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Converting Fickle Viewers into Loyal Fans Using Targeted TV

TV used to be a pretty simple solution: TV viewers looking to go beyond their basic broadcaster and cable service provider could sign up for OTT services like Netflix, Amazon or Hulu, or browse for more content on YouTube. The small number of OTT services versus the high demand worked in the services’ favor, allowing them to lead the pack in terms of getting and keeping subscribers.

Fast-forward two years, and the number of services has ballooned, leading to a certain glut in the market, and creating viewers who are not the loyal fans they used to be, jumping to other solutions, cutting cords, and doing everything possible to make video service providers life difficult. In fact, recent studies show that one-third of U.S. broadband households subscribe to multiple OTT services, but are still frustrated, leading to churn rates that top 50 percent!

Using Targeted TV to Convert Users

One way in which Kaltura’s helping to turn viewers into loyal subscribers is through our targeted TV solution. Targeted TV augments Kaltura’s cloud TV by helping TV operators to differentiate in the crowded market with a tailored video experiences to individual users that can boost engagement, increase conversion and eventually also reduce churn.

Unlike existing products on the market that tend to address specific targeting elements, Kaltura’s recently-introduced targeted TV solution is comprehensive in scope. It uses artificial intelligence (AI) and machine learning to balance the commercial goals of the operator with the interests, preferences and usage of each user. The solution automatically segments users according to, for example, their content preferences and consumption, purchase and spending trends, engagement and usage intensity for advanced TV features, app experience, and demographics. It then lets the operator promote content from any source, as well as promote commercial offers to various target audiences throughout the user experience.

Presenting content, commercial offers and ads that better match the user’s interests increases engagement and conversion rates for content playback, commercial offers purchase, and ad interaction. As a result, average revenue per user (ARPU) is also increased. In a crowded market, Kaltura’s targeted TV solution equips TV operators with the tools they need to stand out from the crowd and win hearts, minds and wallets. It’s also a dynamic learning solution that blends four inter-related dimensions:

  • Flexible and extendable, a multi-source segmentation model that’s built upon internal usage data and also externally imported segments
  • Multi-domain areas segmentation model, from the user’s content interests to engagement to commerce, that can build dynamic audiences per the operator’s segmentation needs
  • Easily target any audience with various business offers, ads and content
  • Help the operator to create the ultimate user experience, that both provides a mix of recommended and operator promoted content and commerce offering

Kaltura’s solution also enables the easy creation of business offers that provide operators with the ability to launch promotions at various audiences and to benefit from constantly improving promotion targeting. Unlike competitors, that rely on multiple 3rd party external solutions, Kaltura offers the core elements of the solution, including building business offers, content management and targeting internally.

Is Targeted TV Really Right for all Cloud TV Operators?

Kaltura’s targeted TV is designed to be applicable to all types of cloud TV operators:

  • TV operators – these types of organizations might have an internal offering from multiple sources as well as content aggregated from services such as Netflix and HBO. They usually bundle their TV offering with triple and quad play packages, so have a very rich content and commercial proposition that can be offered in a much more effective way using Kaltura’s targeted TV solution.
  • Media companies and broadcasters have their own content that is sometimes enriched with external content. Personalized content combined with the types of promotions available with Kaltura’s targeted TV solution is becoming especially important to ensure market differentiation. In this way they can be sure that their users have the right exposure to promoted content.

Using AI and Machine Learning to Enhance Targeted TV

By employing AI and machine learning, the targeted TV framework carefully balances an operator’s desire to promote specific content, UIs and business offers with the requirement to personalize what the user sees based on their individual interests and viewing behavior. The learning system provides a vitally important feedback loop meaning that operators can change the offer based on users’ reactions and take up of specific promotions.

The AI capabilities inherent in the solution help operators to look ahead and determine how users may act in the future. This lets them determine the future value of every customer and makes it possible to act upon this insight now to ensure the best possible outcome in the future. According to Dr. Shay David, Media and Telecom President and GM, Kaltura, “The next revolution in cloud TV is about turning proactive personalization on any device, anytime, anywhere, into a true learning TV service. Our dynamic targeted TV framework helps to increase conversion rates and to give viewers more of what they like to boost loyalty and engagement and reduce churn rates.”

 

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