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Hybrid Broadcast Broadband TV January 2013

FOREWORD
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TV has shaped 20th-century culture more than any other technology. With the advent of television, we have been given the opportunity to witness major moments in world events, all the while enjoying fascinating entertainment. Unforgettable moments include Neil Armstrongs first steps on the moon in 1969 and the legendary fight between Muhammad Ali and Joe Frazier in 1971, broadcast live on TV in our living rooms. The Internet has also significantly expanded our communication options. The opportunity for dialogue now complements the ability to see moving pictures. However, what makes our present situation so exciting is not the establishment of an innovative key digital medium, but rather the merging of technologies: welcome to the age of Hybrid Broadcast Broadband TV (HbbTV)! HbbTV brings the Internet to the TV, providing viewers with countless fascinating applications and a whole host of new TV channels. Companies have unimaginable opportunities to expand the content of their TV commercials and enter into a dialogue with potential customers in a highly attractive environment. With this White Paper, we would like to provide you with an overview of

CONTENTS

1. 2. 3. 4. 5. 6. 7. 8.

Foreword Internet-Compatible TV A Brief Whats What in the New World of TV Flexibility HbbTV Opportunities for Innovative TV Formats HbbTV the Benefits for Advertisers The Global Role and Marketing Development Summary Sources

the marketing and advertising opportunities this new technology provides. We will be familiarizing you with the latest developments and some bestpractice examples taken from the global BBDO network. You will be inspired by MAGGI, Mercedes-Benz, and Postbank, who are currently working on establishing mass-market applications following the successful HbbTV pilot stage. I hope you enjoy the brochure. Kind regards,

Torsten Kgler, Consulting, BBDO Proximity Hamburg

Time Spent Watching TV Remains Consistently High

The popularity of TV has been increasing since the 1950s, captivating people all over the world with fascinating moving pictures. TV has since become an undisputed mass medium. The rising demand for exciting programs has led the TV market to create more and more new channels and formats. As a result, the average American spends 283 minutes every day watching TV, while in Germany this figure is 223 minutes.1 Even in Sweden, which brings up the rear, people manage to spend 166 minutes a day in front of the TV. It is astonishing to think that, in spite of the Internet, these values have changed very little over the years. For example, while Internet use in Germany increased from 44 to 83 minutes in 2010, the amount of time spent watching TV remained constant, almost down to the minute (cf. ARD/ZDF Massenkommunikation 2010). To this day, linear TV still determines the programs people watch: viewers can only choose from the content offered at that time and very little has changed over the past 50 years. Communication practices, however, have long since followed a different set of ideals. Brands such as Mercedes-Benz, MAGGI and Postbank initiate dialogue on Facebook, on Twitter, in blogs, and on private websites, while TV channels continue along their one-way roads and only very timidly pursue dialogue.

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INTERNET-COMPATIBLE TV
As we sit comfortably on the couch, the TV obeys our every command with the push of a button. On, off, changing the channel, browsing teletext you can do just about anything in a snap with the remote. Leaning back and relaxing, we flip through the channels and realize that nothing beats simple operation. Nothing, not even the quantum leap to Internet-compatible TV with its new interaction options and numerous additional channels, can change that.

THE DECISIVE INNOVATION SHOVE: FEEDBACK-COMPATIBLE TV

The Future Lies in Internet-Compatible TV

READY FOR TAKEOFF

HbbTV has been up and running since 2010. Before that, channels did not have the technology required to adapt to changing communication practices. After all, broadband Internet access has only been available across the board for a few years now, and Wi-Fi has only established itself in households gradually. Without these technologies, TV can be nothing more than a receiver medium. It is only the feedback function that makes TV a future-proof dialogue medium. There was another problem to contend with: until very recently, TV channels had refused to take advantage of the new opportunities associated with digital media centers, and the trend of flexible media use, which is characterized by frequent replacement of terminals. To this day, media centers still only represent supplementary offers for channels and, by choice, play a minor role in the business model. The feedback channel features provided by TVs are still only rudimentary when it comes to linear programming. Yet the high number of shows using TED voting and promoting interaction with live broadcasts demonstrates that there is plenty of demand. And these shows tend to attract a large viewing audience. In short, dialogue with viewers has long been a part of the entertainment landscape, even if that dialogues is not offered directly through the TV. These days, show concepts are limited to simple call-in concepts and extensions on Facebook and Twitter.

Seldom do we see as much change in the TV market as we are seeing right now. Just as everyone was talking about 3D TV at the 2011 Consumer Electronics Show in Las Vegas, Internet-compatible TV also called connected TV2 is now all the rage, and very few who deal with the technology professionally are well versed in all the technical jargon.

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A BRIEF WHATS WHAT IN THE NEW WORLD OF TV FLEXIBILITY

Although they may differ in the details, hybrid TVs, connected TVs and smart TVs are all basically the same thing: they link two transmission channels that used to be separate namely, the linear signal of the TV channel and two-way data transfer via a broadband Internet connection. There are, however, subtle differences in each.

Strong Demand for More Transparency

Potential buyers do not know what to expect from an Internet-compatible TV. From their point of view, the market is highly obscure: the glitzy technical terms do not exactly make it any easier to navigate, and the manufacturers apps are difficult to classify and compare.3 The simplicity of conventional TVs that people have become accustomed to threatens to sink in a complex sea of individual solutions. In order to turn the hype into a foundation for growth, people need to understand what the new technology is all about. Clarification is the order of the day.

HYBRID TV
This is an umbrella term for Internetcompatible TV. As the term suggests, hybrid TV refers to the linking of two technologies with different origins: the TV with apps is intelligently linked to a game console with a Web browser. The term thus describes the principle of connectivity in a general way and in various compositions.

APPLE iTV
The next big thing to emerge from the Californian cult brand. At the end of 2012 at the latest, Apple will be revealing the secrets of its newly developed TV. The new device with voice control will, as always, be intuitive and is almost certain to stir up the TV market. Until then, Apple TV allows you to enjoy content from iTunes on the TV using both PCs and Macs.
More information at techradar.com

SMART TV
A marketing term for individual manufacturer solutions. Many manufacturers have introduced Internet-compatible TV with their own Internet portals and so the term smart TV was born. For example, Panasonic developed VIERA Connect as Skype and Maxdome. Some models even facilitate regular Internet access. Internet offers are very often managed by the manufacturer and individually configured for each device series.
More information at wikipedia.org
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HBBTV
This represents the first in a new era of TV. The term Hybrid Broadcast Broadband TV represents a simple concept that facilitates a whole host of new functions. The principle is that, with the push of a button, viewers can carry out actions defined by the channel at specified access points during the program. Like basic teletext, a push of the red button opens up or closes the HbbTV applications. Based on a European standard, HbbTV is compatible with all manufacturers.

as a centralized portal for TV applications, such

IPTV
A transmission alternative to cable, satellite, and antenna. IPTV allows you to receive TV signals online, with solutions offered primarily by Telekom and Vodafone. In addition to the standard channels, pay channels are often also available.
More information at wikipedia.org

More information at wikipedia.org

Doomed to Failure: Cross.TV and met@box

In the past 15 years, many companies have attempted to revolutionize the TV. Infomatec Media AG gained notoriety with its Cross.TV. Using a set-top box, viewers could call up the desired content in a way that is similar to Internet using a vertical blanking interval in the analog TV signal, a solution that was doomed to failure: the vertical blanking interval would not have worked with digital TV, as it had been developed specifically for analog TV. And the problems did not stop there: years ago, the Internet was not nearly as widespread as it is today and, because Wi-Fi was still in the distant future, the TV had to be positioned in direct vicinity to the phone jack, making it significantly

met@box and Cross.TV, relies on an independent set-top box. In addition to an extremely extensive media center, YouView offers options for recording shows and pausing live TV. The first boxes were delivered at the beginning of August 2012, just in time for the Olympics in the UK.

TiVo: The U.S. Pioneer in Time Shifting

TiVo had good prospects for successfully establishing itself in the North American market. Based on a digital video recorder, the system makes it possible to define which shows should be recorded and subsequently enables the skipping of commercials during later viewing. TiVo offers another benefit in that it learns from individual user habits and the users corresponding recording behavior and can thus suggest shows that the user might like. TiVo boasted hybrid technology early on: the link to the Internet facilitates a dialogue-compatible feedback channel, allowing the user to operate any number of interesting applications, such as simple games and surveys. With TiVo, users can even take part in sweepstakes and call up coupons, opening up interesting opportunities for interactive advertising for companies. In English-speaking countries, in particular, TiVo has demonstrated that viewers appreciate time shifting in conjunction with the added value that comes from the Internet connection. Still, the number of users is currently falling. The subscription commitments discourage price-sensitive customers in particular and may prove to be a major hurdle to surviving in the market over the long term.

HbbTV: Fulfilling All the Requirements Essential for Success

The biggest hurdles standing in the way of HbbTV acceptance have been overcome. Today, a cable is no longer necessary for connection to the telephone network. On a global scale, Wi-Fi is as widespread as the broadband connection, allowing the TV to connect more quickly to the necessary data line and call up the content required for HbbTV. The minute-based plan was replaced by flat rates years ago, and DSL connections have taken the place of ISDN. But let us not forget that HbbTV is a technology standard that is compatible with all manufacturers and not the new development of any one company, making it a future-proof concept that is ideally prepared to cope with evolving communication practices.

more difficult to connect. What is more, TV channels did not accept the Cross.TV license model, as they would have had to pay a fee for each show based on viewer volume. The efforts of met@box AG came to a similar end around 2000, when the company failed to establish itself in the new market.

Proprietary Solutions in the UK: MHEG-5 and YouView

The MHEG-5 standard has been available in the UK for several years and combines many of the functions that are available through HbbTV. Buttons in red and other colors call up various applications, expanding standard TV formats to include Internet content. Combined with home-shopping applications, media centers, and video-on-demand services, MHEG-5 is currently integrated into five million devices in the UK. Nonetheless, some channels have opted for HbbTV, and are most likely to benefit from a uniform European standard and the mutual developments associated with integration into TVs and set-top boxes. YouView represents another British project, which, like the former

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HbbTV: a Recognized European Standard

HbbTV is a technological standard that many major hardware and software manufacturers support and promote for use in TVs and set-top boxes. Companies such as LG, Philips and Sony play a key role in further developing and establishing HbbTV technology. Other companies such as Panasonic, Samsung and Sharp also support the technology with their latest generations of devices and sometimes even with software updates for older devices. HbbTV was standardized by the European Telecommunications Standards Institute (ETSI) in June 2010.

HbbTV: Managed Freedom for Manufacturers and TV Channels

In the past, a desire for exclusivity motivated all TV manufacturers to develop proprietary solutions. As an alternative to this temporary benefit, HbbTV offers a future-proof solution and the market opportunities of a standard that is compatible with all manufacturers. Here is an overview of the benefits:5

Minimal requirements and extremely simple

components ensure that all companies can support functions

Broadcast programs can manage and

distribute information to prevent the uploading of additional services and the overloading of the TV screen

There is an option to replace standard

teletext with high-quality content HbbTV is intuitive and easy to use, ensuring that users will find it no more difficult than basic teletext, which HbbTV will replace. As such, HbbTV fulfills the key acceptance criterion: ease of use.

There is an pen standard as a general

Billboard

foundation for all manufacturers and companies based on free technology

BACKLIT PO

DISPLAY POSTER STER

Support is compatible with all broadcasting

distribution systems (cable, satellite, antenna) and all standard Internet connections

WEB

ADVERTISING INTERACTION WILL CONTINUE TO BE A PURELY SUPPLEMENTARY OPTION.

The high degree of innovation in the mobile terminal segment clearly raises the question of whether or not HbbTV technology is even necessary. Due to the high number of alternative interaction options already available, media consumers are spoiled for choice when it comes to choosing the right technology. Smartphones and tablets simply represent a further alternative. For HbbTV, it is more an issue of whether or not the technology is practical or will establish itself. The most convenient option will prevail. With HbbTV, TV commercials can be expanded to include more extensive information. Whether it be simple participation in sweepstakes or an explanation for more complex topics exceeding 30 seconds, there is no end to what is possible. Could HbbTV reshape the TV landscape for advertisers?

The parallel use of TV and Internet is no longer a dream and now contributes to shaping the communication content. It will always be considered a push technology, even if new dialogue functions are constantly added. If there is an HbbTV button in every commercial, the option will soon lose all of its appeal for the consumer. Would it make sense from a media point of view to introduce restrictions and thus maintain the quality of HbbTV? General and advertising interaction will continue to be a purely supplementary option. TV is and always will be a medium for relaxation. The fact is that click rates for online advertising are less than 0,1 %. These figures will be even smaller when it comes to TV but, based on the high number of viewers, could still play a key role. We still do not know what the networks marketing terms will look like and, more importantly whether HbbTV placement fees will be based on click rates or a flat fee. Both models have their advantages and disadvantages. From the medias point of

view, which model currently seems to be more suitable? Providers will slightly prefer predictable and calculable flat-rate offers, while the advertising industry will want to choose a plan based entirely on click rates. The service performance will ultimately decide how high the demand is and who can impose which price model in the advertising market.

PETER KUHLMANN
Chief Operating Officer, OMD Germany (Omnicom Media Group Germany GmbH)

We can go online anywhere and at any time with smartphones, netbooks, laptops, and touch pads, which are small enough to accompany us wherever we go. Numerous studies reveal an increase in parallel use of media, so does it even make sense to integrate a digital feedback channel into TVs?

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HbbTV: Website Display in TV Quality

The form of processing information typical of TV is also used to call up Internet pages, which means the distracting URL will not be visible as it is in the Web browser. A blocking mechanism also prevents any terminals other than the TV from accessing the technology, which conceals a unique version of HTML developed specifically for entertainment devices. Web pages are called up using an application information table (AIT), which is sent as an additional signal attached to the radio signal. When the user activates the red button function, the AIT is read and the predefined URL appears on the screen without any irritating embellishments.

HbbTV: Technological Progress as a Challenge

Paradoxically, technological development could become a stumbling block for the success of HbbTV. While manufacturers trust that their portals will work properly in a tested environment, open standards can cause problems. New test scenarios are being developed, but will they be able to cope with technological progress? As development has demonstrated in the computer market, technological progress cannot be stopped. Every couple of years, new systems appear in the market. But people do not tend to buy TVs as often as computers. The industry organization BITKOM reports that, on average, people only buy a new TV every six years6 in Germany. In North America, the cycle is seven years,7 which is likely to be the case in the rest of the world. When you consider that a newer TV has a computing capacity similar to that of a 15-year-old computer, it becomes clear that HbbTV devices could have difficulty keeping pace with developments in the computer market, as long as the willingness to buy a new TV does not increase. In short, an increase in outdated HbbTV devices could hinder seamless system operation in the long term. To counteract this negative scenario, developers, designers, and marketing strategists will do everything in their power to increase purchasing frequency by adding attractive, innovative features. Watching TV is, and has always been, an experience for the entire family or for a relaxing evening with friends. In the Digital Barometer study (June 2011), IP Deutschland emphasizes that most people prefer to watch live TV shows and movies with others. Only about 13 percent of those surveyed admitted to preferring to watch them alone. However, this is not the case when it comes to documentaries, reportages, news shows, and daily soaps: 30 percent say they like to watch these types of shows alone. Many viewers are sure to agree with these empirical findings: people watch TV in the early and later evening in order to switch off together. It is all about sitting back, relaxing, and enjoying entertainment. This finding is also confirmed by the Medienradar: TV-Content im Web study conducted by Mindline media in 2009. Over 72 percent agree entirely or at least
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Breathing New Life into the Social TV Experience

for the most part that watching TV on a TV is more relaxing and enjoyable [than online]. In other words, viewers appreciate the comfort of watching an actual TV. They simply have to press a button to find their entertainment of choice, which they can influence at any time to meet their specific needs with the selection of channels and the corresponding settings. HbbTV perfects the relaxation experience. Additional functions are conveniently available at any time but, like teletext, remain discreetly in the background. They do not overwhelm you. And if you need additional information, you can call it up while continuing to watch your show but only when you choose to. More complex applications and interactions with social media services can be carried out with secondary devices, as your iPhone and netbook are never far away and can be activated more quickly than the corresponding TV applications. HbbTV will significantly shape the multiscreen use of several devices at the same time.

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Teletext as an Interactive Companion to Viewers

As older TVs are replaced with HbbTV devices, interactive teletext will quickly establish itself as the new standard and be presented more attractively than the teletext before it. That the functions can be accessed just as easily as before with the push of a button will increase acceptance. Access via the red button and manual selection will be a thing of the past, enabling many users to automatically enjoy the new offerings. Many channels will also allow users to adapt the teletext to meet their individual requirements. The sky is the limit when it comes to the design, as the color display, font and window size, zoom function, colors, and category shown can be specified an advantage that will benefit the sight-impaired in particular.
ARD Text: Rediscover Teletext. ARD Text

EPG the New TV Experience Program

The electronic program guide (EPG) is the TV guide 2.0. Teletext indicates shows and show times in a purely static format, but the EPG facilitates the integration of interactive elements. As is already the case at ARD, the page displays the programming for both the next and past seven days. Users will find inspiration in show pictures, descriptions, trailers and teasers. The connection to media centers is particularly

ARD EPG: Good Programming Requires Structure ARD Digital/BR/Christian Schulz

Centralized Information Portal with Its Own Formats

The simplest form of media-oriented selfpresentation using HbbTV is the channels own information portal, which can be accessed by clicking on the red button located in the area above the TV signal. In this navigation level, many different applications can be conveniently opened and used. Public channels are currently focusing on improving and expanding their range of offers for users, while private channels are following suit and attempting to expand and extend their formats; i. e., increase appeal by offering more information.

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HBBTV OPPORTUNITIES FOR INNOVATIVE TV FORMATS

Internet-compatible TV provides channels with new opportunities in terms of format design. The range of entertainment offers, which is now limited by the separation of Internet and TV, will soon be expanded considerably. Channels have had to make do with separate websites up to now, but HbbTV will allow them to display the corresponding offers directly on the TV in the future.

attractive. Past shows can be accessed digitally via HbbTV without a recorder if the channel chooses to offer the option.

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Generally speaking, the centralized portal displays news, weather, program announcements, and a media center. Page and content design are the responsibility of the channel.

possible to personalize ticker content over the medium- to long-term. n-tv CEO Hans Demmel explains: The new n-tv digital text offers our viewers the best of both worlds by combining the positive aspects of standard teletext with the benefits of the digital world in a contemporary, high-quality format. Our news portal n-tv.de has been enjoying success for years. Now viewers can also access our online content directly on their TV.9 Nearly all major channels already have an online media center, where with just a few clicks users can call up the channels own formats free of charge for a limited time. It is no wonder that the use of online media

formats for a fee, pay-per-view suppliers can offer the latest blockbusters directly on TV and thus attract new purchasing groups.

The Trend of Watching What You Want, When You Want

Is there anyone who is not familiar with the ritual? Tagesschau kicks off the TV evening punctually at 8 p. m., followed by Tatort and then a myriad of late-night shows. But the willingness to let TV programming dictate your free time is waning. Viewers want to be able to choose themselves when they watch what. Media centers accommodate this time-shifting trend and, with the help of HbbTV, free us from the confines of linear programming. TV channels will have the opportunity to increase viewer loyalty. For example, if a viewer does not feel like watching a three-part movie when it is actually being shown on TV, they can watch the entire thing when they have the time, thanks to flexible availability. Back in 2009, GfK Consumer Tracking revealed that 52.6 percent of those surveyed (14 years of age and older) signals for individual formats. In the future, anyone who pushes the red button while watching stern TV can submit a question directly to the live show. Direct viewer participation could also breathe new life into discussions, political debates, and live surveys. were already interested in time shifting and 48.6 percent in high-resolution programming, which is why Pay-TV suppliers such as Sky with Sky Anytime also offer time-shifting formats, which allow viewers to start shows when they want to.
ARD HbbTV Media Centers: TV on Demand. ARD.de The HbbTV Home Page. ARD Digital/WDR/Uwe Stratmann

Tagesschau: Always Well Informed. Tagesschau.de

centers is increasing, despite the fact that the Web delivers a comparably low resolution. That will change with HbbTV, as all the content can now be displayed in HD quality. Thanks to broadband connections, even large volumes of data can be accessed without any problem. This means a brand-new range of marketing concepts for advertising companies from the advertising block as a break to using content for a fee.

n-tv Exciting News from the News Channel

News channel n-tv launched its new HbbTV portal at the end of 2011, which is basically the standard teletext redesigned and therefore closer to digital text than an actual HbbTV portal. There is a good reason for this strategy: teletext strengthens the core area of expertise of news channels, as it provides viewers with more in-depth information based on their requirements. In the future, n-tv will be providing a digital presentation and faster availability: at a glance, users will be able to see which show is currently on and which is next. The live picture is visible all the while. There will also be breaking news and teasers for accessing news videos. The offer is rounded off with an exchange ticker and the option to browse the individual categories. As of 2012, n-tv will be expanding its live ticker in the live picture to include relevant videos and text. The channel will also be incorporating more individualized content. You can call up live sporting events and stock exchange updates at any time. It is still unclear whether it will also be
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Pay-per-View Content via HbbTV

TV channels are sure to find new forms of marketing extremely attractive, and HbbTV will provide them with lucrative sales channels. HbbTV now enables regular channels to offer their content directly on the TV for a fee and thus take advantage of an opportunity that has primarily benefited pay-TV channels such as Sky with Sky Select and online pay-per-view suppliers such as Maxdome. Access is simply granted following purchase by phone or via an HbbTV application. This additional sales channel could even prove to be a profitable model between existing service providers such as Maxdome and channels such as ProSieben. While TV channels provide access to their own

Interactive Entertainment: the Evolution of Participatory TV

More and more TV channels are incorporating Internet channels for news shows and live educational broadcasts. There are countless new opportunities for interaction, from Facebook pages to e-mail addresses that allow viewers to write in. This trend is likely to grow, as HbbTV offers the option to send out independent

The HbbTV feedback channel will eventually replace TED, the process currently used to carry out viewer voting, and significantly optimize the process of conducting opinion surveys. However, it will not replace the profitable business of call in voting for shows such as American Idol.

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The Preferred Format with an Even Higher Level of Experience

HbbTV offers exceptional opportunities when it comes to TV format extension in particular. For example, VOX already offers an HbbTV application for its cooking show, Das perfekte Dinner, which is visible off to the side during

the show. All the recipes ever demonstrated on the show can be called up in the Kochbar app and sent to an e-mail address. The opportunity to intelligently process viewer information makes HbbTV an amazing loyalty tool. The term used to express this focus is audience relationship management (ARM), inspired by the well-known concept of customer relationship management.

Added Value for Documentaries, Reportages, Shows and Series

HbbTV is particularly attractive whenever content is accompanied by supplemental inspirational information, as is the case with documentaries and reportages. Even making-ofs, which are usually only available online, are more appealing when located on the same channel. For example, take the Gold Rush series on the Discovery Channel, which is shown on Fridays and extended with an online after-show. The additional content could soon be viewed directly through HbbTV. Even for show formats such as Deutschland sucht den Superstar, HbbTV offers new presentation opportunities for providing viewers with an inspirational

look behind the scenes of the live show. An extension of the content can complement the channels limited capacity, as special wishes can be taken into account without changing the channel.

The Future: the Viewer as the Director

The sky is the limit when it comes to the interactive possibilities of HbbTV. As the technology becomes more common and achieves market maturity, there is nothing to say that viewers could not influence the stories of TV series with their votes. As with video games today, they could vote on alternative endings and thus play an active role in the directing.

measures, is TV advertising still the right choice or is push communication outdated? Efficiency is always a matter of objectives and the business model behind them. If entering into conversation with people directly benefits my business, the digital world offers fantastic opportunities. However, not all business segments necessarily require direct dialogue. If it is essential to deliver a message to an extremely large, heterogeneous group of people as quickly as possible, incorporating TV into the media mix is exceptionally efficient. HbbTV supplements are intended to offer viewers added value. In its simplest form, a brand encourages viewers to get to know a product by having them take part in a sweepstakes. For MAGGI, the expertise of MAGGI KOCHSTUDIO could be used to create an HbbTV supplement designed to offer added value, ranging from recipes to the ingredients used. Does HbbTV provide incentive for MAGGI to reassess TV advertising? If I want to motivate someone to develop an interest in me, I should first think about whether what I have

HBBTV COULD BE A PLATFORM ON WHICH THE PRODUCT AND SERVICE GO HAND IN HAND.
to offer is right. Our offer of cooking assistance based on product and service is certainly so attractive that people develop an interest on their own. HbbTV could truly be a platform on which the product and service go hand in hand. Stationary Internet with brand websites and social media pages, the mobile Web, and now a growing percentage of Internet on TV: is there a danger of brands having to be active on too many different digital platforms in the future? Because communication budgets will not be getting any bigger, the abundance of opportunities provided by digital media should force marketers to consider the role and benefit of a presence more carefully.

Agency partners are also obligated to advice their clients correspondingly and look beyond shortterm business. Marketers have not yet defined the invoicing models for HbbTV supplements. Should invoicing be based on performance or a fixed rate? In principle, performance models are only attractive if they can be reconciled with the aims of the campaign. There is still too much to learn for everyone involved to say with any certainty what a campaign can achieve for me. Especially at the beginning, I think it would be fair for the agency and marketer clients to share the costs of the learning curve.

INGO SCHFER
Head of Marketing Communication and PR, MAGGI GmbH

The food segment is dominated by intense competition. MAGGI competes with Knorr particularly in Germany, their core market, which is why it is so important to manage advertising budgets and media spending wisely. In times of targeted Internet advertising and the increasing role of dialogue in communication

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Display Surfaces: the Classic HbbTV Option

The simplest and most currently feasible advertising form is a display ad on the channels

value, and product is sure to be a highly attractive marketing foundation for all involved. Collaborations that benefit all parties involved are most worthwhile. For instance, TV channels could achieve higher viewing numbers if a powerful partner added its content to the HbbTV channel. Special placements, ranging from the free TV content of a partner to the channels own applications, would also be an option. However, placements purely for the sake of advertising, like those already found in iPhone and Android apps, will likely only prove effective when they contain relevant content.

PUSH

HbbTV pages. Like online media advertising, a wide variety of formats and placements is available. Depending on the format, the advertising surface may link to a landing page or expand via an interactive application, representing a concept that is very similar to advertising formats in teletext. However, it remains to be seen if display advertising fulfills the demand for relevance and is suitable for counteracting increasing ad blindness. As is the case with online formats, it is likely that placement and relevance will ultimately determine success and failure. It must also be taken into consideration that users are navigating an environment different from the Internet. Internet users are accustomed to actively dealing and interacting with information. But TV screens work differently. Interesting triggers need to be used to attract the attention of viewers and encourage them to acknowledge advertising messages.

ADVERTISING

Media Revolution: Interactive TV Commercials

HbbTV is attractive for advertisers primarily owing to the interactive potential of TV commercials. Dialogue options open up fascinating opportunities for turning passive consumers into active contributors. An indicator of any size can be positioned anywhere on the screen to inform them about the interactive option. The indicator is only visible on HbbTV-compatible devices, which means viewers without HbbTV will not be distracted by irritating information or disappointed that they are missing out on something. Advertisers can therefore gain experience with interactive commercials during the pilot and evaluation phase without disturbing viewers with conventional devices.

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Example Applications and Sponsoring through Interactive Content

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HBBTV THE BENEFIT FOR ADVERTISERS

HbbTV can only establish itself if the channels ensure relevance with the corresponding extensions and supplements. If the frequency of use and the level of interest increase, advertising agencies will also benefit. This should not change the viewers relaxation experience much. There needs to be a method for measuring how well new concepts manage to combine TV as an enjoyable experience with new content offers. People watching TV do not want the experience to be tedious, like browsing through a catalog. They want to relax and enjoy attractive offers.

In the future, it may be possible for advertisers to collaborate with channels, which could prove to be an attractive option especially when there is a common theme. For example, Kicker, the German soccer magazine, could sponsor soccer events and run its own advertising through HbbTV. The channel, in turn, would benefit from the incorporation of interesting content for the viewers. In the U.S., ESPN Sports could collaborate with Nike during NFL games and offer football statistics and relevant information as part of the partnership. The connection among the environment, added

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Endless Options Available to Everyone

Pressing the red button during the TV commercial provides access to the dialogue. There are as many possibilities as there are advertised products. The open CE-HTML standard allows users to call up a whole host of target pages, particularly those beyond the limit of the channel. In particular, compatibility across the board represents a major advantage of the new technology. However, this does not entirely extinguish the efforts to develop a proprietary solution. Some networks now rely on independent concepts so that they can offer their advertising customers attractive environments and the required technological solutions.

The Learning Curve Ready for Takeoff

Even technologically minded viewer groups are unlikely to have had any experience with HbbTV. Even if their TV at home already incorporates the new technology, they first have to discover the concealed features before they can use them. In short, the industry will have to undergo a learning curve before the benefits of the new standard are fully available. Only through ongoing testing, learning, and optimizing can HbbTV make it to the homestretch and establish itself as an accepted key element of the media mix. Commercials that demonstrate the potential have already been aired. The Kolle Rebbe agency developed an HbbTV campaign with product offers for Otto Versand. In order to

An Issue of Reconciliation: Positioning the Button Correctly

Its safe to assume that it could take months, or even years, for HbbTV to achieve full acceptance. Until then, instructions will need to be provided for viewers to ensure success. To both communicate the commercial message and indicate the dialogue button to viewers, 30- to 45-second commercials are recommended. It will also be necessary to determine where in the commercial to display the call to action. This could represent a real challenge for standard commercials: how do you combine the button with the advertising message so that the commercial works both with and without HbbTV support? Reconciliation will only be an issue once the technology has established itself. But at that point, it will play a key role in success.

They are more interested in being entertained and avoid any tasks that demand too much of them. Anyone who requires a lot of text entry or, in the case of a sweepstakes, a full address, is probably asking too much. It would make more sense to initiate first contact on the TV and then carry out all subsequent CRM measures using other media. In other words, name, sex, additional data, and contact options should be collected by e-mail or phone. The ideal solution could also be determined through coordination with the customers in question the unique requirements of the segment should also be taken into account.

Customized Concepts for Consumers

In the next few years, concept and strategy departments will likely increase their focus on the opportunities provided by HbbTV. The current situation is characterized by a sense of new beginnings. The associated challenges are immense and cannot be overcome with standard solutions, as no experience has been gathered through past use. As a result, market potential is currently being analyzed with a focus on target groups so that relevant strategies for addressing them can be developed and integrated with precision into the existing information architectures. Creative minds will also have to familiarize themselves with HbbTV. The bar for future concepts has been set high. The unique media characteristics of HbbTV need to be taken into account to ensure potential advertising effects can be exploited over the long term.

break through the aversion to interaction, the commercial focused on the call to action: a remote control featuring the corresponding instructions and red button was presented to emphasize the tool that provides the viewer with access to the dialogue. Unfortunately, the augmented ten-second commercial was simply too short. Our first lesson: if a viewer is not sufficiently familiar with HbbTV, they are not going to find the on-screen button within ten seconds. In the current learning phase, the viewer needs considerably more time to navigate.

A Bright Future for the Remote Control?

The primary challenge posed by TV-based dialogue is the method of controlling applications. Though you can use the mouse and keyboard for the computer, you must rely entirely on the remote for the TV. For those of us who can remember when T9 and autocomplete were foreign words, this challenge is nothing new: how do we design HbbTV pages so that they are easy and convenient to navigate with the remote? Not all manufacturers offer autocomplete, and channels have yet to find a practical solution. Not even the next generation of control options based on gestures and voice is likely to fully replace text entry by hand. Field tests have demonstrated that consumers react to excessive complexity with refusal. For instance, blood-type surveys are less successful using HbbTV than they are online, as viewers are relaxing when they watch TV.

ATSUO MURAKAMI Kachidoki, Tokio

YOU MISSED THE FIRST QUARTER OF A MOVIE THAT STARTED AT 8 P. M. ON TV. NOW YOU JUST PUSH A BUTTON ON YOUR REMOTE, OPEN THE FREE TO VIEW SECTION, AND START IT AT THE TIME YOU WANT. HOW DOES THAT SOUND TO YOU? I would love to use the service because it would let me watch the movie whenever I wanted or skip a part if I didnt want to watch the whole thing.

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major brands is sure to experience the pinnacle of creative imagination. Maintaining the emotionally charged suspense curve from the

their car down to the smallest detail. Now it is primarily up to the dealer to persuade the customers to make a purchase. HbbTV provides presales communication with an innovative form of motivation: if the TV commercial contains a button that links to a landing page, inspirational brand experiences can be combined with product interaction without a time delay. After all,

processes make it possible to inform dealerships about potential customers who are likely to buy or suitable for a test drive. In this way, it is possible to significantly increase the degree of individualization of the communication. Once on the phone, the dealer can address the customers specific preferences: We have your model in anthracite ready for you to test drive. Or the previously sent brochure might feature pages containing the car as configured by the customer. These example approaches demonstrate that HbbTV offers impressive opportunities for boosting the existing CRM program with communication motivation.

PUSH
AUTOMOTIVE SECTOR
From the New-Car Configurator to the Accessory Consultant
Almost no other industry survives to such a degree on emotive images and high-quality cinematic staging as the automotive industry. Anyone who watches the TV commercials of

commercial to the brand/model website or dealership represents a real communication challenge. Thanks to HbbTV, this abrupt break is a thing of the past, and it is much easier to pass leads on to dealerships.

New Model for Effective Communication Motivation

Online vehicle configurators established themselves as an indispensable marketing tool for car manufacturers long ago. The functions are now so sophisticated that customers looking for a new car routinely consult the configurator before heading to the dealership. By the time they meet with the dealer in the showroom, they have often already planned

the landing page is the ideal place for a streamlined configurator, which at the very least determines viewers basic preferences. Offering additional brochures in this phase and possibly even conducting preliminary qualification are options for bringing viewers closer to a purchase. Integrated scoring

WE NOW CONSIDER THE HBBTV DIALOGUE FUNCTION TO BE ADDED VALUE

advertising messages. Is expanding TV commercials through the use of HbbTV even necessary? Yes. Especially during the launch phase, when TV commercials are aired, it is necessary to encourage the target group to take action: generating addresses, arranging test drives, boosting footfall at dealerships, ordering brochures, and increasing interest in a new car through the car configurator. Extending the emotionally charged product experience and strengthening the brand experience should also be taken into consideration, as they ultimately add to the brand value of MercedesBenz. During the launch of the C-Class Coupe, MercedesBenz showcased the model in an elaborate Drive & Seek online special.10 The film with interactive control would also be possible with HbbTV. Does

this represent a new concept of focusing on the experience factor of TV commercials lasting over 45 and 60 seconds? In terms of technical feasibility, the future of TV is really exciting terrain. Because there is a lack of standards and various technologies on the side of TV manufacturers and TV networks/stations and no clear, recognizable future prospects, this communication platform is not currently in the Daimler AG advertising channel portfolio. With HbbTV, TV could facilitate a new method of measurement. In addition to broadcasting a commercial, criteria could also include the access of HbbTV specials and the generation of leads. Does this warrant a reassessment of TV advertising? In principle, we still see TV advertising as a mass medium with a broad impact. It is ideal for rapidly achieving a wide reach within our target groups and emotionally charging our messages. In our opinion, this will continue to be the case for the foreseeable future. We now consider the HbbTV dialogue function to be added value. However, this added value must be evaluated in a pilot project.

Up to now, marketers have not suggested any invoicing models. Should the mutual aim be to invoice HbbTV integration based on performance or a flat fee? Depending on the goals of a campaign, both models are possible in principle. A credible marketing model also requires the confidence essential for offering performance-based models, as is generally the case in the digital dialogue media already available. From the perspective of advertisers, performancebased invoicing would be preferable. This fair invoicing model guarantees a reliable ROI prognosis and includes the marketer in the investment risk.

ANDERS SUNDT JENSEN

Head of Brand Communication at Mercedes-Benz Cars

Emotionally charged product differentiation plays a key role for car manufacturers, especially when it comes to TV commercials. For Mercedes-Benz marketing, in particular, Daimler AG employs an emotionally charged method of addressing potential customers rather than employing offer-oriented

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Samples: Accompanying the Product into the Market

More than half of those surveyed in the Word

Samples: the Doorway to Follow-Up Measures

There are also exceptional opportunities for generating long-term interest in the companys offers among interested viewers. This can be achieved by attractive product portals and by obtaining declarations of consent to receive follow-up communication; for instance, via e-mail. Interested viewers can also be asked to provide reviews and other contributions once the product package has been sent. Combined with social media monitoring, sample campaigns can be carried out without TRND or similar formats.

loyalty, especially with those strategically important customers who contribute the most in terms of share of wallet.

PUSH
FAST MOVING CONSUMER GOODS
Brand Loyalty through Involvement
In the fast-moving consumer goods (FMCG) segment, TV represents the backbone of the media mix for new products and innovations. No other medium makes it possible to combine fast reach and awareness with such a high profile. At the same time, the past few years have also demonstrated that Internet is indispensable for FMCG. Accordingly, the GfK market research company and Mediaplus media agency (Successful product innovation and related media strategy) emphasize the importance of interactive campaign extensions from TV to the Internet. Entertaining approaches are key and represent the optimum method forencouraging customers to get to know the brand and product. HbbTV offers better solutions for doing just that, from the entertainment factor provided by games to targeted samples.

of Mouth and the Internet study (Google and Keller Fay, 2011) indicate that they are more interested in purchasing a product if it has been personally recommended. The study also reveals that 82 percent of those surveyed (n = 6.747) are most likely to remember a product recommendation made face to face in their personal environment. These findings are confirmed by the insight provided by Martin Lindstrom, who takes a closer look at the effects of personal recommendations in his book Brandwashed.10 From this perspective, samples are not simply a product giveaway, but instead will hopefully pave the way for personal recommendations. When carrying out sample promotions, it is important to uphold the quality of the brand, and HbbTV commercials provide the very best conditions for doing just that, as they offer an intelligent solution for combining the brand message with the rewarding effect of the sample. After calling up the landing page through the TV commercial, interested viewers are offered the opportunity to request a sample, in addition to receiving important production information. Playful elements that encourage interaction can boost the experience of getting to know the product and brand. In the FMCG segment, in particular, this method provides greater motivation to purchase. And this also applies to target groups who are not influenced by the interactive practices of the Facebook community.

A Closer Look at the Brand

In addition to targeted product information, broader themes can also be addressed with the support of HbbTV. Background information about manufacturing methods and dedication to social issues can help strengthen the brands positive image. Promises that are usually only hinted at on seals or in a short text can be validated with substantial data: How are the foods manufactured? Where do the ingredients come from? What does the company do to fulfill its social responsibilities? Fine-tuning the communication will allow the answers to flow until they present the company in the right light with a focus on the target groups.

Inspiration: Expanding Product Ranges with Relevance

Attracting consumers through sample promotions and sweepstakes can unfortunately come with unwelcome side effects: people are enticed by the reward and less often by a genuine interest in the product and brand, making the freeloader phenomenon a possibility. In the future, HbbTV will allow companies to benefit more from relevant information and reach more desirable target groups with additional information. An example: if a food manufacturer is advertising a new product, the commercial can be extended using HbbTV. The commercial could, for instance, mention that the red button provides access to recipes for the product, which can then be sent to the viewer by e-mail. This positive brand experience serves as a starting point for lead generation and can promote long-term loyalty to the brand. In the food segment, in particular, expertise and trust are important values that establish themselves in the consciousness of the customer regardless of the initial incentive. Naturally, not every interested viewer is converted into a loyal customer, but persistent communication with relevant information can lead to long-term

ERIKO SUGIYAMA Kachidoki, Tokio

THERES A NEW TASTY-LOOKING INGREDIENT FOR COOKING. YOUR TV OFFERS YOU THE CHANCE TO SIMPLY PUSH THE HBBTV BUTTON AND ORDER A FREE SAMPLE OF THE PRODUCT. WOULD YOU USE THIS OFFER OR REJECT IT? That would be wonderful.

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 PUSH
FINANCIAL SERVICES
High-Content Subjects Presented in an Interesting Way
TV provides a rather inadequate platform for advertising consulting products and services. Nevertheless, the gross TV advertising expenditure that financial service providers allocate to addressing the private sector has continually increased over the past several years from 36.6 percent in 2005 to an impressive 44.1 percent in 2011.11 However, these commercials focus on unspecified content, raising awareness about general subjects. This strategy is primarily the result of limited commercial time and the wide focus of the information. In addition to brand image, current major themes in the industry, measured in advertising expenditure, are primarily real estate financing, account management, and private loans.
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Image Advertising: Transparency Promotes Trust

Over the past several years, the global financial crisis and devastating media coverage have tarnished trust in financial service providers over the long term. Institutes now face two major challenges: drastically reduced media budgets for repairing damaged reputations and the successful acquisition new customers as well as the retention customers who are looking to leave. With HbbTV, classic image commercials can be extended to include more detailed content. Rather than the story simply ending with a concise slogan, HbbTV takes viewers to a landing page with interesting supplemental information: Which values does the institute represent? How do specialist publications and independent institutes rate it? How do you prepare to deal with the challenges associated with the national debt crisis? Relevant information can be rounded off with the opportunity to intensify contact downstream. With a callback function or information access via mail or e-mail, potential new customers in particular can obtain more detailed answers to their questions. The challenge is combining the required depth of knowledge with easy-to-process information, as they require an equal amount of consideration. People who are relaxing and watching TV would like to obtain information that is straight to the point on the landing page, so 20-minute films would be as ineffective in holding attention as a long-winded personal consultation with the customer.

Retirement Provisions: Responding to a Lack of Knowledge

These days, many people make private retirement provisions a top priority. In Germany, home ownership is traditionally an extremely popular form of retirement provision, a tendency only intensified by the financial crisis. A study published in the newspaper Die Welt (November 26, 2010, page 17)13 reveals that 86 percent of those surveyed consider real estate to be a good to very good form of retirement provision. No other form of security enjoys such a high level of support across the board. Many of the commercials currently on the air take the approach of combining the topic of retirement provisions with real estate financing. However, potential customers are generally uninformed, making detailed information and a personal consultation absolutely necessary before a contract can be signed. According to the German retirement index, the Riester retirement plan (83 percent) and home ownership savings plans (82 percent) are the most commonly

known forms of retirement provision. As such, it is surprising that people interested in retirement plans know so little about Wohn-Riester home annuities, a product variation that few Germans are aware of. In conjunction with image-boosting components, HbbTV could effectively shed some light on Wohn-Riester home annuities. The TV commercial extensions provide interested viewers with the option to learn more about the topic and possibly arrange a consultation, or alternatively request additional information materials. Due to the wide focus, products requiring explanation in particular, including Wohn-Riester, can achieve positive results early on if HbbTV is incorporated into the media mix.

HbbTV makes it possible to extend all four topics beyond the commercial and present them in more detail.

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Personal Loan: Successful Calculation with HbbTV

As everyone knows, anyone who visits a banks website these days can calculate loan installments, interest rates, and durations with an integrated calculator. These interactive tools can impressively be incorporated into the world of HbbTV commercials: once attractive loan rates have generated initial interest, viewers will find it easy to put together a preliminary offer in no time using the calculator while sitting comfortably on the couch. The functions are extremely easy to use, as number entry is effortless with the remote.

The Coherence of the Concept Plays a Key Role in Success

Agencies and advertising companies should be aware that TV campaign planning needs to include an additional briefing point: in the future, HbbTV should be incorporated into the budget allocation. Campaign tracking will reveal whether or not it pays off. Existing concepts will certainly need to be readjusted in order to achieve return on investment early on. Regardless, the following criteria should be considered to ensure successful use of HbbTV. In todays media world, attention is an extremely limited resource and HbbTV is no different. Why? One reason, in particular: viewers expect clearly recognizable added values. If these are not present, they ignore the advertising message and turn their attention to other things. Pithy advertising statements and intrusive sweepstakes risk falling flat in our media world overloaded with information. If every company incorporates an HbbTV extension into their commercial in the future, the novelty will quickly wear off, which is why intelligent mechanisms are required to trigger the access of more detailed information.

time they are more likely to take notice of the HbbTV call to action and press the red button.

Confidence-Building Measures via HbbTV

A trend towards consumer democracy is now visible throughout the segment. Responsible consumers question grandiose product promises and are often critical of brands. They do thorough research online and share their experiences with each other to ensure they make the right purchasing decision. This behavior increasingly results in advertising skepticism, particularly when it comes to TV. The Nielsen Global Online Consumer Survey14 indicates that 51 percent of those surveyed in the European Union trust TV advertising very little, with similar figures around the rest of the world: 39 percent of those surveyed in North America and 33 percent in Asia admit to having very little trust in TV advertising. The corresponding average value worldwide is 38 percent. Nonetheless, everyone agrees that TV is still the leading medium for increasing reach. Converting trust into direct purchasing intention is increasingly difficult with conventional TV advertising, as many consumers demonstrate a critical attitude that makes it impossible to turn motive into action. Thanks to HbbTV, this will change in the future: relevant information can be provided in a TV commercial extension, which can expertly answer questions about products and brands..

Fulfilling Expectations Creating Added Value

These days, every brand message requires a door opener that generates a measurable reaction. Direct mailings only survive the first throw-away phase if the envelope is inviting enough to make the recipient open it. And you can only expect a reaction if the content is truly relevant for the addressee. Thanks to HbbTV, the TV is now capable of dialogue, but its genuine function has nothing to do with that. First and foremost, it is still only a push channel that floods target groups with classic advertising messages at a specific time. At the beginning, in particular, meaningful symbols, such as the red button, and the corresponding instructions will have to support the dialogue and interaction functions. They act as the door opener that provides the new medium with the necessary motivation to make use of its concealed functions. Creative solutions will be required to integrate attention-grabbing calls to action into the TV environment with sensitivity.

KENTA TAKAGI Kachidoki, Tokio

YOU SEE A COMMERCIAL ON TV FOR AN EXCLUSIVE BRAND. YOURE INTERESTED IN THEIR NEW CATALOG AND CAN ORDER IT SIMPLY BY PUSHING THE HBBTV BUTTON ON YOUR REMOTE AND TYPING IN YOUR CONTACT DETAILS. I dont think catalogs are a good idea. I think Id be more interested if the clothes were featured on TV programs, contents, or worn by actors (for example, The coat worn by this actor in this movie/drama, etc.).

It will be interesting to see which factors the marketers rely on to ensure that HbbTV represents an attractive extension to the campaigns. It is too early to say how the media model will make the technology profitable over the long term and the content relevant for viewers. This might be one of the major challenges facing successful HbbTV implementation. Strategy-oriented planning is therefore more important than ever before. The aim of the TV commercial and approach of the extension could lead to different solutions every time. The first time viewers see a commercial, they tend to focus on the image of the brand, while the second

It is important that users know what to expect when they push the red button: Will I obtain more information about the brand? Can I take part in a sweepstakes? What else will I be offered? Standardized instructions are generally insufficient for generating action. The added value should be presented clearly and unambiguously and then delivered. Regardless of how relevant an advertising message may be, it has to contend with a myriad of entertainment offers competing for attention in the TV environment. An unrepresentative survey carried out at select BBDO offices around the world revealed that HbbTV extensions within the advertising block were considered to be thoroughly interesting. However, viewers

Difficult Balancing Act: Favorite Show Versus Advertising

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generally left the advertising content once the regular show resumed. Those surveyed also expressed a desire for the TV screen to remain visible during the HbbTV extension. At least in the case of themes that require a lower level of attention, displaying the TV programming in a split screen could reassure the viewer that they will not miss the show once it starts again, as they learn more about the HbbTV offer. On the other hand, there is also the danger that the high volume of information in the HbbTV section presented alongside moving pictures could lead to an information overload; out of frustration, the viewer might leave the commercial information page. The right timing is key: companies that

offer access to an interaction at the end of an advertising block risk losing the user soon after, once the regular programming starts up again.

All the channels are currently expanding their HbbTV options extensively and a larger target group is also starting to notice HbbTV in manufacturers glossy brochures. For this reason, it probably will not be long until a wider group of buyers is interested in obtaining HbbTV-compatible devices. There is also the fact that Wi-Fi and Internet connections are so widespread that the technical requirements for HbbTV success are already met.

Not Only Easy to Use for Digital Enthusiasts

For a long time, innovations in the pilot stage were only considered to be a playground for experimental technophiles, with mass-market application occurring much later. HbbTV will likely conquer the market in a much different way. The initial hype will probably lead to mainstream use considerably sooner. Why?

the individual channels and thereby the budget, but mainly from print to online media. After TV, online advertising is now the second-most important element in the media mix. A campaignoriented extension of TV campaigns in digital channels, and an even closer interlinking, always pose a challenge. With its wide range of products, Postbank benefits from high stability within its target reach, thanks to TV campaigns. In conjunction with intelligent interlinking with digital channels, the opportunity presents itself to utilize content links, along with reach, and to position central messages as targeted. For consulting services, TV advertising is a dooropener, encouraging consumers to contact the bank. There is no getting around the loss of potential customers that occurs as a result of the gap between the end of a TV commercial and the customers need to obtain information online or going to a branch. With HbbTV, you will have the opportunity to initiate a lead straight out of the TV commercial. A gap between media only poses a problem if it causes us to lose interest in a brand or product. In reality, the ROPO (research online purchase offline) effect seems to apply especially in the field of financial services.

Approximately 60 percent of all new contracts are the result of online research. But the purchase funnel shows that consumers naturally obtain their information from a wide range of media. The sequence is a buildup of and shift between individual channels instead of an abrupt break in media. The method of obtaining information through the increasing parallel use of media can actually be fluid and occasionally simultaneous a fact which is confirmed by search engine entries at the time of the broadcast.

Stationary Internet with branding and social media, the mobile Web, and now a growing percentage of Internet on TV: is there a danger of brands having to be active on too many digital platforms in the future? It is not about the establishment of a new media, but two channels coming together that belong together, thanks to HbbTV. After all, many people already use the Internet while they are watching TV whether with a laptop or a tablet. It is much more about consistently linking two channels that complement each other extremely well. The fact that this does not reduce the demand for resources is a challenge that we will have to overcome with our agencies. In terms of budget, we would have to focus on reallocation, rather than an increase. While media opportunity appears to be endless, budgets are not.

MARGRET DREYER
Director Corporate Brand/Marketing Communications

Like customer acquisition for retirement provision plans and real estate financing, new customer acquisition in the checking account segment is also a significant focus. In its TV commercials, Postbank demonstrates its full range of products. Is that a sign that TV plays a key role in brand communication? The central role of TV advertising in Postbank AGs media mix has not changed in the past several years. There may have been a shift in

IT IS NOT ABOUT THE ESTABLISHMENT OF A NEW MEDIA TWO CHANNELS ARE COMING TOGETHER THAT BELONG TOGETHER.
HbbTV offers the opportunity to call up additional information directly through the TV. However, the degree of use will depend on the brand, product, and placement as well as consumers desire for immediate Internet research. HbbTV does not replace the Internet, but can represent a practical extension of it.

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Yet information architects face a major challenge. All HbbTV functions are carried out using the remote, and this should be as simple as possible. The colored buttons play a key role, in particular, with the red button launching the portal. The green, blue, and yellow buttons can be assigned to additional functions, such as calling up sub-pages or taking part in a promotion. Assigning functions to colors will make the system easier to learn. Using the directional pad of the remote to navigate from a higher to a lower page section, however, may prove to be more difficult. The functions must be arranged clearly enough that pressing up, down, left or right will carry out the corresponding function.

Making control more convenient in the future will require thinking outside the box. Users expect a clear, extremely simple-to-operate structure that will allow them to take full advantage of everything HbbTV has to offer.

Changes Resulting from Gesture and Voice Control

Over the next few years, established uses of the TV may change rapidly. At the 2012 Consumer Electronics Show, many manufacturers presented initial concepts that clearly demonstrate how the TV will be controlled without remotes in the future. What will that mean for HbbTV? How will the innovative solutions be incorporated into the new standard and more importantly, is the corresponding support compatible with all manufacturers? The trend of combined gesture and voice control, in particular, will pose complex challenges for the manufacturers if they attempt to take the abundance of individual solutions into account.

TOSHIHARU TAKAHASHI Kachidoki, Tokio

THERES A COMMERCIAL BREAK AND YOURE SITTING IN FRONT OF YOUR TV. THERES A NEW CAR COMMERICAL FEATURING THE ALL-NEW MODEL YOURE INTERESTED IN BUYING. YOUR NEW HBBTV DISPLAYS A MESSAGE SAYING CONFIGURE YOUR CAR NOW ON HBBTV AND CONTACT US FOR A FREE TEST-DRIVE. WOULD YOU BE INTERESTED IN DOING THIS ON YOUR TV SCREEN? I feel a bit uncomfortable about being approached. Id rather gather some information myself first if its something I really want to buy. Sending out my personal information on the TV screen feels kind of creepy.

Pursuing the Radio Experience with HbbTV

Not much attention has been paid to the secondary topic of HbbTV: the radio. After all, most TVs are also capable of receiving radio stations. Radio, which up to now has been limited in its functions, will be available with a whole new level of quality thanks to the extension option of HbbTV. With their own HbbTV portal, radio stations can not only make playlists accessible to listeners, but can also share experiences in the studio and other live events with their audience using a webcam. HbbTV is currently being developed almost entirely in Europe, but the standard undoubtedly has the potential to establish itself all over the world.

6.

THE GLOBAL ROLE AND MARKET DEVELOPMENT

The entertainment industry benefits from technological innovations from North America and Asia, where the latest consumer electronics trends tend to originate.

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A European Phenomenon
HbbTV is gaining ground in Germany and France, in particular. Development was extensively promoted by public channels, and increasingly, private channels, in the two countries mentioned above, so that the pilot phase is now coming to an end. The support of TV networks has proven to be beneficial because, when it comes to Internet-compatible TV, technological development and especially content play a key role. Rather than the manufacturer of the TV, the channel known to the consumer sends the content. In a familiar setting, and because it is as as simple as the well-known teletext, HbbTV has the very best prospects for generating interest and enthusiasm on a global scale. Even if HbbTV should remain a European phenomenon, Europe represents an exceptional foundation for developing a domestic market, as it is the second-largest regional market measured by value creation in audiovisual media that focus on the editorial responsibility of providers of media services.15

range of functions, ranging from video-ondemand, network media centers, and news applications to the new digital text and an extensive EPG (electronic program guide) offer. Many private channels waited until the last moment but launched powerful platforms at the end of 2011/the beginning of 2012 at the latest. The range of offers provided by most of the channels is comparable to that of ARD. Throughout development, a generally accepted standard gradually established itself, although the range of services, which is already extensive, could expand and ultimately lead to the establishment of a second generation of portals. Then, at the latest, more interesting innovations and company-owned developments will attract the attention of the industry. Predictions indicate a bright future for Internet-compatible TV. In its Digital Visions: Connected World16 study in 2010, Goldmedia forecasted there would be 5.7 million Internet-compatible TVs in Germany by the end of 2011 and as many as 22.9 million by the end of 2015. The figures released by PricewaterhouseCoopers International Limited (PwCIL) are similarly positive. The consulting company predicted there would be more than five million households with Internet-compatible TVs by the end of 2011. There are few official figures about the reach of HbbTV. SevenOne Media recently published figures on technological reach,17 quoting over 400,000 devices in the ProSieben channels HbbTV portal for the first time in January 2012. A look at the 2011 figures reveals a continuous rise in actual users, with an increase of 9.93 percent from December 2011 to January 2012. Kabel eins has recently recorded even stronger growth at 13.49 percent, although the total number of devices is lower. Developments are considerably further along now and improved functionality was presented in 2011,18 making it possible to call up additional information about the matches to come, previous games, and the athletes all in real time. This French example impressively demonstrates the relevance of networking TV content and online information, and that the drive for innovation comes from the TV channels and the public networks, in particular. While in the past, development was promoted by TV manufacturers, suppliers of content are now setting the trends in order to offer their services in the market. It is worth emphasizing that the HbbTV standard will be integrated alongside the British MHEG-5 format, which already facilitates video-on-demand services, home shopping, and interactive features through landing pages and additional programming content. freesats use of HbbTV (alongside MHEG-5) is only one example of the acceptance of the new standard. Another example is the Digital TV Group, which is a sort of central authority for digital TV, integrated HbbTV into its D-Book, that serves as a foundation for developing digital TV for manufacturers and channels a step that is likely to secure regional support. The market in France is developing along the same lines as in Germany. The innovation came primarily from Frances public TV network, France Tlvisions. The first pilot projects were held in France in 2009 during the Roland Garros tennis event, better known as the French Open, during which viewers could call up additional information via HbbTV for the first time as part of a live demonstration. In the UK, pay TV makes up a large percentage of the TV market. The BBCs public channels and the channels financed through advertising, on the other hand, are highly outnumbered. Most TV viewers tend to opt for channels with less advertising, which is what makes HbbTV as a form of expanded programming so attractive in the UK. In the first few weeks of 2012, networks increased their efforts to establish the corresponding services and offers in the market. freesat a supplier of free TV signals is one of the first companies to incorporate HbbTV into its own set-top boxes.

France: the Innovation Factor of HbbTV

The UK: the Classic Pay-TV Market

Germany: Green Light for the Red Button

Since IFA 2010 and 2011 at the latest, it has been demonstrated that HbbTV is one of the next big trends in the German TV industry. ARD, in particular, has done a lot of pioneering work over the past few years. The result is a comprehensive

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Netherlands: HbbTV Replaces Application Development

In the Netherlands, the public channels Nederland 1, 2 and 3 already support the preliminary functions of HbbTV, gradually replacing application development for the application platforms of TV manufacturers. The European standard is based on existing technologies and does not demand any new requirements, which makes the management extremely happy.

Spain: the First Two Million at the Starting Line

In Spain, the number of Internet-compatible TVs should reach two million sometime in 2012. Panasonic points out that 60 to 70 percent of the TVs on offer are Internet-compatible, although use is probably low, as there is little demand for additional services. However, Spanish TV channels are already developing HbbTV offers. Mediaset Espaa will be working with Telefnica to establish the first HbbTV services, the functions of which are based on European standards. wKey features include video on demand, such as the Movistar video service; the Telefnica over-the-top solution;19 and content provided by the network, which is managed by Mediaset Espaa. It is worth mentioning that content previously only available on a computer or tablet will be accessible through TV.

North America: HbbTV with Potential in the Worlds Largest TV Market

No HbbTV projects are currently in the pipeline in North America, although this innovation may one day generate high interest in the worlds largest TV market. According to Institut fr Rundfunktechnik, which belongs to the HbbTV Consortium, initial inquiries have already been submitted.20 HbbTV functions offer high-reach networks in the US and Canada excellent opportunities for boosting their own content and revolutionizing advertising formats. During major events such as the Super Bowl, HbbTV support offers attractive opportunities for expanding TV commercials. However, there is a major hurdle to overcome: it may prove difficult to capture the attention of viewers during programming featuring attractive highlights. Goal-oriented approaches will probably only establish themselves following a longer learning curve. On the other hand, content suppliers can also increase the quality of their content by enhancing sporting events, such as the NASCAR races with interactive inserts featuring lap times and current positions. In this way, the U.S. could soon play a pioneering role in the global establishment of HbbTV. But there is an aspect that needs to be considered: concept success requires there being a sufficient number of TVs with the hardware, which poses the key challenge.

Asia: Chinas CCTV Turns to HbbTV

The situation in Asia is similar to that in North America: HbbTV has experienced initial interest, but no pilot projects have been launched except in China, where the state-run TV channel, China Central Television (CCTV), supports the extension of linear content. However, there is very little documentation about the range of offers. The volume of use is unlikely to increase, as analog TV is widespread in China, especially in the countryside. The first positive signs to come out of the Far East confirm that HbbTV has the potential to establish itself outside of Europe.

Austria: Digital Pioneers and ORF Are Testing HbbTV

More than 97 percent of the population already enjoys digital TV. According to the Satelliten Monitor study (GfK), most Austrians 1.91 million households watch satellite TV, while 1.32 million rely on cable. According to data compiled by ASTRA, 225,000 TVs in Austria are already Internet-compatible, representing the ideal conditions for an ORF HbbTV pilot.

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SUMMARY
1. Successful Pilot Stage
While in the past, HbbTV was primarily tested by the public channels in pilot projects, more and more private channels are following suit, which is an important indicator that HbbTV is establishing itself as a recognized standard. The ever-increasing number of users reported by SevenOne Media confirms the findings: following the successful pilot stage, HbbTV is well on its way to becoming a European success story with exceptional prospects for global expansion.

SOURCES
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(http://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr11/icmr/ICMR2011.pdf \t_blank International Communications Market Report 2011, page 146) (http://news.bbc.co.uk/2/hi/programmes/click_online/9677630.stm) (http://mashable.com/2011/01/11/smart-tv-flop/) (http://www.panasonic.de/html/de_DE/7242/9524/27736/289964/38422/83622/83627/2500581/7893503/ index.html) (WHITE BOOK HYBRID TV, German TV platform, 2011) (http://www.bitkom.org/files/documents/BITKOM_Presseinfo_Verkuerzte_Austauschzyklen_von_ TV-Geraeten_31_07_2011.pdf) (http://www.nytimes.com/2011/12/27/business/tv-prices-fall-squeezing-most-makers-and-sellers.html?_r=1) (http://de.statista.com/statistik/daten/studie/72224/umfrage/nutzung-von-tv-content-im-web-und-am-tvgeraet-in-2009/) (http://www.n-tv.de/technik/n-tv-Digitaltext-startet-article5064486.html) (http://www3.mercedes-benz.com/mbcom_v4/de/c-class-coupe/de.html) (Nielsen Media Research, 2005 to 2011 (January to April) http://de.statista.com/statistik/daten/studie/204557/ umfrage/werbeausgaben-fuer-finanzdienstleistungen-fuer-privatkunden-mediasplit/) (http://de.statista.com/statistik/daten/studie/38128/umfrage/werbeaufwendungen-im-bereich-finanzdienstleistungen/) (Die Welt, November 26, 2010, page 17, http://de.statista.com/statistik/daten/studie/167657/umfrage/haltungder-deutschen-bevoelkerung-bezueglich-altersvorsorgemoeglichkeiten/) (Nielsen Global Online Consumer Survey July 2009, page 3; http://de.statista.com/statistik/daten/ studie/154132/umfrage/vertrauen-der-konsumenten-in-fernsehwerbung-nach-weltregionen-2009/) GREEN PAPER on the online distribution of audiovisual works in the European Union: opportunities and challenges towards a digital single market (http://ec.europa.eu/internal_market/consultations/ docs/2011/ audiovisual/green_paper_COM2011_427_de.pdf) Digital Visions: Connected World study, Goldmedia (June 2010/http://de.statista.com/statistik/daten/ studie/160408/umfrage/prognose-zur-verbreitung-und-nutzug-von-internetfaehigen-tv-geraeten-bis-2015/) SevenOne Media: figures on technical reach (http://www.sevenonemedia.de/c/document_library/ get_ file?uuid=44bb4d92-c70e-45ea-b193-87234dad6b1c&groupId=10143) (http://www.youtube.com/watch?v=evoJugYXL7c) (http://www.broadbandtvnews.com/2011/05/21/mediaset-and-telefonica-spain-to-pilot-hbbtv/) (https://docs.google.com/viewer?a=v&q=cache:drdYa70C0SkJ:www.irt.de/webarchiv/showdoc.php?z%3DNTEw OSMxMDA1MjE0I3BkZg%3D%3D+usa+hbbtv&hl=de&gl=de&pid=bl&srcid=ADGEESgMFhFCqZzUjd38KS4IzMpU SO-lf3xMH19_etzpHCr-Jru_rREDJki6v5naIkdSSFoto2w9sK4E9WZgcU4p-ESwLDxHRssLz72u6dgHTdtyR97Jry_ sC11AhNlwinYjeZ8B52age&sig=AHIEtbSRusi7yuZjAXeCfEZ1gqXwpJgPng&pli=1)

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2. More Detailed and Individualized Content

TV use has changed significantly over the past several years. More and more viewers demand the opportunity to watch shows when it best suits them, and they are increasingly unwilling to put up with inflexible show times. There is also a demand for the added value provided by the Internet and interactive offers that accommodate individual requirements. And HbbTV offers the ideal solutions. For example, through media centers and the electronic program guide (EPG) features which extend the program with attractive content in the channel-managed environment.

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3. Parallel Use of Terminals

HbbTV is not intended to replace the parallel use of TV and Internet, which is now commonplace. Using smartphones and laptops to access social media, in particular while watching TV will continue to set the tone. In other words, the TV can provide access to HbbTV-specific content that supplements and expands the current program in line with viewer demands.

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4. Gaining Experience in the Pilot Phase

Companies that now opt to participate in an HbbTV pilot project will be gaining valuable experience for the future. As long as the number of participants is low, pilot projects can be conducted cost-effectively and with a focus on goals. Because only HbbTV-compatible TVs are addressed, there is very little risk of irritating viewers with concepts that are not yet fully developed. The pilot phase serves as a test run for optimizing conceptual strategies.

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5. Recommendation: Take the Plunge Now

HbbTV is just about to start the pilot phase for market maturity, representing the ideal time to adapt communication to meet the challenges and opportunities of the new technology standard. Companies that now choose to test and optimize concepts will be ahead of the game once HbbTV has conquered the mass market. I would like to take this opportunity to invite you to discus with us potential solutions for preparing your company for HbbTV.

IMPRINT
Contact: Helge Grttke Director of Business Development BBDO Germany +49 211 1379 8323 helge.gruettke@bbdo.de Author: Torsten Kgler Consulting BBDO Proximity Hamburg +49 40 27852 4260 torsten.kaegler@bbdoproximity.de Dr. Friedrich August Wagey Concept and Design: Falk Schaar Ann-Marie Aring

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