Amid Shift To Online Video Ads, An Opportunity for Local TV
A lot has been written about the shift of broadcast TV ad dollars to online video...
"The shift to online video is already happening?"
"As TV becomes more interactive, will that abate the shift from traditional advertising?"
"Will the shift be driven by generational, supply or technology changes?"
All good questions, but I'd argue that it's too early to know the answers. I say, also, that focusing on any impending shift misses the real opportunity -- especially for some local media publishers -- to grab a greater share of overall advertiser spend.
Many publishers of local TV Web sites, for example, seem uneasy about this shift to online video advertising, fearing it will steal broadcast dollars. I believe, however, that local TV publishers are in the best position to move to online video advertising.
The operative word here is video. Local TV publishers have the advantage. They have existing clients who currently run commercials (video). They understand spot TV (video) and the power of local marketing. They can articulate the benefits of television ads (sight, sound, and motion) in driving brand awareness and purchase intent.
Online video advertising should be viewed as a powerful extension to advertisers' offline media buys rather than a substitute for them. Bundling online video advertising into advertiser sales packages:
1) Extends an advertiser's reach to new audiences or times of day.
2) Increases the efficiency of an advertiser's total ad spend. TV spots can be repurposed into rich-media video ad campaigns with no increased production cost.
3) Drives the deep measurement insights afforded by the Web. 4) Acts (like TV) to build brand awareness and, in addition, drives interactivity.
4) Acts (like TV) to build brand awareness and, in addition, drives interactivity.
Smart advertisers don't rely on the "one trick pony" method of advertising by sticking to only one medium. They run campaigns across media (print, TV, radio, online display, and search) and Web properties (portals, premium sites, and ad networks).
Advertisers are increasingly aware, for example, that search performance is augmented by running display ads. The last click theory, where search got all the attribution, is disintegrating as more marketers see that you have to look at all points in the purchase funnel and build campaigns that get your brand noticed, while at the same time including elements that drive action.
To touch more parts of the funnel and sell a multi-platform solution, local TV publishers can easily bundle broadcast TV spots with online video advertising.
Technology drives changes in media consumption. Choice leads to audience fragmentation but rarely elimination of a medium. Local TV publishers have the assets to play both sides of the shift and deliver a sum that is greater than the parts. It's really a discussion of optics. A shift implies someone is losing. Seeing online video advertising as a way to grab more total ad dollars, especially for local TV publishers, is a more opportunistic view of the world.