Saturday 29 June 2019

Catching The Goldrush: Media Investors Advised to Shift Their TV Investment Online

Image credit: Daily Express

This month, The Trade Desk has sent out a powerful warning that: due to today's rapidly moving media ecosystem, the industry can no longer afford to keep trailing behind important consumer changes. According to Matt Harty, The Trade Desk's SVP in Asia: “The industry needs to move super quickly in moving media investment from waning traditional TV mediums into online, or [else] it will risk opening itself up to hyperinflation” [1].

Well, traditional TV mediums are certainly waning, as both established, and up-and-coming next generation online platforms such as OONA Global TV, which is currently set to serve 185 million Indonesians, and is well on the road to providing its free AVOD, and SVOD service to billions of people in other parts of Asia, the US, South America, Africa, the Middle East, and Europe, take centre stage.

Rethinking Media Investment

Harty also believes that because of the rapid changes in the way consumers watch TV, a complete rethink of media investment is essential. Moreover, he has cautioned that the industry is running against the clock. Speaking at ATS Singapore, he noted that, as: “We have been propelled into this so fast, the only thing slowing us down is the way we are adjusting how we think about media investment. We are going to have to think about re-framing media investment super quickly, because the way we have been investing, is arguably open to hyper inflation” [1].  

 Taking a Realistic Overview

 Although it has to be said that some 56% of the American population watch connected-television (CTV) [1], (CTV uses a broadband internet connection to provide viewers with the type of video content they can get on their computers (including on-demand services), but this content is watched on a conventional TV). 

 Image credit: Multichannel

In 2018, ad spend on conventional television was forecast at $8.2 billion (around 12% of overall TV ad spend that year), if estimates given by Tru Optik are correct. So, Harty's advice is: “I’m not saying throw the baby out with the bath water and convert immediately to programmatic everything, but it is clear programmatic everything, is going to be our future, so we need to think about how that changes the legacy ways of doing things” [1]. Moreover, a report highlighting the transformative effect of CTV platforms on the ad industry, (conducted by Extreme Reach's 2018 Q4 & full year Video Advertising Benchmarks report); and supported by metrics from AdBridge, including its video ad server, provide: “the strongest evidence yet that the migration of media consumption from linear TV to connected devices like Roku and Apple TV, as well as ad-supported streaming services such as [OONA] and Hulu, are enhancing advertisers’ ability to reach and engage audiences [2].

Also speaking at ATS Singapore, Mark Britt, the founder and CEO of Iflix, the successful Malaysian streaming service, put forward the question as to why: “the industry hadn’t collapsed in on itself given the disconnect between ad spend and viewing behaviour” [1]. “We know no one watches [traditional] TV any more...” [1], he proclaimed.
                                                               Image credit: ITChronicles
The Rock n' Roll of Programmatic Advertising

While Harty's remark that: "Different types of tech will suit different companies, and legislation will have some interesting effects on how companies interface with tech,” [1], this type of rock n' roll is definitely here to stay.

“Mobile will continue its dominance, accounting for more than two-thirds of digital ad spending, at $87.06 billion in 2019” [1]

According to data/research firm, eMarketer: this year in the US, spending on digital ads will top conventional ad spend; and by 2023, digital will outperform two-thirds of total media expenditure [3]. Further, “nearly all forms of traditional ad spending will be in decline this year (45.8% in 2019, down from 51.4% in 2018). This includes [traditional] TV, which is expected to drop by 2.2 percent. That drop will bring TV’s ad spending revenue to $70.83 billion [4].

e Marketer also anticipates that now in 2019, America's total digital ad spend will be $129.34 billion. This would mean a growth of 19%, and a whopping 54.2% of the US's predicted total ad spend [3].

Digital is the Only Way Forward For Advertisers 

“83% of marketers now say that video gives them a good ROI, up from 78% twelve months ago” [3]

eMarketer forecasting director Monica Peart, remarked that: “The steady shift of consumer attention to digital platforms has hit an inflection point with advertisers, forcing them to now turn to digital to seek the incremental gains in reach and revenues which are disappearing in traditional media advertising” [3]. Clearly this is right on. One excellent case in point is the global surge towards mobile TV – namely, being able to enjoy fab entertainment on the go. Up and coming OTT digital TV platforms, such as OONA mobile TV, are rapidly shooting towards Mars in terms of popularity, and their superiority to traditional TV. Consumers want OONA's flexibility: to be able to enjoy on-the-go entertainment, as well as TV casting at home; an awesome choice of content over hundreds of top international and local channels; fun interaction; and being rewarded with a virtual currency just for watching the exciting content they love, and the personalised ads that interest them.


OONA Global TV – A Successful Case in Point

For OONA's founder and CEO, leading digital and AI specialist, Christophe Hochart, it is clear that the domestic advertising market is being reshaped by various different trends which are powered by the massive surge in digital tech. For instance: “automated advertising platforms [such as those employed by OONA], are helping to stimulate a boom in digital advertising spending... Meanwhile, dramatic changes in video have shifted many consumers’ programming preferences and viewing behaviours, shattering the traditional media advertising model” [4].

Making Watching Interesting Ads Rewarding


When OONA first came into being, Hochart looked outside the box for workable strategies within the growing advertising ecosystem. He focused on attaining valuable deep data, and a way to attract viewers to watch the ads they are interested in. Being an early supporter of AI and machine learning, one of the unique ideas he came up with, was to create a patented helpful personal assistant named OONAabot (the genie in the OONA app), to ensure that viewers can enjoy content personalisation through: accessing their favourite programs and live content, as well as the kind of helpful ads that interest them, and can save them time and money.

In order to get the right personalised ad fit for each viewer, OONAbot has regular conversations with users so they enjoy relevant, compelling experiences. She continually finds out more about them and their lifestyle, as well as the products and services they use, and are interested in. The latter is vitally important, as it seamlessly amalgamates relevant ad content into the digital consumers' experience. - After all, there is no point in showing ads that viewers will just cut off.

In addition to this, OONA's leverage of deep data generates contextually connected results for targeted consumers based on their personal interests. - And this allows advertisers to take a higher level of control over their campaigns.


A Fun Virtual Currency

In order to have success with OONA's ads, Hochart also devised an ingenious system whereby viewers can accrue loyalty rewards in the form of tcoins. - The latter is a virtual currency which rewards viewers just for watching content and personalised ads; sharing the content they love with friends and family; sharing a referral code on social media; and interacting with OONAbot. These tcoins, which are stored in a virtual wallet, can be exchanged for a broad range of branded goods, meals, fun days out, discounts, free telcom minutes and various telcom products.

So in practice, Hochart has laid the groundwork for ensuring that the data the OONA platform collects, is an effective asset. He notes that: “While there has been an upsurge in data sources, and the means to collect it; for the purpose of actually utilising it to propel the business, we focus on first-class data management in order to achieve the unity, timeliness, and wholeness of consumer data which will drive accurate results. In addition to this, we continually work on applying new patterns so we can integrate the information, and apply new techniques such as machine learning, in order to achieve optimal results. All the tools we utilise involve privacy-complaint methodologies, therefore, consumers' personal data is always safeguarded, and users can have total confidence in us.”

Ultimately, it is highly likely that mobile will remain dominant, and account for over two-thirds of spending on digital ads. Moreover, by 2023, there is a strong chance that digital will outperform two-thirds of total media expenditure. OONA Mobile TV's AI deep behavioural data, as well as the access it provides to real-time data, makes its state-of-the-art platform a magnet for marketers and advertisers who want to back a digital winner.


New Quick Online Sign-Up For OONA Global Channels

OONA is now in the process of launching its OONA platform for Content Owners and TV Channels. - This means that it is super easy to join up right away to take advantage of the new, highly beneficial advantages of working in 100% unison with any of the OONA TV platforms (iOS, android, TV apps, etc.), in the territories where companies would like their channel(s) to be accessible to the millions of OONA TV users. See OONA Channels for more information.

 And check out OONA Advertising for your brand.


References

[1]. Goodfellow, Jessica (2019). “ Industry against the clock in shifting TV investment online.” Campaign.

[2]. Broadband TV News (2019). “193% Growth in Digital Advertising with connected TVs.”

[3]. Clancy, Michelle (2019). “Digital ad spend to exceed traditional budgets in US for first time.” Rapid TV News. https://www.rapidtvnews.com/2019022155206/digital-ad-spend-to-exceed-traditional-budgets-in-us-for-first-time.html#axzz5gFkeLkaU Accessed 28 June, 2019.

[4]. Balderston. Michael (2019). TV Technology. “TV Ad Spending Drops As Digital Surpasses Traditional In 2019.” https://www.tvtechnology.com/news/tv-ad-spending-drops-as-digital-surpasses-traditional-in-2019 Accessed 28 June, 2019.

[5]. Hayes, Adam (2019). “The State of Video Marketing in 2019 [New Data].” Hubspot. https://blog.hubspot.com/marketing/state-of-video-marketing-new-data Accessed 28 June, 2019.

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