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.