Tag Archives: tv

TV and Video Ads Converging Slowly as OTT Continues to Grow

Rashmi Paul
Rashmi Paul, Commercial Director, APAC, FreeWheel

We’ve all seen the huge rise of interest in programmatic over the past few years – what lies ahead for this technology?

It has taken a number of years for media buying to adopt automated ways of transacting in the region. This is mainly due to this being a more conservative part of the world, where change is not always welcomed, and which still relies on more traditional marketing methods. What lies ahead is a deeper adoption of automation, which will not be limited to standard display or video advertising, but will also include other media too, such as outdoor ads.

As money has always been invested in TV, the shift to digital and then from digital to basic IO has been a lot slower here than it has been in Europe, for example. What’s next for FreeWheel is to use the experience we’ve gained in other parts of the world to help the smoother adoption of automation in this market.

What are your thoughts on the growth of digital advertising in APAC?

Obviously, when it comes to digital growth, the most significant development has been in mobile, which has a massive market share. In certain parts of the region, consumers have on average two to three mobile phones per person. And as APAC is made up of a number of developing mass markets with large populations, it will only continue to grow. Broadcasters are also changing their strategies and moving inventory to digital from traditional TV.

How does the video advertising market in APAC differ to other regions?

The APAC region is very different from the rest of the world, as it contains a number of global markets – each of which has its own complexities and compliances for marketing. Each market has different, local factors that need to be considered. We also have to consider local language requirements, as some might only run campaigns in the local language, whereas others might prefer a mix with English.

Will we see TV and video continuing on their path of convergence?

Yes, I believe this convergence will continue. Traditionally, we spoke to agencies and digital buyers to try and get digital video inventory. Now media buyers are transacting across TV and video.  Our aim is to get broadcasters to think about how they trade and bring the two forms of media together, and we want to see this happen on a large scale in the APAC region. Customers who have had success with digital need to start seeing their linear offering in the same way that they view their OTT offering.

Interaction 2017: Group M Global Digital Forecasts

Each year GroupM publishes its overview and speculations on the state of digital marketing and its implications for advertisers. This year’s report – Interaction 2017  predicts that in 2017 digital’s share of ad investment in the developing world will at last have caught up with the developed world, to around 33%.

10 countries have already witnessed digital overtake TV, with a further five expected in 2017, two from APAC; France, Germany, Ireland, Hong Kong and Taiwan.

Interaction 2017

In 2017 it’s challenging to discriminate digital marketing from all marketing. Consumers barely separate their digital and analog lives; little media is published in only analog form and enterprises infuse digital processes into every aspect of their organisations.

However, it’s probably true to say that marketing strategy and marketing services remain more siloed than consumer behaviour, and equally true that marketing and sales organisations remain more separated than they should be given the collapse of the purchase funnel.

Google killed the TV star?

What if Google invested in eye tracking technology free on every TV?

They could do it in partnership with TV manufacturers, and under the auspices of measuring smart TV (read YouTube viewing on TV).

How quickly would this disrupt the TV advertising industry by exposing the TV GRP. People just aren’t watching commercials, we would conclusively discover.

The clear winner in the budget switch that ensues, must surely be Digital channels. And Google the biggest beneficiary.

Now we’re no Google fans here at DIA, mainly because of the conflicting positions they take in the industry on buying, selling, delivery and measurement – yes that’s right, if you use DoubleClick or Google Analytics you trust the same people who deliver your advertising to tell you whether it works or not. Similar conflict for publishers and marketers. But Google has to be admired for the work they have done in simplifying and driving our industry forward.

Investing in a system that could bring down TV might just be the simplest and smartest move it could ever make. And the best for our industry.

Could Google kill the TV star?