CANNES – The media marketplace is filled with chatter about the economic outlook and its negative effect on demand for advertising. Amid this environment, brands are shifting some of their ad budgets from linear television to streaming.
“We’ve heard lots of things like the market is soft, it’s a buyer’s market,” Kelly Metz, managing director of advanced TV activation at Omnicom Media Group, said in this interview with Beet.TV contributor Michael Shields.
“The market is definitely down, but the shift is on more aggressively this year than we’ve seen to streaming,” Metz said. “It changes our perspective on how we have to negotiate and what we’re negotiating for and on in terms of cost bases. The dynamics are fraught with challenges because we’re setting cost basis for the future of television.”
Because streaming platforms consist of internet connections, they have some of the characteristics of digital advertising. These traits include the measurement of ad impressions rather than linear television’s gross rating point. That metric consists of the percentage of the target audience that saw an ad, or the reach, and the number of times the ad was shown, or frequency.
“There’s a natural transition already underway between what was a GRP-based currency from Nielsen to an impression-based currency that can be counted by many, not necessarily Nielsen,” Metz said. “Streaming is a digital one-to-one platform. We can buy it and measure it with an ad server. We can count it appropriately.”
Amazon’s “NFL Thursday Night Football” this year is set to offer geotargeting that shows different ads to different regions during the same live sports programming. The televised games will be another step in the evolution of commercial breaks that are more customized.
“We’re all really excited about Amazon ‘Thursday Night Football’ and how they’re going to enable some basic geotargeting regionally coming up this season,” Metz said. “It’s going to change how we need to measure that, of course, but that’s the future. That’s where this is all potentially going.”
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