Tuesday, December 31, 2013

How TV manufacturers and cable operators can harvest data to provide better content and advertising solutions

It was announced a few weeks back that LG Smart TVs were caught sending data on viewer habits of those using LG sets. There was a mini outrage, including a segment on Fox Business discussing how this was a violation of personal information.

LG says that they had the consent of these people, who have to accept this data collection as a part of the set up when you get the set. I'm not about to offer an opinion on the legalities, but I do find it laughable that LG would stand by this claim, since if you don't accept the collection of data then the TV does not work.

https://www.techdirt.com/articles/20131119/06503625288/lg-smart-tv-caught-collecting-data-files-stored-connected-usb-drives.shtml

Aside from the legalities of the gather, I find possible results for marketing from such data to be very interesting. As the story above points out, LG was using the information to target ads on the TV's home page. That is just the tip of the iceberg, as LG was also siphoning off data and sending it over the internet on all interactions between the owner and the TV.

Fox Business News reported that LG was not using the downloaded information. While I find that hard to imagine, the possibilities from a marketing standpoint are intriguing. By mining the data and determining the viewing habits of their core audience, LG can determine the best networks to buy for promotions. It offers LG, and other smart TV manufacturers a unique snapshot of their current and potential audience.

As profitable as this could be for LG, how about NBC / Comcast? In Comcast's quarterly report from September of this year, they serve nearly 23 million cable customers, nearly 20 million high-speed internet customers and just under 10 million voice customers.

I've searched for information online about how NBC / Comcast might use the data they can collect from cable subscribers to help target advertisers and programming in the future. In the emerging world of data mining to create more targeted marketing messages, I would think the combination of a major TV network with one of the largest cable companies is a mother load of data waiting to be mined and analyzed. This could be a competitive advantage for NBC as they make advertising sales and programming decisions going forward.

Interestingly, about two weeks ago Comcast announced a new partnership with Rhiza For Media on software designed to provide better, more refined analytics on data for advertisers. From the Comcast press release Matt DeAngelis, the senior director of research said, "Rhiza For Media helps us take a wide range of data and present it in an easy-to-understand way, demonstrating the geographic and demographic segmentation capabilities that only spot cable advertising offers."

http://www.comcastspotlight.com/news/Press-Release/Comcast-Spotlight-and-Rhiza-Working-Together-Help-Advertisers-Make-Smarter

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