How a Change in Perspective Can Revolutionize the TV Advertising Market

How a Change in Perspective Can Revolutionize the TV Advertising Market

In the ever-evolving landscape of advertising, staying ahead of the curve is crucial for success. With the rise of connected TV (CTV) platforms like Youtube and Netflix, traditional TV broadcasters are facing the risk of losing advertising revenue. This shift has prompted the need for a change in perspective and a new approach to TV advertising.

Magalie Delmas, an industry expert, emphasizes the importance of being a partner to a program regardless of the environment. While some TV advertising executives have acknowledged this viewpoint, it may not be fully embraced by their teams. Delmas believes that the fear of losing revenue to platforms like Youtube has led to a misconception that TV advertising should only be seen as additional income, rather than a priority. This mindset, according to Delmas, is a mistake.

Broadcasters such as TF1 and France TV have made efforts to adapt their linear inventory to the changing advertising market. They have introduced new targeting options through shopper data and embraced programmatic advertising. However, these efforts have not generated significant revenue. Vincent Salini, the digital sales director at France Télévisions Publicité, highlights the upcoming integration of replay audiences via IPTV and the deduplication of contacts with live viewers as a way to showcase the broadcasters' reach.

To maintain their mass reach, advertisers need to reevaluate their standards for measuring advertising contacts. Currently, digital standards consider a contact established after two seconds of exposure to a video, while television advertising takes into account the duration of exposure. Additionally, the quality of exposure varies across devices, from TV screens to mobile devices. The transition to a cost per thousand impressions (CPM) model has been delayed to January 2025 due to the different buying criteria for linear TV and online video.

Managing TV advertising campaigns has become increasingly time-consuming as broadcasters have expanded their offerings. A user-friendly interface that allows buyers to navigate linear TV, segmented TV, and video-on-demand (VOD) is essential. Popcorn Media emerges as a potential solution, while The Trade Desk and Xandr have become compatible with segmented TV environments. However, DSPs (Demand-Side Platforms) need to evolve their value proposition, as none of them can accurately predict the audience of a TV program, a crucial feature for agencies negotiating large volumes.

The programmatic offerings of major broadcasters like TF1 Pub, OnePTV, and Adkymia for France TV Pub and M6 Pub often go unnoticed by major media agencies. The TV advertising market heavily favors centralized buying and annual negotiations, leaving little room for programmatic tools. As a result, programmatic advertising becomes a supplementary income stream that targets niche buyers.

The Digital Marketing Act (DMA) aims to address this issue by tackling self-preferencing practices, potentially forcing Google to open Youtube to other DSPs. However, the timeline for implementation remains uncertain.

Actionable Advice:

1. Embrace the connected TV revolution: Instead of fearing the dominance of platforms like Youtube and Netflix, TV broadcasters should adapt and find ways to leverage these platforms for their advertising strategies. Collaborating with CTV platforms can expand reach and tap into new audiences.

2. Rethink measurement standards: To accurately measure advertising contacts, industry stakeholders need to establish a common ground for defining and quantifying exposure across different media channels and devices. This ensures fair and reliable metrics that reflect the true value of TV advertising.

3. Embrace programmatic advertising: Despite the challenges faced by programmatic advertising in the TV market, it remains a valuable tool for reaching niche audiences and generating additional revenue. Agencies and broadcasters should explore ways to integrate programmatic strategies into their advertising campaigns.

In conclusion, the TV advertising market is undergoing a significant transformation with the rise of connected TV platforms. To thrive in this new landscape, industry players must adopt a change in perspective and embrace the opportunities presented by CTV. By reevaluating measurement standards and embracing programmatic advertising, broadcasters can unlock new revenue streams and maintain their relevance in the evolving advertising industry.