Photo: Steve Kovach, Business Insider
There has been a lot of talk over the last year about the shifting landscape of TV. The introduction of TVEverywhere and a la carte cable models has been accompanied by a groundswell of support for consumer choice programming.
This has raised questions about how revenue models for cable and network television will be impacted. The success of Hulu, Netflix, Amazon and HBOGO have proven that consumers nationwide want direct access to premium programming and unbundled cable subscriptions customised to their tastes and time preferences.
As everyone knows, the Consumer Electronics Show (CES) kicks off in Las Vegas today, and with it comes the unveiling of a multitude of new devices and applications that offer new ways for consumers to connect and consume all forms of media, including movies, radio, TV, pictures, social and more.
The devices that will further catapult Hulu, Netflix, Amazon and other new media outlets include Tivo, Roku, AppleTV, xBox as well as new offerings from Samsung, LG and Sony. These devices will be introduced at CES, and they are all Internet connected.
Given that the latter three companies currently represent 47% of television sales in the U.S., their new products will drive enormous adoption and choice to the consumer. Additionally, the introduction of new uber local news services, like ClipSyndicate on the Roku, will make cord cutting easier and more practical.
This, combined with the consumer demand for a la cart services, will put serious pressure on the cable companies who will soon in turn suffer from both subscriber losses and increased usage of fixed price bandwidth.
The pervasive nature of these connected devices presents a great opportunity for publishers to develop and maintain multiple touch points with the consumer and the opportunity to reach them in the living room, kitchen, bedroom or on-the-go, providing unique opportunities to capture significant revenues.
However, the fragmentation of device types means that marketers who want to be associated with this great content need to rethink their creative strategies and how they measure success across screens.
I predict that within 18 months we will see widespread adoption of connected devices, usage spikes in streaming media and that IpTV related ad revenues will leapfrog the online video sites going straight to the programmers on connected TVs (and devices).
So as sellers and buyers of media –and of video in particular — we need to focus on the following: creating new metrics for measuring cross-device exposures; engaging consumers within the ad execution through excellent creative; and above all else, seizing the opportunity that video advertising provides, to ensure the brand gets exclusive, targeted exposure to audiences without the clutter and competition for attention that exists in other mediums.
The views expressed here reflect the views of the author alone, and do not necessarily reflect the views of 24/7 Real Media, its affiliates, subsidiaries or its parent company, WPP plc.
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