You’ve likely heard the term but may be wondering, what is NextGen TV? Since its adoption has been slow, many local TV stations may not be aware of its potential and the opportunities it brings. In this post, we’ll define it and share how it can impact TV advertising in the future.
What Is NextGen TV?
NextGen TV, also known as ATSC 3.0, is the next-generation terrestrial broadcast system, designed to enhance the television viewing experience. It uses an IP (Internet Protocol) system, carrying internet content and services alongside traditional OTA (over-the-air) broadcast signals. It uses the same IP backbone as streaming media platforms.
Its signals are much stronger and transmit over larger distances than previous generations of terrestrial broadcasting with all the upgrades. It enables:
- Content consumption on mobile devices
- Video on demand
- Interactive features
- 4K ultra-high-definition video quality
- Improved compression efficiency
- Theater-like immersive audio
- Advanced emergency alerts and informing
Who Developed NextGen TV and Why?
It’s the first major update to broadcast TV since the 2009 transition to digital broadcasting. The ATSC (Advanced Television Systems Committee) developed it to be future-proof and adaptable to what’s next in TV viewing access. It includes more than 20 standards and companion recommended practices.
The deployment of NextGen TV appeals to consumers’ new demands, as they want to stream content whenever and however they like. Currently, the ecosystem is fragmented. Local station streaming is available in certain markets, such as Hulu + Live TV or YouTube TV. Some stations have their own apps, which are expensive to deploy and not prevalent. Viewers can also use digital antennas, but those are only good for TVs, not mobile devices.
While NextGen TV is very consumer-driven, it also offers new ad products for you to sell to advertisers. As a result, you can expand your advertiser base to acquire new clients that were once resistant to TV OTA spots. You’ll also be able to offer existing customers new tactics to reach their target audiences. The expected revenue growth impact with NextGen TV is 3.8% for TV alone. Over the entire spectrum, it increases to 8%.
How Many Markets Have NextGen TV Capabilities?
The adoption of the new standard has been slow. It does require substantial costs to upgrade equipment. Currently, ATSC is tracking this, with 62 markets in the U.S. already using it or in the planning stages. You can follow that on the ATSC website.
How Accessible Is NextGen TV to Consumers?
There are currently just 20 TV models from LG, Samsung and Sony with built-in tuners. Consumers can also buy a standalone tuner. Certain carriers are making it available on smartphones, but not all.
Why You and Your Advertisers Should Be Excited About NextGen TV
When any new ad inventory or protocol comes into the ecosystem, you have to express its value to your customers. Here are the high points to keep in mind:
- It allows for first-party data capture. This capability is critical, as third-party cookies, which digital advertising depends on for targeting, are on the path to extinction. First-party data collection will be the new route to target.
- Targeting is even smarter, combining first-party data and geotargeting.
- It’s a performance-based tactic and supports frequency capping.
- Advertisers can hypertarget and still play on the big screen.
- It helps achieve addressable advertising, which means it’s not a spot buy (i.e., advertising during sports or morning news) but rather an opportunity to “buy” audiences in aggregate. You can “find” the audience that an advertiser wants to target.
- You can provide more transparency and visibility to advertisers with access to how viewers see ads across multiple screens.
- The NextGen TV model works to prevent ad fraud, saturation and ad waste.
Dive Deeper into the NextGen TV Opportunity
You now know the basics of what NextGen TV is, but there’s much more to learn about it and the role it will play for local TV advertising. It will soon become a large part of your advertising footprint. Be ready for the opportunity by downloading our white paper, Envisioning the Broadcast Ad Space Future with NextGen TV.