Thought Paper - Push the Button

Push the
buttonHybrid Broadcast Broadband TV
January 2013

2
TV has shaped 20th-century culture more than any other technology.
With the advent of television, we have been given the opportunity to
witness major moments in world events, all the while enjoying fascinating
entertainment. Unforgettable moments include Neil Armstrong’s first steps
on the moon in 1969 and the legendary fight between Muhammad Ali and
Joe Frazier in 1971, broadcast live on TV in our living rooms.
The Internet has also significantly expanded our communication options.
The opportunity for dialogue now complements the ability to see moving
pictures. However, what makes our present situation so exciting is not the
establishment of an innovative key digital medium, but rather the merging
of technologies: welcome to the age of Hybrid Broadcast Broadband TV
(HbbTV)!
HbbTV brings the Internet to the TV, providing viewers with countless
fascinating applications and a whole host of new TV channels. Companies
have unimaginable opportunities to expand the content of their TV
commercials and enter into a dialogue with potential customers in a highly
attractive environment.
With this White Paper, we would like to provide you with an overview of
the marketing and advertising opportunities this new technology provides.
We will be familiarizing you with the latest developments and some best-
practice examples taken from the global BBDO network. You will be inspired
by MAGGI, Mercedes-Benz, and Postbank, who are currently working on
establishing mass-market applications following the successful HbbTV pilot
stage.
I hope you enjoy the brochure.
Kind regards,
Torsten Kägler,
Consulting, BBDO Proximity Hamburg
FOREWORD
CONTENTS
Foreword3
Internet-Compatible TV 4
A Brief “What’s What” in the New World of TV Flexibility 7
HbbTV – Opportunities for Innovative TV Formats 16
HbbTV – the Benefits for Advertisers 22
The Global Role and Marketing Development 37
Summary42
Sources43
6.
1.
2.
3.
4.
5.
8.
7.

4 5
INTERNET-COMPATIBLE TV
As we sit comfortably on the couch, the TV obeys our every command with
the push of a button. On, off, changing the channel, browsing teletext – you
can do just about anything in a snap with the remote. Leaning back and
relaxing, we flip through the channels and realize that nothing beats simple
operation. Nothing, not even the quantum leap to Internet-compatible TV
with its new interaction options and numerous additional channels, can
change that.
Time Spent Watching TV
Remains Consistently High
The popularity of TV has been increasing since
the 1950s, captivating people all over the world
with fascinating moving pictures. TV has since
become an undisputed mass medium. The rising
demand for exciting programs has led the TV
market to create more and more new channels
and formats. As a result, the average American
spends 283 minutes every day watching TV,
while in Germany this figure is 223 minutes.1
Even in Sweden, which brings up the rear,
people manage to spend 166 minutes a day in
front of the TV. It is astonishing to think that,
in spite of the Internet, these values have
changed very little over the years. For example,
while Internet use in Germany increased from
44 to 83 minutes in 2010, the amount of time
spent watching TV remained constant, almost
down to the minute (cf. ARD/ZDF Massenkom-
munikation 2010).
To this day, linear TV still determines the
programs people watch: viewers can only
choose from the content offered at that time
and very little has changed over the past
50 years. Communication practices, however,
have long since followed a different set of
ideals. Brands such as Mercedes-Benz, MAGGI
and Postbank initiate dialogue on Facebook,
on Twitter, in blogs, and on private websites,
while TV channels continue along their one-way
roads and only very timidly pursue dialogue.
2.
THE DECISIVE INNOVATION SHOVE:
FEEDBACK-COMPATIBLE TV

6 7

HbbTV has been up and running since 2010.
Before that, channels did not have the
technology required to adapt to changing
communication practices. After all, broadband
Internet access has only been available across
the board for a few years now, and Wi-Fi has
only established itself in households gradually.
Without these technologies, TV can be nothing
more than a receiver medium. It is only the
feedback function that makes TV a future-proof
dialogue medium.
There was another problem to contend with:
until very recently, TV channels had refused
to take advantage of the new opportunities
associated with digital media centers, and
the trend of flexible media use, which is
characterized by frequent replacement of
terminals. To this day, media centers still only
represent supplementary offers for channels
and, by choice, play a minor role in the business
model.
The feedback channel features provided by
TVs are still only rudimentary when it comes
to linear programming. Yet the high number
of shows using TED voting and promoting
interaction with live broadcasts demonstrates
that there is plenty of demand. And these
shows tend to attract a large viewing audience.
In short, dialogue with viewers has long been
a part of the entertainment landscape, even if
that dialogues is not offered directly through
the TV. These days, show concepts are limited
to simple call-in concepts and extensions on
Facebook and Twitter.
The Future Lies in
Internet-Compatible TV
Seldom do we see as much change in the TV
market as we are seeing right now. Just as
everyone was talking about 3D TV at the 2011
Consumer Electronics Show in Las Vegas,
Internet-compatible TV – also called “connected
TV”2
– is now all the rage, and very few who
deal with the technology professionally are
well versed in all the technical jargon.
Strong Demand for More
Transparency
Potential buyers do not know what to expect
from an Internet-compatible TV. From their
point of view, the market is highly obscure:
the glitzy technical terms do not exactly make
it any easier to navigate, and the manufacturers’
apps are difficult to classify and compare.3
The simplicity of conventional TVs that people
have become accustomed to threatens to sink
in a complex sea of individual solutions. In
order to turn the hype into a foundation for
growth, people need to understand what
the new technology is all about. Clarification
is the order of the day.
A BRIEF “WHAT’S WHAT” IN THE
NEW WORLD OF TV FLEXIBILITY
Although they may differ in the details, hybrid TVs, connected TVs
and smart TVs are all basically the same thing: they link two
transmission channels that used to be separate – namely, the linear
signal of the TV channel and two-way data transfer via a broadband
Internet connection. There are, however, subtle differences in each.
3.
READY FOR
TAKEOFF

8 9
Apple iTV
The next big thing to emerge from the Californian
cult brand. At the end of 2012 at the latest,
Apple will be revealing the secrets of its newly
developed TV. The new device with voice control
will, as always, be intuitive and
is almost certain to stir up the
TV market. Until then, Apple
TV allows you to enjoy content
from iTunes on the TV using
both PCs and Macs.
HbbTV
This represents the first in a new era of TV.
The term Hybrid Broadcast Broadband TV
represents a simple concept that facilitates
a whole host of new functions. The principle
is that, with the push of a button, viewers
can carry out actions defined by the channel
at specified access points during the program.
Like basic teletext, a push of
the red button opens up or
closes the HbbTV applications.
Based on a European standard,
HbbTV is compatible with all
manufacturers.
Hybrid TV
This is an umbrella term for Internet-
compatible TV. As the term suggests, hybrid
TV refers to the linking of two technologies
with different origins: the TV with apps is
intelligently linked to a game console with a
Web browser. The term thus describes the
principle of connectivity in a general way –
and in various compositions.
Smart TV
A marketing term for individual manufacturer
solutions. Many manufacturers have introduced
Internet-compatible TV with their own Internet
portals – and so the term smart TV was born. For
example, Panasonic developed VIERA Connect4
as a centralized portal for TV applications, such
as Skype and Maxdome. Some
models even facilitate regular
Internet access. Internet offers
are very often managed by the
manufacturer and individually
configured for each device series.
IPTV
A transmission alternative to cable, satellite,
and antenna. IPTV allows you to receive TV
signals online, with solutions
offered primarily by Telekom
and Vodafone. In addition
to the standard channels,
pay channels are often also
available.
More information
at wikipedia.org
More information
at wikipedia.org
More information
at wikipedia.org
More information
at techradar.com

10 11
HbbTV: Fulfilling All the Requirements Essential for Success
The biggest hurdles standing in the way of HbbTV acceptance have been overcome. Today,
a cable is no longer necessary for connection to the telephone network. On a global scale, Wi-Fi
is as widespread as the broadband connection, allowing the TV to connect more quickly to the
necessary data line and call up the content required for HbbTV. The minute-based plan was
replaced by flat rates years ago, and DSL connections have taken the place of ISDN. But let us
not forget that HbbTV is a technology standard that is compatible with all manufacturers and
not the new development of any one company, making it a future-proof concept that is ideally
prepared to cope with evolving communication practices.
Doomed to Failure: Cross.TV
and met@box
In the past 15 years, many companies have
attempted to revolutionize the TV. Infomatec
Media AG gained notoriety with its Cross.TV.
Using a set-top box, viewers could call up
the desired content in a way that is similar to
Internet using a vertical blanking interval in the
analog TV signal, a solution that was doomed
to failure: the vertical blanking interval would
not have worked with digital TV, as it had been
developed specifically for analog TV. And the
problems did not stop there: years ago, the
Internet was not nearly as widespread as it is
today and, because Wi-Fi was still in the distant
future, the TV had to be positioned in direct
vicinity to the phone jack, making it significantly
more difficult to connect. What is more, TV
channels did not accept the Cross.TV license
model, as they would have had to pay a fee for
each show based on viewer volume. The efforts
of met@box AG came to a similar end around
2000, when the company failed to establish itself
in the new market.
Proprietary Solutions in the
UK: MHEG-5 and YouView
The MHEG-5 standard has been available in the
UK for several years and combines many of the
functions that are available through HbbTV.
Buttons in red and other colors call up various
applications, expanding standard TV formats
to include Internet content. Combined with
home-shopping applications, media centers, and
video-on-demand services, MHEG-5 is currently
integrated into five million devices in the UK.
Nonetheless, some channels have opted for
HbbTV, and are most likely to benefit from a
uniform European standard and the mutual
developments associated with integration into
TVs and set-top boxes. YouView represents
another British project, which, like the former
met@box and Cross.TV, relies on an independent
set-top box. In addition to an extremely extensive
media center, YouView offers options for recording
shows and pausing live TV. The first boxes were
delivered at the beginning of August 2012, just in
time for the Olympics in the UK.
TiVo: The U.S. Pioneer in
Time Shifting
TiVo had good prospects for successfully
establishing itself in the North American market.
Based on a digital video recorder, the system
makes it possible to define which shows should
be recorded and subsequently enables the
skipping of commercials during later viewing.
TiVo offers another benefit in that it learns
from individual user habits and the user’s
corresponding recording behavior and can thus
suggest shows that the user might like. TiVo
boasted hybrid technology early on: the link to
the Internet facilitates a dialogue-compatible
feedback channel, allowing the user to operate
any number of interesting applications, such
as simple games and surveys. With TiVo, users
can even take part in sweepstakes and call up
coupons, opening up interesting opportunities
for interactive advertising for companies.
In English-speaking countries, in particular, TiVo
has demonstrated that viewers appreciate
time shifting in conjunction with the added value
that comes from the Internet connection.
Still, the number of users is currently falling.
The subscription commitments discourage
price-sensitive customers in particular and may
prove to be a major hurdle to surviving in the
market over the long term.

12
HbbTV: a Recognized
European Standard
HbbTV is a technological standard that many
major hardware and software manufacturers
support and promote for use in TVs and
set-top boxes. Companies such as LG, Philips
and Sony play a key role in further developing
and establishing HbbTV technology. Other
companies such as Panasonic, Samsung and
Sharp also support the technology with their
latest generations of devices and sometimes
even with software updates for older devices.
HbbTV was standardized by the European
Telecommunications Standards Institute (ETSI)
in June 2010.
HbbTV: Managed Freedom
for Manufacturers and
TV Channels
In the past, a desire for exclusivity motivated
all TV manufacturers to develop proprietary
solutions. As an alternative to this temporary
benefit, HbbTV offers a future-proof solution
and the market opportunities of a standard that
is compatible with all manufacturers. Here is an
overview of the benefits:5
» There is an pen standard as a general
foundation for all manufacturers and
companies based on free technology
» Support is compatible with all broadcasting
distribution systems (cable, satellite, antenna)
and all standard Internet connections
» Minimal requirements and extremely simple
components ensure that all companies can
support functions
» Broadcast programs can manage and
distribute information to prevent the
uploading of additional services and the
overloading of the TV screen
» There is an option to replace standard
teletext with high-quality content
HbbTV is intuitive and easy to use, ensuring
that users will find it no more difficult than
basic teletext, which HbbTV will replace.
As such, HbbTV fulfills the key acceptance
criterion: ease of use.
Peter Kuhlmann
Chief Operating Officer, OMD Germany
(Omnicom Media Group Germany GmbH)
We can go online anywhere and at any time
with smartphones, netbooks, laptops, and
touch pads, which are small enough to
accompany us wherever we go. Numerous
studies reveal an increase in parallel use
of media, so does it even make sense to
integrate a digital feedback channel into TVs?
The high degree of innovation in the mobile terminal
segment clearly raises the question of whether or
not HbbTV technology is even necessary. Due to the
high number of alternative interaction options already
available, media consumers are spoiled for choice
when it comes to choosing the right technology.
Smartphones and tablets simply represent a further
alternative. For HbbTV, it is more an issue of whether
or not the technology is practical or will establish itself.
The most convenient option will prevail.
With HbbTV, TV commercials can be expanded
to include more extensive information. Whether
it be simple participation in sweepstakes or an
explanation for more complex topics exceeding
30 seconds, there is no end to what is possible.
Could HbbTV reshape the TV landscape for
advertisers?
The parallel use of TV and Internet is no longer
a dream and now contributes to shaping the
communication content. It will always be considered
a push technology, even if new dialogue functions
are constantly added.
If there is an HbbTV button in every commercial,
the option will soon lose all of its appeal for the
consumer. Would it make sense from a media
point of view to introduce restrictions and thus
maintain the quality of HbbTV?
General and advertising interaction will continue
to be a purely supplementary option. TV is and
always will be a medium for relaxation. The fact
is that click rates for online advertising are less
than 0,1 %. These figures will be even smaller when
it comes to TV but, based on the high number of
viewers, could still play a key role.
We still do not know what the networks’ marketing
terms will look like and, more importantly whether
HbbTV placement fees will be based on click rates
or a flat fee. Both models have their advantages
and disadvantages. From the media’s point of
view, which model currently seems to be more
suitable?
Providers will slightly prefer predictable and
calculable flat-rate offers, while the advertising
industry will want to choose a plan based
entirely on click rates. The service performance
will ultimately decide how high the demand
is and who can impose which price model in
the advertising market.
ADVERTISING INTERACTION
WILL CONTINUE TO BE A PURELY
SUPPLEMENTARY OPTION.
Billboard
DISPLAY
POSTER
BACKLIT POSTER
web
13

14 15
HbbTV: Website Display
in TV Quality
The form of processing information typical of
TV is also used to call up Internet pages, which
means the distracting URL will not be visible as
it is in the Web browser. A blocking mechanism
also prevents any terminals other than the TV
from accessing the technology, which conceals
a unique version of HTML developed specifically
for entertainment devices. Web pages are called
up using an application information table (AIT),
which is sent as an additional signal attached
to the radio signal. When the user activates the
“red button” function, the AIT is read and the
predefined URL appears on the screen without
any irritating embellishments.
HbbTV: Technological
Progress as a Challenge
Paradoxically, technological development could
become a stumbling block for the success of
HbbTV. While manufacturers trust that their
portals will work properly in a tested environment,
open standards can cause problems. New test
scenarios are being developed, but will they
be able to cope with technological progress?
As development has demonstrated in the
computer market, technological progress cannot
be stopped. Every couple of years, new systems
appear in the market. But people do not tend to
buy TVs as often as computers.
The industry organization BITKOM reports that,
on average, people only buy a new TV every six
years6
in Germany. In North America, the cycle is
seven years,7
which is likely to be the case in the
rest of the world. When you consider that a
newer TV has a computing capacity similar to
that of a 15-year-old computer, it becomes clear
that HbbTV devices could have difficulty keeping
pace with developments in the computer market,
as long as the willingness to buy a new TV does
not increase. In short, an increase in outdated
HbbTV devices could hinder seamless system
operation in the long term. To counteract this
negative scenario, developers, designers, and
marketing strategists will do everything in their
power to increase purchasing frequency by
adding attractive, innovative features.
Breathing New Life into the
Social TV Experience
Watching TV is, and has always been, an
experience for the entire family or for a relaxing
evening with friends. In the Digital Barometer
study (June 2011), IP Deutschland emphasizes
that most people prefer to watch live TV shows
and movies with others. Only about 13 percent
of those surveyed admitted to preferring to
watch them alone. However, this is not the case
when it comes to documentaries, reportages,
news shows, and daily soaps: 30 percent say
they like to watch these types of shows alone.
Many viewers are sure to agree with these
empirical findings: people watch TV in the
early and later evening in order to “switch off”
together. It is all about sitting back, relaxing,
and enjoying entertainment. This finding is also
confirmed by the “Medienradar: TV-Content im
Web” study conducted by Mindline media in
2009.8
Over 72 percent agree entirely or at least
for the most part that “watching TV on a TV is
more relaxing and enjoyable [than online].”
In other words, viewers appreciate the comfort
of watching an actual TV. They simply have to
press a button to find their entertainment of
choice, which they can influence at any time to
meet their specific needs with the selection of
channels and the corresponding settings.
HbbTV perfects the relaxation experience.
Additional functions are conveniently available
at any time but, like teletext, remain discreetly
in the background. They do not overwhelm you.
And if you need additional information, you can
call it up while continuing to watch your show –
but only when you choose to. More complex
applications and interactions with social media
services can be carried out with secondary
devices, as your iPhone and netbook are never
far away and can be activated more quickly than
the corresponding TV applications. HbbTV will
significantly shape the multiscreen use of several
devices at the same time.

16 17
Teletext as an Interactive
Companion to Viewers
As older TVs are replaced with HbbTV devices,
interactive teletext will quickly establish itself
as the new standard and be presented more
attractively than the teletext before it. That
the functions can be accessed just as easily as
before with the push of a button will increase
acceptance. Access via the red button and
manual selection will be a thing of the past,
enabling many users to automatically enjoy
the new offerings. Many channels will also allow
users to adapt the teletext to meet their
individual requirements. The sky is the limit
when it comes to the design, as the color
display, font and window size, zoom function,
colors, and category shown can be specified –
an advantage that will benefit the sight-impaired
in particular.
EPG – the New TV
Experience Program
The electronic program guide (EPG) is the
TV guide 2.0. Teletext indicates shows and show
times in a purely static format, but the EPG
facilitates the integration of interactive elements.
As is already the case at ARD, the page displays
the programming for both the next and past
seven days. Users will find inspiration in show
pictures, descriptions, trailers and teasers. The
connection to media centers is particularly
attractive. Past shows can be accessed digitally
via HbbTV without a recorder – if the channel
chooses to offer the option.
Centralized Information Portal
with Its Own Formats
The simplest form of media-oriented self-
presentation using HbbTV is the channel’s own
information portal, which can be accessed by
clicking on the red button located in the area
above the TV signal. In this navigation level,
many different applications can be conveniently
opened and used.
Public channels are currently focusing on
improving and expanding their range of offers
for users, while private channels are following
suit and attempting to expand and “extend”
their formats; i.e., increase appeal by offering
more information.
ARD EPG: Good Programming Requires Structure
© ARD Digital/BR/Christian Schulz
ARD Text: Rediscover Teletext. © ARD Text
HBBTV – OPPORTUNITIES FOR
INNOVATIVE TV FORMATS
Internet-compatible TV provides channels with new opportunities in terms
of format design. The range of entertainment offers, which is now limited
by the separation of Internet and TV, will soon be expanded considerably.
Channels have had to make do with separate websites up to now, but
HbbTV will allow them to display the corresponding offers directly on the
TV in the future.
4.

18 19
Generally speaking, the centralized portal displays
news, weather, program announcements, and
a media center. Page and content design are the
responsibility of the channel.
n-tv – Exciting News from
the News Channel
News channel n-tv launched its new HbbTV
portal at the end of 2011, which is basically the
standard teletext redesigned and therefore
closer to digital text than an actual HbbTV
portal. There is a good reason for this strategy:
teletext strengthens the core area of expertise
of news channels, as it provides viewers with
more in-depth information based on their
requirements. In the future, n-tv will be
providing a digital presentation and faster
availability: at a glance, users will be able to
see which show is currently on and which is
next. The live picture is visible all the while.
There will also be breaking news and teasers
for accessing news videos. The offer is rounded
off with an exchange ticker and the option to
browse the individual categories.
As of 2012, n-tv will be expanding its live ticker
in the live picture to include relevant videos
and text. The channel will also be incorporating
more individualized content. You can call up live
sporting events and stock exchange updates at
any time. It is still unclear whether it will also be
possible to personalize ticker content over
the medium- to long-term. n-tv CEO Hans
Demmel explains: “The new n-tv digital text
offers our viewers the best of both worlds by
combining the positive aspects of standard
teletext with the benefits of the digital world
in a contemporary, high-quality format. Our
news portal n-tv.de has been enjoying success
for years. Now viewers can also access our
online content directly on their TV.”9
Nearly all major channels already have an
online media center, where with just a few
clicks users can call up the channel’s own
formats free of charge for a limited time.
It is no wonder that the use of online media
centers is increasing, despite the fact that the
Web delivers a comparably low resolution.
That will change with HbbTV, as all the content
can now be displayed in HD quality. Thanks
to broadband connections, even large volumes
of data can be accessed without any problem.
This means a brand-new range of marketing
concepts for advertising companies – from the
advertising block as a break to using content
for a fee.
Pay-per-View Content
via HbbTV
TV channels are sure to find new forms of
marketing extremely attractive, and HbbTV
will provide them with lucrative sales channels.
HbbTV now enables regular channels to offer
their content directly on the TV for a fee and
thus take advantage of an opportunity that
has primarily benefited pay-TV channels such
as Sky with Sky Select and online pay-per-view
suppliers such as Maxdome. Access is simply
granted following purchase by phone or via
an HbbTV application. This additional sales
channel could even prove to be a profitable
model between existing service providers such
as Maxdome and channels such as ProSieben.
While TV channels provide access to their own
Tagesschau: Always Well Informed. © Tagesschau.de
formats for a fee, pay-per-view suppliers can
offer the latest blockbusters directly on TV
and thus attract new purchasing groups.
The Trend of Watching What
You Want, When You Want
Is there anyone who is not familiar with the
ritual? Tagesschau kicks off the TV evening
punctually at 8 p.m., followed by Tatort and then
a myriad of late-night shows. But the willingness
to let TV programming dictate your free time
is waning. Viewers want to be able to choose
themselves when they watch what. Media
centers accommodate this time-shifting trend
and, with the help of HbbTV, free us from the
confines of linear programming.
TV channels will have the opportunity to
increase viewer loyalty. For example, if a viewer
does not feel like watching a three-part movie
when it is actually being shown on TV, they can
watch the entire thing when they have the time,
thanks to flexible availability. Back in 2009, GfK
Consumer Tracking revealed that 52.6 percent
of those surveyed (14 years of age and older)
were already interested in time shifting and
48.6 percent in high-resolution programming,
which is why Pay-TV suppliers such as Sky with
Sky Anytime also offer time-shifting formats,
which allow viewers to start shows when they
want to.
Interactive Entertainment: the
Evolution of Participatory TV
More and more TV channels are incorporating
Internet channels for news shows and live
educational broadcasts. There are countless new
opportunities for interaction, from Facebook
pages to e-mail addresses that allow viewers to
write in. This trend is likely to grow, as HbbTV
offers the option to send out independent
signals for individual formats. In the future,
anyone who pushes the red button while
watching stern TV can submit a question
directly to the live show. Direct viewer
participation could also breathe new life
into discussions, political debates, and
live surveys.
The HbbTV feedback channel will eventually
replace TED, the process currently used to
carry out viewer voting, and significantly
optimize the process of conducting opinion
surveys. However, it will not replace the
profitable business of call in voting for shows
such as American Idol.
The HbbTV Home Page. © ARD Digital/WDR/Uwe Stratmann
ARD HbbTV Media Centers: TV on Demand. © ARD.de

20 21
The Preferred Format
with an Even Higher Level
of Experience
HbbTV offers exceptional opportunities when
it comes to TV format extension in particular.
For example, VOX already offers an HbbTV
application for its cooking show, Das perfekte
Dinner, which is visible off to the side during
the show. All the recipes ever demonstrated
on the show can be called up in the Kochbar
app and sent to an e-mail address. The
opportunity to intelligently process viewer
information makes HbbTV an amazing loyalty
tool. The term used to express this focus is
audience relationship management (ARM),
inspired by the well-known concept of
customer relationship management.
Added Value for
Documentaries, Reportages,
Shows and Series
HbbTV is particularly attractive whenever
content is accompanied by supplemental
inspirational information, as is the case with
documentaries and reportages. Even
making-ofs, which are usually only available
online, are more appealing when located
on the same channel. For example, take the
Gold Rush series on the Discovery Channel,
which is shown on Fridays and extended
with an online after-show. The additional
content could soon be viewed directly
through HbbTV. Even for show formats such
as Deutschland sucht den Superstar, HbbTV
offers new presentation opportunities for
providing viewers with an inspirational
look behind the scenes of the live show.
An extension of the content can complement
the channel’s limited capacity, as special
wishes can be taken into account without
changing the channel.
The Future: the Viewer
as the Director
The sky is the limit when it comes to the
interactive possibilities of HbbTV. As the
technology becomes more common and
achieves market maturity, there is nothing
to say that viewers could not influence
the stories of TV series with their votes.
As with video games today, they could vote
on alternative endings and thus play an
active role in the directing.
INGO SCHÄFER
Head of Marketing Communication and PR,
MAGGI GmbH
The food segment is dominated by intense
competition. MAGGI competes with Knorr
particularly in Germany, their core market,
which is why it is so important to manage
advertising budgets and media spending wisely.
In times of targeted Internet advertising and the
increasing role of dialogue in communication
to offer is right. Our offer of cooking assistance based
on product and service is certainly so attractive that
people develop an interest on their own. HbbTV could
truly be a platform on which the product and service
go hand in hand.
Stationary Internet with brand websites and social
media pages, the mobile Web, and now a growing
percentage of Internet on TV: is there a danger of
brands having to be active on too many different
digital platforms in the future?
Because communication budgets will not be getting
any bigger, the abundance of opportunities provided
by digital media should force marketers to consider
the role and benefit of a presence more carefully.
Agency partners are also obligated to advice
their clients correspondingly and look beyond short-
term business.
Marketers have not yet defined the invoicing
models for HbbTV supplements. Should invoicing
be based on performance or a fixed rate?
In principle, performance models are only
attractive if they can be reconciled with the
aims of the campaign. There is still too much
to learn for everyone involved to say with any
certainty what a campaign can achieve for
me. Especially at the beginning, I think it would
be fair for the agency and marketer clients
to share the costs of the learning curve.
HBBTV COULD BE A
PLATFORM ON WHICH
THE PRODUCT AND
SERVICE GO HAND IN
HAND.
measures, is TV advertising still the right choice or
is push communication outdated?
Efficiency is always a matter of objectives and the
business model behind them. If entering into
conversation with people directly benefits my
business, the digital world offers fantastic
opportunities. However, not all business segments
necessarily require direct dialogue. If it is essential
to deliver a message to an extremely large,
heterogeneous group of people as quickly as
possible, incorporating TV into the media mix is
exceptionally efficient.
HbbTV supplements are intended to offer viewers
added value. In its simplest form, a brand encourages
viewers to get to know a product by having them
take part in a sweepstakes. For MAGGI, the expertise
of MAGGI KOCHSTUDIO could be used to create an
HbbTV supplement designed to offer added value,
ranging from recipes to the ingredients used. Does
HbbTV provide incentive for MAGGI to reassess TV
advertising?
If I want to motivate someone to develop an interest
in me, I should first think about whether what I have

23
HBBTV – THE BENEFIT FOR
ADVERTISERS
HbbTV can only establish itself if the channels ensure relevance with the
corresponding extensions and supplements. If the frequency of use and
the level of interest increase, advertising agencies will also benefit. This
should not change the viewer’s relaxation experience much. There needs
to be a method for measuring how well new concepts manage to combine
TV as an enjoyable experience with new content offers. People watching TV
do not want the experience to be tedious, like browsing through a catalog.
They want to relax and enjoy attractive offers.
5.
Marketing
new
ADVERTISING
Display Surfaces: the Classic
HbbTV Option
The simplest and most currently feasible
advertising form is a display ad on the channel’s
HbbTV pages. Like online media advertising,
a wide variety of formats and placements
is available. Depending on the format, the
advertising surface may link to a landing page
or expand via an interactive application,
representing a concept that is very similar to
advertising formats in teletext. However,
it remains to be seen if display advertising
fulfills the demand for relevance and is suitable
for counteracting increasing ad blindness.
As is the case with online formats, it is likely
that placement and relevance will ultimately
determine success and failure. It must also
be taken into consideration that users are
navigating an environment different from
the Internet. Internet users are accustomed
to actively dealing and interacting with
information. But TV screens work differently.
Interesting triggers need to be used to attract
the attention of viewers and encourage them
to acknowledge advertising messages.
Example Applications
and Sponsoring through
Interactive Content
In the future, it may be possible for advertisers
to collaborate with channels, which could
prove to be an attractive option especially when
there is a common theme. For example, Kicker,
the German soccer magazine, could sponsor
soccer events and run its own advertising
through HbbTV. The channel, in turn, would
benefit from the incorporation of interesting
content for the viewers. In the U.S., ESPN
Sports could collaborate with Nike during NFL
games and offer football statistics and relevant
information as part of the partnership. The
connection among the environment, added
value, and product is sure to be a highly
attractive marketing foundation for all involved.
Collaborations that benefit all parties involved
are most worthwhile. For instance, TV channels
could achieve higher viewing numbers if a
powerful partner added its content to the
HbbTV channel. Special placements, ranging
from the free TV content of a partner to the
channel’s own applications, would also be an
option. However, placements purely for the
sake of advertising, like those already found in
iPhone and Android apps, will likely only prove
effective when they contain relevant content.
Media Revolution:
Interactive TV Commercials
HbbTV is attractive for advertisers primarily
owing to the interactive potential of TV
commercials. Dialogue options open up
fascinating opportunities for turning passive
consumers into active contributors. An
indicator of any size can be positioned
anywhere on the screen to inform them about
the interactive option. The indicator is only
visible on HbbTV-compatible devices,
which means viewers without HbbTV will not
be distracted by irritating information or
disappointed that they are missing out on
something. Advertisers can therefore gain
experience with interactive commercials
during the pilot and evaluation phase without
disturbing viewers with conventional devices.
Push

24 25
Endless Options Available
to Everyone
Pressing the red button during the TV
commercial provides access to the dialogue.
There are as many possibilities as there are
advertised products. The open CE-HTML
standard allows users to call up a whole host
of target pages, particularly those beyond the
limit of the channel. In particular, compatibility
across the board represents a major advantage
of the new technology. However, this does not
entirely extinguish the efforts to develop a
proprietary solution. Some networks now rely
on independent concepts so that they can
offer their advertising customers attractive
environments and the required technological
solutions.
Customized Concepts for
Consumers
In the next few years, concept and strategy
departments will likely increase their focus on
the opportunities provided by HbbTV. The
current situation is characterized by a sense of
new beginnings. The associated challenges are
immense and cannot be overcome with standard
solutions, as no experience has been gathered
through past use. As a result, market potential
is currently being analyzed with a focus on target
groups so that relevant strategies for addressing
them can be developed and integrated with
precision into the existing information
architectures. Creative minds will also have to
familiarize themselves with HbbTV. The bar for
future concepts has been set high. The unique
media characteristics of HbbTV need to be taken
into account to ensure potential advertising
effects can be exploited over the long term.
The Learning Curve – Ready
for Takeoff
Even technologically minded viewer groups
are unlikely to have had any experience with
HbbTV. Even if their TV at home already
incorporates the new technology, they first
have to discover the concealed features before
they can use them. In short, the industry
will have to undergo a learning curve before
the benefits of the new standard are fully
available. Only through ongoing testing,
learning, and optimizing can HbbTV make it
to the homestretch and establish itself as an
accepted key element of the media mix.
Commercials that demonstrate the potential
have already been aired. The Kolle Rebbe
agency developed an HbbTV campaign with
product offers for Otto Versand. In order to
break through the aversion to interaction, the
commercial focused on the call to action:
a remote control featuring the corresponding
instructions and red button was presented
to emphasize the tool that provides the viewer
with access to the dialogue. Unfortunately,
the augmented ten-second commercial was
simply too short. Our first lesson: if a viewer is
not sufficiently familiar with HbbTV, they are not
going to find the on-screen button within ten
seconds. In the current learning phase, the
viewer needs considerably more time to navigate.
An Issue of Reconciliation:
Positioning the Button Correctly
It’s safe to assume that it could take months,
or even years, for HbbTV to achieve full
acceptance. Until then, instructions will need
to be provided for viewers to ensure success.
To both communicate the commercial message
and indicate the dialogue button to viewers,
30- to 45-second commercials are recommended.
It will also be necessary to determine where
in the commercial to display the call to action.
This could represent a real challenge for standard
commercials: how do you combine the button
with the advertising message so that the
commercial works both with and without HbbTV
support? Reconciliation will only be an issue
once the technology has established itself. But
at that point, it will play a key role in success.
A Bright Future for the
Remote Control?
The primary challenge posed by TV-based
dialogue is the method of controlling
applications. Though you can use the mouse
and keyboard for the computer, you must rely
entirely on the remote for the TV. For those
of us who can remember when T9 and
autocomplete were foreign words, this
challenge is nothing new: how do we design
HbbTV pages so that they are easy and
convenient to navigate with the remote? Not
all manufacturers offer autocomplete, and
channels have yet to find a practical solution.
Not even the next generation of control
options based on gestures and voice is likely
to fully replace text entry by hand.
Field tests have demonstrated that consumers
react to excessive complexity with refusal.
For instance, blood-type surveys are less
successful using HbbTV than they are online,
as viewers are relaxing when they watch TV.
They are more interested in being entertained
and avoid any tasks that demand too much
of them. Anyone who requires a lot of text entry
or, in the case of a sweepstakes, a full address,
is probably asking too much. It would make
more sense to initiate first contact on the TV
and then carry out all subsequent CRM measures
using other media. In other words, name, sex,
additional data, and contact options should be
collected by e-mail or phone. The ideal solution
could also be determined through coordination
with the customers in question – the unique
requirements of the segment should also be
taken into account.
atsuo murakami
Kachidoki, Tokio
YOU MISSED THE FIRST QUARTER OF A MOVIE
THAT STARTED AT 8 P. M. ON TV. NOW YOU
JUST PUSH A BUTTON ON YOUR REMOTE,
OPEN THE “FREE TO VIEW” SECTION, AND
START IT AT THE TIME YOU WANT. HOW DOES
THAT SOUND TO YOU?
I would love to use the service because it would
let me watch the movie whenever I wanted
or skip a part if I didn’t want to watch the whole
thing.

26 27
AUTOMOTIVE SECTOR
From the New-Car
Configurator to the Accessory
Consultant
Almost no other industry survives to such a
degree on emotive images and high-quality
cinematic staging as the automotive industry.
Anyone who watches the TV commercials of
major brands is sure to experience the pinnacle
of creative imagination. Maintaining the
emotionally charged suspense curve from the
commercial to the brand/model website or
dealership represents a real communication
challenge. Thanks to HbbTV, this abrupt break
is a thing of the past, and it is much easier to
pass leads on to dealerships.
New Model for Effective
Communication Motivation
Online vehicle configurators established
themselves as an indispensable marketing tool
for car manufacturers long ago. The functions
are now so sophisticated that customers
looking for a new car routinely consult the
configurator before heading to the dealership.
By the time they meet with the dealer in the
showroom, they have often already planned
their car down to the smallest detail. Now it
is primarily up to the dealer to persuade the
customers to make a purchase.
HbbTV provides presales communication
with an innovative form of motivation: if the
TV commercial contains a button that
links to a landing page, inspirational brand
experiences can be combined with product
interaction without a time delay. After all,
the landing page is the ideal place for a
streamlined configurator, which at the very
least determines viewers’ basic preferences.
Offering additional brochures in this phase
and possibly even conducting preliminary
qualification are options for bringing viewers
closer to a purchase. Integrated scoring
processes make it possible to inform dealerships
about potential customers who are likely to buy
or suitable for a test drive.
In this way, it is possible to significantly increase
the degree of individualization of the
communication. Once on the phone, the dealer
can address the customer’s specific preferences:
“We have your model in anthracite ready for you
to test drive.” Or the previously sent brochure
might feature pages containing the car as
configured by the customer. These example
approaches demonstrate that HbbTV offers
impressive opportunities for boosting the existing
CRM program with communication motivation.
Anders Sundt Jensen
Head of Brand Communication at
Mercedes-Benz Cars
Emotionally charged product differentiation
plays a key role for car manufacturers,
especially when it comes to TV commercials.
For Mercedes-Benz marketing, in particular,
Daimler AG employs an emotionally charged
method of addressing potential customers
rather than employing offer-oriented
advertising messages. Is expanding TV commercials
through the use of HbbTV even necessary?
Yes. Especially during the launch phase, when TV
commercials are aired, it is necessary to encourage the
target group to take action: generating addresses,
arranging test drives, boosting footfall at dealerships,
ordering brochures, and increasing interest in a new car
through the car configurator. Extending the emotionally
charged product experience and strengthening the
brand experience should also be taken into consideration,
as they ultimately add to the brand value of Mercedes-
Benz.
During the launch of the C-Class Coupe, Mercedes-
Benz showcased the model in an elaborate Drive
Seek online special.10
The film with interactive
control would also be possible with HbbTV. Does
this represent a new concept of focusing on the
experience factor of TV commercials lasting over
45 and 60 seconds?
In terms of technical feasibility, the future of TV is
really exciting terrain. Because there is a lack of standards
and various technologies on the side of TV manufactur-
ers and TV networks/stations and no clear, recognizable
future prospects, this communication platform is not
currently in the Daimler AG advertising channel portfolio.
With HbbTV, TV could facilitate a new method of
measurement. In addition to broadcasting a
commercial, criteria could also include the access
of HbbTV specials and the generation of leads.
Does this warrant a reassessment of TV advertising?
In principle, we still see TV advertising as a mass
medium with a broad impact. It is ideal for rapidly
achieving a wide reach within our target groups and
emotionally charging our messages. In our opinion,
this will continue to be the case for the foreseeable
future. We now consider the HbbTV dialogue function
to be “added value.” However, this added value must
be evaluated in a pilot project.
Up to now, marketers have not suggested
any invoicing models. Should the mutual aim
be to invoice HbbTV integration based on
performance or a flat fee?
Depending on the goals of a campaign, both
models are possible in principle. A credible
marketing model also requires the confidence
essential for offering performance-based
models, as is generally the case in the digital
dialogue media already available.
From the perspective of advertisers, performance-
based invoicing would be preferable. This “fair”
invoicing model guarantees a reliable ROI prognosis
and includes the marketer in the investment risk.
WE NOW CONSIDER THE
HBBTV DIALOGUE FUNCTION
TO BE “ADDED VALUE”
push

28 29
Fast Moving
Consumer Goods
Brand Loyalty through
Involvement
In the fast-moving consumer goods (FMCG)
segment, TV represents the backbone of the
media mix for new products and innovations.
No other medium makes it possible to
combine fast reach and awareness with such
a high profile. At the same time, the past
few years have also demonstrated that Internet
is indispensable for FMCG. Accordingly, the
GfK market research company and Mediaplus
media agency (“Successful product innovation
and related media strategy”) emphasize the
importance of interactive campaign extensions
from TV to the Internet. Entertaining approaches
are key and represent the optimum method
forencouraging customers to get to know the
brand and product. HbbTV offers better solutions
for doing just that, from the entertainment
factor provided by games to targeted samples.
Samples: Accompanying the
Product into the Market
More than half of those surveyed in the “Word
of Mouth and the Internet” study (Google
and Keller Fay, 2011) indicate that they are more
interested in purchasing a product if it has
been personally recommended. The study also
reveals that 82 percent of those surveyed
(n = 6.747) are most likely to remember a
product recommendation made face to face
in their personal environment. These findings
are confirmed by the insight provided by
Martin Lindstrom, who takes a closer look at the
effects of personal recommendations in his
book Brandwashed.10
From this perspective,
samples are not simply a product giveaway,
but instead will hopefully pave the way for
personal recommendations.
When carrying out sample promotions, it is
important to uphold the quality of the brand,
and HbbTV commercials provide the very
best conditions for doing just that, as they offer
an intelligent solution for combining the
brand message with the rewarding effect of
the sample. After calling up the landing page
through the TV commercial, interested viewers
are offered the opportunity to request a sample,
in addition to receiving important production
information. Playful elements that encourage
interaction can boost the experience of getting to
know the product and brand. In the FMCG
segment, in particular, this method provides
greater motivation to purchase. And this also
applies to target groups who are not influenced
by the interactive practices of the Facebook
community.
Samples: the Doorway to
Follow-Up Measures
There are also exceptional opportunities for
generating long-term interest in the company’s
offers among interested viewers. This can
be achieved by attractive product portals and
by obtaining declarations of consent to
receive follow-up communication; for instance,
via e-mail. Interested viewers can also be
asked to provide reviews and other contributions
once the product package has been sent.
Combined with social media monitoring, sample
campaigns can be carried out without TRND
or similar formats.
Inspiration: Expanding
Product Ranges with Relevance
Attracting consumers through sample promotions
and sweepstakes can unfortunately come with
unwelcome side effects: people are enticed by
the reward and less often by a genuine interest
in the product and brand, making the freeloader
phenomenon a possibility. In the future, HbbTV
will allow companies to benefit more from
relevant information and reach more desirable
target groups with additional information.
An example: if a food manufacturer is advertising
a new product, the commercial can be extended
using HbbTV. The commercial could, for instance,
mention that the red button provides access
to recipes for the product, which can then be
sent to the viewer by e-mail. This positive brand
experience serves as a starting point for lead
generation and can promote long-term loyalty
to the brand. In the food segment, in particular,
expertise and trust are important values that
establish themselves in the consciousness of the
customer – regardless of the initial incentive.
Naturally, not every interested viewer is converted
into a loyal customer, but persistent communication
with relevant information can lead to long-term
loyalty, especially with those strategically
important customers who contribute the most
in terms of share of wallet.
A Closer Look at the Brand
In addition to targeted product information,
broader themes can also be addressed with
the support of HbbTV. Background information
about manufacturing methods and dedication
to social issues can help strengthen the brand’s
positive image. Promises that are usually only
hinted at on seals or in a short text can be
validated with substantial data: How are the
foods manufactured? Where do the ingredients
come from? What does the company do to
fulfill its social responsibilities? Fine-tuning the
communication will allow the answers to flow
until they present the company in the right light –
with a focus on the target groups.
push
Eriko Sugiyama
Kachidoki, Tokio
THERE’S A NEW TASTY-LOOKING INGREDIENT
FOR COOKING. YOUR TV OFFERS YOU THE
CHANCE TO SIMPLY PUSH THE HBBTV BUTTON
AND ORDER A FREE SAMPLE OF THE PRODUCT.
WOULD YOU USE THIS OFFER OR REJECT IT?
That would be wonderful.

30
FINANCIAL SERVICES
High-Content Subjects
Presented in an Interesting
Way
TV provides a rather inadequate platform for
advertising consulting products and services.
Nevertheless, the gross TV advertising
expenditure that financial service providers
allocate to addressing the private sector has
continually increased over the past several
years – from 36.6 percent in 2005 to an
impressive 44.1 percent in 2011.11
However,
these commercials focus on unspecified
content, raising awareness about general
subjects. This strategy is primarily the result
of limited commercial time and the wide
focus of the information.
In addition to brand image, current major
themes in the industry, measured in advertising
expenditure, are primarily real estate financing,
account management, and private loans.12
HbbTV makes it possible to extend all four topics
beyond the commercial and present them in
more detail.
Image Advertising:
Transparency Promotes Trust
Over the past several years, the global financial
crisis and devastating media coverage have
tarnished trust in financial service providers over
the long term. Institutes now face two major
challenges: drastically reduced media budgets
for repairing damaged reputations and the
successful acquisition new customers as well as
the retention customers who are looking to leave.
With HbbTV, classic image commercials can be
extended to include more detailed content.
Rather than the story simply ending with a concise
slogan, HbbTV takes viewers to a landing page
with interesting supplemental information:
Which values does the institute represent? How
do specialist publications and independent
institutes rate it? How do you prepare to deal
with the challenges associated with the national
debt crisis?
Relevant information can be rounded off with
the opportunity to intensify contact downstream.
With a callback function or information access
via mail or e-mail, potential new customers
in particular can obtain more detailed answers
to their questions.
The challenge is combining the required depth
of knowledge with easy-to-process information,
as they require an equal amount of consideration.
People who are relaxing and watching TV would
like to obtain information that is straight to
the point on the landing page, so 20-minute films
would be as ineffective in holding attention
as a long-winded personal consultation with the
customer.
Retirement Provisions:
Responding to a Lack of
Knowledge
These days, many people make private retirement
provisions a top priority. In Germany, home
ownership is traditionally an extremely popular
form of retirement provision, a tendency
only intensified by the financial crisis. A study
published in the newspaper Die Welt (November
26, 2010, page 17)13
reveals that 86 percent
of those surveyed consider real estate to be a
good to very good form of retirement provision.
No other form of security enjoys such a high
level of support across the board.
Many of the commercials currently on the air
take the approach of combining the topic of
retirement provisions with real estate financing.
However, potential customers are generally
uninformed, making detailed information and a
personal consultation absolutely necessary
before a contract can be signed. According to the
German retirement index, the Riester retirement
plan (83 percent) and home ownership savings
plans (82 percent) are the most commonly
known forms of retirement provision. As such, it
is surprising that people interested in retirement
plans know so little about Wohn-Riester home
annuities, a product variation that few Germans
are aware of.
In conjunction with image-boosting components,
HbbTV could effectively shed some light on
Wohn-Riester home annuities. The TV commercial
extensions provide interested viewers with the
option to learn more about the topic and possibly
arrange a consultation, or alternatively request
additional information materials. Due to the
wide focus, products requiring explanation in
particular, including Wohn-Riester, can achieve
positive results early on if HbbTV is incorporated
into the media mix.
push
€

32 33
Personal Loan: Successful
Calculation with HbbTV
As everyone knows, anyone who visits a
bank’s website these days can calculate loan
installments, interest rates, and durations
with an integrated calculator. These interactive
tools can impressively be incorporated into the
world of HbbTV commercials: once attractive
loan rates have generated initial interest, viewers
will find it easy to put together a preliminary
offer in no time using the calculator – while
sitting comfortably on the couch. The functions
are extremely easy to use, as number entry is
effortless with the remote.
The Coherence of the Concept
Plays a Key Role in Success
Agencies and advertising companies should be
aware that TV campaign planning needs to
include an additional briefing point: in the future,
HbbTV should be incorporated into the budget
allocation. Campaign tracking will reveal whether
or not it pays off. Existing concepts will certainly
need to be readjusted in order to achieve
return on investment early on. Regardless, the
following criteria should be considered to ensure
successful use of HbbTV.
In today’s media world, attention is an extremely
limited resource and HbbTV is no different.
Why? One reason, in particular: viewers expect
clearly recognizable added values. If these are
not present, they ignore the advertising message
and turn their attention to other things.
Pithy advertising statements and intrusive
sweepstakes risk falling flat in our media world
overloaded with information. If every company
incorporates an HbbTV extension into their
commercial in the future, the novelty will quickly
wear off, which is why intelligent mechanisms
are required to trigger the access of more
detailed information.
It will be interesting to see which factors the
marketers rely on to ensure that HbbTV
represents an attractive extension to the
campaigns. It is too early to say how the media
model will make the technology profitable over
the long term and the content relevant for
viewers. This might be one of the major challenges
facing successful HbbTV implementation.
Strategy-oriented planning is therefore more
important than ever before. The aim of the TV
commercial and approach of the extension could
lead to different solutions every time. The first
time viewers see a commercial, they tend to focus
on the image of the brand, while the second
time they are more likely to take notice of the
HbbTV call to action and press the red button.
Fulfilling Expectations –
Creating Added Value
These days, every brand message requires a
door opener that generates a measurable
reaction. Direct mailings only survive the first
throw-away phase if the envelope is inviting
enough to make the recipient open it. And you
can only expect a reaction if the content is
truly relevant for the addressee. Thanks to
HbbTV, the TV is now capable of dialogue, but
its genuine function has nothing to do with
that. First and foremost, it is still only a push
channel that floods target groups with “classic”
advertising messages at a specific time. At
the beginning, in particular, meaningful symbols,
such as the red button, and the corresponding
instructions will have to support the dialogue
and interaction functions. They act as the door
opener that provides the new medium with
the necessary motivation to make use of its
concealed functions. Creative solutions will
be required to integrate attention-grabbing
calls to action into the TV environment with
sensitivity.
It is important that users know what to expect
when they push the red button: Will I obtain
more information about the brand? Can I
take part in a sweepstakes? What else will
I be offered? Standardized instructions are
generally insufficient for generating action.
The added value should be presented clearly
and unambiguously and then delivered.
Confidence-Building Measures
via HbbTV
A trend towards consumer democracy is now
visible throughout the segment. Responsible
consumers question grandiose product promises
and are often critical of brands. They do thorough
research online and share their experiences
with each other to ensure they make the right
purchasing decision. This behavior increasingly
results in advertising skepticism, particularly
when it comes to TV. The Nielsen Global Online
Consumer Survey14
indicates that 51 percent
of those surveyed in the European Union trust
TV advertising “very little,” with similar figures
around the rest of the world: 39 percent of those
surveyed in North America and 33 percent in
Asia admit to having “very little” trust in TV
advertising. The corresponding average value
worldwide is 38 percent. Nonetheless, everyone
agrees that TV is still the leading medium for
increasing reach. Converting trust into direct
purchasing intention is increasingly difficult with
conventional TV advertising, as many consumers
demonstrate a critical attitude that makes it
impossible to turn motive into action. Thanks to
HbbTV, this will change in the future: relevant
information can be provided in a TV commercial
extension, which can expertly answer questions
about products and brands..
Difficult Balancing Act:
Favorite Show
Versus Advertising
Regardless of how relevant an advertising
message may be, it has to contend with a myriad
of entertainment offers competing for attention
in the TV environment. An unrepresentative
survey carried out at select BBDO offices around
the world revealed that HbbTV extensions within
the advertising block were considered to be
thoroughly interesting. However, viewers
Kenta Takagi
Kachidoki, Tokio
YOU SEE A COMMERCIAL ON TV FOR AN
EXCLUSIVE BRAND. YOU’RE INTERESTED IN
THEIR NEW CATALOG AND CAN ORDER IT
SIMPLY BY PUSHING THE HBBTV BUTTON
ON YOUR REMOTE AND TYPING IN YOUR
CONTACT DETAILS.
I don’t think catalogs are a good idea. I think I’d
be more interested if the clothes were featured
on TV programs, contents, or worn by actors
(for example, “The coat worn by this actor in this
movie/drama,” etc.).

34 35
generally left the advertising content once the
regular show resumed. Those surveyed also
expressed a desire for the TV screen to remain
visible during the HbbTV extension.
At least in the case of themes that require a
lower level of attention, displaying the TV
programming in a split screen could reassure
the viewer that they will not miss the show
once it starts again, as they learn more about
the HbbTV offer. On the other hand, there
is also the danger that the high volume of
information in the HbbTV section presented
alongside moving pictures could lead to an
information overload; out of frustration, the
viewer might leave the commercial information
page. The right timing is key: companies that
offer access to an interaction at the end of an
advertising block risk losing the user soon after,
once the regular programming starts up again.
Not Only Easy to Use for
Digital Enthusiasts
For a long time, innovations in the pilot stage
were only considered to be a playground for
experimental technophiles, with mass-market
application occurring much later.
HbbTV will likely conquer the market in a much
different way. The initial hype will probably lead
to mainstream use considerably sooner. Why?
All the channels are currently expanding their
HbbTV options extensively and a larger
target group is also starting to notice HbbTV
in manufacturers’ glossy brochures. For this
reason, it probably will not be long until a wider
group of buyers is interested in obtaining
HbbTV-compatible devices. There is also the
fact that Wi-Fi and Internet connections are
so widespread that the technical requirements
for HbbTV success are already met.
MARGRET DREYER
Director Corporate Brand/Marketing
Communications
Like customer acquisition for retirement
provision plans and real estate financing, new
customer acquisition in the checking account
segment is also a significant focus. In its TV
commercials, Postbank demonstrates its full
range of products. Is that a sign that TV plays
a key role in brand communication?
The central role of TV advertising in Postbank
AG’s media mix has not changed in the past
several years. There may have been a shift in
the individual channels and thereby the budget, but
mainly from print to online media.
After TV, online advertising is now the second-most
important element in the media mix. A campaign-
oriented extension of TV campaigns in digital
channels, and an even closer interlinking, always
pose a challenge.
With its wide range of products, Postbank benefits
from high stability within its target reach, thanks to
TV campaigns. In conjunction with intelligent
interlinking with digital channels, the opportunity
presents itself to utilize content links, along with
reach, and to position central messages as targeted.
For consulting services, TV advertising is a door-
opener, encouraging consumers to contact the bank.
There is no getting around the loss of potential
customers that occurs as a result of the gap between
the end of a TV commercial and the customer’s need
to obtain information online or going to a branch.
With HbbTV, you will have the opportunity to initiate
a lead straight out of the TV commercial.
A gap between media only poses a problem if it
causes us to lose interest in a brand or product.
In reality, the ROPO (research online – purchase
offline) effect seems to apply especially in the field
of financial services.
Approximately 60 percent of all new contracts
are the result of online research. But the purchase
funnel shows that consumers naturally obtain
their information from a wide range of media. The
sequence is a buildup of and shift between
individual channels instead of an abrupt break in
media. The method of obtaining information
through the increasing parallel use of media can
actually be fluid and occasionally simultaneous –
a fact which is confirmed by search engine
entries at the time of the broadcast.
HbbTV offers the opportunity to call up additional
information directly through the TV. However, the
degree of use will depend on the brand, product,
and placement as well as consumers’ desire for
immediate Internet research. HbbTV does not
replace the Internet, but can represent a practical
extension of it.
Stationary Internet with branding and social
media, the mobile Web, and now a growing
percentage of Internet on TV: is there a danger
of brands having to be active on too many
digital platforms in the future?
It is not about the establishment of a new
media, but two channels coming together that
belong together, thanks to HbbTV. After all,
many people already use the Internet while they
are watching TV – whether with a laptop or a
tablet. It is much more about consistently linking
two channels that complement each other
extremely well. The fact that this does not reduce
the demand for resources is a challenge that
we will have to overcome with our agencies. In
terms of budget, we would have to focus on
reallocation, rather than an increase. While media
opportunity appears to be endless, budgets
are not.
IT IS NOT ABOUT THE
ESTABLISHMENT OF
A New MEDIA – TWO
CHANNELS ARE COMING
TOGETHER THAT
BELONG TOGETHER.

36 37
Yet information architects face a major challenge.
All HbbTV functions are carried out using the
remote, and this should be as simple as possible.
The colored buttons play a key role, in particular,
with the red button launching the portal. The
green, blue, and yellow buttons can be assigned
to additional functions, such as calling up
sub-pages or taking part in a promotion. Assigning
functions to colors will make the system easier
to learn. Using the directional pad of the remote to
navigate from a higher to a lower page section,
however, may prove to be more difficult. The
functions must be arranged clearly enough that
pressing up, down, left or right will carry out the
corresponding function.
Making control more convenient in the future
will require thinking outside the box. Users
expect a clear, extremely simple-to-operate
structure that will allow them to take full
advantage of everything HbbTV has to offer.
Changes Resulting from
Gesture and Voice Control
Over the next few years, established uses of the
TV may change rapidly. At the 2012 Consumer
Electronics Show, many manufacturers presented
initial concepts that clearly demonstrate how
the TV will be controlled without remotes in the
future. What will that mean for HbbTV? How will
the innovative solutions be incorporated into
the new standard – and more importantly, is the
corresponding support compatible with all
manufacturers? The trend of combined gesture
and voice control, in particular, will pose complex
challenges for the manufacturers if they attempt
to take the abundance of individual solutions
into account.
Pursuing the Radio Experience
with HbbTV
Not much attention has been paid to the secondary
topic of HbbTV: the radio. After all, most TVs are
also capable of receiving radio stations. Radio,
which up to now has been limited in its functions,
will be available with a whole new level of
quality thanks to the extension option of HbbTV.
With their own HbbTV portal, radio stations can
not only make playlists accessible to listeners,
but can also share experiences in the studio and
other live events with their audience using a
webcam.
toshiharu takahashi
Kachidoki, Tokio
THERE’S A COMMERCIAL BREAK AND YOU’RE
SITTING IN FRONT OF YOUR TV. THERE’S
A NEW CAR COMMERICAL FEATURING THE
ALL-NEW MODEL YOU’RE INTERESTED IN
BUYING. YOUR NEW HBBTV DISPLAYS A
MESSAGE SAYING “CONFIGURE YOUR CAR
NOW ON HBBTV AND CONTACT US FOR
A FREE TEST-DRIVE.” WOULD YOU BE
INTERESTED IN DOING THIS ON YOUR TV
SCREEN?
I feel a bit uncomfortable about being
approached. I’d rather gather some information
myself first if it’s something I really want to
buy. Sending out my personal information on
the TV screen feels kind of creepy.
THE GLOBAL ROLE AND MARKET
DEVELOPMENT
The entertainment industry benefits from technological innovations from
North America and Asia, where the latest consumer electronics trends tend
to originate.
HbbTV is currently being developed almost entirely in Europe, but the
standard undoubtedly has the potential to establish itself all over the world.
6.

3938
A European Phenomenon
HbbTV is gaining ground in Germany and France,
in particular. Development was extensively
promoted by public channels, and increasingly,
private channels, in the two countries mentioned
above, so that the pilot phase is now coming
to an end. The support of TV networks has
proven to be beneficial because, when it comes
to Internet-compatible TV, technological
development and especially content play a key
role. Rather than the manufacturer of the TV,
the channel known to the consumer sends the
content.
In a familiar setting, and because it is as as
simple as the well-known teletext, HbbTV has
the very best prospects for generating interest
and enthusiasm on a global scale. Even if
HbbTV should remain a European phenomenon,
Europe represents an exceptional foundation
for developing a domestic market, as it is the
second-largest regional market measured by
value creation in audiovisual media that focus
on the editorial responsibility of providers of
media services.15
Germany: Green Light for the
Red Button
Since IFA 2010 and 2011 at the latest, it has been
demonstrated that HbbTV is one of the next
big trends in the German TV industry. ARD, in
particular, has done a lot of pioneering work over
the past few years. The result is a comprehensive
range of functions, ranging from video-on-
demand, network media centers, and news
applications to the new digital text and
an extensive EPG (electronic program guide)
offer. Many private channels waited until the
last moment but launched powerful platforms
at the end of 2011/the beginning of 2012 at
the latest.
The range of offers provided by most of the
channels is comparable to that of ARD.
Throughout development, a generally accepted
standard gradually established itself, although
the range of services, which is already extensive,
could expand and ultimately lead to the
establishment of a second generation of portals.
Then, at the latest, more interesting innovations
and company-owned developments will attract
the attention of the industry. Predictions indicate
a bright future for Internet-compatible TV.
In its “Digital Visions: Connected World”16
study
in 2010, Goldmedia forecasted there would be
5.7 million Internet-compatible TVs in Germany
by the end of 2011 and as many as 22.9 million
by the end of 2015. The figures released by
PricewaterhouseCoopers International Limited
(PwCIL) are similarly positive. The consulting
company predicted there would be more than
five million households with Internet-compatible
TVs by the end of 2011. There are few official
figures about the reach of HbbTV. SevenOne
Media recently published figures on technological
reach,17
quoting over 400,000 devices in the
ProSieben channel’s HbbTV portal for the first
time in January 2012. A look at the 2011 figures
reveals a continuous rise in actual users, with an
increase of 9.93 percent from December 2011 to
January 2012. Kabel eins has recently recorded
even stronger growth at 13.49 percent, although
the total number of devices is lower.
France: the Innovation Factor
of HbbTV
The market in France is developing along the
same lines as in Germany. The innovation came
primarily from France’s public TV network,
France Télévisions. The first pilot projects were
held in France in 2009 during the Roland Garros
tennis event, better known as the French Open,
during which viewers could call up additional
information via HbbTV for the first time as part
of a live demonstration.
Developments are considerably further along
now and improved functionality was presented
in 2011,18
making it possible to call up additional
information about the matches to come, previous
games, and the athletes – all in real time. This
French example impressively demonstrates
the relevance of networking TV content and
online information, and that the drive for
innovation comes from the TV channels and
the public networks, in particular. While in
the past, development was promoted by TV
manufacturers, suppliers of content are now
setting the trends in order to offer their services
in the market.
The UK: the Classic Pay-TV
Market
In the UK, pay TV makes up a large percentage
of the TV market. The BBC’s public channels
and the channels financed through advertising,
on the other hand, are highly outnumbered.
Most TV viewers tend to opt for channels with
less advertising, which is what makes HbbTV as
a form of expanded programming so attractive
in the UK. In the first few weeks of 2012,
networks increased their efforts to establish the
corresponding services and offers in the market.
freesat – a supplier of free TV signals – is one
of the first companies to incorporate HbbTV into
its own set-top boxes.
It is worth emphasizing that the HbbTV
standard will be integrated alongside the British
MHEG-5 format, which already facilitates
video-on-demand services, home shopping, and
interactive features through landing pages
and additional programming content. freesat’s
use of HbbTV (alongside MHEG-5) is only one
example of the acceptance of the new standard.
Another example is the Digital TV Group,
which is a sort of central authority for digital TV,
integrated HbbTV into its D-Book, that serves
as a foundation for developing digital TV for
manufacturers and channels – a step that is likely
to secure regional support.

40 41
Netherlands: HbbTV Replaces
Application Development
In the Netherlands, the public channels
Nederland 1, 2 and 3 already support the
preliminary functions of HbbTV, gradually
replacing application development for the
application platforms of TV manufacturers.
The European standard is based on existing
technologies and does not demand any new
requirements, which makes the management
extremely happy.
Austria: Digital Pioneers and
ORF Are Testing HbbTV
More than 97 percent of the population already
enjoys digital TV. According to the “Satelliten
Monitor” study (GfK), most Austrians –
1.91 million households – watch satellite TV,
while 1.32 million rely on cable. According
to data compiled by ASTRA, 225,000 TVs in
Austria are already Internet-compatible,
representing the ideal conditions for an ORF
HbbTV pilot.
Spain: the First Two Million at
the Starting Line
In Spain, the number of Internet-compatible TVs
should reach two million sometime in 2012.
Panasonic points out that 60 to 70 percent of
the TVs on offer are Internet-compatible,
although use is probably low, as there is little
demand for additional services.
However, Spanish TV channels are already
developing HbbTV offers. Mediaset España
will be working with Telefónica to establish the
first HbbTV services, the functions of which are
based on European standards. wKey features
include video on demand, such as the Movistar
video service; the Telefónica over-the-top
solution;19
and content provided by the network,
which is managed by Mediaset España. It is
worth mentioning that content previously only
available on a computer or tablet will be
accessible through TV.
North America: HbbTV with
Potential in the World’s Largest
TV Market
No HbbTV projects are currently in the pipeline
in North America, although this innovation may
one day generate high interest in the world’s
largest TV market. According to Institut für
Rundfunktechnik, which belongs to the HbbTV
Consortium, initial inquiries have already been
submitted.20
HbbTV functions offer high-reach
networks in the US and Canada excellent
opportunities for boosting their own content
and revolutionizing advertising formats.
During major events such as the Super Bowl,
HbbTV support offers attractive opportunities
for expanding TV commercials. However, there
is a major hurdle to overcome: it may prove
difficult to capture the attention of viewers during
programming featuring attractive highlights.
Goal-oriented approaches will probably only
establish themselves following a longer learning
curve. On the other hand, content suppliers
can also increase the quality of their content by
enhancing sporting events, such as the NASCAR
races with interactive inserts featuring lap
times and current positions. In this way, the U.S.
could soon play a pioneering role in the global
establishment of HbbTV. But there is an aspect
that needs to be considered: concept success
requires there being a sufficient number of TVs
with the hardware, which poses the key challenge.
Asia: China’s CCTV Turns to
HbbTV
The situation in Asia is similar to that in North
America: HbbTV has experienced initial interest,
but no pilot projects have been launched –
except in China, where the state-run TV channel,
China Central Television (CCTV), supports the
extension of linear content. However, there is
very little documentation about the range of
offers. The volume of use is unlikely to increase,
as analog TV is widespread in China, especially
in the countryside. The first positive signs to
come out of the Far East confirm that HbbTV
has the potential to establish itself outside of
Europe.

42
Contact:
Helge Grüttke
Director of Business Development
BBDO Germany
+49 211 1379 8323
helge.gruettke@bbdo.de
1
(http://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr11/icmr/ICMR2011.pdf“ t„_blank“ International
Communications Market Report 2011, page 146)
2
(http://news.bbc.co.uk/2/hi/programmes/click_online/9677630.stm)
3
(http://mashable.com/2011/01/11/smart-tv-flop/)
4
(http://www.panasonic.de/html/de_DE/7242/9524/27736/289964/38422/83622/83627/2500581/7893503/
index.html)
5
(“WHITE BOOK HYBRID TV,” German TV platform, 2011)
6
(http://www.bitkom.org/files/documents/BITKOM_Presseinfo_Verkuerzte_Austauschzyklen_von_
TV-Geraeten_31_07_2011.pdf)
7
(http://www.nytimes.com/2011/12/27/business/tv-prices-fall-squeezing-most-makers-and-sellers.html?_r=1)
8
(http://de.statista.com/statistik/daten/studie/72224/umfrage/nutzung-von-tv-content-im-web-und-am-tv-
geraet-in-2009/)
9
(http://www.n-tv.de/technik/n-tv-Digitaltext-startet-article5064486.html)
10
(http://www3.mercedes-benz.com/mbcom_v4/de/c-class-coupe/de.html)
11
(Nielsen Media Research, 2005 to 2011 (January to April) http://de.statista.com/statistik/daten/studie/204557/
umfrage/werbeausgaben-fuer-finanzdienstleistungen-fuer-privatkunden-mediasplit/)
12
(http://de.statista.com/statistik/daten/studie/38128/umfrage/werbeaufwendungen-im-bereich-finanzdienstleistungen/)
13
(Die Welt, November 26, 2010, page 17, http://de.statista.com/statistik/daten/studie/167657/umfrage/haltung-
der-deutschen-bevoelkerung-bezueglich-altersvorsorgemoeglichkeiten/)
14
(Nielsen Global Online Consumer Survey July 2009, page 3; http://de.statista.com/statistik/daten/
studie/154132/umfrage/vertrauen-der-konsumenten-in-fernsehwerbung-nach-weltregionen-2009/)
15
GREEN PAPER on the online distribution of audiovisual works in the European Union: opportunities and
challenges towards a digital single market (http://ec.europa.eu/internal_market/consultations/ docs/2011/
audiovisual/green_paper_COM2011_427_de.pdf)
16
Digital Visions: Connected World study, Goldmedia (June 2010/http://de.statista.com/statistik/daten/
studie/160408/umfrage/prognose-zur-verbreitung-und-nutzug-von-internetfaehigen-tv-geraeten-bis-2015/)
17
SevenOne Media: figures on technical reach (http://www.sevenonemedia.de/c/document_library/
get_ file?uuid=44bb4d92-c70e-45ea-b193-87234dad6b1cgroupId=10143)
18
(http://www.youtube.com/watch?v=evoJugYXL7c)
19
(http://www.broadbandtvnews.com/2011/05/21/mediaset-and-telefonica-spain-to-pilot-hbbtv/)
20
(https://docs.google.com/viewer?a=vq=cache:drdYa70C0SkJ:www.irt.de/webarchiv/showdoc.php?z%3DNTEw
OSMxMDA1MjE0I3BkZg%3D%3D+usa+hbbtvhl=degl=depid=blsrcid=ADGEESgMFhFCqZzUjd38KS4IzMpU
SO-lf3xMH19_etzpHCr-Jru_rREDJki6v5naIkdSSFoto2w9sK4E9WZgcU4p-ESwLDxHRssLz72u6dgHTdtyR97Jry_
sC11AhNlwinYjeZ8B52agesig=AHIEtbSRusi7yuZjAXeCfEZ1gqXwpJgPngpli=1)
SOURCES
1. Successful Pilot Stage
While in the past, HbbTV was primarily tested by the public channels in pilot projects, more and more
private channels are following suit, which is an important indicator that HbbTV is establishing itself as a
recognized standard. The ever-increasing number of users reported by SevenOne Media confirms the
findings: following the successful pilot stage, HbbTV is well on its way to becoming a European success
story with exceptional prospects for global expansion.
2. More Detailed and Individualized Content
TV use has changed significantly over the past several years. More and more viewers demand the
opportunity to watch shows when it best suits them, and they are increasingly unwilling to put up
with inflexible show times. There is also a demand for the added value provided by the Internet and
interactive offers that accommodate individual requirements. And HbbTV offers the ideal solutions.
For example, through media centers and the electronic program guide (EPG) – features which extend
the program with attractive content in the channel-managed environment.
3. Parallel Use of Terminals
HbbTV is not intended to replace the parallel use of TV and Internet, which is now commonplace.
Using smartphones and laptops – to access social media, in particular – while watching TV will
continue to set the tone. In other words, the TV can provide access to HbbTV-specific content that
supplements and expands the current program in line with viewer demands.
4. Gaining Experience in the Pilot Phase
Companies that now opt to participate in an HbbTV pilot project will be gaining valuable experience for
the future. As long as the number of participants is low, pilot projects can be conducted cost-effectively
and with a focus on goals. Because only HbbTV-compatible TVs are addressed, there is very little risk
of irritating viewers with concepts that are not yet fully developed. The pilot phase serves as a test run
for optimizing conceptual strategies.
5. Recommendation: Take the Plunge Now
HbbTV is just about to start the pilot phase for market maturity, representing the ideal time to adapt
communication to meet the challenges and opportunities of the new technology standard. Companies
that now choose to test and optimize concepts will be ahead of the game once HbbTV has conquered
the mass market. I would like to take this opportunity to invite you to discus with us potential solutions
for preparing your company for HbbTV.
SUMMARY
IMPRINT
Author:
Torsten Kägler
Consulting
BBDO Proximity Hamburg
+49 40 27852 4260
torsten.kaegler@bbdoproximity.de
Dr. Friedrich August Wagey
Concept and Design:
Falk Schaar
Ann-Marie Aring

WWW.BBDO.COM
WWW.PROXIMITYWORLD.COM
WWW.DIGITALLABBLOG.COM

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