Monthly Archives: July 2016

Political Turmoil in South Korea

Last week, the government cut its planned spending to develop the VR industry by roughly 42%, reducing the amount to 11 billion won ($9.8 million).

The cut came amidst a rapidly escalating scandal involving President Park Geun-hye. South Korea’s parliament voted to impeach Park last week. She is accused of giving an unofficial adviser wide latitude in government affairs that led to preferential treatment, including kickbacks. Park has rejected the charges.

There has been no direct link of the scandal with the reduced VR investment. A government oversight agency said the reduced investment reflects concerns about transparency in the formation of the project and lack of understanding about the project’s goal.

VR in South Korea has been less focused on game and entertainment applications, and more on industrial use cases, such as architecture and engineering. The government investment was part of a joint public/private effort to encourage the development of gaming, entertainment and education platforms.

Hardware companies such as Samsung Electronics and LG Electronics offer a variety of VR devices including headsets and 360 degree cameras, but software and content for VR has been less of a focus. The government investment is meant to address that.

Not all areas of VR were affected equally by the government cuts: Investment in game content was not reduced. “Games are the area that will drive the most growth,” said Baek Hyun-jung of Innocean Worldwide, a global marketing and communications company.

With South Korea’s government stepping back, China may step in as an investor. “China’s VR market is growing at a very fast pace, yet their content is not diversified,” said Baek.

 

Holistic Audience View

Over the past 12 months, advertisers’ understanding of cross-device targeting and the identity matching methodologies behind the technology have improved. With that improvement comes added expectations for the types of data that can be added to these identity graphs and the locations in which that targeting can be applied, such as in living rooms and in stores.

  • As capabilities improve, advertisers will look to cross-device technology to enhance messaging by improving the personalization of ad creative and managing key functions such as ad sequencing and frequency capping.
  • Historically, cross-device and its identification capabilities have lagged in integration and use among measurement and attribution tools. However, 2017 will bring greater focus to ensuring that cross-device measurement capabilities match targeting capabilities.

There has been no direct link of the scandal with the reduced VR investment. A government oversight agency said the reduced investment reflects concerns about transparency in the formation of the project and lack of understanding about the project’s goal.

VR in South Korea has been less focused on game and entertainment applications, and more on industrial use cases, such as architecture and engineering. The government investment was part of a joint public/private effort to encourage the development of gaming, entertainment and education platforms.

Hardware companies such as Samsung Electronics and LG Electronics offer a variety of VR devices including headsets and 360 degree cameras, but software and content for VR has been less of a focus. The government investment is meant to address that.

 

E Marketer PRO of Reviews

For decades, TV advertising time has been valued and transacted on the basis of delivering the standard age and gender audience segments, such as adults ages 25 to 54. But richer, more descriptive advanced targets are emerging to form the basis for secondary audience guarantees, supplementing the primary benchmarks.

  • Advanced targets are created by combining first- or third-party consumer purchase data with TV viewing information, resulting in TV ratings that better reflect advertisers’ targets as opposed to the standard age and gender descriptions.
  • In the 2017–2018 TV season, secondary guarantees made on advanced target delivery could account for as much as 10% to 15% of the inventory sold by those network groups that are leaders in data-driven targeting.
  • The variety of advanced TV offerings introduces new complexity to the marketplace. Differences in the data sources used to create these targets make it difficult for media agencies to evaluate offerings vs. their own in-house TV investment models. Third-party verification of network-produced advanced TV ratings will be inevitable as advanced targeting scales.
  • Advanced TV offerings will eventually include targeting capabilities across both TV and digital—which currently make up more than 70% of spend for a typical media plan. TV and digital targeting is a longer-term prospect, given the networks’ primary focus on selling just TV inventory. The undertaking also requires integration of TV and digital audience estimates within a closed system.
  • TV networks have begun to work more directly with advertisers, many of whom are providing networks with first-party customer and transaction data to develop more precise TV targeting and gauge ad effectiveness on network properties.