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  • Matt Herren

Breaking TV & Online Advertising Silos – Convergence is Nigh?


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As marketers strategize, plan and prognosticate about the latest consumer trends in media—painstakingly figuring out where to best position billions of advertising dollars—the consumer cares little. But consumers do control the process. After all, it is users frenetic multiscreen, cross platform & device behavior that is driving brand strategy.

One of the largest generations in U.S. history—80+ million Millennials born between 1980 & 2000—are the key drivers. These digital natives have grown up in a ‘switched-on’ digital world of Internet, smartphones, social media and instant everything. For them, content consumption is not defined by screen but by convenience, access and demand. Traditional ad spend has been slow to follow—parked into neatly defined silos (mobile, TV, online)—but there is mounting evidence of a larger move towards convergence.

A Q’1 ’15 Videology report shows that 58% of all campaigns ran on more than one device – compared to just 17% a year ago (info graphic).

Even more telling, 95% of advertisers are buying digital video inventory the same way they have traditionally bought TV – on a guaranteed CPM basis.

With SVOD and unbundled original content eroding linear TV viewer share, and online/mobile delivering hyper-targeted ROI, one could surmise that none of this bodes well for TV. In a broad sense this is true, a recent study by Standard Media Index reports a 44 percent increase year over year in digital video spending – and during the same period TV spend fell 7% and cable 8%.

But these trends are more indicative of the new media economy—a blended, multiscreen universe where content (and advertising) is platform/device agnostic. According to a Nov. 2014 report by Ericsson, more than 90 percent of U.S. households have three or more Internet connected devices, while just under half have 5 or more. This trend will only increase.

For advertisers, this convergence mindset will be reflected in an inevitable pooling of ad dollars, planning and creative into a cohesive, all-inclusive video budget/strategy that is dispersed, micro-managed and hyper-targeted across the digital ecosystem. Intelligent distilling of the rich data mined from this multiscreen universe will inform, predict and synthesize all ad spend decisions in the future.

Weaving consistent, timely, interactive creative into all communication channels remains a challenge, but savvy producers and agencies are already tackling this problem with supplemental story telling and second screen synching.

Consumers do not discern a difference (or preference) between one screen and another—it is all about access, convenience and location. They have broken the traditional silos—and it looks like advertisers are (finally) following suit.

#advertisers #multiscreen #convergence #tv #digitalvideo

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