Curated by Stuart Fogarty stuart@admaticallycom for AFAO'Meara Advertising, Streamabout The Video Agency and Admatic Ireland.
All comments will be posted - promise!
It's a worrying time when the debate about Television being more effective than Digital still labours on. Nastily. I don't know how many traditional TV Campaigns we've managed in our pasts..... If it's not in the thousands, it's certainly in the hundreds and that doesn't necessarily gives us authority, but it does give us experience. Saying that too as the author is both a former Madison Avenuer and Fellow of The Advertising Institute. Agency blue-blood. And how many Digital Video Campaigns have we managed? Thousands too.
But this debate seems to become angry with Traditionalists Versus Digital Evangelists whereas really what matters, is what is the audience doing? Where are the eyeballs going? The TV traditionalists seem to blindly like TV, because that's the way it's always been done without understanding, that the world, their world, has changed 360 degrees.
Clearly too, one is not a substitute for the other, despite traditional TV data produced (and paid for) by TV Broadcasters which is dubious, at best. It's common sense to understand that the TV audience is in decline. With the high penetration of Social Media (Facebook, Twitter) predominant and with their peak usage in evening times, has to mean less TV is being watched. You can't be actively doing both. The increasing high penetration of Ad-free streaming services (Netflix has over 250,000 homes in Ireland alone) which are watched at peak time, has to mean less TV viewing. The cable chord cutters are watching less TV too de facto. The prevalence of second screen viewing, must mean less TV is being watched. The huge growth in YouTube especially amongst the youngers, means they're watching less TV. The decline in published ratings, means less TV is being watched in itself albeit, US broadcasters are now dependent on live sports rather than traditional "shows". The growth of Apps (Tinder for example) at the very least, diminishes the OTS (opportunity to see) of TV. The growth of Mobile activity takes away from TV viewing. Better broadband brings homes more digital viewing opportunities as well. The Ipad and ITunes. And so on it goes on, common sense. The more distractions, especially at key peak time (high advertising expenditure times), the more TV viewing will decline. It struck us in this week especially, what a great example of video effectiveness this was.
In less than two days, this online digital video topped over 100 million views and is now Facebook's most video live video ever. We have no doubt it is already over 200 million views. The Hasbro mask (44.99 usd) sold out (http://abcnews.go.com/Lifestyle/chewbacca-mask-sold-online-womans-video-super-viral/story?id=39292349) And the Media cost? Zero. Nothing. Nada. Except the cost of producing the video. Now what TV Campaign could deliver that audience? None. And at what cost? Certainly millions of dollars if you could achieve it using TV.... which you can't. And the one big reason? Shareability. You can't share a TV Commercial and that's one big downside of traditional TV viewing (despite audience numbers) where Digital has the advantage (as this video shows). Not only can it be shared, but to a like-minded demographic (friends and followers), a marketers dream in fact. Thereby, effectively communicating the message exactly to the target. So when we talk about TV Advertising effectiveness, let's not kid ourselves because we want Clients to keep thinking it....in our own vested interest, or, because we can't keep up with the digital age..... And let's not argue blindly. There's a role for both, absolutely. One is growing, one is declining, but all that means is that the eyeballs are switching. And as marketers or Ad men and girls, that's what should concern us most. Rather than defend a position because it's all we know. What are we afraid of here? It's good news because online video creates new, long form opportunity. No longer are we hampered by that 30 second Commercial length for example which should nurture creativity. Stopping Digital Video is like standing on Dollymount Strand and trying to push out the waves. Let's not do that and let's give the correct answer to Clients. Impartial arbitors of media. Like the peasant's in Lamb's essay, we know not how to roast pork, other than to burn the house down. Streamabout.com
New Nielsen data as published by Ad Age shows Americans still watch 5 hours of traditional TV a day (149 hours a month in fact). However, that's a reduction of -6 hours a month over the last year.... So what are they doing instead? Watching more online video. In fact in the last quarter of 2014, online video was up +3 hours a month year-on-year. A +38% increase. And they're watching more time shifted TV (recorded) than before, possibly skipping those Ad breaks. And the switch to online is more noticeable in those lucrative 18-24's and you'll see from the above chart. TV is losing audience, losing market share and consequently, must lose Advertising dollars. Story and charts here http://adage.com/article/digital/video-revolution/297996/?utm_source=daily_email&utm_medium=newsletter&utm_campaign=adage&ttl=1429493873
RTB or Real Time Bidding, is really hotting up. Basically it's an Ad Exchange that allows Advertising buyers (Agencies/Clients) buy online media from sellers (Media owners) in real time through a bidding or "auction" system. APPNexus, the New York firm, has already raised 200 million usd in investment and just closed another late funding round giving it a valuation of 1.2 Billion usd. That's nearly doubled the company's value since Jan 2013. 30 Billion Ads are sold on APPNexus every single day.....and it's profitable. It estimates it will do 2 Billion usd in transactions this year and revenues of over 130 million usd. Pretty staggering and very mobile focused. It also means that media companies are becoming very investor friendly and Wall Street opportune - they weren't always - because what they're doing is automating old world transactions and making them better. That's the key difference for good online businesses. RTB is a better, more accurate, transparent way of buying space. It also moves the Agency Commission model away (no bad thing) into wholesale rates for media which are then charged on to clients so the opportunity to generate higher margins is easier. However, the Internet experience is clearly one which cuts out the middleman whether they be booksellers, music stores or eh, Advertising Agencies. Clients will now have another option to train their staff to buy their own advertising online. And some are. Video is another. As the online digital market rises and Clients create good video content, they need to place it. RTB is the way and Streamabout do that every day of the week
So Facebook is still on the acquisition trail. It's just agreed to buy Liverail, a video ad advertising service with the dreadful logo. Started in 2007, it had revenues of 100 million usd last year and what it does is bring video ads to market. Exactly as Streamabout does - creation of video and placement. There had been talk of Liverail going for an IPO this year but that's clearly off the table. Facebook too had been building video ad platforms to sell into its own customer base but that too has resulted in the acquisition. Facebook in essence has bought a video ad platform with revenue. And that's the problem - being both a buyer and seller of advertising. If Liverail now are owned by Facebook, then presumably they'll push more ads onto Facebook or at least, have a conflict of interest. Perhaps that cuts across their whole independence but then, if you're buying impressions do you care? Probably not. Other publishers, the former clients of Liverail, may not be too pleased either. Details weren't disclosed but I heard in the pub (ie on good authority) it was 400-500 million usd. Not bad for a 7 year old business. And another good day for Digital Online Video. Like us.
The very reliable BusinessInsider has published an interesting report into digital video. It might come as no surprise (hopefully) that digital video is skyrocketing. Online video ads are the fastest growing medium outpacing TV. They exploded in 2013 and trust me, continue to do so in 2014. Over 35 Billion video ads were viewed in the US in December alone. Largely because they give clients an opportunity to give longer narrative (because they're longer!) and more engaging content through storytelling, which 30 seconds on TV restricts you from doing. They also of course, come with the benefits of all things digital such as low cost media placement and tracking. BusinessInsider estimates that digital video will take $5 billion in ad revenue by 2016 ($2.8 billion in 2013), growth of +100% year on year (yoy) and the highest click through (just under 2%) of any other digital format. Of course, if you're prepared to watch a 2 or 3 minute video online, you're likely to be more prepared to click through because you've been engaged. One thing you can't do, is click a TV Commercial.... The growth in domestic use of streaming devices, better Internet connectivity and indeed, more savvy PC users almost assures the growth. As more go online, the Opportunity-to-see (OTS) video, increases. Viewability of course is the issue too - if your video is no good, then it won't be watched.....but that applies to all other Ad formats too. Advertisers need to start increasing their investment in what is generally, low cost digital video. Low cost from a Production perspective and low cost Media. The days of 50k and 100k and more on TV Commercial Production are over with Digital Video costing 1k-5k generally. And just as good. In fact, a whole lot better. As BusinessInsider say too, much more watched.
