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FOREIGN NEWS NEWS TRENDS

WHY 2019 WILL BRING A MORE HOLISTIC APPROACH TO TV AND VIDEO

17. 1. 201917. 1. 2019
There’s no denying 2018 was a challenging year all round, with broadcasters, publishers and advertisers putting their energies into General Data Protection Regulation (GDPR) preparations. At the same time on-going fragmentation of TV and video viewing across screens and platforms caused disruption in the market, with major media providers, digital giants and new market entrants all competing for audience time and attention.

But as a new year approaches the mood is more optimistic, with the industry looking to move forward and turn these challenges to its advantage, driving innovation and positive change. Here are three ways the TV and video ecosystem will advance throughout 2019, ultimately moving towards a more collaborative and holistic environment:

Premium video’s position will grow stronger

Premium video actors are seeing the GDPR as an opportunity not only to make smarter use of data, but also to educate advertisers about the real value of their inventory. Premium video meets the five non-negotiables of advertising; a brand safe environment, complete transparency, an engaging experience, trustworthiness through third-party verification, and high-quality reach, meaning that although it may appear more expensive than other formats it is well worth the investment.

Advertisers are beginning to understand they can achieve more with premium video than with other forms of digital advertising and while they may buy less overall inventory in 2019 – particularly less specific content – there will be growing demand for premium video. At the same time, alliances such as EBX for broadcasters will help the sell side reduce complexity, allowing advertisers to buy targeted audiences across multiple media providers rather than doing individual deals.

Addressable TV will make strides across Europe

Addressable TV has already seen success in the US and the UK, and this trend is likely to be replicated across Europe. As it expands, addressable will cause a fundamental shift in the way media is sold – the biggest change since the arrival of programmatic. While there has been a slight decline in the amount of time spent watching TV in the UK, the rest of Europe has enjoyed relatively stable TV consumption, with countries such as France and Germany showing the medium is as powerful as ever for advertisers and will become even more so when audiences can be targeted at household level.

There are practical barriers to implementing addressable TV across Europe – including different technological standards for linear diffusion streams, content consumption favouring certain devices, and different actor types and leaders. But the growing interest in addressable makes it an appealing prospect for every market even with these hurdles to overcome, and ad budgets will start to shift to this new buying opportunity as it brings the efficiency of long-term brand building.

Addressable opens the door for those who would not traditionally use TV or premium video advertising and, over the coming year, small and medium businesses will become the next advertiser segments for addressable TV. The localised linear advertising this enables will radically alter TV buyers’ approach and the industry should be looking towards defining a common language, accepted and used by all as we move into 2019.

Inventory monetisation models will blur

With video consumption continuing to fragment across screens and platforms, broadcasters and publishers need to refocus their approach around return on investment, allowing them to effectively monetise premium content no matter where it appears. Where there used to be two distinct models, ad supported and subscription based, a new hybrid monetisation model is emerging to combine both revenue streams. Data combined with advanced monitoring tools provides the key to this holistic approach, allowing broadcasters and publishers to accurately forecast and measure the lifetime value of content and achieve the perfect mix of revenue.

The year ahead will be an extremely positive one for premium video and the broadcasters and publishers that supply it. Whether it be the formation of media alliances, the growth of addressable or the realisation of hybrid monetisation models, 2019 will bring a more holistic approach to TV and video characterised by collaboration and integration.

Source: v-net.tv
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