[opendtv] Re: TV Ad Spending Drops in October | Broadcasting & Cable
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 6 Dec 2014 10:40:47 -0500
On Dec 5, 2014, at 9:49 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
> It seems to me that this is just advertisers holding on to old ideas. It's
> high time for a paradigm shift.
On this we can agree. But those old ideas still work - shotgun advertising
works. The real issue is its value relative to other forms of advertising. For
decades the broadcast networks have pushed up the cost per thousand viewers
even as the size of the live audience has declined; it appears that this too
has hit the saturation point.
Significant money is moving to the Internet and more targeted forms of
advertising. There is no question that the Internet offers something close to
"nirvana" for advertisers - direct audience measurement and the ability to
target ads to individuals/homes.
Google has built a huge business selling ads based on our search behavior, and
advertisers love targeting "real"potential buyers. But Google does not know - I
hope - if I actually bought something I was searching for. Thus I see targeted
display ads -sometimes for weeks - after I bought the product.
However, IMHO, the most effective use of shotgun advertising is to make
consumers aware of a product or service. This is why we see unknown start-ups
spend millions on a Super Bowl ad. Sustaining branding type ads - like for
Coors and Budwiser - are far less effective - you would think these folks would
wake up too.
Content is just one convenient container for ads - the other side of this coin
is that consumers are now paying real money to avoid ads ala Netflix. More
important, the technology available to advertisers, like the Internet itself,
is still in its infancy. Much of what we discuss here is the normal "testing"
of new technologies, even as the entrenched industries exploit the legacy
models they understand.
> And, since I'm one who watches ads from Internet TV streams all the time, I
> honestly cannot understand this legacy thinking. It makes no difference
> whether the ad is viewed live or VOD, and ads inserted into on demand content
> can also be adjusted to "work well" when they are viewed, if it comes to that.
In general I agree. There are issues with the relevance of an ad that is time
sensitive. Then again most advertising is opportunistic - only a small
percentage of the people who see it are actually in the market for what is
being advertised. This is why our mail boxes are filled with junk mail, despite
the fact that the response rates are typically in the low single digits.
> Plus, cord cutters and cord shavers constitute lost ad revenues. It makes no
> sense to pretend only live stream ads matter.
How can you conclude that YOU are contributing to lost ad revenues? You just
stated that you watch ads from Internet stress all the time, and Neilsen is now
measuring people like you.
What is important about ads in live streams is that the viewer made an
appointment to watch the program, and is less likely to avoid the ads.
Regards
Craig
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