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I thought the last post would sum up the connection that seems obvious between TV and mobile. With all of the recent press from companies like AT&T AdWorks TV Blueprint (see: http://www.broadcastingcable.com/news/currency/att-adworks-broadens-tv-blueprint/132774) tying mobile usage data (anonymous, of course) together with TV viewing data from U-Verse set tops (anonymous, of course), it’s more likely that the conversation is just getting started. So, let’s start. Applause to AT&T AdWorks. What they are doing is quite creative – leveraging cross screen usage data to inform pay TV media planning should help provide better planning when contemplating geography or device usage patterns for brands buying TV.
What still exists for brands, however, and is exacerbated by the exact devices from which AT&T’s TV planning data is being culled, is that the audience no longer watches video just on pay TV alone, or on mobile devices alone. The audience picks and chooses which content to view on-demand (and often live/linear) from OTT content providers side-by-side with pay TV content providers, on devices ranging from Roku boxes to XBoxes. And smartphones and tablets. And yes, pay TV’s, DVR streams, video-on-demand (which finally has dynamic ad insertion at some scale) and TV Everywhere apps (which sometimes have normal TV ad loads and sometimes repeat ads over and over, more like online video), fit into this on-demand revolution, too. But for the brand, how do they access this inventory? How does their agency or a trading desk create reach when an audience is platform agnostic, but media buying and creative asset deliver is not?
Well, that is what JamLoop’s Big Video Marketplace helps to solve. At its core, we’re creating a marketplace for accomplishing TV like scale across consumer purchased connected devices in a programmatic or managed buying environment. Read more about our Big Video Marketplace – or better – just contact us today to learn more.
More about the linear TV spend: if 95% of your TV budget still goes to linear TV buys, then while there is no denying that you have made it easy on yourself to deliver a message at scale, you must also accept that that message is not being heard and seen by the TV channel audience like to used to. It’s being skipped over with a DVR remote control (a subscription service, lest you forget), or even being avoided entirely by watching the content a season behind schedule, commercial-free, from a streaming subscription service on a connected TV device. To reach that premium video consuming audience, brands need to keep moving budget to streaming, out of linear premium content where the total time spent viewing (and total hours viewed) are decreasing from fewer subscribers, and more options. Even the linear MVPDs understand this – hence Xfinity, X1, DirectTV trying to buy Hulu. And the networks do, too…hence Hulu being pulled off the table.
But if you combine all of the IP connected devices into a single channel (mobile + connected TV), with video as the predominant ad format for that channel, and you leverage big data to find audiences across that channel, so that you can deliver video advertising to devices at scale and to a high value audience that can be finitely measured (without violating any personally identifiable information), then you are not wasting anything in your media spend. You are only paying for exactly what is delivered. And with optimization, you can drive down your effective cost by participating in network and exchange inventory. All while reaching the exact audience you reach spending in digital desktop and linear TV – because they’ve moved on. You need to move on, too.
And so, if you are a brand advertiser, and you treat mobile as one channel and video or even TV as another, you are definitely missing your audience (that is quickly moving to an always on-demand, delivered over an IP network to a personally owned device type of experience). You are back to wasting an ever growing portion of your ad spend, and you should actually know this time which half. You are definitely wasting the digital budget that is still going primarily trying to find desktop audiences. Most publishers, retailers, and major media content owners that have invested to reach a range of devices see upwards of 40-60% of their desktop traffic having already moved over to smartphones and tablets, whether in-app or mobile web traffic. So, that same amount of your digital spend should move, accordingly, to those mobile devices as a channel. But to really perform in cross device advertising, you can not stop at mobile. You need to leverage your 30 second TV spot and deliver that big brand impact to the big screen – and connected TV allows that to happen while using the same tracking and targeting you used in mobile. That’s not to say you should forget about display and rich media on devices. Because those formats matter, and can be leveraged to work in coordination with video campaigns by taking device usage context into account.
Recognized as one of the Top 10 Entrepreneurs in the Greater Folsom/Sacramento region (co-founder Peter Ansel resides in Fair Oaks), JamLoop is pleased to present a bit about itself and the connected device advertising ecosystem at the Future of Folsom 2014 event at Folsom Lake College on May 29.
What’s so interesting about combining mobile and connected TV as a consolidated marketing channel? Besides that fact that the technical challenges to find audiences are actually quite similar (no support of cookies, fragmented platforms, multiple interested parties), it is that big TV’s ad budget is not currently focused on an IP delivered path, at all. It is sitting on linear, the world of QAM networks and broadcast buys. But as TVE apps and new quality streaming services continue to gain popularity, that budget is also going to move to on-demand viewing, supported by dynamic ad insertion. And mobile’s ad budget is coming from the digital spend – namely a shift away from desktop dollars where content consumer are picking up tablets, smartphones and phablets instead of laptops and PCs.
For brands that are evaluating the fluid state of available advertising inventory, this mash-up of two different business models, with dollars coming from linear and desktop budgets to fund mobile and connected TV, is most apparent in the video format. And that’s a good thing, because video advertising in the linear TV channel still captures the largest share of brand advertising budgets. (And for major live events, that will continue in the future.) Mobile + Connected TV is the real convergence, a massive mash-up that is even reflected in the measurement of media, with Nielsen and Facebook partnering to create new performance indices.
Leif Welch, to be interviewed live today on talking about our solution that helps advertisers reach targeted audiences across screens. We combine real time Liquid Inventory with Ad Cloud IQ powered audience segments to provide scale of affinity based targeted audiences, on phones, tablets, phablets, connected TVs…..
Details are here: http://finance.yahoo.com/news/ceo-leif-welch-jamloop-interviewed-150229594.html
Date: Wed, April 30, 2014
Start Time: 11:30am PDT | 12:30pm MDT | 2:30pm EDT (U.S.)
Network: Clear Channel
Station: DFW 1190AM KFXR
Show: The Traders Network
Host: Michael Yorba
Live iHeart Radio Stream: http://www.iheart.com/live/4276/?autoplay=true
While we’ve been Tweeting interesting articles that emphasis the main tenets of JamLoop’s business lately (and we particularly like this one from Chantal Tode of Mobile Marketer) http://www.mobilemarketer.com/cms/trackback/16003-1 we’ve been remiss in keeping the blog updated. So, here we go.
Audiences are shifting their habits, consuming media on a range of IP connected devices. The primary devices for new media consumption today are still smartphones and tablets. Smartphones are action-oriented devices with usage around localized search, social, short form video, casual games and the like. Smartphones define the “mobile” marketing channel. Tablets are mobile, of course. Then the next day, they are not mobile.
When the tablet is at home as a replacement for a cable set top box, it is not mobile. It’s a connected TV. And connected TV devices like Roku, Apple TV, Smart TVs, TiVo and even the game consoles are delivering on-demand streaming services that compete for time spent viewing against traditional TV’s linear and on-demand services. Add on the availability of more and more TV Everywhere apps now reaching all types of devices from the content owner, directly, and the complete eventual shift away from tune-in TV, newspapers, and broadcast delivered content is all but assured. This shift is significant to JamLoop because we have deep domain expertise across both of those channels – mobile and connected TV (with the tablet in the middle). And our solution is purpose built to find audiences on those devices and then optimize media to get that audience.
TO BE CONTINUED….
Following up on the last post regarding the state of TV, this posting will be brief but direct.
Cord cutting (ending a pay TV subscription) might not be too damaging to the Comcast’s of the world today, but the trend going forward is alarming as young TV households (under 35 years old) are going to streaming and OTA as pay TV replacements. As (or if) the economy improves, it is unclear that this youth movement will mature into the typical payTV couch potato consumer, and fork over that extra $ for managed pay TV services.
From Colin Dixon at nScreenMedia, “…the primary reason for pay-TV customers cutting the cord is economic, not to replace the service with online….For pay-TV, the biggest challenge is justifying to the young why pay-TV is worth the high monthly subscription cost.”
While the discussion at nScreenMedia is primarily about OTA, the reason it matters for JamLoop is that it again reinforces the need for both local TV broadcasters to get on devices, as well as for advertisers media budgets to shift now, too
Read more from Colin at:
The Local Broadcaster Squeeze Play?
Broadcasting is moving into the device age where IP connected devices are fragmenting the local audience and local advertisers continue shifting budget to digital advertising platforms. New consumer services like Simple.TV, Dyle and Aereo stand to erode national GRP and cut off retransmission fees.
National broadcasters act more like cable networks, seeking larger retransmission fees from MVPDs, and larger content licensing from affiliate/distributors. And nationals will be on connected devices, participating in TV Everywhere to earn more MVPD fees. Your local broadcast brand may get a logo in the national’s TV Everywhere app for live broadcasts, if the national carries all the effort and brings the local along. Your local broadcast On Demand content may not be part of those TV Everywhere services.
Local needs to be as strong in On Demand as it is in Live. Consumers are changing their viewing behavior away from TV by Appointment. Are you getting your local broadcast brand and content to the devices that are capturing the behavior shift, and in the On Demand format that consumers want?
Local content needs to be autonomous, independent of any one device, but compatible with all. And the businesses that prosper in this age will be the ones that adopt a platform agnostic strategy, breaking down platform silos, and getting their content in front of ALL of audience.
Cord cutting has helped over the air digital antenna growth of late fueled also because of supplemental content available from Netflix online that when used together with OTA, provides a semblance of a full pay TV service.. But as the economy improves, and “cord nevers” grow up, will OTA sustain that growth? And if OTA forces a loss of retransmission fees, inherently, can local make it up WITHOUT getting more content to more screens?
Data shows that a majority of connected TV viewers decrease Live TV viewing. Connected TV is an On Demand dominated experience today.
Connected TV already in use in 25% of US TV households – and growing to > 50% market usage by 2016. Will OTA keep pace? And as market penetration of Connected TV grows, Live Viewing will decrease.
Either way – local broadcasters need to be on all connected device types with their best leading content – video. They need to push out their local brand within the constricts of TVE and also outside of the payTV eco-system (going over the top on their own). They need to become adept at being a video on demand solution, combining with always available viewing with their live/linear/local uniqueness.