What is Digital Terrestrial Television? And How Does It Affect Advertising?

Worldwide, the switch from analog terrestrial to Digital Terrestrial Television (DTT) has generated buzz. Currently, many countries have already chosen their DTT broadcast standard while others are still decided what signal is best for them based on their needs and regional capacities.

1. What is Digital Terrestrial Television (DTT)?

Digital Terrestrial Television is the technological evolution from analog terrestrial television that is transmitted on radio frequencies. The purpose of DTT is characterized by reduced use of spectrum and more capacity than analog, a better-quality picture, improved reception and lower operating costs for broadcast and transmission after the initial upgrade costs. This format allows for more TV program channels, high definition TV and mobile/portable reception. A frequency channel with digital transmission can carry one high definition TV program channel plus multi-sound channels and data services or four standard definition TV program channels plus multi-sound channels and data services.

2. What type of DTT broadcast standard is used in South America?

Integrated Services Digital Broadcasting-T (ISCB-T) is used in Brazil, Peru, Argentina, Chile, Venezuela, Ecuador, Bolivia and Paraguay, while DVB-T is used in Colombia and Uruguay. ISCB-T is the norm in Japan and DVB-T is the norm in Europe.

3. How does DTT impact South America?

DTT allows for a standard definition program channel to be divided into four separate signals. An example of that would be taking Caracol, a Colombian channel, and splitting it into Caracol News, Caracol Sports, Caracol Kids and Caracol Entertainment. It would no longer be one identity, but instead completely split its topics of interest and focus on smaller, targeted markets. In return, all this quantity of channels and options will give advertisers/marketers more options to reach specific targets. Channels are already segmented, but this would take them to a deeper level of segmentation, creating more competition. This will greatly impact advertising because it will split TV budgets into many different channels, focusing less on specific channels of interest.

4. How will mobile/portable reception affect the television advertising industry and the way that viewers are reached?

ISDB-T, the method predominately used in South America allows for mobiles and portable devices (lap tops and PDAs) to receive television at a speed of approximately 74 miles per hour with outstanding reception. This increases the consumption of television as it can now be taken anywhere, any time, so viewers never miss their favorite shows. Television advertising would not only reach viewers at home, but also on the go while they're headed to their next destination via car, bus or train.

For more information on how to advertise on television and reach your specific target market, please contact your US Media Consulting representative at 305-722-5500.

Source: http://www.digitaltv.gov.hk/consumer/pdf/DTT-PPT.pdf; http://en.wikipedia.org/wiki/Digital_terrestrial_television;

 

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