As subscription VOD services embed a culture of ad-free consumption, how can TV companies reconfigure the commercial break?
Over the last two years, TV networks have wrestled with that question, as booming VOD subscriptions has gone hand-in-hand with growing consumer frustration toward excess interruption.
For one of the leading media agencies’ north America bosses, the change is becoming pronounced.
“The world is starting to bifurcate,” says Tim Castree, GroupM north America CEO, in this video interview with Beet.TV. He sees two emerging classes of video or TV delivery, each with very different experiences:
- “Ad-supported businesses that have good ad products, good ad loads, and a good advertiser experience, a good consumer experience around advertising.”
- “Legacy businesses that are really struggling. You’re seeing heavy, heavy ad loads, a really difficult watching experience for the consumer.”
What does that mean for marketers? First, for broadcasters, Castree sees change coming.
“The direction of travel (is) away from 16, 18 minutes of ads an hour piled in with massive repetitiveness and frequency into much more controlled and targeted OTT environments where the experience is much, much better for the consumer and I think the performance is better for the marketer,” he says.