As predicted in last month’s edition of our industry insights blog posts, the May industry news circuit delivered on its promise for strong coverage of all things connected TV. Particularly as we found ourselves in the midst of Upfronts season, the acceleration of connected TV consumption, advertising, and overall value is undeniable. So, here are our top-three reads from the industry last month:
“We want to move from the handcuffs of legacy measurement and currency to measurement more closely tied to clients’ success metrics,” said Mike Rosen, executive vice president, advanced advertising and platform sales at NBCUniversal. “Innovation in ad tech, like iSpot for TV, is now allowing us not only to better target but measure results in a way we never have before.”
As CTV continues to experience rapid growth, traditional TV is taking steps to keep up with its digital counterpart, heralding the entire TV ecosystem into a more powerful and more attributable future. In an effort to match the value offered by CTV, particularly where measurement and visibility are concerned, NBCU is working with iSpot.tv to help advertisers gain insight into the success of their campaigns.
NYTimes: Why Traditional TV is in trouble
“But beneath the sparkle and the canapés, the networks are also navigating a serious advertising upheaval. Ratings are on the decline, especially among young people, some of whom don’t even own televisions. It’s hard to keep up with the many devices and apps people now use to watch shows… Advertising on TV has long been the best way for marketers to reach a large number of people at one time. And it is still a formidable medium. But cracks are showing.”
There’s no question that traditional TV’s crown is being challenged by the growing cord-cutter and cord-never population. Even so, traditional TV continues to represent the primary channel of TV consumption for the majority of the population. So, as these cracks in the traditional television landscape continue to emerge, advertisers can overcome them by incorporating a CTV strategy alongside their linear plan – ensuring they reach their audiences no matter how they choose to engage.
“Advertisers will buy ads in advance, but they will look more like the forward contracts of financial and commodities markets than they do the current upfronts,” he tells me. “We will see advertisers demand more control, and larger percentages of their upfront spend will be available programmatically and on OTT/CTV. CTV will enable targeting and relevance in an on-demand environment that the current upfronts cannot support”.
As TV consumption habits continue to shift, so too does the foundation of the Upfronts – advertising’s biggest event of the year. And with the recent growth in all things CTV, the opportunity for advertisers to evolve their Upfronts approach has been all the chatter this month. With consumers tuning into the content of their choice at any time, the need for advertisers to secure primetime ad spots is dissipating. Rather, advertisers should begin allocating a portion of their upfront buy to be spent programmatically, in order to reach those consumers wherever and whenever they’re engaging.