The emerging trend of “TV anywhere” means that TV content is no longer exclusive to the lounge room. So, how is this impacting on media spend?
Video content can now be downloaded and streamed any time and place that the consumer wants it, taking advantage of the entire technology landscape to make itself accessible to the consumer through their day. This content comes in many forms, such as: full length TV episodes, news updates, webisodes, sports highlights and even complete TV channels.
In response, advertising technology has had to evolve and cater-to the behaviors and demands that surround each emerging video platform and channel, whilst also helping media owners to monetise their newfound, flexible inventory.
This is a powerful shift that presents an expanding array of opportunities for advertisers and marketers to reach customers.
Today’s advertising technology enables publishers to grow their revenue, so that money can be invested in the content and development of the services on the connected devices. This in turn, fuels the supply of high-quality content within the on-demand ecosystem, whilst also facilitating the development of services that keep viewers engaged and coming back for more.
This perpetual evolution of content production and connected devices is now having a clear impact on the why media is brought and sold.
Traditional ‘airtime’ is not dead but the alternatives offer a more exciting and intuitive viewing experience.
Broadly speaking, advertisers and marketers have increased their media budgets this season. However, with digital services offering the same content as TV, but with enhanced audience targeting, the allocation of spend is moving from traditional to digital.
As reported by the eMarketer the total media spend in the UK grew on estimation by 6.0% in 2015 to top £16.26 billion ($26.78 billion), with this being split equally between digital and all other traditional formats combined—TV, print, outdoor and radio.
It is predicted that the ad spend on mobile and online devices will attract more than twice the ad spending that goes to TV, which accounted for a 24.9% share in 2015, eMarketer estimates.
“Digital reaching the 50% threshold in the UK is a significant moment for the ad industry, and digital’s dominance is particularly interesting when compared with the global splits, as well as the splits in some other notable regions,” said Bill Fisher, analyst at eMarketer
Digital accounts for a 29.6% share globally and just over 31% in the US, for example.
Furthermore, brands and agencies are planning their digital and TV budgets in sync to ensure that they remain competitive in this dynamic commercial delivery space.
As TV-like services become increasingly integral to the media planning process, budget allocation has also has become fluid and agile. Media is selected dynamically, as viewers move between services and devices. When coordinated at scale, this places enormous pressure on people and resources that can only be relived by programmatic media buying, which leverages the ad network and its algorithms to trade inventory when it presents itself, leaving the network to deliver your message when the opportunity arises.
You have successfully followed the viewers across devices to deliver your message, but what if it doesn’t connect?
Much like the weather, viewing habits are hard to predict when assembling a media plan. Yes, you need a plan and a budget in order to produce content and buy media. But, there are limitations to what we are able to forecast using historic data and variance analysis.
These days, advertisers seek to learn why their content did, or did not perform. This analysis takes place after the campaign, and the leanings are applied to their next project.
In a world that is become more about now and less about planning to sit in front of the TV on Saturday evening during ‘primetime’, technology solutions that provide real-time insights and faster decision making amongst advertisers, must become a reality.
Additionally, TV and online media should no-longer be seen as two separate mediums, but one seamless and organic network of services that are used to deploy the media message.
Today’s ad campaigns must be delivered both sequentially and consequentially – buying in to connected platforms that acknowledge your plan and presents your brand message when the right viewers are engaged.