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TV ADVERTISING IN DISRUPTION       HOW TO ADAPT?       TOMMI RISSANEN          11.4.2013
TOMMI RISSANENDigital and Social Media Consultant at Digital MediaFinland since 201010 years creating digital content rela...
AGENDA   media & communications   disruption   statistics   what is television in 2013?   the future
media & communications disruption
COMMUNICATIONS IN TRADITIONAL               BUSINESS ENVIRONMENT Customer               Customer                          ...
COMMUNICATIONS IN MODERN BUSINESS          ENVIRONMENT                                                    Customer        ...
20TH CENTURY MEDIA ENVIRONMENT          Printing press in 1450‘s          - from hand copies to printing          Phone in...
21ST CENTURY MEDIA ENVIRONMENT
DISRUPTIONS EVERYWHERE                              Book publishingRadio         Television                               ...
CASE MUSIC: 4 PHASES                      converting the old thing to digital   creating new valueSource: Digital Media Fi...
SOCIAL MEDIA = COLLABOTRATION                     PLATFORMThe next “revolution” in productivity improvementis collaboratio...
statistics
CHANGE IN ADVERTISING               SPENDING IN FINLAND                            2007$%$1475$M€$                0,2%%%  ...
ADVERTISING SPENDING           FROM 2007 TO 2012 IN M€                                    2007     2012    change         ...
NEWSPAPERS HAVE SEEN    BETTER DAYS
WHAT DOES INTERNET            MARKETING STAND FORSource: Adex benchmark 2011
ONLINE VIDEO SHARE IN            SELECTED COUNTRIESSource: Adex benchmark 2011
TV WATCHING IS GROWING                            EVENLYSource: Finnpanel
IPTV IS GROWING TOOSource:: Finnpanel
PAY-TV IS GROWING FAST  Source: Maksu tv:n muuttuva arvoverkko, LVM- http://www.lvm.fi/web/fi/julkaisu/-/view/1278997
RANDOM STATISTICS47% of people use the internet at the same time as they watchtv at least once per day67% of google search...
what is television   in 2013?
SCHEDULED PROGRAMMING TV channels rely heavily on scheduled programming     they know the demographics well, Nielsen (or F...
SCHEDULE OF FINNISH CHANNELS 11.4.2013
MONEY-MACHINE OF THE   BROADCASTER                                   Web service                               VOD TV     ...
MONEY-MACHINE OF THE   BROADCASTER                                 Broadcast TV                                           ...
THE MONEY MACHINE OF TELEVISION     HAS SAND IN ITS WHEELS
WHAT REALLY IS THE       STATUS QUO?Live sports and breaking news are the only tv-content that iswatched at the time it is...
ZERO-TV HOMESNielsen’s new category of 5 millionAmericans that prefer other devices forwatching tv than the tv-set75% have...
THEN WE HAVE THESE
HOWEVER!   Television ad spending is   growing   People watch more television   than ever   In addition, online video   ad...
the future
ADVERTISERS SIT ON THE       MONEY            Need to connect with the            consumers but there are no            mo...
IT IS GOOD TO BE A             CONSUMERMore content than everConsumption anywhere andanytime is FINALLY hereBetter adverti...
THE ROLE OF TELEVISION?            One way to distribute            television and film content            Has to be able t...
PROGRAMMINGRISING VALUE                DECREASING VALUE original premium content    program libraries live sport rights   ...
EVERYONE HATES PRE-ROLL         ADSSource: Sharethrough Inc.
CONSUMERS DRIVE THE            CHANGENew content needs to get fast and easy to alldevicesWeekly episodes of 51 minutes wil...
HOW TO ADAPT IF YOU OWNA BROADCASTING COMPANY?            Accept the facts and invest in            new media channels    ...
“   A perfection of means and confusion of     aims, seems to be our main problem  “                  (Albert Einstein)
TOMMI RISSANEN  +358401645364 TOMMI@RISSANEN.FI                     @rissanen
TV advertising in disruption   how to adapt
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  1. 1. TV ADVERTISING IN DISRUPTION HOW TO ADAPT? TOMMI RISSANEN 11.4.2013
  2. 2. TOMMI RISSANENDigital and Social Media Consultant at Digital MediaFinland since 201010 years creating digital content related projects inprivate & public sector and in Universities inLappeenranta, Tampere and HelsinkiSocial media, emerging technologies and digitalecosystems explorer
  3. 3. AGENDA media & communications disruption statistics what is television in 2013? the future
  4. 4. media & communications disruption
  5. 5. COMMUNICATIONS IN TRADITIONAL BUSINESS ENVIRONMENT Customer Customer Customer Company has a message Message is made perfect by professionalsCustomer Company Customer Message is transmitted to the customers efficiently and comprehensively Customer Customer There are official processes for Customer handling reclamations
  6. 6. COMMUNICATIONS IN MODERN BUSINESS ENVIRONMENT Customer Customer CustomerCompany communicates openlywith its customersCompany provides its customers anopen communication platform Customer Company CustomerCompany follows the discussionsregarding it and its products in otherplatforms and takes part in them Customer Customer Customer
  7. 7. 20TH CENTURY MEDIA ENVIRONMENT Printing press in 1450‘s - from hand copies to printing Phone in 1870’s - from sending letters to real-time communication Camera, film and recording 1820’s-1890’s - recording something other than text Radio and television in 1880’s - sending picture and voice through air
  8. 8. 21ST CENTURY MEDIA ENVIRONMENT
  9. 9. DISRUPTIONS EVERYWHERE Book publishingRadio Television Newspapers Movies MusicPhotos Magazines Telephone
  10. 10. CASE MUSIC: 4 PHASES converting the old thing to digital creating new valueSource: Digital Media Finland / Timo Argillander
  11. 11. SOCIAL MEDIA = COLLABOTRATION PLATFORMThe next “revolution” in productivity improvementis collaboration Within companies With customers Between rivals Throughout the value networkSocial media is one tool among others in thisprocess It has the economy of scale advantage
  12. 12. statistics
  13. 13. CHANGE IN ADVERTISING SPENDING IN FINLAND 2007$%$1475$M€$ 0,2%%% 2,8%%% 3,2%%% Newspapers% 7,7%%% Magazines% Printed%indexes% 17,8%%% 48,0%%% Television% Internet% Radio% 6,2%%% 14,2%%% Movies% 2012$%$1353$M€$ Outdoor% 0,2%%% 3,2%%% 4,1%%% Newspapers% Magazines% Printed%indexes% 17,8%%% 39,7%%% Television% Internet% 20,7%%% Radio% Movies% 10,8%%% Outdoor%Source: Mainonnan neuvottelukunta 3,6%%%
  14. 14. ADVERTISING SPENDING FROM 2007 TO 2012 IN M€ 2007 2012 change Newspapers 708 537,6 -24,1 % Magazines 210 145,7 -30,6 % Printed indexes 91 48,4 -46,8 % Television 262 280,1 6,9 % Internet 113 240,4 112,7 % Radio 47 55,4 17,9 % Movies 2,3 2,1 -8,7 % Outdoor 42 43,3 3,1 % Total 1475,3 1353 -8,3 %Source: Mainonnan neuvottelukunta
  15. 15. NEWSPAPERS HAVE SEEN BETTER DAYS
  16. 16. WHAT DOES INTERNET MARKETING STAND FORSource: Adex benchmark 2011
  17. 17. ONLINE VIDEO SHARE IN SELECTED COUNTRIESSource: Adex benchmark 2011
  18. 18. TV WATCHING IS GROWING EVENLYSource: Finnpanel
  19. 19. IPTV IS GROWING TOOSource:: Finnpanel
  20. 20. PAY-TV IS GROWING FAST Source: Maksu tv:n muuttuva arvoverkko, LVM- http://www.lvm.fi/web/fi/julkaisu/-/view/1278997
  21. 21. RANDOM STATISTICS47% of people use the internet at the same time as they watchtv at least once per day67% of google searches is influenced by traditional advertising57% of people has made a google search after seeing a tv-adPropability of sales increases 50% when tv and internet marketingare used together
  22. 22. what is television in 2013?
  23. 23. SCHEDULED PROGRAMMING TV channels rely heavily on scheduled programming they know the demographics well, Nielsen (or Finnpanel) measure audiences precisely it is (still) the only way to reach focused large audiences all other activities of channels are subject to the scheduled programming
  24. 24. SCHEDULE OF FINNISH CHANNELS 11.4.2013
  25. 25. MONEY-MACHINE OF THE BROADCASTER Web service VOD TV 1. information regarding the content and programming Broadcast TV 1. programs watchable as a catch- 2. merchandising up service Maksu- Kanava Channel Channel Kanava Pay kanava 3. feedback and interaction with Channel 2. more content for premium viewrs packaged programs 19.00 4. links to social media 3. unique content 21.00
  26. 26. MONEY-MACHINE OF THE BROADCASTER Broadcast TV Maksu- Kanava Channel Kanava Channel Pay kanava Channel VOD TV Web service 1. information regarding the content 1. programs watchable as a catch- and programming up service 2. merchandising 2. more content for premium packaged programs 3. feedback and interaction with viewrs 3. unique content 4. links to social media
  27. 27. THE MONEY MACHINE OF TELEVISION HAS SAND IN ITS WHEELS
  28. 28. WHAT REALLY IS THE STATUS QUO?Live sports and breaking news are the only tv-content that iswatched at the time it is broadcastedCommercials are skipped from recorded showsConsumption of tv-content grows but mainly from on-demand sideConsumption is moving away from televisions towardscomputers, tablets and phones - whichever suits best in thesituation Lähde: http://www.businessinsider.com/tv-business-collapse-2012-6
  29. 29. ZERO-TV HOMESNielsen’s new category of 5 millionAmericans that prefer other devices forwatching tv than the tv-set75% have at least one television set67% get their content on other devices48% use subscription services (like netflix)Cost (36%) and lack of interest (31%) arethe main reasons Source: Nielsen
  30. 30. THEN WE HAVE THESE
  31. 31. HOWEVER! Television ad spending is growing People watch more television than ever In addition, online video advertising is growing fast
  32. 32. the future
  33. 33. ADVERTISERS SIT ON THE MONEY Need to connect with the consumers but there are no more simple solutions As transparency grows, advertisers have to be more and more careful Combining traditional media with new interactive channels is not an option but a must
  34. 34. IT IS GOOD TO BE A CONSUMERMore content than everConsumption anywhere andanytime is FINALLY hereBetter advertising that can beeasily avoidedDisruptions everywhere
  35. 35. THE ROLE OF TELEVISION? One way to distribute television and film content Has to be able to provide other services than just the broadcast stream What are Apple, Google and Samsung going to do?
  36. 36. PROGRAMMINGRISING VALUE DECREASING VALUE original premium content program libraries live sport rights secondary content reality tv traditional news breaking news small audience programs
  37. 37. EVERYONE HATES PRE-ROLL ADSSource: Sharethrough Inc.
  38. 38. CONSUMERS DRIVE THE CHANGENew content needs to get fast and easy to alldevicesWeekly episodes of 51 minutes will be historyVideo advertising will evolve fastTraditional ad spending in television willdecrease rapidly as soon as it is realized that itdoes not work anymoreTv-advertising will increase on live sports andother programming that still interests wideaudiences
  39. 39. HOW TO ADAPT IF YOU OWNA BROADCASTING COMPANY? Accept the facts and invest in new media channels Commit to the change even if the revenues decrease and investment ROI is negative Find ways to do business model innovation
  40. 40. “ A perfection of means and confusion of aims, seems to be our main problem “ (Albert Einstein)
  41. 41. TOMMI RISSANEN +358401645364 TOMMI@RISSANEN.FI @rissanen
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