The Association of Commercial Television

TV AND DIGITAL ADVERTISING NEED TO STOP FIGHTING AND ADMIT THEY NEED EACH OTHER test

Like two siblings vying for a parent’s attention, digital and traditional advertising have been fighting for advertisers’ attention since digital came of age in the post-dot-com bubble era. Many have portrayed this as a war between generations, where the old guard “just didn’t get it.” But this shouldn’t be seen as a battle of relevance between old and young or a battle for the billions of dollars of media that advertisers spend. Because the losers in a war of this kind are not just the advertisers, but also the consumers they serve.

While we all should acknowledge the rise of digital advertising as a strategic media channel in an advertiser’s arsenal, the more beneficial point of view is one where we get rid of the “zero-sum game” model where one wins and the other loses. Instead, we should take an “additive” point of view, where advertising itself evolves and new tools and perspectives develop to meet advertiser and consumer needs.

This need to evolve can no longer be ignored by the old guard, as the young upstart digital has finally usurped TV as the dominant advertising media by spend. In 2017, digital marketing overtook television advertising for the first time. According to reports, TV advertising generated $178 billion worldwide with digital reaching $209 billion

While the great marketing divide debated traditional vs. digital and old vs. new, TV and digital marketers went to battle by picking sides. However, actual consumer consumption trends don’t support this. According to the August 2018 Nielsen report, people are actually watching more — not less — media, especially when you factor in consumption on tablets, smartphones and the web. On top of that, adults in the U.S. actually spent more time watching live TV each day (16 minutes more) in 2018 than they did in 2017.

Have we thought about media usage wrong and, in turn, are making decisions because it’s been a “one or the other” mentality?  

Done right, television can provide the scale and memorability that advertisers are after. Based on compiled data from The Global TV Group, TV reaches nearly every person on the planet in the course of a month, with 90% being reached each week. It’s this reach that makes TV such a powerful form of advertising. TV not only helps you reach a large audience, but you also can reach the right audience via behavioral targeting. If you think TV is only for traditional brands, think again. New-age brands, like Fitbit and Airbnb, have seen immediate and significant increases in digital engagement (measured by site traffic) once they started advertising on TV.

“The reality is Google doesn’t motivate a search. It simply enables it. No one randomly types in the name of a brand, product or service. It all starts somewhere else. To see the big picture, one must look at these cross-media connections. You need to focus on the synergies, not the divisions, that exist between TV and digital … The more we think about Google as a destination and less as a starting point, the better we’ll understand its connection to television,” said Bill McCabe, president and CEO of Eicoff in a March 2018 blog post.

A Google study on TV’s impact on search in 2010 and updated in 2017certainly acknowledges the correlation between the two as well. And Google’s groundbreaking work on Zero Moment Of Truth and micro-moments reinforce that search is growing, but ignore the “stimulus” that drives search, even though it is clearly part of the model.

Television’s scale and awareness are undeniable, and digital provides unmatched precision. In fact, we’re seeing more companies, including our own, focus on merging broadcast TV ad performance and digital engagement. Based on data on how a TV ad is performing via digital engagement, advertisers can adjust search advertising bids and budgets and identify broadcast opportunities for improvement. Moreover, you can gain insights into your ideal customer with granular data on who is interested in your product, brand or company. This detailed view of who is interested provides an opportunity for companies to drive engagement. You can encourage your audience to interact with you and draw them in.

For those that want to start an armistice between TV and digital advertising within their own organizations, here are a few great first steps:

1. Improve cross-team communications. Encourage your digital team to ask the TV team about their media strategy and attend a TV media-oriented conference and vice versa.

2. Find a web analytics solution (in addition to Google Analytics) that gives you access to visitor-level data that can be exported for analysis.

3. Request TV media clearance reports at the spot level with date, time, creative and market data for each spot run.

With this data and free data analysis tools (like Google Data Studio), you can begin to quantify basic “lift” generated by TV and start exploring other ways to proactively use this data to activate new campaign strategies.

TV’s scale and digital’s precision are better thought of like peanut butter and jelly: better together. The latest Facebook IQ study shows that direct correlation. This study observed the everyday behavior of U.S. TV viewers and revealed that 94% of those studied had a smartphone “at the ready” nearby while watching TV.

So, come on, TV and digital, it’s time to stop the feud and work together and add your strengths for the greater good. Television, you build credibility and scale that drives digital engagement. Digital, you supplement TV with microtargeting on additional touch points like paid search engine ads, audience retargeting, display ads and social media.

When you both grow up and realize that you both support and need each other, advertisers, consumers — frankly, all of us — will be better off.

 

Source: https://www.forbes.com/sites/forbesagencycouncil/2019/01/31/tv-and-digital-advertising-need-to-stop-fighting-and-admit-they-need-each-other/#44aab542e15e

COMING TO A TV NEAR YOU: PERSONALIZED ADS test

The hottest new trend in TV tech is “addressable” ads, or TV ads that can be targeted to specific households via user data. By the end of this year, almost every major TV network and provider will have rolled out their version of an addressable ad product.

Why it matters: It’s a huge departure from the way TV ads have been bought and sold for decades. Struggling networks hope personalized ads will make the TV experience better for users who are ditching TV for ad-free streaming services like Netflix — and they’re also drawn by the opportunity of a digital advertising market that isn’t already controlled by Google and Facebook.Show less

What’s new: Traditionally, TV ads could only be bought and sold by gender and age — not demographics. This means that a cat lover could be served an ad for dog food, or a healthy person could get an ad for medicine. Addressable ads aim to make the messages more relevant.

Driving the news: Several big TV companies announced acquisitions or products this week that they think will make it easier for them to sell more addressable ads.

  • NBC says its new streaming service will create a lot of new addressable TV ad inventory. Hulu lowered the price of its ad-supported tier to be able to serve more addressable TV ads. Viacom acquired a digital ad-supported TV streaming company.

Here’s how hot “addressable” is: AT&T says the ability to build an addressable ad product for its DirecTV and DirectTV Now customers was one of the driving factors in its decision to buy Time Warner last year for $85 billion.

“The advertisers that I talk to, they’re interested in taking a big leap into data, which means, we’re not buying 18-49, we’re not selling 25-54, we’re buying consumers who have shown the proclivity to be heavy purchasers of frozen entrees to a company like Conagra.”

— Jon Steinlauf, chief U.S. advertising sales officer at Discovery, talking with Axios at the National Association of Television Program Executives event in Miami Wednesday

How it works: TV networks and providers (cable and satellite companies or digital TV companies like Hulu) are using data from set-top boxes (the boxes you get from your cable company with the blinking lights), combined with data from digital networks (produced as you browse the web), to target ads to you that you might like.

  • The beauty of these ads is that they tend to cost less because they reach a smaller, more targeted group of people.
  • Because of this, smaller businesses can afford to buy national TV ads for the first time, lowering the barrier of entry to TV marketing.
  • As a result, users may start seeing TV ads from brands that they would normally only see on social media, like Dollar Shave Club, as well as ads from legacy brands, like Target.

Be smart: The TV industry knows it needs to make ads more innovative so it doesn’t continue to lose viewers to ad-free services, but the short-term business calculus isn’t always attractive.

  • Addressable ads can be harder to sell at scale, because they have to be offered in smaller, more targeted increments.
  • This means that in the short term, it could be hard for networks to match their profits from selling more expensive ads that aren’t customized, but reach a lot more people.
  • And for companies that have very general products, like toilet paper or toothpaste, broader ads may be more efficient to buy, anyway.

The bottom line: Personalized TV ads are the next big thing, but it will take some time before most TV ads are sold this way.

Source: https://www.axios.com/coming-to-a-tv-near-you-customized-ads-1548378037-e5553f3a-1ded-4cfd-9f5e-be89cd59cf69.html

HOW MARKETERS ARE ALTERING THEIR TV ATTRIBUTION STRATEGIES test

The slow but steady digitization of TV advertising will place further pressure on ad measurement companies to create more robust cross-platform metrics and attribution models. But for that to happen, several types of companies—including multichannel video programming distributors (MVPDs) and TV networks—need to update their technologies and strategies.

TV ad buyers have long advocated for more precise metrics, but measurement firms have struggled to create innovative products that work within TV’s legacy infrastructure. While there is no single metric that perfectly captures how legacy technology stymies TV measurement from evolving, it is telling that most ads on linear TV have been sold and targeted the same way for decades. With TV advertisers still reliant on direct sales and proxy targeting, it isn’t surprising that traditional TV attribution models have become outdated.

However, TV advertising is evolving. We expect a 58.4% increase this year in US programmatic TV ad spend. We also expect TV ads to become more targeted. We forecast that addressable TV ad spending in the US will increase 23.3% in 2019 to $2.54 billion.

The growth of advanced TV tactics will require marketers to adapt how they handle TV attribution. We spoke with CIMM CEO Jane Clarke about TV attribution for our upcoming “US Digital Display Trends 2019” report.

How is TV attribution evolving?

You have to think about it from a couple points of view because attribution is a complicated topic depending on if you’re looking at it from the marketer, media company or TV network publisher point of view.

How are TV networks evaluating attribution?

From the TV network point of view, even if the data are not perfect, it’s better than not having data. And so they’re spending a lot of time learning about the data.

There is a lot of learning that’s gone on this past year. It will continue, but they’re very quickly learning about which data sets work in which use cases. The MVPDs that were not making their data available are finally doing so because they realize that it tells a great story for the TV industry. Even if Comcast is reluctant to license their data to all the research providers or networks for content ratings, they’re very happy to give the data, almost free in some cases, to these attribution companies because they have seen what a difference it makes in telling a brand-list type story for television.

Are TV marketers approaching attribution differently?

The marketers look at different kinds of marketing and pricing and competition and the environment and the weather. There are so many factors that go into their media mix modeling or multitouch attribution.

The marketers will get savvier about asking questions: “Are you creating the right control group? Do you have a nationally representative sample?” They’re going to make it harder for the TV people to just imitate what digital did.

Will TV attribution continue to change over the next year?

A year from now, we’ll be more sophisticated users of these products. And they won’t be making the same mistakes. What happened in digital was everybody just did the data matching and thought they created a control group then showed unexposed, exposed, and if there was a sales list, they attributed all of it to Facebook, Google or their website without realizing that this was a lot more complicated from a marketer point of view.

How will marketers learn from their digital attribution efforts?

They’re being a bit more responsible about it because everybody knows the problems. If you just go out and do exactly what Facebook and Google did and try to imply that any brand listed is due to advertising on your property, you lose credibility quickly. I do think that the marketers are getting a lot savvier about measurement.

 

Source: https://www.emarketer.com/content/how-marketers-are-altering-their-tv-attribution-strategies

WHY 2019 WILL BRING A MORE HOLISTIC APPROACH TO TV AND VIDEO test

There’s no denying 2018 was a challenging year all round, with broadcasters, publishers and advertisers putting their energies into General Data Protection Regulation (GDPR) preparations. At the same time on-going fragmentation of TV and video viewing across screens and platforms caused disruption in the market, with major media providers, digital giants and new market entrants all competing for audience time and attention.

But as a new year approaches the mood is more optimistic, with the industry looking to move forward and turn these challenges to its advantage, driving innovation and positive change. Here are three ways the TV and video ecosystem will advance throughout 2019, ultimately moving towards a more collaborative and holistic environment:

Premium video’s position will grow stronger

Premium video actors are seeing the GDPR as an opportunity not only to make smarter use of data, but also to educate advertisers about the real value of their inventory. Premium video meets the five non-negotiables of advertising; a brand safe environment, complete transparency, an engaging experience, trustworthiness through third-party verification, and high-quality reach, meaning that although it may appear more expensive than other formats it is well worth the investment.

Advertisers are beginning to understand they can achieve more with premium video than with other forms of digital advertising and while they may buy less overall inventory in 2019 – particularly less specific content – there will be growing demand for premium video. At the same time, alliances such as EBX for broadcasters will help the sell side reduce complexity, allowing advertisers to buy targeted audiences across multiple media providers rather than doing individual deals.

Addressable TV will make strides across Europe

Addressable TV has already seen success in the US and the UK, and this trend is likely to be replicated across Europe. As it expands, addressable will cause a fundamental shift in the way media is sold – the biggest change since the arrival of programmatic. While there has been a slight decline in the amount of time spent watching TV in the UK, the rest of Europe has enjoyed relatively stable TV consumption, with countries such as France and Germany showing the medium is as powerful as ever for advertisers and will become even more so when audiences can be targeted at household level.

There are practical barriers to implementing addressable TV across Europe – including different technological standards for linear diffusion streams, content consumption favouring certain devices, and different actor types and leaders. But the growing interest in addressable makes it an appealing prospect for every market even with these hurdles to overcome, and ad budgets will start to shift to this new buying opportunity as it brings the efficiency of long-term brand building.

Addressable opens the door for those who would not traditionally use TV or premium video advertising and, over the coming year, small and medium businesses will become the next advertiser segments for addressable TV. The localised linear advertising this enables will radically alter TV buyers’ approach and the industry should be looking towards defining a common language, accepted and used by all as we move into 2019.

Inventory monetisation models will blur

With video consumption continuing to fragment across screens and platforms, broadcasters and publishers need to refocus their approach around return on investment, allowing them to effectively monetise premium content no matter where it appears. Where there used to be two distinct models, ad supported and subscription based, a new hybrid monetisation model is emerging to combine both revenue streams. Data combined with advanced monitoring tools provides the key to this holistic approach, allowing broadcasters and publishers to accurately forecast and measure the lifetime value of content and achieve the perfect mix of revenue.

The year ahead will be an extremely positive one for premium video and the broadcasters and publishers that supply it. Whether it be the formation of media alliances, the growth of addressable or the realisation of hybrid monetisation models, 2019 will bring a more holistic approach to TV and video characterised by collaboration and integration.

Source: https://www.v-net.tv/2019/01/17/why-2019-will-bring-a-more-holistic-approach-to-tv-and-video/

CREATIVE SECTORS CALL FOR A SUSPENSION OF NEGOTIATIONS ON ARTICLE 13 test

TO:

Dear President Tusk,
Dear President Juncker,
Dear President Tajani,
Dear Prime Minister Dăncilă,
Dear Minister Ciamba,

CC:

Permanent and Deputy Permanent Representatives of the Member States to the European Union
Chair of the Committee on Legal Affairs in the European Parliament
Shadow Rapporteurs and members of the European Parliament negotiating team
European Commission, Roberto Viola, Mariya Gabriel

Creative Sectors Call for a suspension of negotiations on Article 13[1]

As representatives of the audiovisual and publishing sectors active across the European markets, we are extremely and increasingly concerned about the direction of the ongoing trilogue discussions on Article 13 (the Value Gap provision) of the proposed Directive on Copyright in the Digital Single Market, as the solutions that are under discussion are worse than the current legal framework.

One of the main justifications[2] for Article 13 articulated in the Commission’s original impact assessment back in 2016 was the absence of a CJEU referral that could bring clarity to the question of whether an uploaded content service is responsible for acts of communication to the public and/or can benefit from the hosting provider status under the E-Commerce Directive. Since that assessment the situation has now fundamentally changed. In the meantime, such a referral has been launched by a recent decision of 13 September 2018. The German Federal Court of Justice (Bundesgerichtshof) referred a case to the CJEU involving YouTube/Google and certain rightholders, for clarification of this very issue (case C-682/18 Google e.a.).

We understand the eagerness to bring the negotiations to a close within the current mandate. However, rather than rushing the highly controversial Art. 13 and seeking conclusion of this provision, no matter the jeopardy to the European copyright framework and no matter the prejudice and damage to the creative sectors before the end of this legislative period, we urge EU co-legislators to suspend negotiations with respect to this article. The Commission should continue to monitor the developments on CJEU level, in particular in case C-682/18, and decide, following this judgement, whether legislative intervention might be necessary in the future. In this regard, we’d also like to recall the principles of proportionality and subsidiarity[3] as well as the commitments made under the Inter-Institutional Agreement on better law making[4]. 

Signatories

ACT – Association of Commercial Television in Europe – Grégoire Polad, Director General – gp@acte.be

ANICA – Associazione Nazionale Industrie Cinematografiche Audiovisive Multimediali – Francesco Rutelli, President – presidenza@anica.it

AKTV – Asociace komerčních televizí – Marie Fianová, Secretary General – marie.fianova@aktv.cz

ARCA -Asociatia Română de Comunicaţii Audiovizuale, Grorge Chirita, Executive Director – george@audiovizual.ro

CRTV – Confindustria Radio Televisioni- Rosario Alfredo Donato, Director General –rosario.donato@confindustriaradiotv.it

FAMA – Film and Music Austria – Dr. Werner Mueller – mueller@fama.or.at

FIAPF – International Federation of Film Producers Associations – YBP, Benoît Ginisty, Managing Director to FIAPF Headquarters – B.Ginisty@fiapf.org

IFTA – Independent Film & Television Alliance – Jean Prewitt, CEO – jprewitt@ifta-online.org

IVF – International Video Federation – Publishers of Audiovisual Content on Digital Media and Online, Charlotte Lund Thomsen, Legal Counsel – clthomsen@ivf-video.org

MPA – Motion Picture Association – Stan McCoy, President and Managing Director MPA EMEA – Stan_McCoy@mpaa.org

PREMIER LEAGUE – Mathieu Moreuil, Director of EU Affairs – mmoreuil@premierleague.com

STM – International Association of STM Publishers, Matt McKay, Director of Communications, mckay@stm-assoc.org

VAP – Verein für Anti-Piraterie der Film und Videobranche – Monique A. Goeschl, General Manager – goeschl@vap.cc

VAUNET – German Media Association, Verband Privater Medien e. V – Julia Maier-Hauff, Ressortleiterin Europarecht  – MaierHauff@vau.net


[1] This letter does not pre-empt the position of the signatories on the rest of the Directive 

[2] Page 143 Impact Assessment: “The CJEU has not addressed the specific case of online services giving access to content uploaded by their users” and “whether they can benefit from the hosting service provider status in the E-Commerce Directive” andpage 144: “Whereas it is possible that the CJEU will bring clarity to the question of whether an uploaded content service is responsible for acts of communication to the public and/or can benefit from the hosting provider status under the E-Commerce Directive, this cannot be predicted as it is entirely dependent on referrals by national courts.”

[3] Article 5(3) Lisbon Treaty, available at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:12012M/TXT&from=EN

[4] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2016:123:FULL&from=EN

DTC BRANDS ARE USHERING IN THE AGE OF INTELLIGENT TV BUYING test

Direct-to-consumer (DTC) brands that grew up on Facebook are spending as much as 75% of their media budget on the social media platform — an all-in type of customer acquisition strategy for the young and ambitious. The chance to target precise slivers of largely millennial consumers would assumedly optimize DTC companies’ limited budgets while giving them traction with the influencers and those people who were most likely to buy.

For many it worked. Brands such as Allbirds, Bombas, and Everlane, gained real traction through Facebook.

But that’s when the relationship went sour.

As these digital-first DTC companies grew in size to unicorn status and raised hundreds of millions of dollars, they needed to reach larger and larger audiences — and cherry picking the most attractive consumers on a larger and larger scale is a prohibitively expensive strategy. The most attractive audiences are the most attractive to a lot of brands, driving up the price. Soon these DTC brands needed a new solution.

Welcome TV. That’s right…television. I know it sounds all wrong, but hear me out.

I understand why you may be doubtful. The latest IAB Internet Advertising Revenue Report shows that digital media spend has eclipsed TV’s revenue. Quite possibly, a good deal of that is due to advertisers’ frustrations that TV couldn’t provide digital-like targeting or metrics.

Well, that’s all changed.

The same way marketers can track a customer journey through clicks and cookies, they can now do with linear TV ad views. Downstream outcomes, such as whether consumers went to the store, the theater, the dealership, are accessible. Attribution details such as how many impressions it took to make conversions are available. What’s more, this is all still rapidly evolving, with more and more types of outcomes that can be measured, including auto sales, CPG sales, and website visits.

So, now these rapidly growing DTC brands can take advantage of the mass reach of TV and still have the digital media metrics they’re used to.

Casper, the mattress company and early leader of the DTC movement, debuted TV commercials in 2016. Hubble, the content lens subscription company, hit TV screens in 2017. Bonobos, the DTC clothing company now owned by Walmart, premiered its first national spot this July. A month earlier, Quip, the DTC electric toothbrush company, aired its first TV ad, and DTC watch company MVMT is spending about 20% of its advertising budget on TV.

What’s more, according to Alphonso research, they’re using TV to move beyond their core audience of millennials. Quip, Casper, and Warby Parker are all primarily reaching audiences over 50 years old with their TV media buys. Their second largest TV audience is 35-49. DTC brands are using TV to broaden their reach to go head-to-head with the incumbent brands that have always been there, such as Gillette, Serta, Oral-B, and more.

This ups the ante for all brands.

So, what are incumbent brands to do? They need to act like DTC companies and use the same digital-like data to strategically optimize their own media buys. Otherwise, they’re letting their competition have the resulting advantages.

This will directly impact the future of TV.

TV, like digital, will be one channel where everyone is buying this old-school media intelligently with precision targeting, retargeting, and performance metrics. Old school no more. It may end up with the same economics that tend to limit advertiser’s use of platforms like Facebook for reach — but for now the early birds are getting the worms.

Another tactic for wealthier incumbent brands is to buy access to those in-the-know and to benefit from them directly. Yes, many traditional brands have opened up their war chests to buy DTC companies. Two years ago, Unilever bought Harry’s Shave Club for $1 billion. P&G bought DTC deodorant brand Native last year for $100 million in cash. This summer, Serta Simmons announced that it was merging with DTC mattress brand Tuft & Needle, and Movado Group revealed that it was buying DTC watchmaker MVMT. And, just recently, Walgreen’s bought a stake in Birchbox, with plans to feature Birchbox-branded retail experiences in its stores. With these investments in these companies — and the founders behind them — they can take a look under the hood at how they were able to gain market share so rapidly.

TV, though, will be a focal point of these types of changes. Traditional brands from all sectors, as well as the DTC disruptors, can take full advantage of what today’s TV data has to offer. Every brand should be keeping in lockstep with the advances of television and the wealth of insights it can provide to marketers from all industries.

Ashish Chordia is chief executive of Alphonso

Source: https://www.thedrum.com/opinion/2019/01/15/direct-consumer-brands-are-ushering-the-age-intelligent-tv-buying

SHORT-FORM ADS ARE THIS YEAR’S BIG THING test

TV advertisers are starting to turn to short-form ads, which can be as effective as the traditional 30-second spot at far less cost, but marketers and brands need to ensure they are achieving the right objectives and are executing the ads properly.

Writing for WARC, Jim Berridge of Phoenix MI, says that short-form ads – defined here as 5-7 seconds – will provide a huge opportunity for marketers over the next 12-18 months.

A study by Phoenix MI, involving 100 short form TV ads viewed by 38,000 US adults, compared their effectiveness with the norms of the longer form and found that on metrics like ad memorability, brand linkage and brand memorability, they scored almost on a par.

And, Berridge reports, “the same characteristics of what makes an effective 15 or 30 second ad are applicable to short-form ads as well”. So, keep things simple, focused, and exclude information overload.

And as consumers, already familiar with short-form ads online, become accustomed to seeing them on TV, he expects their prowess and power will continue to grow. (For more, read the full article: The rise in short form ads on TV – opportunities and challenges.)

But advertisers should ensure that they keep a sense of balance and avoid simply ditching longer ads and pivoting to a shorter format, Berridge warns.

“One of the main challenges for marketers and brands is having the control not to go all in on shorter form ads and neglect other formats,” he says.

“What the industry needs to avoid is another App Store scenario, where marketers rush to embrace the concept without really thinking about what is right for their brand.”

While a properly executed short-form ad can be effective by itself, they “tend to work best when running alongside longer form ads or as supporting wider marketing campaigns”, Berridge states.

“Just as social media is a way to amplify a brands message, so are short form ads.”

Source:  https://www.warc.com/newsandopinion/news/shortform_ads_are_this_years_big_thing/41517

4 TRENDS THAT WILL SHAPE VIDEO ADVERTISING IN 2019 test

For brand marketers, video continues to be the most important story in media. Audience behavior is evolving rapidly across generations, and consumers now watch more than eight hours of online content every week, according toThe State of Online Video 2018 report by Limelight Networks.

Faced with a fragmented device landscape, advertisers are seeking greater simplicity and transparency. Consumers are more concerned about data and privacy, following the rollout of regulations such as GDPR and the California Consumer Privacy Act. Additionally, adtech partners are grappling with the technical challenge of personalizing video ads for prime-time-size streaming audiences.

These issues are poised to take center stage next year, and advertisers should bear in mind these four top trends as they approach their 2019 video strategy.

1. New offerings will make OTT a must-have for achieving meaningful reach.

Given the expense of cable bundles in the US, consumers are leading the charge in embracing more affordable digital options. Nearly one-third of adults now belong to the cord-cutter or cord-never camps, opting to watch their traditional TV content through new OTT services. For advertisers, this trend means that post-cable distribution is essential in achieving meaningful reach for any video campaign.

Targeting remains a challenge in these environments. CTV — like mobile apps — is a cookieless environment, and there are hundreds of OTT services and connected devices. Fortunately, supply-side players are innovating to better coordinate this inventory and improve audience targeting.

2. Traditional pay TV will continue to influence the video landscape.

Despite the growth in OTT, cable remains a dominant force in the industry. Pay TV captures nearly five hours of average daily viewing according to Nielsen, compared to only 46 minutes for long-form CTV content. Cable providers are also recapturing value from lost subscribers through investments in many leading digital platforms, from Hulu (Comcast) to Sling TV (Dish) to fuboTV (AMC Networks and 21st Century Fox).

It’s become increasingly clear that traditional TV is far from dead, but instead is experiencing a major inflection point. Expect to see more broadcast programmers repackage their inventory across devices and platforms to simplify things for buyers in 2019. These traditional media companies will also become savvier in collaborating with ad tech partners to facilitate data activation at scale, enabling brands to personalize video messaging for different viewer “personas.”

3. Shifting consumer expectations will drive innovation in ad transactions and delivery.

With countless video options available on TV, consumers increasingly won’t tolerate irrelevant or disruptive advertising. In fact, nearly 30 percent of U.S. consumers now use ad blockers, according to Statista. In the coming months, we’ll likely see more aggressive efforts to combat ad fatigue, such as the decisions by NBC and Fox to cut down total ad time in 2019 in favor of less-intrusive and higher-value ad products.

While TV advertisers have traditionally focused on scale for their broadcast campaigns, modern advertisers must be more calculated in their efforts, prioritizing relevancy over reach. But the first-party data necessary for executing such personalized campaigns remains difficult to activate. The industry will see adtech partners introducing solutions that help buyers and sellers harness the power of first-party data, while keeping that information anonymous and secure.

4. Transparency efforts and regulation will spur larger investments in data management.

The boom in video has unsurprisingly attracted some bad actors. Given the higher ad rates for video, fraud occurs nearly twice as often with that format than with other formats, such as display. Recent initiatives led by the IAB have helped combat fraudulent activity, with protocols like ads.txt and ads.cert preventing domain spoofing by signaling to buyers which inventory is authorized by the seller.

Many buyers and sellers are demanding greater transparency through supply path optimization (SPO). SPO tools use algorithms to filter out fraudulent bid requests and streamline paths to inventory, eliminating costly middlemen. Over the next year, there will likely be a reckoning amongst supply-side platforms, as buyers increasingly seek partners who can maximize performance and ensure brand safety.

Agility is essential

Above all, 2019 will require brands to be open and flexible with regards to their video advertising strategies. The most effective buyers remain sensitive to shifts in consumer behavior, while also proactively seeking opportunities to responsibly improve targeting and personalize their campaigns. Like any year in digital media, the only guarantee is change.

Kevin Hunt is senior vice president of global marketing at SpotX

Source: https://www.thedrum.com/opinion/2019/01/03/4-trends-will-shape-video-advertising-2019