This document discusses the disruption of traditional media and advertising models by new digital technologies and trends. It notes that the way companies do business has radically changed, bringing both opportunities and new rules that will change business and sales models. Specifically, it outlines how automation and artificial intelligence will increasingly take over media buying and selling functions. It also discusses how video consumption is converging across TV and internet platforms and that linear and non-linear models will become obsolete as personal assistance technology manages personalized media experiences. Unless traditional media companies evolve their conservative sales approaches, new predators from the technology sector will claim larger portions of the growing video advertising market.

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digital Wrap up digital 7 : Automated
media trading & Real-time-Bidding
New sales model for multiple
screen digital video advertising.

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digital
The Era of the Telenaut

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The New Normal – It will never be
again like in the “good old days”!
1 • In analogy with Peter Hinssen book The New Normal:
http://www.peterhinssen.com/books/the_new_norm
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The way companies do business radically changed.
Changes brings opportunities but also a set of new
rules that will drastically change the business & sales
models of those companies. Most will succeed in this
transformation while others will suffer from a severe
headache ( cfr Catherine The Great)

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Automatization is indisputably linked
to mankind’s ambition to achieve a
higher level of competence and
efficiency
• From the first computer delivered to the British
Finance Department in the 1950’s, mainly for
calculation purposes only, to the driverless cars to hit
our roads in 2020. The necessity of automatization
that faced the industrial environment will shift to
service-companies and ‘sales’ organisations.
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The Era of the Telenaut - Internet
& connectivity will be just as
ubiquitous as electricity
3 • Paradigm shift : A shift is taking place where traditional
forms of ad media (analog broadcast, TV) are joined by
new digital forms led by the internet. The convergence
of screens and content offers unseen possibilities to
innovate both from the viewers and advertisers
perspective. The internet's ability to offer a
personalized and interactive environment is attractive
to advertisers and sets a precedent the content
providers must eventually meet.

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Evolve or Perish – The media
Darwinism.
• Broadcasters have been selling TV ad space the same
way like they did decades ago while innovation mostly
occurred at the technology side, today’s conservative
sales models are not aligned with the current disrupted
market dynamics. With the on-going media
fragmentation new sales models need to emerge
making use of scarcity of digital video inventory to
increase monetization and the technology to scale and
increase client base.
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Selling of all media forms will be
automated in the next decade.
• Traditional media companies are still reluctant to
change their sales models certainly in a New Normal
environment. Eventually nothing changes, they can still
wheel and deal like they did before but now machines
will do the work.
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Telco companies and Smart CTV
manufacturers all want a piece of the
Advertisement Pie
• With over 170 Billion $ Ad spend in TV and Video
Globally, traditional and established companies are
becoming the new predators to claim a part of that
media spend. They own the technology, capabilities
and data to succeed entering the Ad-ecosystem.
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• If cars will be able to drive without driver in 2020,
media will face equal disruptive change in the future
and particularly all audio-visual content.
Personal assistance technology will plan your day and
make existing models like linear TV channels
obsolete. Virtual reality, holographic displays will
enter our homes and change how we watch audio-visual
content significantly.
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4 ways why TV advertising will
change the next decade

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Linear versus non-linear battle
• Video consumption is growing rapidly. Consumers are
increasingly digital, mobile, interactive, social and
connected.
• This leads to a convergence between TV content and
Internet video.
• TV screens and second screens such as laptops, tablets
and smartphones, are becoming more and more
complementary.
The words linear and nonlinear will disappear the next
decade to become a personal audio-visual
entertainment environment. Linear and non-linear are
business terms anyway, which consumers don’t use
nor see the difference between both.
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Image from Nick Adrew, 2013 – note: figures may vary from one vertical to another

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Economic models disrupting
the Advertising Economy
• Telco’s are investing and buying content and TV
Channel ( De Vijver/Telenet).
Broadcasters are set-up independent distribution
systems.
Audi-visual content providers are able to create
unlimited TV channels and distribution platforms.
(STEVIE)
All 3 parties putting up fences to protect their
traditional business and creating new alternatives to
enter new markets.
In the end all 3 parties will need to collaborate and
consolidate to successfully succeed in a necessary
transformation.
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