ORLANDO — For several decades, it has been one of the main ways of generating advertiser momentum.
Now the Hollywood machine that makes the content that supports the marketing messages needs to change.
That is according to the executive chair of the organization representing digital media outlets in their ad journey.
In this video interview with Beet.TV, Randall Rothenberg of the IAB describes the evolution of “the Hollywood economy versus the creator economy”.
Whilst the former provides ad space through popular professional content, the latter is exploding.
“Eighty-six percent of network television revenues historically have derived from just the top 200 advertisers on Earth,” Rothenberg says. “By contrast, you have this burgeoning creator economy represented by YouTube, Instagram to TikTok.
“Most recently, these companies have somewhere between two million and 10 million advertisers.”
Rothenberg says the creator-driven platforms “spend nothing on creative costs versus the hundreds of billions of dollars that are now being invested by the Hollywood economy in content”.
He is calling on TV networks to change in three ways:
- “The Hollywood economy now has to work a lot harder than it traditionally had to to survive and … serve these brands.”
- “The Hollywood economy has to start expanding its customer base. They can’t survive if they’re just dependent on 200 companies.”
- “They have to learn lessons from what creators are doing in terms of mixing up formats, coming up with new ideas for content.”
Rothenberg is also executive chair of EDO, whose technology measures the spike in consumer engagement behaviors, such as online search, for a brand in the moments after a TV ad airs.
He says: “If the Hollywood economy ecosystem of television is going to compete effectively with the digital economy that has been focused on performance for the past 30 years, it’s got to be able to get to that level of granularity of knowing what works, when, how, and why.”
Rothenberg was interviewed at the ANA Masters Of Marketing event.
You’re watching “Assessing TV Performance in a Changed Landscape,” a Beet.TV Leadership Series produced at the 2022 ANA Masters of Marketing, presented by EDO Inc. For more videos from this series, please visit this page.