The Future of TV and the evolution of Advertising
It would be a brave individual who would dare to counter the growing evidence that the way people consume TV is changing beyond recognition. We’ve been tracking these changes over the years but it seems that now advertisers are finally beginning to grasp the idea that new, creative, intelligent strategies are required if they want to remain ahead of the competition.
Gone are the days where the odd geek and more scuptulous individual used the internet for gaming or chatting. Today, Internet use is common place, as much as a part of our daily lives as household furniture-we use it daily, we expect it to be there….but most of all, we expect it to be reliable and not let us down.
Today’s tech savvy generation of consumers have a higher expectation of what they can obtain from their time spent online. This new consumer, what I, and Donovan of Comscore like to refer to as the ‘Digital Omnivore’, spends time consuming content using a variety of different devices. Donovan articulates the term well;
“We are now entering a new digital era, an era where people are connecting with content and with brands through multiple screens – through their PC, TV, smartphone and media tablets, we call this the rise of the Digital Omnivore”
So, our D.O. uses technology in a variety of different ways, mimicking a sort of ‘grazing’ type behaviour. He might use his PC to work, but his tablet to watch a movie in bed, or to dull away the hours spent communiting to work. The point is, however, people use the Internet to achieve multiple aims.
Indeed, consumer behavioural trends have been shifting over the last few years. According to the Communications Industry Forecast 2011-2015, adults spent 77 hours per person, on average, using mobile media in 2010 – an increase of 49.7% from 2009. Based on the rapid adoption of computer tablets by consumers and businesses, VSS forecasted a 35.3% increase in time spent with wireless media in 2011, reaching 104 hours per person. A 19.8% compound average annual growth rate was forecast through 2015, with consumer purchases of e-books, music, mobile applications, and streaming video driving the increase. This behavioral change was forecast to accelerate into 2012 by Comscore (Comscore, 2012; 22).
Traditional media has had to adapt to these changes. As well as terrestrial channels, such as the UK based BBC iPlayer developing an App for online viewing, people have begun to make thier own programmes from their own bedrooms or, if they have the means to do so, studios. Technology such as the TriCasters produced by NewTek offer the opportunity for individuals to professionally edit and broadcast their content not only online, but in real time. This means that Internet television can be used to broadcast live events, including a record breaking 24 hour music-marathon by MTV..
Content creation is not just for the rich and famous, but for everyone with access to an Internet connection! This is perhaps one of the biggest revolutions in television – the fact that the potential for many people to create content. This has allowed for hugely popular shows to pop up online which are not produced by terrestrial TV studios but rather, are produced by people sometimes in their own bedrooms!
However, this flood of increased levels of content have not came without their problems. There’s just so much content online, it can be difficult to discover high quality content, which is produced to match or exceed the quality that can be found of terrestrial TV. And these are the sorts of content types that image concious brands want to allign themselves with – not only that, the content needs to be relevative to the product of service they are hoping to sell.
The advertising must be Native
Native Advertising is the current buzzword used to refer to any form of advertising that is innate, pertaining to or characteristic of the content around which it appears. This form of advertising has gained significant traction because it address the problem of banner ad blindness and improves user experience. Although Native Advertising pertains to more than just online video ads, naturally we at NEXI focus on this (call us self-indulgent if you will!).
On Tuesday 26th Feb 2013, at the Interactive Advertising Bureau’s Annual Leadership Meeting in Phoenix, Arizona, Yahoo COO Henrique de Casto summed it up equistly in the following statement:
“A lot of the industry is focusing on personalizing ads. The ad is a subfactor. The main factor is content. If you don’t get the content right, you won’t get the ad right because you don’t have the audience [without content]“
All indicators suggest that the future of TV is in the midst of an exciting change – and advertisers are starting to realise this. At NEXI, content creation and user experience is of particular importance, however simply slotting an advertisement in the middle of the content is still not good enough, and indeed, can be disruptive and annoying for the end user. Rather, good online video advertising which is native uses a format whereby the advert is actually introduced by a professional presenter, thus minimising disruption and, because the ad is native, there is a very high chance viewers will want to watch it in any case.
I could write about these shifts for what seems like a lifetime, such is the exponential growth of content online and the insatiable appetite for it. However, we cannot deny that we are currently existing in exciting times for content creators and advertisers alike. If done correctly, Native Advertising, utilising the power of video entertainment online, can offer considerable benefits to individuals and companies across the world. NEXI Internet Television is proud to be there for the ride.