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TV Advertising About to Change Fundamentally

by | Dec 20, 2016

TV and the advertising it carries will, over the next five years, be completely digital, writes Tom Goodwin in Adweek.

According to Goodwin, “Our entire industry’s odd complex about digital and our strange organization and separation around it will be blown up because virtually all media will be digital. The gap between video and TV will be entirely destroyed as we realize it’s a divide of no merit or distinction. Our TV sets will pull through content from Facebook Live, from SnapChat, from Periscope and as-yet invented apps that grow around a new ecosystem of monetizaton. The very label “TV” will become as silly and limiting as “the smartphone.” We will instead consider different sized converged screens on which we will watch different types of shows in different contexts. The snatched snackable content on the subway, the lean back entertainment in the lounge, the interactive immersion of VR.

“We’ve always bought shows and channels as a proxy to reaching people, but now we can merely buy against audiences. What starts off as buying demographics will become addressable TV solutions where you buy a household. Face recognition or new ways to log in will allow buying of people not just homes. Soon we can add in more knowledge like payment data and search history. We will see a shift towards tightly targeted TV ads that are worth far more than we ever expected. Luxury advertisers, niche advertisers now have their chance.

“In this pure digital world all advertising will be programmatically bought and placed (and that’s a good thing). For years the definition of programmatic has been precise but its interpretation and meaning have been negative. Its roots in remnant inventory mean we’ve taken it to be synonymous with deflationary forces, when in fact it means using computers to do stuff intelligently and automatically.

“Placement of TV advertising in the future will be the layering of contexts, the time of day, the stock market performance, the location viewed, the length of the show it’s placed against, the content it’s bookending. In fact, the very ads themselves could be rendered out programmaticaly. They will be personalized against an individual with real-time special offers, showing local stores; or ads for products that remain stuck in your Amazon wish list.”

(Goodwin is EVP, Head of Innovation, at Zenith.)

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