Television advertising remains the most powerful branding vehicle as there is no better way to realize the reach of that medium. Digital advertising, while lacking the same reach does provide opportunity for specific targeting, granular measurement, ad unit customization and interactivity. The lean-back environment of the television viewer does not necessarily lend itself for an interactive ad experience, but the digital delivery of YouTube TV does allow for ads customized on the viewer’s audience characteristics or on their behavior.
The initial carriage agreements provide YouTube with ad sales rights for the inventory which otherwise would have been earmarked for local advertising by the MVPD. There is also an undisclosed revenue share between YouTube and the content owner for those YouTube-sold ads. There will likely be further coordination between these parties involving addressable ad targeting for the content owner and bartering of ad inventory.
Google's announcement of YouTube TV last week is one that will be seen as an inflection point for the world of media and advertising.
YouTube TV, originally code-named "Google Unplugged" is the latest “Virtual MVPD”, joining DirecTV Now, PlayStation Vue, Sling TV and offering a set of live TV channels through digital means (as opposed to traditional MVPDs who deliver television to the home through their own infrastructure like satellite, telecommunications lines and terrestrial cable) for a monthly fee.
While each of these players have their own unique features, they are generally providing the same set of offerings: a “skinny bundle” of TV networks, available for viewing on any internet connected device at a very competitive price point as compared to the larger bundle of many channels from your local cable provider. Basic feature set similarities aside, YouTube TV, by nature of its parent company, will create waves, not ripples across the sea of TV viewership, distribution, and advertising.
The answers to these questions have a common origin that takes us back 80 years to 1936. Commercial consumer and social research was a new business then – AC Nielsen had been founded 13 years previously (in 1936 it was about the same age as Facebook is now) and Gallup inc. was just one year old. As it turned out, events in 1936 would soon make Gallup front-page news.
Like 2016, 1936 was a general election year in the US and there were opinion polls. One organization that considered itself expert in this field was The Literary Digest, a magazine that had been in the polling business since 1916.
Back in June, clypd's Chief Research Officer Pete Doe presented a whitepaper at ARF's Audience Measurement 2016 conference. We're excited to have the whitepaper, titled "Is This is the Beginning of the End for Age and Gender Targets?" available to share with you.
Linear TV Deals are moving away from gender and age targets towards advanced targets using fused research databases, transactional databases and first-party customer data. This is an important development in buying and selling TV ads, for both buyer and seller.
The buying and selling of linear TV advertising hasn’t changed in decades – until now.
Unlike the real-time, impression-based transaction that defines digital advertising, the traditional television media buy is impacted by technological limitations and disparity in sales strategies. These impose that decisions be made well in advance on broad-based demographic targets such as age and gender. Ratings are researched and ads scheduled, but the process is labor intensive and doesn’t accurately show available inventory and its audience. The growth of programmatic TV is addressing some of these challenges, giving the parties informative and actionable data sets and varying levels of workflow automation.
Video consumption through digital means has skyrocketed, thanks in part to Google’s absorption of YouTube in 2006. Meanwhile, television has also continued its upward growth, despite industry expectations. The higher media consumption patterns offer media companies, marketers, and technology companies a huge opportunity to unite the two watching streams, but it’s not without its challenges.
In my former life in the world of digital video advertising, we looked to leverage “cross-screen digital video” as we quickly recognized that “online video” was not going to be restricted to the personal computer. This proved to be true as folks watched the latest Boston snow storm reports from a work computer, then laughed at a Louis C.K. skit via an iPhone from the caboose of the disabled MBTA and later, enjoyed Sophia the First with their kids on an iPad.