Wired Cable Television

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1 Media Comparisons

2 Ad-Supported Television Wired Cable Television Broad reach; aggregates mass audience quickly $45 Billion programming investment Ability to drive website traffic & generate sales Premium, professional, quality video content Content lives across all video screens Programming generates buzz, excitement and social conversations Ads are an accepted part of the TV experience Video-on-Demand to catch up on programs Wide scale use of set top box data and advanced analytics (i.e., addressability) Further roll out of VOD dynamic ad insertion (DAI) to allow monetization of programming days 4+ Continued consumer adoption of TV Everywhere Programmatic buying Increased TV show library on-demand Soft ratings Ad-skipping Big data targeting capabilities are not at scale Lack of universal, industry accepted cross screen measurement Quality Original content from non-ad-supported outlets (SVOD, Premium Cable, etc) Cord Cutting / Shaving / Nevers Online video Broadcast & cable programming available in adfree environments (e.g. Netflix, Amazon) Further ratings fragmentation

3 Internet (PC / Desktop) High penetration One click away from website / purchase Big data audience / behavioral targeting Re-targeting capabilities Cost efficient Global Brand Awareness Immediate information & news Availability of on-demand video Faster connections, continuing migration to broadband Expanded video/programming offerings Short, Unskippable Ads Live Event streaming Advertising acceptance - seen as too intrusive Fraudulent ad-clicking Lack of brand control limited guarantees that ad won t be placed in or near inappropriate content Unreliable measurement many deals done on unaudited 1 st party data Reach limited; Expensive to build a large audience Brand building Low viewability standards / Ad-skipping AD-Blocking Technology Privacy issues Malvertising Further mobile migration Increased quality in terms of both content & technology

4 Mobile Radio Consumer behavior has shifted to an always connected lifestyle Highly interactive / personal Location-based/geographic targeting Directly drives to website / re-targeting capabilities On the go method of advertising In-app advertising Availability of on-demand video Increase in smartphone ownership enables more video ad impressions to be delivered Ability to track consumer behavior / purchases Faster operating systems - better ad environment Bigger screens = more ad space Advertising Alerts Advertising acceptance seen as too intrusive Limited message length / size of ad Accidental click thru increases cost but not exposure Fraudulent ad-clicking Unreliable measurement many deals done on unaudited 1 st party data Low viewability standards Ad-skipping AD-Blocking Technology Privacy issues Malvertising

5 Radio Social Promotes Interaction on a 1:1 and 1:100 scale Behavioral / interest targeting Enables brand / product advocacy / fosters community Encourages engagement/action from user Consistent message scheduling to build brand stories Ease of storytelling / Ability to push different content Couponing / Offers Relevancy / Join at the moment conversations Gear advertising towards location / behavior Expand video advertising Deeper brand engagements/ conversations Ads are seen as intrusive Limited creative flexibility Context & content control Ads may be missed by rapidness of postings Viewer easily loses attention Length of ads are typically short Ad fraud Auto-plays regularly counted as video views Skipping ads Backlash against more established platforms due to increase in advertising young demo embrace new cooler, non-ad-supported platform Damaging posts or communications that aren t on brand message

6 Magazines Target specific, niche audiences Ads can be reviewed / studied at readers leisure Portable, on the go advertising Reader engagement and acceptance of advertising Subscription based Many well known, trusted brands Digital extension of print brand Distribution of printed version on mobile devices Monetization of digital extensions Branded event partnerships Declining readership Non-intrusive reader can ignore ad Long audience cume - takes time to build reach Clutter Stagnant advertising Lack of immediacy content can feel dated Measurement lacks the detailed metrics of other media Digital brands Transition to digital / online Ad/edit imbalance

7 Newspapers Instant impact and reach Ad targeting by Region Price shopping / coupons Brand generally trusted by readers Hyper local reporting & coverage Online companion websites Mobile / Tablet apps Declining circulations High out of pocket to achieve national reach Readers rarely look at all sections Reaches specific demographic (50+) Visual only, non-intrusive, inferior production quality Delayed news cycle for printed version Monetization of online / app extensions Further localization potential Alternate, more immediate news sources: 24/7 Cable news, Internet sites Consumer shift towards less traditional news sources(i.e. twitter, buzzfeed) Cost of production

8 Radio High reach Demographic and geographic targeting High frequency Low out of pocket pricing Mobility; on the go advertising Low production costs Promotions, community tie-ins Timely localization news (weather, traffic, etc) HD Radio Podcasting Partner with itunes Connected Car evolution Declining ratings / time spent listening High commercial clutter with long pods Audience is passively listening Fragmented Advertising is easily ignored or skipped Satellite Radio itunes / digital download of music Online radio stations (i.e. Pandora) Smart cars with online radio apps Online news sources

9 OOH (Out of of Home Home) Broad reach Ability to target specific locations Large units can make a strong impact All day, all week exposure Cost efficient by unit High frequency Offers both branding and/or directional Short exposure time (4-8 seconds) Limited message capability True mass media no exact demo targeting Questionable measurement Creative can be vandalized or easily damaged High out of pocket for national coverage Audience is disengaged Almost unlimited new venues possibilities (i.e. elevators, bathrooms, etc) Creative beyond a billboard video capabilities Dayparting with digital out-of-home Governmental / Environmental regulations Mobile is it the new out of home? Weather

10 Direct Direct Mail Mail (Printed) Targeting by location, personal interest, buying habits Unlimited message length Coupon offerings Relatively easy to track response Low cost per thousand Re-targeting of purchasers Provides brand loyalty materials / community updates Better mailing list companies: list services are getting better at tracking address changes, etc. Better targeting through digital side learnings from customers Non-intrusive could be thrown away unlooked at or unopened Only as good as your mailing list Typically less than 0.2% response rate Production costs can be high depending on size of piece Do not mail list Internet / Increased cost of materials / production Lack of reliability of the post office / potential for less days (i.e. no Saturday delivery) Timeliness of offer messaging in relation to other communication means

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