Commentary

It Doesn't Ad Up

TV ads are under siege. Many viewers mute, block, ignore and, basically, do anything they can to avoid them. And at the recent ReCode Conference in Dana Point, Calif., it was quite apparent that West Coast tech and digital media execs firmly believe that TV ads will pretty much disappear with non-ad-supported content from the likes of Netflix, Amazon, HBO and Showtime attracting so many viewers.

And now for a dose of reality: TV advertising isn't going anywhere. In fact, it's on the cusp of a new and exciting frontier.

As the adage goes, “There is no free lunch.” Creating, licensing, executing and marketing great TV content costs a boatload of money. We are in the golden age of TV thanks to streaming, which allows us more convenience and control in how and what we watch, which means that the quality of content has to keep pace. Not surprisingly, more video is being consumed as mobile fills the previous gaps of our commutes and “go time,” but 88% of it is still being viewed on TV screens. 

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So ads might not be the heroes you want but they are the heroes you need. Of the dollars that support the great and growing library of TV content we know and love, $80 billion of that comes from advertising, which will be nearly impossible to replace with higher subscription fees (and the revenue stream continues to grow — eMarketer forecasts TV advertising to gain another $6.6 billion by 2020).

Meanwhile, in the eyes of viewers, negative perceptions of ads are heading for a sea change. We are entering an era in which TV viewers will actually embrace commercials.

Advertisers are zeroing in on the discrepancy between the way TV content is now viewed across screens, and the quality of the ad experience those viewers are having. Thus, networks and marketers alike are heading towards providing more engaging ad experiences. After all, personalization is the key to an enjoyable viewer experience. So, it stands to reason that we’re not just in the golden age of TV, we're on the doorstep of a golden age of TV advertising, too; what I like to call TVTopia.

In fact, the age of smarter, more personalized ads is already here. Last year, Coca-Cola promoted Coke Zero during the NCAA by creating a drinkable ad. Viewers were able to shazam the ad, pour themselves a glass of Coke Zero, and receive a voucher for a free Coke Zero at participating vendors. Even gaming apps like Clash of the Clans are hopping on the TVTopia train with their virtual reality ad that has over 54 million views on YouTube. So, not only do viewers enjoy these ad experiences, they seek them out!

So, TV advertising isn't going anywhere. And, really, it's a win-win. In addition to helping to fund great content, the TVTopia age of hyper-targeted ads will engage viewers with more personalized and enjoyable messaging.

1 comment about "It Doesn't Ad Up".
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  1. Ed Papazian from Media Dynamics Inc, March 8, 2017 at 10:10 a.m.

    Good one, Jacqueline. While I'm not so sure that TV comercials---no matter how they are delivered----are about to enter a new golden age where caring about the feelings and needs of the consumer are concerned, the nonsensical blather put out by many of the digital folks claiming that nobody watches commercials anymore and that's why the entire worthwhile segment of the population ( millennials ) has switched to Netflix, is obviously a delusion. The plain fact is that many of the products advertised on TV are for rather boring commidities like toothpaste, detergents, etc. or unpleasant subjects like OTC remedies or questionable services such as reverse mortgages, life insurance, etc. and it will be difficult to make these overly engaging no matter how the advertisers and "creatives" try. But, you are absolutely right about TV not going away, including its ads. Digital media advocates should start thinking about ways to turn their highly problematic medium into an advertiser-friendly platform, while, at the same time, keeping the users' needs and feelings in mind, before dreaming about taking over TV. Indeed, if they bothered to study how branding advertising and media planning and buying actually works to keep TV functioning, not to mention the ways time is sold, they might find much that they could emulate rather than scoff at.

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