MediaPost
The following is not a method for local-direct businesses. Philip Jay LeNoble, Ph.D. CA
- Sponsor Content by Adstream
Quartz Media recently reported: “Spending on TV ads fell for the first time in 2017, and will slip another 0.5% this year to $69.87 billion.” The outlet cited competition from online platforms and an overall reduction in standard TV package subscriptions as the chief culprits. However, Quartz went on to say, “TV ad spending would likely rise again in 2020, when the next US presidential race and Summer Olympics take place.”
Similarly, ID disclosed that in 2016 23% of all households in the United States did not subscribe to pay TV (cable, satellite, telco TV) and anticipates this figure will increase to 29% by 2020. If this occurs, how will brands utilize this more narrow exposure and abbreviated opportunity to reach consumers? Here are a few ways advertisers are finding to circumvent the decrease in exposure via traditional channels.
Addressable TV, VOD and Dynamic Ad Insertion
The IAB (Interactive Advertising Bureau) published a series of findings on this topic. As defined by them, “Under the umbrella term “Advanced TV” exists the digital off-springs of the broadcast era: Interactive TV (which may appear as digital overlays on top of linear TV commercials), Connected TV (CTV) / Over-the-Top (OTT) and Smart TVs, Linear Addressable TV—where ads targeted to specific households are inserted into live programming (i.e., DirecTV, Dish, Cablevision)—and Video-on-Demand Addressable—where dynamic ads are inserted into cable programs through the cable provider’s set-top box (ex: Comcast’s VOD).”
With Advanced TV comes a new set of challenges and opportunities. Brands can tap into an abundance of data, such as when and how long a viewer watched an ad, which was previously unavailable from traditional Linear TV data models. Advertisers now have, at their fingertips, household data as opposed to the individual data traditionally available in only digital. Once collected, advertisers can use this data for everything from optimizing ad length to displaying ads that align with the viewers favorite shows or political leanings. These new data-enriched homes pose unique advertising opportunities for brands, and agencies can use the data to design cross-device campaigns, interactive campaigns and relevant social contests.
Product Placement
Streaming giants such as Netflix and Amazon already have lured huge audiences away from network TV. And that’s to say nothing of subscription TV channels such as HBO and Showtime their respective OTT apps, and Hulu, which still shows commercials unless you pay for a premium subscription. To combat this problem, advertisers are having to get more creative with incorporating brands into content by utilizing product placement. Although product placement has been around since the invention of network TV, we’re about to see a lot more of it.
Variety noted the prevalence of Eggo waffles in the popular Netflix showStranger Things. Although Kellogg allowed the brand name to be used in the show at no fee, its presence sparked a meaningful conversation about the brand. The outlet quotes a statement by Trinh Le, marketing director for Eggo: “Eggo had more social mentions than over half of the Super Bowl advertisers.”
Variety pointed out that advertisers see a similar opportunities with streaming services. After all, these services appeal to brands’ most coveted consumer segment: young people willing to try a new brand. Seamlessly integrating a product into a piece of content is a win-win. If the producer of a show gets to use a major prop, such as a car, for free, this cuts production costs while helping brands gain a foothold.
Podcasts and Audio Technology
TV is not the only medium whose advertising has been affected by streaming services. So has radio, which could be described rightly as a dying medium. Because subscription-based services bring in a lot more money for recording companies than advertising does, these companies are gravitating more and more toward using only that model. Streaming podcasts, however, represent a huge opportunity for advertisers. Fast Company reported that advertising revenue through podcasts jumped 85 percent between 2016 and 2017. Seventy-five percent of listeners took action on a sponsored ad, 90 percent listened to the entire podcast, and relatively few skipped through the ads. Furthermore, branded podcasts are a new way that advertisers are connecting meaningfully with consumers.
With the introduction of audio home devices such as Google home, Apple HomePod and Alexa, audio ads are going to become more and more prevalent. As of May this year, Google announced it would be offering programmatic audio ads as part of its DoubleClick Bid Manager, (though the platform won’t have access to YouTube or YouTube Music). Google stated that the introduction of audio ads to programmatic is still early, though definitely growing. Recently, global ad delivery and asset management tech firm Adstream wrote about its collaboration with P&G on delivering the first audio-described ads to broadcasters in the U.K. The commercials broke new ground for video to audio delivery in the world of accessible advertising. This type of audio ad has opened the door for those with vision impairments to have the same experience as their sighted peers.
This audio innovation from P&G and Adstream is expected to roll out to other markets in the near future.
2018 has shown us that the traditional ad models are still the most trusted. Clutch.co reports in a survey of 1,030 people that consumers trust TV the most (61%), followed by print (58%), radio/podcast (45%) out-of-home (42%) Online (41%) and Social Media (38%). In short, as we have witnessed in the past, the advertising industry isn’t going away anytime soon. It’s just assuming a different form. As advertisers and brands consider the new trends in streaming services, they must stay nimble and agile while relying on integrated forms of ad delivery and distribution.
A report from Adstream helps define audio ads:
Adstream UK achieved an exciting milestone in 2017 delivering the first audio-described commercial to be broadcast in the UK.
After months of testing, and by partnering with P&G who have been driving the initiative to make their advertising more inclusive for the 2 million people in the UK that are living with vision loss. Adstream helped introduce audio description (AD) into UK commercials with the landmark 30-second spot for P&G’s Fairy Liquid
The commercial broke new ground as an animated baby showed off Fairy Liquid Platinum’s cleaning prowess, while being accompanied by a narrator providing clear, elaborative details, such as the motion and animation taking place on the screen, enabling people with vision loss to ‘see’ the ad for the first time
Adstream worked alongside the Digital Production Partnership (DPP) and their member broadcasters on fully implementing the DPP commercials and sponsorship specification.
The DPP specification for the delivery of HD commercial and sponsorship material was published in Jan 2016 but not until July of this year was the last legal obstacle to supplying and transmitting audio-described commercials overcome by the industry.
The ITV/STV playout provider had completed their upgrade programme earlier in the year making them the first AD-ready broadcaster.
Adstream UK CEO, Lisa Lavender, said: “We’re committed to the introduction of audio description across all commercial content, so we were naturally delighted to work with P&G to help supply the UK’s first AD commercial earlier this month. The weeks and months of testing have all paid off.”
“We worked closely with the DPP on this key development and, by facilitating the delivery of an AD commercial to an AD-ready broadcaster, we played our part in this important and ground-breaking initiative for our industry.”
“We are proud to be in at the beginning of a journey which I hope results in audio description becoming an industry standard.”
P&G’s Inclusive Design Consultant, Sumaira Latif, who has been the driving force behind the initiative said:
“As a company that has many household brands like Fairy, Pampers and Ariel – used by people across the UK every day, its vitally important for us that we reflect the diversity of our audience – both inside and outside P&G. We recognise it’s the everyday interactions that make the biggest difference to making people feel valued and included and it’s also a business opportunity as our message now is expanding to 2 million consumers who have vision loss in the UK with whom we are able to now better communicate. As the Global leader of P&G’s ‘People with Disabilities Network’ and being a Mum with sight loss myself, P&G have harnessed my passion and ideas to help influence change for all people with a vision impairment. We continue on this journey, together with our partners such as RNIB to drive inclusivity within the advertising industry from creative to broadcast.”
Audio description is commentary that describes body language, expressions and movements, making the programme clear through sound. It is an extra narrative that articulates with the commercial’s original soundtrack and fits between the existing dialogue and sound effects to describe the visual action taking place on screen. In the UK, broadcasters are legally required to provide audio description in 10% of their programming, but leading broadcasters generally provide upward of 20%.
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