This disruption is being driving by several factors: First, WE are redefining the rules. We as consumers – posting to social media as we watch TV, watching House of Cards while sitting on the train. We’re moving seamlessly across screens as matter of course. The other huge game changer –Data. Data is becoming the new currency the is redefining the winners. As such, new players sitting on huge mounds of data are disrupting the status quo. Especially as it relates to TV – Google and Facebook now part of the competitive for ad dollars from MVPDS. Distribution models have changed as well, which means there are new paths to the consumer, from connected TV to TV Everywhere, which is forcing players to rethink their business models, such as unbundling… Finally, the result to all this is that advertisers have more options… TV is still great, but is it enough. I think many are deciding that it’s not in a converging world which is why we’re seeing such growth in video. A new Forrester survey found that 77% of advertisers and 70% of agencies plan to increase their video ad spending in the next 2 years (June, 2015)
Scott Ferber - VideoNuze Online Video Ad Summit - 6-16-15 v1
TV & VIDEO:
A YEAR OF CONVERGE
VIDEO: IT’S BEEN QUITE A YEAR…
The Great TV Unbundling Has Begun.
But Be Careful What You Wish For
Amazon wins first Golden Globe
Cord-Cutting Accelerates in Q1 ‘15 as Pay-
TV Operators Lose 31K Subscribers
ESPN Sues Verizon Over New Cable
Verizon Buys AOL for $4.4 billion
Dish Network in Merger Talks With T-
Report: AT&T will accept net neutrality if
it gets DirecTV
Upfront 2015: Major TV Networks Face
Severe Pressure on Ad Prices
Networks Fret as Ad Dollars Flow to Digital
Advertisers to lose $6.3 Billion to Fraud
Media Agency Kickbacks. Yes, They’re Real.
Epic Wave of Media Reviews Comes at a
Crucial Time for Media Buying
$25 billion in media money just went up for
grabs -- and nobody can agree on why
ADVERTISING DISRUPTION: WHY (NOW)?
the status quo
Threat to ad
dollars is forcing
4.4 4.6 4.6 4.5 4.4 4.3
0.4 0.3 0.3 0.3 0.3 0.4
2.4 2.6 2.5 2.3 2.4 2.4
0.8 1.6 2.3 2.6 2.8
2010 2011 2012 2013 2014 2015
Daily Time Spent on Screens
Other Connected Devices
CONVERGENCE IS REDEFINING
source: @KPCB Emarketer 4/15
BUT CONVERGED VIEWING IS NOT
ABOUT EITHER/OR…IT’S ABOUT MORE.
GOOD NEWS FOR TV.
TV Only TV + PC/Laptop TV + PC/Laptop + Mobile TV + PC/Laptop + Mobile + Tablet
Video Viewing Per Day
4hr 19min 4hr 28min 5hr 6hr 7min
Source: Analysis of NBC broadcast content viewed by screen by discrete viewers, 2012.
YET FRAGMENTATION IS STILL FORCING
MARKETERS TO RETHINK TV STRATEGIES.
Reach Build for Television Networks & Programs
Sep ‘09 vs. Sep ‘14
0 1000 2000 3000 4000 5000 6000 7000 8000
Source: NPower Live+7 TV Data;
AND INCREASINGLY THESE NEW STRATEGIES
MEAN CONVERGED STRATEGIES
Source: Videology, Q1 2015.
58% of all campaigns
ran on more than one
device in Q1 2015,
compared to just 17% in
PC & OTT
PC & Mobile
The New Golden Rule for
The One with the Gold Rules.
Verizon FIOS, etc.
DATA OWNERSHIP: CONNECTING TWO WORLDS
WHY CONVERGENCE MATTERS?
DATA-ENABLEMENT + QUALITY
CONTENT= BETTER RESULTS
6.1% 6.2% 6.4%
UNIT SALES RATE LIFT PENETRATION LIFT DOLLAR SALES RATE
Data Targeted vs. Untargeted Impressions
Average Targeted Average Untargeted
FEP vs. Prime vs. Other
Total HH Penetration Sales Lift
Online + TV
Sales Lift of Multi-device vs. Digital Targeting
UNITS VELOCITY (units per 100HHs)
ADDRESSABILITY WORKS CONVERGENCE DRIVES RESULTSCONTENT MATTERS
Source: eMarketer 2014-2018 ests, June 2014, based on IAB/PwC data; Videology 2019 estimates; 5-year CAGR PwC June 2015
2014 2015 2016 2017 2018 2019
Incremental Annual Spend Increases:
US TV vs. Digital Video
TV Digital Video
SPENDING FOLLOWS RESULTS
5 YEAR VIEW: TV REMAINS KEY CONTRIBUTOR TO CONVERGING MARKET
Pivotal Research Group
Chief Investment Officer
GM/ Enterprise Solutions
WHAT DO THE EXPERTS THINK…