TV advertising in disruption how to adapt
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TV ADVERTISING IN DISRUPTION
TOMMI RISSANEN11.4.2013
HOW TO ADAPT?
TOMMI RISSANEN
Digital and Social Media Consultant at Digital Media Finland since 2010
10 years creating digital content related projects in private & public sector and in Universities in Lappeenranta, Tampere and Helsinki
Social media, emerging technologies and digital ecosystems explorer
AGENDA
media & communications disruption
statistics
what is television in 2013?
the future
media & communications disruption
COMMUNICATIONS IN TRADITIONAL BUSINESS ENVIRONMENT
Company has a message
Message is made perfect by professionals
Message is transmitted to the customers efficiently and comprehensively
There are official processes for handling reclamations
Company
CustomerCustomer
Customer
Customer
CustomerCustomer
Customer
Customer
COMMUNICATIONS IN MODERN BUSINESS ENVIRONMENT
Company communicates openly with its customers
Company provides its customers an open communication platform
Company follows the discussions regarding it and its products in other platforms and takes part in them
CustomerCustomer
Customer
Customer
CustomerCustomer
Customer
CustomerCompany
20TH CENTURY MEDIA ENVIRONMENTPrinting press in 1450‘s- from hand copies to printing
Phone in 1870’s - from sending letters to real-time communication
Camera, film and recording 1820’s-1890’s- recording something other than text
Radio and television in 1880’s- sending picture and voice through air
21ST CENTURY MEDIA ENVIRONMENT
Music
DISRUPTIONS EVERYWHERE
Television
Movies
Radio
Newspapers
Magazines
Book publishing
PhotosTelephone
CASE MUSIC: 4 PHASES
converting the old thing to digital creating new value
Source: Digital Media Finland / Timo Argillander
SOCIAL MEDIA = COLLABOTRATION PLATFORM
The next “revolution” in productivity improvement is collaboration
Within companies
With customers
Between rivals
Throughout the value network
Social media is one tool among others in this process
It has the economy of scale advantage
statistics
CHANGE IN ADVERTISING SPENDING IN FINLAND
48,0%%%
14,2%%%6,2%%%
17,8%%%
7,7%%%
3,2%%% 0,2%%% 2,8%%%
2007$%$1475$M€$
Newspapers%
Magazines%
Printed%indexes%
Television%
Internet%
Radio%
Movies%
Outdoor%
39,7%%%
10,8%%%
3,6%%%
20,7%%%
17,8%%%
4,1%%%0,2%%% 3,2%%%
2012$%$1353$M€$
Newspapers%
Magazines%
Printed%indexes%
Television%
Internet%
Radio%
Movies%
Outdoor%Source: Mainonnan neuvottelukunta
ADVERTISING SPENDING FROM 2007 TO 2012 IN M€
2007 2012 change
Newspapers 708 537,6 -24,1 %
Magazines 210 145,7 -30,6 %
Printed indexes 91 48,4 -46,8 %
Television 262 280,1 6,9 %
Internet 113 240,4 112,7 %
Radio 47 55,4 17,9 %
Movies 2,3 2,1 -8,7 %
Outdoor 42 43,3 3,1 %
Total 1475,3 1353 -8,3 %
Source: Mainonnan neuvottelukunta
NEWSPAPERS HAVE SEEN BETTER DAYS
WHAT DOES INTERNET MARKETING STAND FOR
Source: Adex benchmark 2011
ONLINE VIDEO SHARE IN SELECTED COUNTRIES
Source: Adex benchmark 2011
TV WATCHING IS GROWING EVENLY
Source: Finnpanel
IPTV IS GROWING TOO
Source:: Finnpanel
PAY-TV IS GROWING FAST
Source: Maksu tv:n muuttuva arvoverkko, LVM - http://www.lvm.fi/web/fi/julkaisu/-/view/1278997
RANDOM STATISTICS
47% of people use the internet at the same time as they watch tv at least once per day
67% of google searches is influenced by traditional advertising
57% of people has made a google search after seeing a tv-ad
Propability of sales increases 50% when tv and internet marketing are used together
what is television in 2013?
SCHEDULED PROGRAMMING
TV channels rely heavily on scheduled programming
they know the demographics well, Nielsen (or Finnpanel) measure audiences precisely
it is (still) the only way to reach focused large audiences
all other activities of channels are subject to the scheduled programming
SCHEDULE OF FINNISH CHANNELS 11.4.2013
MONEY-MACHINE OF THE BROADCASTER
Web service
1. information regarding the content and programming
2. merchandising
3. feedback and interaction with viewrs
4. links to social media
VOD TV
1. programs watchable as a catch-up service
2. more content for premium packaged programs
3. unique content
Kanava Kanava Maksu-kanava
19.00
21.00
Broadcast TV
Channel Channel Pay Channel
MONEY-MACHINE OF THE BROADCASTER
Web service
1. information regarding the content and programming
2. merchandising
3. feedback and interaction with viewrs
4. links to social media
VOD TV
1. programs watchable as a catch-up service
2. more content for premium packaged programs
3. unique content
Kanava Kanava Maksu-kanava
Broadcast TV
Channel Channel Pay Channel
THE MONEY MACHINE OF TELEVISION HAS SAND IN ITS WHEELS
WHAT REALLY IS THE STATUS QUO?
Live sports and breaking news are the only tv-content that is watched at the time it is broadcasted
Commercials are skipped from recorded shows
Consumption of tv-content grows but mainly from on-demand side
Consumption is moving away from televisions towards computers, tablets and phones - whichever suits best in the situation
Lähde: http://www.businessinsider.com/tv-business-collapse-2012-6
ZERO-TV HOMES
Nielsen’s new category of 5 million Americans that prefer other devices for watching tv than the tv-set
75% have at least one television set
67% get their content on other devices
48% use subscription services (like netflix)
Cost (36%) and lack of interest (31%) are the main reasons
Source: Nielsen
THEN WE HAVE THESE
HOWEVER!
Television ad spending is growing
People watch more television than ever
In addition, online video advertising is growing fast
the future
ADVERTISERS SIT ON THE MONEY
Need to connect with the consumers but there are no more simple solutions
As transparency grows, advertisers have to be more and more careful
Combining traditional media with new interactive channels is not an option but a must
IT IS GOOD TO BE A CONSUMER
More content than ever
Consumption anywhere and anytime is FINALLY here
Better advertising that can be easily avoided
Disruptions everywhere
THE ROLE OF TELEVISION?
One way to distribute television and film content
Has to be able to provide other services than just the broadcast stream
What are Apple, Google and Samsung going to do?
PROGRAMMING
DECREASING VALUE
program libraries
secondary content
traditional news
small audience programs
RISING VALUE
original premium content
live sport rights
reality tv
breaking news
EVERYONE HATES PRE-ROLL ADS
Source: Sharethrough Inc.
CONSUMERS DRIVE THE CHANGE
New content needs to get fast and easy to all devices
Weekly episodes of 51 minutes will be history
Video advertising will evolve fast
Traditional ad spending in television will decrease rapidly as soon as it is realized that it does not work anymore
Tv-advertising will increase on live sports and other programming that still interests wide audiences
HOW TO ADAPT IF YOU OWN A BROADCASTING COMPANY?
Accept the facts and invest in new media channels
Commit to the change even if the revenues decrease and investment ROI is negative
Find ways to do business model innovation
A perfection of means and confusion of aims, seems to be our main problem
(Albert Einstein)
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