TV And The Good Ole Days
Remember the “good ole days”, when you came home from a tough day at work, grab a beverage, sit in your favorite chair, turn on the TV, and watch whatever.
It’s still the same today, but we’re suffering from a glut of entertainment available on any screen we may have.
POT (plain old TV)
Cable networks with scheduled shows, scheduled channels
SVOD, TVOD, AVOD
(subscription, transaction, advertising video on demand) services including:
Netflix, Vimeo, Amazon Prime, DramaFever NowTV, iflix, HOOQ, Maxdrone, Hotstar, Virgin Media, TV apps, Sky, Rogers and others
Kinda’ free stuff
YouTube, Facebook Video, Smartchat, Baidu, 360 Search, Kafuta, GoBATLA, Khoj, Instagram, etc.
TV set, computer, tablet, smartphone
Lots of choices and flexible viewing options. A great time to be alive with tens of thousands of hours shot, produced and stored every day. Just waiting for us to consume on the screen of choice.
What’s wrong with this abundance?
Traditional TV viewing is down as people shift to the new alternatives that are out there.
“TV Shift – While the large home screen is still the prime source of video information, news and entertainment; there is a decided shift in the way people consume their content. Digital natives live by their own schedules and watch what they want, when they want.”
Millennials and Generation Z’s is the sweet spots for advertisers who are watching less traditional TV. Industry analysts say that they are continuing to view content but mostly from digital sources.
“Deloitte found 19- to 25-year-olds spend 39% of their TV time streaming, as opposed to the 29% who are watching live TV.
Defy Media found that 13- to 24-year-olds are spending more time watching “free” and subscription digital content”
Traditional TV is still the first place most people go for their viewing. However, younger eyeballs are catching their shows elsewhere.
Where ever the viewers go, advertisers follow.
“Tagging Along – Advertisers want to be where consumers are; and increasingly, that means placing their investments in the digital domain – streaming and social.”
“It doesn’t really matter that digital advertising is outpacing conventional TV advertising. It’s so good that the IAB (Interactive Advertising Bureau) reports that online ad spending will surpass conventional TV ad spending this year.”
According to a recent Adobe study, the costs are climbing faster than conventional TV ads as well. Remember, we’re talking about precise viewer selection. You know, with all your sites visited, things purchased online and everything else, profiles are used to target likely buyers of products being advertised.”
“Money Machines – Google and Facebook dominate the search and social arenas, which enables them to invest in a lot of other ventures as long as they don’t get too greedy and remember they exist to serve advertisers and the individual consumer.”
What are the most popular ads?
“Native Form – To involve consumers more, firms are increasingly turning to native advertising (sorta’ looks like surrounding content) and it works well as long as the consumer doesn’t feel as though you’ve tried to trick him.”
Native, kinda’ looks like news/educational/informational video but they are usually so blatantly obvious that only the ad writer would think it was educational, informational, entertaining.
This doesn’t bother the advertisers; nor does things like fraudulent ad clicks or erroneous measurement.
But when the ads started showing up among hate messages and other obnoxious stuff (porn, crime, fanatic advocation, sicko/weird content) they got a little worried.
Advertisers position is when you fix this we’ll come back, but we sure wish Netflix and Amazon Prime would take our ads. They won’t and their growing subscriber base is willing to pay for the privilege of avoiding bad ad-free content.
Sure, the social guys/gals will take care of it because we’re talking about serious money that can be reaped from a virtual space. They’ve opened up a little by letting third-party auditors check to see if the ad was really seen and how long.
And right now, they’re building tools that let the advertisers control the ad placements, using their tools in their space.
Many young people solved the problem by installing ad blockers.
“Forget It – When advertising isn’t personal, slows web searches/loading or is simply lousy; consumers – especially the younger generation – take matters into their own hands and block ads, hurting everyone in the content food chain.”
There are ad blockers for computers, tablets, and smartphones. Since young folks do everything on their smartphones, the ad blockers hurt content and ad folks because it means a lost opportunity to convince them to buy something.
Ad blockers are readily available free and at a minimal cost almost everywhere. In fact, even Google recently announced that are adding an Ad Blocker to their browser Chrome… Go figure.
“Mobile Eyesore – The smartphone is rapidly becoming the screen of choice for people of all ages; and while consumers recognize that advertising enables them to enjoy free content, the advertising has to be as good as the surrounding content and personally meaningful.”
Of course, there’s a reason to use them. Ads can be in your face on your computer and really in your face on your phone. They are an intrusion and many are bad, so it’s easy to say “I hate ads.” There is disdain for ads that are simply bad or not relevant to them personally. They also feel overexposed to ads and in an effort to unclutter their lives, it’s easier to just install an ad blocker.
IAB found that people block ads because they are interrupted, they are annoying, they slow down their web browsing, and the ads are irrelevant.
Ooyala, a leading content delivery/analytics firm, found “67 percent of folks stopped watching content because:
- 73 percent of those surveyed had experienced poor video ad delivery (buffering, failure to load)
- 74 per cent have had negative experiences with the content of an online video ad
- 36 per cent found the ads rarely or never relevant
- 73 per cent reported the quality of video ads remained unchanged or declined
- 72 per cent say the range of video ad content has remained unchanged or declined
- 23 per cent) say the volume and frequency of video ad content has worsened
That means if advertisers take the time to create content that engages or inspires Generation Z’s and millennials, they would be more likely to be seen and heard.
Keep It Simple
Content delivery folks have proven the value:
- Netflix values personalized customer recommendations with retention at about $1B
- 75 percent of Netflix content is driven by its personalization engine
- Sky, Rogers, Cox, CenturyLink, Canal and others report personalized recommendations increases viewing by as much as 50 percent, reducing churn by as much as 30 percent and increasing pass along recommendations.
- Amazon reports 35 percent of purchase come from personal recommendations.
eMarketer reported that 45 percent of consumers won’t spend time with branded content that isn’t personally relevant.
“Nigel Clarkson, former UK managing director of Yahoo, observed that 15% of people had disabled their ad blockers because of the enhanced value of the content and the ads.
“If the ad experience is good, clean, non-interruptive and is relevant, consumers are happy to accept the ads,” he noted.”
Libby Robinson, of the M&C Saatchi Mobile ad agency, noted that “annoying, interruptive ads are the single biggest frustration of consumers and that it isn’t difficult to give people what they want.”
“Advertisers need to understand that you can’t just repurpose print or digital ads for mobile; you need to design for the screen, and most importantly, for the consumer,” she emphasized.
“Mark Blair, of Brightcove, a leading online delivery platform; noted that to monetize their content advertisers had to find a balance in improving the user experience so they would be willing to accept the ads. “
“A recent Brightcove study found:
- 66% of respondents said they understand and agree that it is fair for publishers to use online ads to fund free content
- Only one in ten or 11% said they always had positive experiences with online ads”
“When asked for the top improvements, Brightcove reported:
- 57% would like video ads to be shorter
- 41% would like the ability to fast forward through the ads
- 21% would like video ads to be more targeted at them
- 58% would like them to be interactive
With a global spending power of $2.45T for the 18- to 34-year-old digital natives, there’s a lot to lose if content publishers and advertisers don’t listen and take action.
Of course, the growing problem may give advertisers what they have wanted for a long time. Greater insight into the content surrounding their ads and how their ads are received.