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The Next Generation of TV Advertising

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Declining viewership and the rise of on-demand media is causing a massive re-think of the traditional television revenue model.

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The Next Generation of TV Advertising

  1. 1. THE NEXT GENERATION OF TV ADVERTISING Jeremy Weiss
  2. 2. THE PROBLEM Declining viewership and the rise of on-demand media is causing a massive re-think of the traditional television revenue model
  3. 3. PERSONALIZATION The de-massification of media towards personalized feeds, coupled with relatively cheap subscription costs and "all- you-can-eat media" has led to an uprising of online and on- demand streaming      services. [1]
  4. 4. accounted for about half of the overall 3% decline in TV viewing among U.S. audiences. In 2015,  Image by: "Methodshop.com'. Sourced from: Flickr [2]
  5. 5. CORD  CUTTING and proliferation of television content has led to serious declines in TV advertising revenue and return on investment.  The growing trend of Image by: Zechariah Judy. Sourced from: Flickr [3],[4]
  6. 6. LESS OF IT LIVE We are consuming more television but watching and ad revenues are shrinking. [5]
  7. 7. We also have a new expectation of relevance in our ads. Photo by: Cory Doctorow. Sourced from: Flickr [6]
  8. 8. TELEVISION ADVERTISING NEEDS A TUNE-UP. THE RESULT?
  9. 9. How can the industry replace or retain some of its $65 BILLION in annual ad revenue?[5]
  10. 10. Shows partnering with brands to create sponsored promotion vehicles [7] BRANDED PROMOTIONS Delivers an increase in programming realism [6] PRODUCT PLACEMENT Providing relevant commercials to specific households based on big data [8] TARGETED ADVERTISING SOME SOLUTIONS Networks have been experimenting with some options.
  11. 11. But, the real money is in bringing NATIVE ADVERTISING from online to the small screen. [9]
  12. 12. Businesses must move from interruption marketing to permission marketing to retain their audience. Brands have become the new publishers and their content must be "status-update worthy." [10]
  13. 13. NATIVE ADVERTISING is desired marketing communications that appear in- stream. [11]
  14. 14. It minimizes disruption and is consistent with the experience a consumer is enjoying. If it is virtually indistinguishable from other material, we are less likely to turn away. [11]
  15. 15. Native advertising on network TV started to heat up in 2016. Networks are attempting to write story lines around the products advertisers are trying to sell. And the only way to avoid the product placement would be to stop the show altogether. [9]
  16. 16. $36 Expected US Native Display advertising revenue in 2021. Billion $17 US Native Display advertising revenue in 2016. Sponsored content will be the fastest growing native format over the next five years Billion [9]
  17. 17. This is going to CHANGE the way we watch TV.
  18. 18. Native ads will result in fewer, more targeted commercial minutes   10 Viceland airs 10 minutes of commercials, down from standard 16 minutes per hour.Minutes    4 Viacom reduced commercials by 4 minutes per hour. Minutes Viceland launched their network on a Native Advertising model. [7] [12]
  19. 19. Last season, Fox’s “Empire” partnered with Pepsi for a 3 episode arc. It culminated in a music video starring a main character promoting Pepsi. NATIVE ADVERTISING IN ACTION [7]
  20. 20. Advertising savvy brands will capitalize on their native advertising with real-time marketing, joining the conversations around the buzz their shows create as they happen. [13]
  21. 21. On demand and online media are changing the face of television, and the rise of native advertising means the content on our screens might have more to it than meets the eye.
  22. 22. [1] Matrix, Sidneyeve. 2017. FILM 240: Module 1 Lecture 1 Media Convergence. Video. [2] Spangler, Todd. 2016. "Netflix Caused 50% Of U.S. TV Viewing Drop In 2015 (Study)". Variety. http://variety.com/2016/digital/news/netflix-tv-ratings-decline-2015- 1201721672/. [3] Paskin, Willa. 2015. "In The Streaming Age, Nothing’S A Hit Anymore". Slate Magazine. http://www.slate.com/articles/arts/television/2015/11/tv_ratings_in_the_streaming_ age_why_nothing_can_be_called_a_hit_anymore.html. [4] Jackson, Emily. 2016. "Broadcasting Revenues Dip As Canadians Move Online For Radio And Television: CRTC". Financial Post. http://business.financialpost.com/fp- tech-desk/broadcasting-revenues-dip-as-canadians-move-online-for-radio-and- television-crtc?__lsa=a067-7999. [5] Wolk, Alan. 2015. "When Netflix And Other On-Demand Services Killed The TV Ad Golden Goose". The Guardian. https://www.theguardian.com/media- network/2015/feb/05/netflix-subscription-services-television-ad-revenues. WORKS CITED: 1 OF 3
  23. 23. [6] Matrix, Sidneyeve. 2017. FILM 240: Module 2 Lecture 1 Advertising Strategies. Video. [7] Poggi, Jeanine. 2016. "Dear TV: We Love You. You're Perfect. Now Change. (But Not Too Much.)". Ad Age. http://adage.com/article/media/future-tv- advertising/303565/. [8] Paul, Jonathan. 2016. "Addressable TV, Coming Soon To Canada". Strategy Online. http://strategyonline.ca/2016/06/21/addressable-tv-coming-soon-to-canada/. [9] Meola, Andrew. 2016. "Native Advertising Is About To Take Over Television". Business Insider. http://www.businessinsider.com/native-advertising-is-about-to- take-over-television-2016-5. [10] Toole, Catherine. 2017. "Brands As Publishers: Inside The Content Marketing Trend". Curve. Accessed February 26. http://curve.gettyimages.com/article/brands- as-publishers-inside-the-content-marketing-trend. WORKS CITED: 2 OF 3
  24. 24. Jeremy Weiss The Next Generation of TV Advertising All photos included are Creative Commons Zero Licensed unless otherwise noted. [11] Campbell, Colin and Lawrence J. Marks. 2017. "Good Native Advertising Isn't A Secret". Business Horizons 58 (6): 599-606. doi:10.1016/j.bushor.2015.06.003. [12] Lynch, Jason. 2016. "Viceland Is Shaking Up TV Advertising By Running More Native Ads That Look Editorial". Adweek. http://www.adweek.com/tv- video/how-viceland-shaking-television-advertising-169935/. [13] Krashinsky, Susan. 2014. "A Sunday Shift: The Rise Of Real-Time Ads". The Globe And Mail. http://go.galegroup.com.proxy.queensu.ca/ps/i.do? p=CPI&sw=w&u=queensulaw&v=2.1&id=GALE%7CA357218028&it=r&asid=5ca8b1 8d1e7c7674fa4d7d6ba9738cd9#. WORKS CITED: 3 OF 3

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