“When the 3D TV
revolution ended at the start of 2017, some pundits, who’ve long predicted the
death of TV itself, were convinced this was the final death knell.
But it wasn’t.
Instead of fading out, TV flourished.
Much of this was
down to TV’s recent evolution into a performance-marketing channel. It has been
pushed forward by technological advancements, more timely, accurate targeting
and measurement, and the ability for advertisers to optimize TV campaigns just like
they do with digital.
So, with all this
change, what’s next for TV and its advertisers?
Silencing Doomsday Rumors
During the next 12
months, industry naysayers will finally be forced to recognize that TV isn’t
dying – not even close. It is still the most powerful marketing channel for
brands, and plays a big role in the lives of consumers, even in the digital
age. Let’s look at the facts.
In the U.S.,
adults spent almost four hours a day watching TV in 2017, accounting for the
majority of video viewing time. While this number is dropping, it’s not as
quickly as you might believe. Estimates see this number dropping by just five
minutes in 2018, and six minutes in 2019. That’s still three hours and 47
minutes a day!
As a marketing
channel, TV still reigns supreme. TV ad spend continues to grow and even
digital-focused companies have been won over. E-commerce brands and tech giants
–even those making their own play at “TV” like Netflix and Amazon – have become
one of the biggest groups of TV advertisers.
While the role of
TV in our lives is changing, it’s still influential and effective. It’s not at
death’s door, not even close.
Ad Spend Coming Back to TV
In a time when
“fake news” became 2017’s phrase of the year, things have been tough for the
digital advertising realm. Alongside many brand safety issues — with ads placed
next to offensive, even extremist, content — the industry was increasingly hit
by fraud. As a result, demand for greater transparency soared, while confidence
in the digital supply chain and budgets plummeted. Case in point – media giant
P&G infamously cut its digital ad spend by $140 million.
Amid the chaos, a
large number of brands started to reallocate spend to trusted formats, such as
TV. Giving brands complete control over where and when ads appear, TV has
always offered better contextual clarity and certainty, whereas digital is all
about chasing cookies to target consumers at varied destinations across the
web.
Until digital
assumes the responsibility and cost of brand safety – providing advertisers
with more control, visibility, and the assurance that they are being positioned
appropriately – 2018 will see more and more brands come back to or increasing
investments in TV.
Mini Ads Make Their Mark
Last year saw a
new format emerge on TV: mini ads. These six-second slots deliver quick-fire
impact, leaving no time for viewers to switch channels or exit the room. For
advertisers, these ads mean reaching a very large audience at a time when they
are fully engaged in the programming – not to mention the opportunity to reuse
digitally created content for TV. For networks, the ads provide more inventory
and, ultimately revenue.
Expect to see mini
ads become commonplace this year, especially during live events. While not
ideal for direct response, they are an ideal opportunity for advertisers
looking to build long-term brand awareness with these non-intrusive, frequency
plays.
Better Targeting – Without Addressable
As mentioned
before, advertisers consider TV to be a performance-driven channel. While it
was typically used just for reach, generating response with TV – especially
among the legions of viewers who have second-screen devices in their hands –
has become the focus.
Advertisers are
increasingly demanding a way to get better targeting with TV. And when most
people think of TV and targeting, they think of addressable, a market in its
infancy.
But here’s the
thing: you don’t need addressable to target TV initiatives.
In recent years,
new tools have emerged that can deliver real-time performance data on TV spots,
enabling advertisers to gain valuable information on audience TV habits and
insights into aspects of buys that drive engagement. It’s no longer about just
reaching a target audience; it’s about using data to reach them in the place
and time they are actually going to respond.
This year, we’ll
see more advertisers leverage spot and response data to better target their TV
campaigns. Expect to see networks as well push for greater targeting and
measurement efforts like Open AP.
New KPIs for TV
TV advertising has
long been measured with GRPs, CPMs, and ratings, but 2018 will see this change
significantly. Of course, these types of reach and frequency metrics will still
be important – especially for brand awareness – but we’ll see advertisers turn
toward more brand-specific, performance-based metrics this year.
With the right
technology, measuring a sale that is directly due to TV is easy. An advertiser
can tie the spot airing to an immediate action like an online sale,
subscription or registration. Lower-consideration products enjoy conversions
closer to the spot airing. But not every brand has that luxury.
For
higher-consideration brands, the end result doesn’t happen right away and
directly tying a spot to a sale becomes more difficult. In cases like this,
where a purchase might not happen for days, week or months, TV advertisers will
turn to action- or intent-based metrics.
A few years ago,
advertisers might not think these “middle-of-the-funnel” activities would carry
any monetary value. But actions that lead to sales, whether right away or weeks
down the line are quantifiable and excellent indicators of TV performance.
TV is in its next
phase of evolution, and in the near future we can expect to see this resilient
format getting stronger. Through new technologies, TV campaigns will be even
more targeted and effective. Advertisers will optimize performance by measuring
short and long-term impact. And adoption of AI will help brands find the
perfect place for TV amongst their media mix. 2018 is set to be a good year for
TV. ”
SOURCE: HUFFPOST (1/04/2018)
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