Each and every day we find a way to celebrate the Power of Audio. Whether it’s music or news, on smartphones or connected cars, at home or on the go, we reach for audio as a necessary accessory to our increasingly kinetic and multitasking lives. It’s why we spend four hours a day with audio, on average. Today, over half of daily listening time among people in prime advertising demos (P18-54) is to newer forms of audio, much of which feature a personal and personalized experience, and barely existed 15 years ago. We are entering an earbud era where personalization is the key to resonance.
For advertisers, TV is still king leading all other media in spend and time spent viewing. Global TV advertising is a $202 billion business that is expected to grow between 2%-5% in the next five years. What has changed about TV is the way people consume it. The where, when and how of TV viewing has evolved significantly in the past few years and some advertisers are struggling to adapt
Ad waste is the money lost when ads aren’t seen by target audiences – and it costs advertisers billions each year. For TV, many advertisers believe ad waste is an unavoidable consequence for being able to reach a large audience. But today’s linear TV can be measured and optimized in the same way as digital. Advertisers that want attributable sales, and not just increased awareness, can make TV budgets work smarter and harder by reaching targets in the places and times they’re most likely to respond.
By 2016, advertisers will spend $77 billion on interactive marketing — as much as they do on television today. Search marketing, display advertising, mobile marketing, email marketing, and social media will grow to 26% of all advertising spend as they are embedded in the marketing mix. We expect this growth to help firms become adaptive, kill off daily deals, re-emphasize marketing's "p's," and turn consumer electronics into audience-targeting tools.
Programmatic buying has swept the display advertising world and is making rapid inroads into video inventory. As this software-powered and automated approach to media buying becomes more common and consumer viewing hours of online video continue to rise, marketing leaders must upgrade their planning and media-buying approaches to execute cross-screen video advertising campaigns effectively.
Social media is changing the way audiences engage with TV. Audiences are increasingly multitasking on digital devices while watching TV — and sharing what they are watching with their friends. There are new platforms that enable TV networks to grow audiences, build brand equity, and establish cross-platform loyalty programs. Marketing leaders must identify platforms that integrate TV and social media now to leverage valuable insights from their audiences as well as develop and test cross-platform strategies.
Since the birth of TiVo in 1997, set-top-box data has been discussed as a more accurate alternative to Nielsen data for buying commercial slots in linear TV. But advertisers remain comfortable with Nielsen's historical input as the core currency by which to plan their campaigns.
The rise of digital video advertising and the emergence of "TV everywhere" have fractured the video ad landscape into two media types with fundamentally different values to advertisers. While mass-audience linear TV still dominates the spending and holds the central place in a video ad plan, the shortcomings of force-fitting viewer-controlled video ads on video-on-demand (VOD) or streaming app platforms into the 50-year-old TV measurement model are already visible.
Networks have launched co-viewing apps for PCs, tablets, and smartphone devices and are seeing some great results — from driving tune-in to additional engagement, loyalty, and recall. Interactive marketers looking to sync with their organizations' planned TV media buys should test new opportunities on the "second screen" to benefit from these same outcomes. Marketers can work with networks directly or with a new crop of vendors that specialize in branded co-viewing, sponsorships on check-in apps, and synchronized advertising.
Consumers' video viewing habits are changing as new sources of TV content they love, available on new devices, allow them to watch their favorite shows more conveniently. Consumers are also satisfying their video appetite with new formats that don't follow the traditional 30- or 60-minute TV programming formats. These trends give marketers new opportunities to tell their brand story with the power of video. But different consumption patterns in different generations mean that marketers must break the habit of planning against broad 18-to-49 or 25-to-54 age cohorts.