Wednesday, June 13, 2012

Video and TV Advertising Integration

Fear of change, complexity and simple inertia hold back ad integration


Someday, online video will almost certainly become so disruptive that TV advertising will have to integrate with it. Several forces are in play that will likely fuel that eventual fusion, most notably the availability of high-quality video content and associated advertising across five increasingly used digital screens—desktop computers, notebook computers, smartphones, tablets and connected TVs.

But in the short term, the fusion of online video ads and TV commercials into singular campaigns will remain incomplete.

The core factor is a fear of financial loss within the TV industry—broadcast and cable networks, and cable providers (which are often also ISPs). Those fears are leading to tactics such as broadband and mobile data caps, which can reduce video usage, and the use of authentication protocols to block cord-cutters from accessing TV content online.

In the meantime, online video’s ad spending growth will far outstrip TV’s growth through 2016, fueled more by the desires of brand advertisers than by the actions of media companies and other established content owners.

US TV Ad Spending Growth vs. Online Video Ad Spending Growth, 2010-2016 (% change)

The growing consumer appeal of connected TVs is one force in favor of integration between online video and TV advertising. It’s also why 28% of brand advertisers and agencies in North America expected to buy ads on that platform in 2012, up from 8% in 2011, according to a report from Adap.tv and DIGIDAY.

Brand Advertisers and Agencies in North America Who Spend on Connected TV Ads vs. Publishers Who Support Connected TV, 2010-2012 (% of respondents in each group)

The growing online video audience, and its devotion to watching ever more content online, is another factor favoring integration. But the forces arrayed against it are also strong, including the fear of cannibalization, the inability of content owners to sell sufficient ad loads online, the complexity of buying and measuring digital ads, and, of course, simple inertia.

The five digital screens—desktops, notebooks, tablets, smartphones and connected TVs—are where audiences increasingly watch TV and other video content, and brands need to reach them anytime and everywhere.-eMarketing

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1 comment:

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