Ad-supported television is undergoing a significant transformation amid the growth in streaming video services, advancements in programmatic buying and the development of a cross-screen currency. Several industry executives discussed the future of TV advertising when they gathered on June 23 for the Global Forum on Responsible Media,
This video is a summary of interviews with executive who spoke in the TV transformation track presented by PubMatic, the sell-side platform (SSP) for programmatic advertising:
1. TV’s advertising model needs overhaul
Many consumers have shown a greater preference for streaming services that don’t carry ads, a trend that will challenge ad-supported channels to improve the consumer experience. The future of ad-supported TV depends on it.
Instead of loading up on advertising that becomes a nuisance and pushes audiences to pay for ad-free programming, media outlets will have to focus on improving the consumer experience, said Adam Gerber, global chief investment officer at Essence, a unit of WPP’s GroupM.
2. Prioritize consumer experience
Media outlets also recognize the importance of giving consumers greater flexibility in controlling the viewing experience. Improvements to the consumer experience can include a reduced ad load, innovations in ad units and other opportunities to engage viewers. Combining the efficiencies of programmatic buying with premium content at scale is a key goal.
“It’s about on-demand access and meeting consumers where they are, but it’s also about the user experience and keeping that at the center,” said Ashley Luongo, senior vice president of advanced TV and programmatic digital sales at NBCUniversal.
3. Brands want to buy premium inventory programmatically
The upfront market traditionally has been one of the best ways for media buyers to reserve premium inventory. But the marketplace is changing amid a shift in viewing habits and the growth of quality content that’s available in the programmatic market.
Buyers awakening to idea of wanting security of reserving scarce, premium inventory, but want a biddable environment, said Nicole Scaglione, global vice president of OTT and CTV business at PubMatic.
4. Data and metrics offer more than a cross-screen currency
Consumers are viewing content among a wider variety of connected devices, spurring discussion about a cross-screen currency for measurement. But data and metrics can be used for more than just a currency, said Christine Grammier, head of TV measurement at data connectivity platform LiveRamp.
5. Pandemic will have lasting effects on media buying
Millions of people were stuck at home during the pandemic, spurring a significant shift in their media consumption habits. Advertisers have responded by de-emphasizing dayparts as people spend more time with streaming platforms.
“When everybody’s at home during the pandemic and wanting to watch primetime content at all hours, every hour of the day became a theoretical prime hour,” said Mike Fisher, vice president of advanced TV and audio at Essence. “It changed up the way we did our planning and our buying.”
This video is part of the Global Forum on Responsible Media produced by Beet.TV, GroupM with the 4A’s. For more videos on this topic, visit this page.
The entire Forum can be watched on-demand here, and all videos from this project can be found here.