Big news: 2 items came into view this week with regards to the future advertising offering from AT&T:
1) AT&T is buying AppNexus for $1.6B to be the buying platform for its video inventory
2) AT&T is launching a new skinny bundle that will include advertising
Details for AT&T Watch:
1) Free for AT&T wireless subscribers ($15/month for non-subscribers)
2) 30 channels
3) No sports
Quote from Brian Lesser– CEO @ AT&T Advertising and Analytics:
“Because we have DirecTV, we are the only company that knows you are watching a big screen in your living room wall and you have a small screen in your pocket… With this knowledge, AT&T can then have an icon appear on the TV screen during a show that indicates there’s a mixed-reality experience on your phone. And without ever interrupting the content, consumers would be able to receive a targeted commercial message on their phone.”
Video: Brian Lesser and Andrew Ross Sorkin discuss AT&T advertising ambitions from the Cannes Lions festival.
Flashback #1: AT&T may be plotting to revolutionize TV advertising
Quote from John Stephens — CFO @ AT&T:
“Taking the viewership data, the data insights that we know that comes off our networks because we’re the delivery system. We deliver it, so we know what goes to the homes, what’s there. And on our addressable advertising, we’re getting close to $35, $40 CPMs. On our average, on our regular total advertising, it’s probably closer to $12, $13, so 3x that amount. That’s the reason for excitement. We’re getting that today, albeit as a distributor, you get 4 commercial slots an hour. As a content owner, you get 24 commercial slots an hour.”
Flashback #2: AT&T’s Ambitious Plan to Take On Facebook and Google for Ad Dollars
More #1: What AT&T’s advertising platform will look like
More #2: AT&T Ads CEO Brian Lesser Explains How AppNexus Will Plug Into AT&T
