David Ogilvy? We need to log off and put down the Kool-Aid. If you think these networks will ever evolve to deliver on their hype, I refer you to the Gauls who sacked Rome in 390 BC. It took over 300 years to set that one right when Caesar, who today would write a snarky political blog and go strapped to town hall meetings, took his army to France and deballed the country. But then 410 AD rolled around, and Alaric the Visigoth, who today would be a digital marketing executive posting insincere C-tweets and checking trendcentral.com obsessively, sacked Rome again. Apparently, even Alaric didn't finish the job because there was another sack in 455, by the Vandals this time (not the punk rock group). Wait, there's more: a particularly vicious sack in 1527 (France again), which began with Imperial troops rampaging through the streets of the Eternal City and ended with the pope in prison, the city in ruins and the population downsized with extreme prejudice to 10,000 raped and pillaged zombies. And that's what social media has made the Internet and its virtual citizens -- serial sack victims beaten so senseless they hallucinate an online utopia where none exists. Some savvy marketer is going to figure this out and create a campaign that disdains the idea that social networks unite us. Instead, it will celebrate the fact that by using them, we don't ever have to come face to face with another human being. I'd do it myself, but I need to make a few tweets and see if I can't score an invite to that Facebook party.