A recent ruling by the FCC has cleared the way for Next Gen
TV (technically called ATSC 3.0), a means for providing advertisers with a more
precise targeting option on local broadcast TV stations, while allowing
broadcasters to tap into a new revenue source that Google and Facebook now
enjoy.
Based on Internet Protocol (IP), Next Gen TV can go to
devices such as smart phones and tablets over the air without using cellular
data services. Much like current subscription cable and satellite TV, local
broadcasters will be able to target and deliver specific ads to neighborhoods
and individual households. The ads, like Google, can be directed at the viewer’s
specific interest, unlike the current situation where broadcasters deliver the
same ad to their total viewing area.
While there is always a privacy issue related to Next Gen
TV, it isn’t much different from various advertising vehicles currently used on
social media and cable. Even billboards are being developed to deliver specific
ads based on reading the retinas’ of passing motorists.
In addition to this new protocol being a boon to
advertisers, it is also expected to provide benefits to viewers with better
picture quality, broadcast signals less resistant to interference, interactive
features to viewers and providing localized emergency alerts.
Technology for providing Next Gen TV will have to develop
over the next few years, allowing for inclusion in new TV sets and converter
boxes, not to mention adjustments to broadcast towers.
With the more precise targeting and collection of viewer
data, TV broadcasters will become more competitive with non-traditional
advertising.
The use of Next Gen
TV, also known as “addressable TV advertising,” is heralded as the future of TV
advertising.
Information for this article was collected from the National
Association of Broadcasters, The Washington Post, Variety, Techhive.com and the
Wall Street Journal.
