[opendtv] Re: Forbes: 5 Online Video Trends To Look For In 2015
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 17 Dec 2014 09:55:04 -0500
On Dec 16, 2014, at 9:27 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> This excerpt:
>
> "Each year, more and more people are ditching cable and are opting for online
> services like Netflix and Hulu. Naturally, a greater number of companies are
> moving funds away from TV ads, TV production budgets, and TV ad buys - all of
> which provide little to no insight into the viewer. That money will instead
> go to the amazing digital content being produced on a platform where
> marketers can measure everything as well as hit critical demographics like
> Millennials."
>
> only illustrates why TV content needs to make this same migration. It's not
> either/or, it's more like, if you can't beat'em, join'em. The distribution
> pipe is the main difference here, not the type or quality of content, after
> all.
As usual, Bert misses the forrest for the trees. He picked out the least
important paragraph in what is otherwise a VERY INFORMATIVE article.
As I have been discussing for months, the tradition "shot gun," mass market ad
supported TV business model is what is really being challenged. The ability to
deliver large audiences for live streams of pre-produced programming is dying.
This paragraph from the article nails it:
> Agencies will recognize that the likelihood of conversion from a mass market
> distribution strategy is remote. As brands shift their focus to moving
> shoppers through a purchase journey where they have a closer relationship
> with the viewer, they'll realize guiding customers towards a distribution
> strategy that is more targeted and more personalized will more likely lead to
> conversions.
Now let's try to explain this to Bert.
It DOES NOT mean that ad supported programming is dying. The reality is that
live event TV will continue to be the home for the mass market distribution
strategy, based on poorly targeted shot gun advertising. But advertising money
is moving from network live streams to VOD services, where the audience can be
accurately measured, and advertisers can deliver ads that are more targeted and
personalized.
Bert tells us that the distribution pipe is the difference here - he is
ABSOLUTELY correct!
It is very difficult to measure the audience for FOTA broadcasts and the MVPDs
have limited ability to measure who is watching their live streams. With OTT
streaming it is possible to capture all kinds of data that is valuable to both
content creators and advertisers, hence this bullet point on the Forbes list.
> 1. Mobile will matter more than ever
> 2015 is going to be a great year to put fantastic mobile-centric, and
> mobile-inclusive innovative Web ideas in front of your brands, as well as run
> targeted mobile ads, and collect and analyze user interactions from all types
> of mobile devices.
>
> 2. Marketing automation will make videos smarter
> businesses will take marketing automation a step further this year by
> integrating their marketing automation systems (MAS) with their video
> content.
This is an area of technology development that I have not paid much attention
to. But it is the natural corollary to VOD - servers automate the delivery of
TV content streams from large content libraries; servers driven by data
analytics can automate the marketing component of many brands. Not just
inserting targeted ads into the TV content, but coordinating impressions across
multiple media delivered via the Internet - e.g. Google style display ads,
direct e-mail campaigns, coupons and other promotions.
> 3. Less focus on mass marketing, more on targeted marketing
> agencies will start really thinking through the difference in value between a
> mass market and a target market strategy in 2015.
>
> 4. It's all about original and premium digital video programming
>
> Three out of four brand marketers and advertising agency executives said they
> expect original digital video programming to be as important as TV
> programming within the next three to five years.
> That money will instead go to the amazing digital content being produced on a
> platform where marketers can measure everything as well as hit critical
> demographics like Millennials.
In other words, more competition for eyeballs, with an eye toward marketing
automation. This is aimed straight at the Millennials.
> 5. From the "Great Unwatched" to the Conversion Driver
>
> The U.S. is watching more videos online than ever before (38.2 billion videos
> in Q2 2014 alone - an increase of 43% over last year). However, the
> percentage of viewers who actually watch an entire video to its completion is
> low, and poor engagement and low conversion is a common - and expensive -
> problem. As video budgets continue to grow, so will the scrutiny from
> executives to ensure they are getting their money's worth. And with the way
> traditional linear video is going, execs won't be happy in 2015.
In other words, the technology behind marketing automation is one of the major
challenges in moving content consumption from the old linear streaming model to
the consumption on demand model. Delivering the video streams us the easy part.
Regards
Craig
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