Online video ads and TV commercials will one day be fused together, but we will not reach that day in the near future, according to eMarketer analyst David Hallerman.
“What’s standing in the way? The core factor is a fear of financial loss within the TV industry -- broadcast and cable networks, and cable providers,” he tells The Financial. “Those fears are leading to tactics such as broadband and mobile data caps, which can reduce video usage, and the use of authentication protocols to block cord-cutters from accessing TV content online.”
Hallerman is the author of a just-released report entitled “Digital Video and TV Advertising: 16 Forces that Will Help or Hinder Integration.”
Among the forces favoring TV-video integration: online video’s overall growing audience, the audience wanting to watch more and more video content, the growth of Connected TVs, and brand advertisers wanting to reach those audiences. Among the forces against integration: fear of cannibalization, the inability of content owners to sell sufficient ad loads online, and the complexity of buying and measuring digital ads.
“It’s going to take years for digital video advertising to blend more fully with TV advertising, but time is on digital’s side,” Hallerman said. “The five digital screens -- desktops, notebooks, tablets, smartphones and connected TVs -- are where audiences increasingly watch TV and other video content, and brands need to reach them anytime and everywhere.”