IBM > Case Studies > AMC Networks: Leveraging IoT for Viewer Engagement and Advertiser Value

AMC Networks: Leveraging IoT for Viewer Engagement and Advertiser Value

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Technology Category
  • Analytics & Modeling - Big Data Analytics
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Equipment & Machinery
  • Retail
Applicable Functions
  • Procurement
  • Sales & Marketing
Use Cases
  • Demand Planning & Forecasting
  • Intelligent Packaging
  • Data Science Services
About The Customer
AMC Networks Inc. (NASDAQ: AMCX) has been dedicated to producing quality programming and movie content for more than 30 years. The company owns and operates several of the most popular and award-winning brands in cable television, producing and delivering distinctive, compelling and culturally relevant content that engages audiences across multiple platforms. Over the past ten years, AMC Networks has been at the forefront of the new golden age of television, producing a string of successful, critically acclaimed shows such as Breaking Bad, Mad Men and The Walking Dead.
The Challenge
AMC Networks, a leading cable television network, was facing the challenge of understanding customer behavior in a rapidly evolving multi-channel world. Despite its success with critically acclaimed shows like Breaking Bad, Mad Men, and The Walking Dead, the company recognized the need to appeal to a new generation of millennials who consume content in very different ways. The traditional reliance on ratings data and third-party analytics providers was proving insufficient. The company needed to take ownership of its data to get a richer picture of who their viewers are, what they want, and how to keep their attention in an increasingly crowded entertainment marketplace. The challenge was the sheer volume of information available – hundreds of billions of rows of data from various sources such as Nielsen, comScore, AMC’s TV Everywhere live web streaming and video on demand service, retail partners like iTunes and Amazon, and third-party online video services like Netflix and Hulu.
The Solution
AMC Networks decided to develop an industry-leading analytics capability in-house, leveraging its existing relationship with IBM as its trusted strategic technology partner. The company used IBM analytical tools to uncover new insights into audience preferences and viewing patterns, helping to make smarter scheduling and data-driven marketing decisions. The solution components included IBM® PureData® System for Analytics, IBM Cognos® Business Intelligence, IBM SPSS® Modeler, IBM InfoSphere® Master Data Management, and IBM InfoSphere DataStage®. This new analytics capability transformed the way AMC operates, enabling the company to create sophisticated statistical models that refine its marketing strategies and make smarter decisions about how intensively it should promote each show. AMC’s direct marketing campaigns became much more successful, with intelligent segmentation and lookalike modeling helping the company target new and existing viewers effectively.
Operational Impact
  • The implementation of IBM analytical tools has transformed AMC's operations. The company's research team, which previously spent a large portion of its time processing data, is now able to focus most of its energy on gaining actionable insights. The company has been able to create sophisticated statistical models that help refine its marketing strategies and make smarter decisions about how intensively it should promote each show. With deeper insight into viewership, AMC’s direct marketing campaigns are also much more successful. The company is also working on providing access to its rich data-sets and analytics tools as a service for advertisers, helping them fine-tune their campaigns to appeal to ever-larger audiences across both linear and digital channels.
Quantitative Benefit
  • Analyses that used to take days and weeks are now possible in minutes, or even seconds.
  • Major ongoing cost-savings by bringing analytics in-house, instead of paying hundreds of thousands of dollars to external vendors.
  • Rapid return on investment expected due to cost-effective in-house analytics.

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