Personalizing media: Trends and opportunities in TV Advertising

September 30, 2020

By Christophe Kind, Director of Market Development, Video Advertising

Subscriber demand for engaging content, available anywhere, at any time, on any device, is placing a significant strain on the media industry and has led to a pressing need for innovative monetization solutions. Programmers and multichannel programming video distributors (MVPDs) are coming under an increasing amount of pressure to deliver a fully personalized and relevant video experience to their subscribers. Simultaneously, broadcasters are combating soaring content acquisition rights while MVPDs also must comply with distribution rights and local regulations, making for a dense landscape to navigate. Achieving the highest content and audience monetization potential is now table stakes for many media operators.

Delivering advertising to address evolving consumption habits requires the availability of content in various formats, across a range of devices. With an explosion in alternative distribution channels, multiple stakeholders within the video ecosystem now have an opportunity to profit from video content delivery, while also satisfying the ever-evolving demands of the modern consumer.

TV advertising meets the internet

Whether it’s the five billion videos watched every day on YouTube or the 139 million global Netflix subscribers, video content’s popularity is indisputable. Prior to 2020, the media industry regularly experimented with new monetization opportunities to accommodate the soaring demand for media content, and to deliver a more personalized and relevant experience to as many consumers as possible. This trend has only been further encouraged by this year’s COVID-19 pandemic; according to The Nielsen Remote Worker Consumer survey, 25% of adults subscribed to a new streaming service between June-August 2020.

The traditional cable and satellite pay-TV bundles now compete with subscription video-on-demand (SVOD) and advertising VOD (AVOD) services, as well as a new generation of hybrid models. With an emerging ‘stay-at-home’ culture encouraged by government-mandated restrictions, the appetite for media content shows no signs of abating and COVID-19 has catapulted streaming to become the present and future of content creation, as per Nielsen’s Total Audience Report. Nielsen’s Streaming Meter found that as of Q2 2020, streaming comprises one-quarter of all television minutes viewed, with Netflix being the largest contributor to streaming share at 34%, followed by YouTube at 20%. In an incredibly short amount of time, launching in the US in November 2019, Disney+ accounts for 4% of total streaming time.

Like many other sectors, the internet has transformed the advertising industry and inspired an entirely new approach to ad-insertion and monitoring solutions. Gone are the days of traditional TV’s ‘one-to-many’ approach, where consumers watch content pushed to them, and advertisers hope their content reaches the right eyeballs. Advertisers are now shifting focus to ‘one-to-one’ conversations with targeted audiences, enabled by HTTP delivery and advances in cloud-based advertising solutions.

This paradigm shift changes the advertising pipeline – from the way ads are initially sold, how they are experienced by consumers, and finally, accounted for. This transformation inspires a new kind of relationship between programmers and distributors, opening the door to exciting new partnerships. Programmers now have access to unprecedented insights into who their audience is, providing them the ability to enrich the value of advertising. Distributors also benefit from this transition, with the ability to monetize their subscriber data.

 Application paper: TV Advertising – Trends and Opportunities

Today, MediaKind has launched its new application paper, ‘TV Advertising: Trends and opportunities’. Through this, we explore the highly complex world of digital TV advertising, including some of the prominent industry trends and topics, an overview of the key players, and a breakdown of some of the primary use cases and applications.

We also delve into how some of the latest technologies and standards are spearheading the development of addressable TV advertising, playing a critical role in delivering value to both programmers and distributors.

Download the paper below!

DOWNLOAD THE PAPER!

 IBC365 Webinar: Delivering a Personalized Viewing Experience  

Later today I will be joining an IBC365 webinar alongside Alan Young, CTO & Head of Strategy, LTN Global, and Daniel Church, Director of Programmatic, Beachfront, which will explore how and why broadcasters are adopting addressable TV advertising solutions.

In this session, we will be discussing how the industry can break down barriers and embrace new methods of addressable advertising. We will look at the benefits for brands and broadcasters and assess the different methods of management, delivery, and measurement of addressable ads. We will also take a deep-dive into the available technologies today, such as the importance of media processing at the edge and the role of cloud technology.

Watch the panel live here: Addressable Ads: Delivering a Personalized Viewing Experience. This session will also be available on-demand from October 1, 2020.