Personalized ads on TV

30

September

2018

5/5 (1)

Know that feeling seeing a really nice sweater on a website, but closing the tab because you thought it was too expensive? And then, five minutes later while scrolling through Facebook, seeing that exact sweater pop-up on the side of your feed again? We already know that when on the internet, you can find personalized ads. You can choose to opt out of these, by ticking off the right box at the cookies pop-up, that show up when opening a new website. We are familiar with these kinds of personal ads, but right now KPN is testing personalized ads on television¹.

It will be possible to show ads for certain tv-shows or documentaries, based on what you have watched before and other personal information. KPN also promises customers to see the same advertisement less often. Right now you could watch a movie on live television and see the same commercial in every break, which means about every 20 minutes. Personalized ads would reduce this, while also providing you with advertisements that might appeal more to your personal interests.

This sounds promising, however a difficulty with this is the length of the commercial break. The length of the personalized advertisements needs to be exactly the same as the amount of time planned for a specific commercial break. Otherwise, you would have different starting and ending times of the television shows, which would lead to big planning problems especially with live television. Another difficulty is gathering data to personalize the advertisements. Gathering data online is easier than gathering data from these type of customers. This might be partially solved if a television network combines online data and customer data, but that depends on a tight relationship with the customer. The growing concern around privacy is making it generally more difficult for companies to use customer data as well².

To conclude, personalized advertisements are currently being tested by KPN and have interesting possibilities for the future. However, there are some difficulties to this, which might explain why competitor Ziggo does not have any plans for personalized television advertisements (yet).

 

 

1. https://nos.nl/artikel/2252164-je-buurman-krijgt-bij-kpn-straks-andere-tv-reclames-te-zien-dan-jij.html

2. https://www2.deloitte.com/insights/us/en/industry/retail-distribution/sharing-personal-information-consumer-privacy-concerns.html

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Paying with your key chain?

9

September

2018

5/5 (1)

Nowadays it is already possible to pay (for small amounts) without entering your personal pin. This is called paying “contactless” and is estimated to be used for around half of all transactions in the Netherlands¹. But in the (near) future we may not even need to bring our cards to the store.

First of all, it is already possible to pay with your phone. In 20 countries so far, but not yet the Netherlands, Apple has introduced Apple Pay. This service allows users to pay with their phone, after registering their bank account details in the service. You simply put your phone on top of the terminal, just like with contactless payment². Paying with your phone is possible because there is a NFC chip in your phone. Most modern phones have this chip³.

Besides paying with your phone, a second way to pay without card can be by using your accessory. For example, ABN AMRO is conducting a research to make paying with accessories possible. They are still experimenting and testing this new paying method. Their new advertisement shows two boys visiting a music festival and paying for their beverages not with a debit card, but with their ring and watch. Besides rings and watches, ABN AMRO experimented with a key chain and bracelet4. Because the Netherlands has such a high usage of contactless transactions, it is an ideal place to test these kinds of innovations.

Right now we still have to bring our cards to the store, but maybe we do not need to do so in the near future. Personally, I would find paying with, for example, a key chain very useful. You almost always have your keys with you, so that would save bringing a wallet. A possible downside to this is that your key chain becomes even more valuable and therefore more likely to be stolen. What would you prefer, using a debit/credit card or paying with your phone/accessory? I am curious about your opinion on wearables!

 

 

Sources:

  1. https://www.americanexpress.com/us/content/foreign-exchange/articles/new-wearable-payment-methods/
  2. https://www.iculture.nl/uitleg/apple-pay/
  3. https://www.banken.nl/nieuws/20919/betalen-met-wearables-populair-volgens-experiment-abn-amro
  4. https://www.abnamro.nl/nl/prive/betalen/wearables.html

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