EXPERTS PREDICT HOW TV WILL EVOLVE FOR ADVERTISERS IN 2019

11. 12. 2018 | 8 min read The year 2019 is almost upon us. ExchangeWire have invited hundreds of thought leaders to share their thoughts on what next year will hold, across a range of topics. Following what could be termed as one of the most interesting years in the connected TV space since its inception, thought leaders from across the industry share how they think 2019 will push the opportunities even further for brands to effectively target consumers across TV.

WHY TV AND DIGITAL ARE THE PERFECT COUPLE

10. 12. 2018 | 4 min read What plays together, stays together. As advertisers and media buyers have flocked to digital advertising, something unfortunate happened: Television advertising, the medium that has always delivered a loyal, attentive audience—and has always been a master brand storyteller—began to get pushed aside for younger, “hipper” alternatives.

THIS IS WHAT ADVERTISING TRANSFORMATION LOOKS LIKE, SAYS NBCU AS IT OUTLINES ITS 2019 ROADMAP

27. 11. 2018 | 4 min read Linda Yaccarino, Chairman, Advertising and Client Partnerships at NBC Universal, has been outlining the company’s change vision for the year ahead, and re-iterating her determination that one of the world’s most important media companies will not settle for the status-quo and intends to ‘set the new standard’ for what ad-supported TV means for both consumers and marketers.

MARK RITSON: THE MEDIA BATTLE OF THE DECADE WILL BE FOUGHT FOR THE TV SCREEN

3. 10. 2018 | 5 min read Mark Ritson, the Australian university professor and marketing expert, started his European tour in Prague on Monday. He delivered a presentation to the representatives of clients, media agencies and the TV market. His speech ranks among the most interesting presentations on the local marketing scene in the last few years. Ritson came to Prague at the invitation of the Association of Commercial Television (AKTV), which continues its activities, inviting to Prague renowned representatives of the current marketing industry, predominantly those with a foreign university background. Initially, Mark Ritson provided a summary of the development of ad investments in media types in the recent 50 years using data from Morgan Stanley. He demonstrated that the last decade was significantly affected by the growth in digital media with the milestones being the years 2000 when Google started selling advertisements in its search engine and 2007 when advertisements were posted on Facebook. In Ritson’s opinion, the growth in the digital media had a negative impact namely on print media while radio and outdoor advertising was not affected too much by the onset of Google, Facebook and other digital platforms. That is because radio and OOH are more digital media today. Outdoor carriers are digitalised and more than half of radio broadcasting in the UK is delivered through digital platforms – DAB, applications and the Internet. (Editor’s note: This statement does not apply to the Czech radio where listening through FM still prevails.) As opposed to the above-mentioned media types, TV has not been impacted by the growth in the digital media and has succeeded in increasing ad investments despite the general perception that the days of TV are numbered. “In the media history, there has never been so much nonsense that would be so far from the truth. TV is not dying but the myth is spreading all over the world,” noted Ritson. The fact that big tech companies use TV advertising for communication and increase their investments in TV should be taken as evidence of the TV medium’s effectiveness. Ritson considers TV investments to be a goal pursued by digital players (represented namely by the Google/Facebook duopoly that accounts for 85% of all digital investments as estimated by Group M). “There is just one place that digital may use to grow – TV. It is a battle between digital and TV,” described Ritson. Technology firms will strive to attack TV ad budgets but the ‘battle of the decade’ will be fought for the TV screen according to Ritson. Or more precisely, for the ‘connected TV screen’, which he sees as the key medium. “I am not saying that TV companies are going to win but this is the playfield where the game will be played and that will be fought for. Digital firms will undoubtedly seek to get there,” he forecasts. But he is not talking about the form of TV broadcasting of ten years ago. In order to succeed in the competition, the existing TV companies must change – and go digital. With respect to the size of the Czech market, Ritson mentioned in the subsequent discussion that most probably, it will only be possible to face the global internet giants through cooperation with international TV players or associations. "The last decade was affected by the digital duopoly, completely devastating newspapers and taking most of their money. The next decade will offer a different battle. Digital firms will go after TV." says Mark Ritson. According to Ritson, the existing marketing mindset overestimates the effect of digital media. Although growing in recent years, mobile video is not the critical medium of future in his opinion. “Mobile video is small, we watch it occasionally when we have no access to a large screen,” he described. As indicated by the data of extensive research projects of BARB, ComScore or IPA Touchpoints, more than two thirds (71%) of all videos watched continue to be viewed on TV screens (live TV) and even millennials watch nearly half of video content on TV screens (47%). TV’s impact on advertising video content is expected to be even more significant with the majority of ad spots (90%) being watched on a TV screen. The times we are living in, which are referred to as the post-factual era, are to blame for the facts about media channel effectiveness being overlooked. Some of the guilt is also attributable to how media consumption development is perceived by marketers or agencies that tend to project their own media consumption methods to all consumers. The result is that while the data of Ebiquity’s Re-evaluating Media study demonstrate that traditional channels (TV, radio, newspapers, magazines) have the strongest effect on brand-building (in attributes such as reach, targeting, ROI, etc.), the marketer and agency community overestimates the effect of social media and online video. “It is a conflict between perception and reality,” noted Ritson. In order to achieve the highest communication effect, Mark Ritson recommends to integrate multiple media channels. TV is a medium that can still derive the largest reach from individual media carriers (in the Czech population, TV is watched weekly and monthly by 90% and 96% of people, respectively). Digital media also play an important role; however, Ritson thinks that their importance is exaggerated and investments in them are excessive. In conclusion, he also mentioned Les Binet’s opinion. In the last AKTV meeting in Prague, Binet spoke about the primary effect of reach on brand growth, about the importance of share of voice and the need to work on a long-term brand building. (You can read a summary of Binet’s presentation here). Mark Ritson recommended The Long and the Short of It written by Les Binet and Peter Field as one of the key marketing publications that would have an impact on communication planning in the near future. Source: mediaguru.cz

AUDIENCES ARE LEADING THE LEAN-BACK MEDIA REVOLUTION. WHERE ARE THE ADVERTISERS?

3. 10. 2018 | 4 min read Let's set the scene. The 1950s. A boom in affordable TV sets causes an increase in the number of small screens in homes across the United States. Families flock to their living rooms to watch new programming. With this boom comes the dawn of new advertising, as marketers can now directly reach consumers through TV program sponsorships, commercials and more.

THE NEW LIVING ROOM: TAKING ADVANTAGE OF THE BIG SCREEN

3. 10. 2018 | 5 min read Headlines would suggest that TV is dead, or at least is enduring a slow death.

TV ADVERTISING ISN’T DEAD, IT’S EVOLVING

26. 9. 2018 | 7 min read The back-to-school season this year was also the back-to-TV season for department stores. The top brands in the category spent $247.8 million from July 1 to Aug. 31, according to iSpot. That’s a 9.3% jump over the same period last year.

THE FUTURE OF TV IS NOW (OR NEVER)

5. 9. 2018 | 4 min read From cord cutting, shaving and cord nevers to addressability, dynamic ad insertion and increasingly ad free experiences, the ad environment is more dynamic and complex than ever before. And now—right now—we are at a critical inflection point. This can either signal an industry renaissance marked by more relevant ads (fueled by rich data) or it could be the industry's death knell.

HERE’S WHY TV IS STILL THE MOST POWERFUL AD MEDIUM

28. 8. 2018 | 4 min read As the media landscape has fragmented with the emergence of new advertising mediums, the television has had to radically evolve over the past two decades. Due to these changes, many have speculated on the relevance of TV ads in a digital world, and if advertising dollars ought to be reallocated elsewhere. While TV is unrivaled for its sheer, unadulterated reach, the problem has historically been that it’s difficult to measure and optimize its true effectiveness. But that’s all changing.

TV AD SPEND APPEARS TO BOOST DIGITAL KPIS FOR AUTO BRANDS

15. 8. 2018 | 2 min read Automakers that increased TV ad spending in the fourth quarter of 2017 saw a statistically significant boost in digital key performance indicators (KPIs), including unique visitors and search.

THE FUTURE OF TELEVISION IS … MORE TELEVISION

14. 8. 2018 | 5 min read CALL IT JEFFREY Katzenberg’s unicorn newborn. An operating company has come into being, ex nihilo, with the blandest of names—NewTV—and a valuation north of $1 billion. That’s something that has never happened before. Another thing that hasn’t happened before: the very first funding round for the company managed to reach the $1 billion mark. NewTV, then, is no scrappy startup. Rather, it is, from day one, an enormous privately owned corporation, run by a deeply experienced CEO, Meg Whitman, who formerly ran eBay and Hewlett-Packard.

WHY BIG TECH SPENDS BIG ON TV

9. 8. 2018 | 4 min read If you read the trades regularly, there’s a good chance you’ve read that TV is dying. It’s less likely you read that Google, Netflix, and Amazon collectively spent more than $1B on TV advertising in 2017.1

ONLINE BUSINESSES BOOMING ON TV; GLOBAL FIGURES REVEAL THE IMPORTANCE OF TV ADVERTISING TO ONLINE BUSINESSES

14. 6. 2018 | 8 min read Figures from around the world show the extent to which online businesses are now investing in TV advertising, in some countries becoming the biggest investors in TV.

AGREEMENT REACHED ON NEW MEDIA SERVICES DIRECTIVE (AVMSD)

26. 4. 2018 | 4 min read EP negotiators and the Bulgarian Presidency of the Council of the EU agreed on substantial rules for audiovisual media services, including digital platforms, on Thursday evening.</strong

ASSOCIATION OF COMMERCIAL TELEVISION STARTED A DIALOGUE WITH ADVERTISERS AND GOVERNMENT AUTHORITIES IN THE FIRST YEAR OF OPERATION

12. 4. 2018 | 3 min read In the first year of its existence, the Association of Commercial Television (AKTV) set two main goals: to spread awareness among advertisers about television being a key advertising mediatype and to do so through marketing activities as well as to engage in law-making processes with a direct impact on commercial television business. During its first year, AKTV also joined the Chamber of Commerce, where it has been an active member of the Creative Industry Section, and it also became an associate member of the EGTA Association, which brings together television and radio media representatives. The Association of Commercial Television (AKTV) was formed in spring 2017, in response to the growing need to defend and promote the common interests of commercial broadcasters in the Czech Republic. The founding members of the Association are the Nova, Prima and Óčko television networks and the first presidential mandate was headed by Jan Vlček from Nova. As part of its marketing activities, in response to frequent unsubstantiated statements made by global players in online advertising, AKTV focused on direct communication with the most important advertisers in the Czech Republic. In the first year of its existence, AKTV organized two educational seminars for senior management of the largest advertisers as well as for CEOs and marketing directors. The common denominator of both conferences were exceptional foreign speakers and premium and highly relevant content. Les Binet, a renowned expert and an author of marketing books from the adam & eve DDB London agency, gave a lecture at the first conference, and Karen Nelson-Field, an Australian university professor and researcher, presented the results of her latest research, which compares the performance of television and online advertising, at the second conference. AKTV will continue with its activities this year so as to respond to the demand of the advertisers for relevant and undistorted information on the current status of the individual mediatypes and the trends in their use.

EUROPEAN SALES HOUSES URGE LEGISLATORS TO STRIKE THE RIGHT BALANCE IN THE FINAL AVMS DIRECTIVE NEGOTIATIONS

26. 3. 2018 | 3 min read The European Commission’s proposal for a revised Audiovisual Media Services Directive in May 2016 promised to create a fairer environment for all players, to ensure adequate protection for consumers, especially children, to sustain the production of original European content and to introduce more flexibility on the advertising rules for broadcasters. The original proposal was a step in the right direction and was welcomed as such by European sales houses and broadcasters, in particular the flexibility on advertising time as well as the simplification and liberalisation of the rules on sponsorship and product placement. As the trilogue negotiations come to a conclusion, egta members would like to urge decision-makers to keep those initial objectives in mind when agreeing on the final balance of the text. Broadcasters are increasingly concerned at the potential erosion of what was a modest evolution of the rules in the first place. Since the publication of the initial proposal, online advertising sales have been growing steadily and in 2016 became the main media for advertisements on a pan-European level, with €36.8 billion in revenue, surpassing TV advertising (€31.4 billion)1. As things stand, apart from the moderate liberalisation of the advertising time, there will be little to no discernible flexibility in the qualitative advertising rules, the articles on sponsorship and product placement and the other linear specific advertising provisions. We strongly urge the Parliament, Member States and the Commission to take the opportunity of the final trilogue meetings to ensure that this revision process delivers on its original objectives of a competitive, creative and safe European audiovisual landscape. This could be achieved by introducing measures safeguarding broadcasters’ signal integrity, simplifying the rules on product placement and sponsorship as per the Commission proposal, liberalising isolated adverting spots in article 19.2 and ensuring that no further measures adversely impact broadcasters’ current revenue streams. To secure a robust level of consumer protection, a fair environment for business and competition with other actors, all content providers, including video sharing platforms, should also adhere to the basic advertising principles in articles 9, 10 and 11. In a fast-changing market place where all content providers, both online and offline, linear and non-linear, are competing for audience and advertising revenues, qualitative prescriptions should be simplified and harmonised in order to secure a more equal environment, so that the financing of quality content shall be sustainable in the longer term. As noted throughout the studies that informed the Commission’s impact assessment, Europeans have never been presented with more choice of audiovisual content. It is in this context that broadcasters need to secure future proof revenue streams that will allow them to continue offering the content that viewers expect and are interested in. Therefore, the European audiovisual sector needs a regulatory environment that reflects the current market place, provides proportionate and balanced rules and will remain relevant as technological developments occur. We strongly believe that simplification and legal certainty in the AVMSD will match those objectives. egta is the association representing television and radio sales houses that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts 140 members across 40 countries. www.egta.com 1 The EU online advertising market – Update 2017, European Audiovisual Observatory, 2017.

PROFIT ABILITY: THE BUSINESS CASE FOR ADVERTISING

22. 3. 2018 | 17 min read ‘Profit Ability’ has, for the first time, quantified the total profit generated by different forms of advertising in the UK, to show what they deliver to the bottom line. It set out to examine and benchmark all media’s profit-generating performance, with a particular emphasis on uncovering TV advertising’s effects. In brief What emerges is a compelling case for re-thinking how advertising investmZobrazit příspěvekent should be approached and hard evidence of what businesses can trust to deliver growth. Following a profit-damaging drift to short-termism in marketing, ‘Profit Ability’ swings the spotlight back on to creating shareholder value. It provides industry benchmarks, based on empirical evidence across a substantial range of advertisers, for what businesses can expect advertising to deliver. It shows that advertising – TV in particular – should be used as a powerful investment for growth.

CREATIVITY IN ADVERTISING: WHEN IT WORKS AND WHEN IT DOESN’T

9. 3. 2018 | 14 min read Do highly creative ads really inspire people to buy products? Studies have found that creative messages get more attention and lead to positive attitudes about the products, but there’s little evidence linking those messages to purchase behavior. To address this gap, Reinartz and Saffert developed a consumer survey approach that measures perceived creativity along five dimensions—originality, flexibility, elaboration, synthesis, and artistic value—and applied the approach in a study of 437 TV ad campaigns for 90 fast-moving consumer goods brands in Germany. The study then linked the assessments to sales figures for the products.