Advertising positioning service when switching channels

Agency 2 advertising agency presented Operator A-services software product, which enables satellite television operators to insert advertising in the pause between switching channels, as well as to replace blocks of commercials other television stations broadcast, by their own, Ilya Sorokin, agency CEO, said on Wednesday during a press conference at RIA Novosti.

In his view, the appearance of such a product as Operator A-services, can change the share of the Russian advertising market, as with its help satellite TV operators will be able to earn money making commercials for their audience, which previously they could not do. The first and still the only operator that has already begun to apply the new decision is Tricolor TV.

Operator A-services will promote redistribution of the advertising market shares between the segments of television advertising and Internet advertising, - Sorokin said.

He supported his point of view by the fact that demonstrating advertisements before viewing the video, as well as transition to a new page by clicking the mouse are the most popular, and therefore the most profitable forms of Internet advertising today. A-Zapper service, included in the Operator A-services package, and responsible for advertising during the channel switching, works on the same basis.

Consequently, the service will be in demand by advertisers who order pre-rolls on the Internet. Meanwhile, few Internet resources will be able to compete with Tricolor TV by reaching the audience - the operator's customer base currently totals more than 30 M viewers, - Sorokin added.

It is expected that the duration of commercial breaks between the switching will not exceed three seconds, the Agency 2 spokesman reported.

A-Zapper is a key tool of Operator A-services. The second important tool of decision is Operator A-pack. This service presupposes simultaneous advertising campaign on 40 TV channels making up Tricolor TV. Using proprietary technology allows the operator to embed a block of commercials in the television broadcast. According to the Agency 2 and Tricolor TV representatives, carrying out such a campaign will give total mediaweight comparable to the weight of the campaign on the popular entertainment federal television channels ranking 4-8 on the average daily share in the Russian television.

The third Operator A-services package element is advertising positioning service on the satellite television operator’s own resources. In this case Tricolor TV deals with film service - Tricolor TV Cinema, SD-and HD-infochannels, as well as film channels formatted high definition TV channels: Film viewing HD and TV Traveling HD. Each of these units lasts up to 5 minutes.

According to the statistics from TNS Russia, the average citizen of Russian cities with a population from 100,000 people makes about 24.5 channel switches a day. The number of Tricolor TV customers is more than 10 M households, which is also confirmed by TNS Russia. Given this figure, the number of channel switches in the operator satellite broadcasting can reach about 655 M every day.

Such a number of ad demonstration allows Agency 2 to plan obtaining the revenue for 2012 estimated at 800 M RUR, with the steady growth of this index up to 2.6 B RUR for 2017, which will allow the agency to claim for a significant share of the Russian advertising market.

According to Alexander Makarov, Tricolor TV CEO, the results of the public-opinion poll, the company had carried out before the introduction of a new advertising technology, showed that the customers reacted to the emergence of advertising without rejection, but merely expressed a wish to show them advertising that is relevant to the region they live in.

The proposal, which Agency 2 now makes, is new, and it will significantly change the advertising market. This equipment allows us to earn money on advertising, regardless of the TV channels rating, - Makarov said.

Tricolor TV is one of the largest Russian satellite television operators. By the end of the year the company expects to increase the number of customers up to 12 M, and by 2014 - up to 17 M.

Founded in 2011, Agency 2 is the exclusive sales representative of Tricolor TV Russian digital television operator advertising possibilities. The agency provides strategic and tactical planning of advertising campaigns, using all sorts of advertising media.