The rise of on-demand streaming services has completely disrupted the television industry and the way in which content is consumed. Platforms like Netflix and ITV Player are shifting the balance of power towards the consumer, who will become increasingly spoilt for choice in 2019 when Apple, Disney and Warner Media launch their on-demand streaming services.
Traditional TV advertising becomes less effective in this rapidly-evolving market because advertisers can’t rely on a predictable captive audience that tunes in at a specific time to watch a particular show anymore.
Instead, there’s a new generation of television audiences that can watch their favourite shows at anytime, anywhere, from a variety of devices. In fact, Sky recently revealed the number of connected devices per home has doubled in the past year.
Despite this surge in online content popularity, TV is still regarded as the safest and most profitable form of advertising in the UK, generating 71% of advertising profit. But this traditional platform is reforming, pressuring advertisers to find new ways of bridging the gap between traditional and online platforms to remain relevant.
The answer lies in advanced TV advertising, where personalised ads are shown to different people who are watching the exact same content from separate devices, at varying times. Advanced TV advertising presents an exciting venture for marketers, who can offer their target audiences relevant and personalised content in a creative and flexible manner.
This results in considerably improved insights and ROI measurement data (ie engagement, brand lift and conversions). This granular type of attribution enables marketers to understand the performance of their advertisement in more detail than ever before.
Is the local market prepared?
The UK traditionally falls behind the US, the global market leader in advanced television advertising and omnichannel user experience. However local players are working to catch up.
Sky plans to sell ads programmatically in its video on demand (VoD) platform and in its addressable AdSmart platform, with similar plans for its future linear broadcasts. Additionally, following a recent deal with Virgin Media, the broadcaster will offer a potential addressable audience of up to 30 million people in the UK and Ireland within the next year.
Like any nascent technology, marketers will encounter challenges arising from this rich new data. It’s important they get the most out of their campaigns by ensuring they treat consumers like individuals, with customised messages delivered from anywhere in a privacy-conscious manner. All siloed data should be connected to see omnichannel consumer journeys at the person level, enabling optimised targeting and more accurate results measurement.
With the £5bn UK television advertising market set to grow in 2019, marketers must prepare for advanced TV advertising to propel them to the next level of true omnichannel experience and stake their claim in this new era.
Richard Foster is UK managing director of LiveRamp