The old-school network TV model of advertising is the last biggest challenger to digital when it comes to share of marketing budgets. It makes sense: the internet hasn't seemed to brands like a better place to show video ads, and brands have been reluctant to step in. One big reason for this is brands' addiction to Nielsen ratings, which for a while simple didn't exist for online advertising, and now are roughly approximated by Nielsen.
Several things are changing that could accelerate the substitution of "Connected TV" and other digital formats for linear TV. First, fewer and fewer people are even watching scheduled programming. A recent Nielsen report shows a gradual decline in that category, as it's replaced (and then some) by viewership on mobile devices (including laptops) and other connected devices, like Apple TV and Roku. Second, content aggregating middlemen and technical innovations are making it less scary and easier for brands to show ads on Hulu, or on espn.com, against the brand's own data and with good assurance of frequency capping and other controls. Finally, publishers are recognizing the shift and pushing their inventory more aggressively through Connected TV / other online means.
For video advertisers, now should be the time to focus on a digital video strategy, and to place less strategic emphasis on linear TV advertising. Digital is much more valuable: it can be merged with other online buying audiences and metrics, it is increasingly available for purchase on a cost-per-completed-view basis, and it allows for all of the control in targeting that is possible in digital and impossible in direct-bought linear TV. Of course, many new, small brands understand this - and will never buy a linear TV ad, instead going straight to digital. The smarter big brands will be the first to drop linear TV for a comprehensive video strategy focused completely on digital.
http://www.adweek.com/tv-video/nearly-70-million-u-s-households-now-have-a-connected-tv-streaming-device/
Several things are changing that could accelerate the substitution of "Connected TV" and other digital formats for linear TV. First, fewer and fewer people are even watching scheduled programming. A recent Nielsen report shows a gradual decline in that category, as it's replaced (and then some) by viewership on mobile devices (including laptops) and other connected devices, like Apple TV and Roku. Second, content aggregating middlemen and technical innovations are making it less scary and easier for brands to show ads on Hulu, or on espn.com, against the brand's own data and with good assurance of frequency capping and other controls. Finally, publishers are recognizing the shift and pushing their inventory more aggressively through Connected TV / other online means.
For video advertisers, now should be the time to focus on a digital video strategy, and to place less strategic emphasis on linear TV advertising. Digital is much more valuable: it can be merged with other online buying audiences and metrics, it is increasingly available for purchase on a cost-per-completed-view basis, and it allows for all of the control in targeting that is possible in digital and impossible in direct-bought linear TV. Of course, many new, small brands understand this - and will never buy a linear TV ad, instead going straight to digital. The smarter big brands will be the first to drop linear TV for a comprehensive video strategy focused completely on digital.
http://www.adweek.com/tv-video/nearly-70-million-u-s-households-now-have-a-connected-tv-streaming-device/
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