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Advertising product improvementopportunities using segmentationin Video-on-Demand services: A case study of MTG’s opportunities in the shift from television tostreaming video
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

More and more people choose to watch television online through online video-ondemand services. For media corporations, such as the Modern Times Group (MTG),

this means that video-on-demand will become an increasingly important source of

revenue. Because video-on-demand is an online service, advertising products offered

therein are in competition with other online advertising products. Currently, MTG’s

video-on-demand advertising products are the same as on regular television, meaning

they haven’t yet taken advantage of any advertising product development opportunities

made possible by Internet technology. The purpose of this thesis is therefore to

determine what MTG’s strategy should be to improve the competitiveness and revenue

of their video-on-demand advertising products, and what key concerns need to be

addressed in order to realize the determined strategy. By request of the commissioner,

MTG, possible uses of segmentation to achieve the strategy are studied.

The methods used to collect data include multiple interviews both at MTG and at their

current advertising customers, as well as web analytics and a questionnaire. Both

qualitative and quantitative analysis was used to answer the research questions.

Findings suggest that MTG should strive to improve the engagement of their advertising

products, through the use of contextual segmentation and self-segmentation. This goes

against the current trend in online advertising, where segmentation is primarily used for

ad targeting. The reason for not adhering to the trend is that MTG’s advertising

customers operate in a television mindset, where ad targeting is of a very limited nature

and engagement is of greater perceived value.

Place, publisher, year, edition, pages
2014. , 95 p.
Keyword [en]
Video-on-demand, ad avoidance, segmentation, self-segmentation, contextual
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-147671OAI: diva2:731422
Available from: 2014-07-02 Created: 2014-07-01 Last updated: 2014-07-02Bibliographically approved

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