TV Ownership Decline means Marketing Opportunities Rise

by Michael Hubbard on May 20, 2011

in Media

The article “TV ownership is shrinking but marketing opportunities are on the rise” originally was authored for The Media Briefing by CEO Michael Hubbard on May 17, 2011 and is now being reproduced below for our readers:

For two decades, Americans found a reason to stock more and more of their households with TVs. According to Nielsen, that streak has finally ended – 96.7 percent of American households currently own a TV set, down from last year’s 98.9 percent.

Many reasons have been suggested for this, not least the troubled economy, but there is no denying that online TV viewing is playing a significant role. Marketing experts have been trying to discover since the late 1990s how many different screens consumers will interact with in an effort to best expand their brand reach. Is it now safe to say that “one” might be the answer?

Digital TV boom

The downward trend of TV ownership does not spell the end of the entertainment industry, as evidenced by the likes of Hulu,Google TV and now the recent announcement by Netflix that it has inked a multi-year deal with Miramax to stream hundreds of iconic films beginning in June. Rather, it is starting to formulate a road-map for future development in the advertising industry. What once needed to translate from the silver screen to the pixelated web now needs to begin and end in a browser test.

Digital TV advertising opps

With a mainstream audience now showing signs of defection to the web, the opportunities will become limitless. Imagine product placements that can be clicked on and ordered on the spot. Imagine breaks in the movie that allow social media followers to dictate the ending (Choose Your Own Adventure books for the millennial generation).

Imagine interactive TV that places you into your favorite show via your laptop webcam on live TV. For now, we’ll still focus on the 30-second spot, but just know there is more coming, and brand marketers, agencies and consumers alike should start dreaming big.

TV media buying

How the media space is purchased is evolving just as quickly as the medium we’re watching it on. As the online media buying space is developing to real-time bidding (RTB) through exchanges, trading desks and DSPs (demand-side platforms) our traditional TV spots are also being digitised. Imagine not having to call up all of the local market reps for your targeted spot TV – rather, you can simply log onto a website and with a click of a mouse, upload your 30-second spot and select your marketplace and audience.

Below are a number of sites that can already do that, and better yet, they can start tying into your analytics to determine the interaction between your once offline commercial to your online website:

– Google TV ads: Purchased just like you are buying keywords on the popular search engine, you can now target up to 30 million US Households across more than 100 TV networks including ESPN, TNT, CNN and more.

– Microsoft Admira: The Microsoft Advertising TV Network allows you to audience target across more than 20 top-tier national cable networks.

– Spot Runner. A technology company that offers local TV campaigns through an online advertising platform.

As the innovation of TV continues through viewership, creation and purchasing of the media space, one thing is for sure: the entertainment industry is not tuning out; rather it is reinventing itself to fit the new digital era. This new reinvention will surely give way to new marketing innovations just as quickly as it can be consumed.


Similar Posts

No related posts.

{ 1 comment… read it below or add one }

Morgan Siem May 20, 2011 at 12:24 pm

To me it seems like a logical step to watch TV through the Internet. As long as I’m staring at a screen, why should I be paying for separate services to deliver the content? I’ve been happily without cable for years now and still have more than enough in my queue with what’s available on Hulu & Netflix. What’s cool about Hulu advertising is that they’re constantly seeking viewer feedback. Every time they serve me an ad, they ask me if it was relevant to me. They also let me select my “ad experience” at the beginning of a show, except that it’s usually three offers for the same brand… eh. Expect a much higher success rate with ads being relevant on Hulu rather than on TV, because the advertiser has access to my entire profile…age, gender, location, favorite shows, etc.


Leave a Comment

Want to add a picture to your comments here on Media Two Point {OH}? Upload your picture at Gravatar to make it happen.

Your comment may be nofollow free.

Previous post:

Next post: