The era of "peak TV" has ushered in a renaissance for brand advertising, and there has never been more opportunity to connect with viewers. By the same token, there have never been more challenges for marketers.
TV's evolution is happening at a time when shifts in audience behavior, the proliferation of digital video, precision targeting and addressability are taking hold. New challenges have emerged. Increased ratings pressure, inflationary pricing and audience fragmentation have given rise to new thinking and evolved methods of targeting and measurement. These complexities are creating uncertainty within the TV ecosystem as stakeholders grapple with how to balance investments between existing and new technology.
The 80-year-old TV industry has evolved from using content as a proxy for audience to targeting actual audiences on TV. We're entering an era of better understanding the customer.
Still, marketers can't rip-and-replace existing media strategies. A steady evolution is the best way for marketers to demonstrate the value of TV advertising while preserving the TV economy.
We think marketers should demand the tools and services they need out of TV to prove ROI. That means marketers should be able to bring their own data, audience definition and key performance indicators, or KPIs, to the medium. And they also need a unified platform that offers linear, advanced and fully addressable TV inventory. The combination will enable marketers to plan, activate and optimize TV campaigns based on their evolving brand strategies.
The TV world has grown complex because of emerging technologies, walled gardens and data. But the truth is that TV isn't going anywhere. There's no replacement for the power of sight, sound and motion or television's unique ability to forge a visceral connection with audiences across demographics. Brand advertising on TV is still a proven tactic for increasing sales, and it's still an effective, creative way for marketers to share their message with a national audience. The majority of advertisers still think TV is more effective for building brand awareness than online video, and nearly a fifth of advertisers in the U.S. already include addressable or advanced TV buys in their media plans, according to a Forrester/Association of National Advertisers survey.
Putting pressure on the TV ecosystem will keep it vibrant and dynamic, and that's good for advertising. Content owners must be paid, and audiences must be engaged. Brand advertisers need the ROI necessary to continue to spend. The industry is starting to transform, and everyone needs to encourage it.
Marketers don't have to navigate TV transformation alone. A trusted partner can offer the support and guidance needed to take on the complex new landscape.
No matter where you are in the supply chain, whether you're a media buyer, planner, marketer, agency or media owner, you need to understand the evolution that's underway in TV. At Cadent, we readily embrace it and look forward to simplifying it for all stakeholders.