The TV landscape is clearly not what is used to be. Advertisers who were used to captive audiences on one device now have to handle a lot of inconsistencies across screens and content options. Audience’s viewing habits still continue to evolve and TV advertisers who quickly diversified their media spend and adjusted their focus towards digital video are realizing the benefits of mixing up their TV campaigns.
That is not to say that the shift from traditional TV to digital isn’t a longer and harder process for advertisers—and it’s only the beginning. Things like ad-free subscription models, device-limited content, ad retargeting, data and decreased attention spans have created a need for entirely new video ad formats and introduced the need for video strategies that simultaneously span several channels. Each of these channels comes with its own set of rules, resulting in a TV shakeup where many screens are competing for ad dollars that were traditionally allocated to linear TV advertising.
As the TV transformation continues to shift to digital, here are four factors for advertisers to keep in mind:
Subscription TV doesn’t depend on ad revenue.
Subscription-driven video content is no longer driven by ad revenue. Moreover, cord-cutters are even willing to pay subscription fees to ensure that they won’t see traditional TV ads. Thus, advertisers need to find innovative, non-intrusive ways to reach and engage audiences while gaining access to viewability and performance metrics.
Advertisers follow viewers—not just the content they’re watching.
Until recently, advertisers didn’t have to worry about buying ad space for shows that only run on specific devices. For instance, Apple doesn’t create its own content, but it’s entering deals to license exclusive content that will only be viewable through Apple TV. Then there’s Amazon Prime content, which isn’t accessible through Apple TV or Google Chromecast, but is available on other OTT devices, such as Roku. Advertisers now must ensure that their ads are everywhere that their audiences are watching.
Social media is becoming TV’s competition.
Facebook recently announced the impending integration of video ads into Instant Articles, so now publishers will be able to present an additional ad unit at the bottom of every article. Snapchat is also an important player—with 10 billion daily video views—it’s become a “must” for reaching Millennials.
Shifting TV ad dollars to social media also allows marketers to leverage the unique features of each social platform to quickly catch users’ attention and account for the differences across devices—such as vertical scrolling on smartphones. For social video, the more interactive, the more likely the viewer is to notice, engage, and share the creative. Once the viewer opts in, interactive elements can expand the experience with additional content, extending the amount of time the viewer spends with the brand.
TV ad retargeting continues to take off.
Viewers are watching content on connected devices and no longer want to see the same video as they move across devices, but rather, expect to see an evolving sequence of personally relevant video ads. New devices graph capabilities allow advertisers to get the full picture of their audiences across screens to better tell their stories and create more impactful brand experiences.
Since video content streams online—where users also search, shop and communicate—it utilizes behavioral, demographic, and collaborative data, enabling advertisers to filter audiences and target segments with hyper-relevant content. For instance, an auto marketer might “learn” that a desktop user has been searching for diapers. Rather than deliver a video for a sports car, this insight triggers the company to serve an ad for a family-friendly car to match the viewer’s lifestyle. Each new encounter and engagement—or lack thereof—can generate more valuable information for the advertiser.
For more information on how the TV landscape is shifting towards digital video, check out our TV Transformation Infographic.