7 Ways Brands Will Transform TV and Media Strategies in 2017

7 WAYS BRANDS WILL TRANSFORM TV & MEDIA STRATEGIES IN 2017

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Good news for marketers: This connected world presents a ton of opportunity to innovate and find better ways to engage their audiences, even on traditional mediums like TV. The real trends and innovations in 2017 reflect the speed at which the industry continues to change in response to this connectivity, and how quickly consumers’ behaviors and preferences adapt to ongoing evolution.

TV has emerged as a central player in the connected world. Because consumers can essentially turn their laptops, tablets and phones into “TV” devices, this timeless medium is quickly becoming the all-device connector of consumers and content. And, of course, where there are consumers and content, there are advertisers and brands vying to get their attention.

This means that 2017 will undoubtedly see a significant shift in the way “TV” is delivered, what it looks like, and how advertisers will be able to use it like never before to initiate consumer engagement.

HERE’S A BIG PREDICTION FOR 2017: CONSUMERS ARE GOING TO CONTINUE LIVING CONNECTED LIVES, ON THEIR TERMS.

SHOCKING, RIGHT?

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1. EARNED MEDIA WILL FINALLY GET THE MARKETING CLOUT IT DESERVESMarketers are cashing in on its power of influence.

With media and consumers across the globe constantly consuming and churning out content--on social media, online and TV--there’s a huge opportunity for earned media. Why? Because it consistently beats paid media when it comes to consumer perceptions of brands.

Earned media, however, rarely works alone. Marketers who make it a part of their marketing ecosystems along with paid and owned media will experience the greatest ROI.

A recent report by IPA found that adding television to the marketing mix increases effectiveness by 40%. TV advertising is also the best medium for generating top-line growth that drives profit, with a 2.6% average annual market share point gained by brands who invest in it.

IPA revealed that this is also true online: paid online media is much more effective than unpaid.

So why is this trifecta of earned, paid and owned so important for marketers in 2017?

• Owned media typically increases the effectiveness of a paid campaign by 13% and earned media by 26%. -IPA, 2016

• More than half of millennials are more likely to be influenced by earned media. -BazaarVoice

• Over 92% of consumers trust earned media, with only 50% trusting paid ads. -Webbed Feet

• Earned media drives 4x the brand lift of paid media. -BazaarVoice

• Brands relying on earned media marketing save over $14 for every new customer acquired. -Hubspot

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2. ADVERTISERS WILL INCREASE THEIR SPEND IN TV MEGA EVENTS AND SPONSORSHIPSTraditional TV isn’t going anywhere.

Each year is inundated with major tent-pole events that get advertisers’ creative and financial juices flowing. From the Super Bowl and NASCAR to March Madness and the World Series, these heavily-watched TV events give brands access to concentrated audiences over multiple consecutive days or weeks. Honor, glory, and pride are on the line in the arms race for the best creative and the most eyeballs.

As advertisers come to relish the fact that their beloved medium of TV is not going anywhere anytime soon, they are also thinking about creative ways to leverage TV mega events to captivate their audience.

Here’s why in 2017, we should expect to see marketers continuing to show love for sports sponsorships.

• March Madness ad spending topped $1 billion in 2012. Since then, ad investment for the college basketball tournament has continued to grow, nearing a record $1.19 billion in 2015. -eMarketer 2016

• Sports is the genre with the least amount of time-shifted viewing. Sports only command 18% time-shifting share, as compared to other genres at 50% to 72%. -TiVo, 2016.

• Total Super Bowl ad spending has seen a 118% increase over the past decade. -Kantar Media, 2016

• TV will continue to grow and remain the top video advertising format through 2020, with growth up to $77B in ad spend. -eMarketer 2016

• Global sponsorship spending grew 5% in 2016 to $60.2 billion. -IEG

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3. TV ADS MAY FINALLY BE PERSONALIZED

2017 could be the year first test actually run.

Every year, personalization, or rather, finding unique ways to get closer to your target audience comes up on prediction lists. Marketers have been eagerly chipping away at this over time, from email to display, to ecommerce experiences. The last big medium left, of course, is TV. Targeting people with individualized TV commercials using cable or satellite boxes is, quite literally, the future of TV.

But, addressable TV advertising has been held back while the market waited for consumers to catch up. However, with more homes having connected devices, and more device options for watching TV, it’s safe to say the market is ready. Addressable TV can better pinpoint and aggregate an advertisers’ target audiences, to encourage more engaging ad units, and, even better, to actually measure the impact of that advertisement and its effectiveness beyond ratings.

Here’s why we see 2017 as the year personalized TV comes into play.

• One in three U.S. adults now owns a connected TV and 1/3 of connected TV owners stream video to their TV daily. -IAB, January 2015

• Advanced TV commands a 2.5% click through rate, as compared to desktop rich media at .10% and instream video at .46% -Brightline IQ

• Advanced TV show a +4.9 lift in purchase intent as compared to traditional TV at +3.6 -Brightline IQ

• Starcom/MediaVest Group claims their clients’ campaigns are 37% more effective using addressable TV vs. linear TV advertising vehicles.

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4. BRANDS WILL RAMP INVESTMENT IN LOCAL TV BUYSAnd correlate revenue accordingly.

Brands spend millions to connect with consumers through multiple channels and targets, but it’s not always easy to show which investments performed most favorably. Further, today’s always-connected consumer means that brands of all sizes, in all places, need to be more mindful of a very important consumer detail: their location.

One of the biggest events of 2016, the Presidential Election, proved that a focus on TV ad spending in local markets was the winning strategy. Beginning in September, iQ Media found that Clinton spent 71% of her ad budget on local ads and only 28% on national. Similarly, Trump has spent 85% on local and only 15% on national. While other factors were at play, both played a ground game to speak to a more targeted audience.

We see marketers’ taking the local route in 2017 because:

• U.S. local advertising revenues are projected to reach $148.8 billion in 2017. - BIA Kelsey

• 61% of consumers agree that, “I would like my favorite brands/companies to play a bigger role in my community. - Mintel/Havas Worldwide

• TV ads reach 87% of people over 18. - The New York Times

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5. ADVERTISERS WILL BECOME PART OF THE TV CONTENT, AND CREATE DIGITAL EXPERIENCES THAT CORRELATE

More people are doing more things online while watching TV.

The idea of the second screen is not a new one, but how advertisers use that other device to their advantage will come into focus this new year. Mobile devices have become a companion to many people when they watch TV, whether it’s browsing related content or discussing it socially.

As with anything in media or video, it’s all about crafting a good story and inviting your audience to participate. In fact, research shows that brands that invite their audience to take part in their story receive an overwhelming 78% approval rating, as compared to those that continue to rely on more passive tactics.

Here’s why second screen’s continued seat at the couch will push marketers to be more mindful of its content next year:

• 31% of TV viewers browse the internet for content related to what they are watching, while they are watching. -Ericsson, 2016

• 19% of TV viewers join online discussions about the content while they are watching. -Ericsson, 2016

• A survey from TiVo indicates that digital viewers multitask while watching TV. More than half of respondents said live television was the TV or video format during which they most likely multitasked. - eMarketer

• 53% of respondents to an eMarketer survey said they were most likely to multitask during live TV vs OTT or time-shifted content.

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6. BRANDS WILL USE REAL-TIME TV MEASUREMENT TO MAKE QUICKER, SMARTER BUYS ACROSS MULTIPLE PLATFORMS

TV finally has a place at the table with digital.

As digital and TV collide, it’s no surprise that buyers and sellers alike are demanding better measurement options. And the industry is making moves. Comscore and Roku joined forces this year to help customers leverage the vCE currency for measuring OTT, and helping advertisers see when and on which device a consumer viewed an ad.

When it comes to linear TV, marketers will begin to demand more data at a faster rate in order to keep up with their digital, programmatic counterparts, and have an apples-to-apples comparison. In fact, noted in an AdAge article from earlier this year, “The Video Advertising Bureau, whose members include TV networks and pay-TV companies, is recommending that observers and advertisers use average audiences as the standard to compare traditional and digital platforms.”

So, here’s a few reasons why brands will push for this in 2017:

• TV accounts for 72% of adult audiences in any given minute. - VAB

• In any given minute, TV accounts for 95% of video consumption for all adults. -VAB

• The average 18-to-34-year-old audience watching TV on both linear and on TV brands’ platforms is about 5.3 million, compared with 1.8 million in the demo on Facebook in any given minute, 1.3 million on Pandora and 1 million on YouTube. - VAB

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7. AUDIO ADVERTISING MAKES A COMEBACK

Long live the power of the spoken word.

While many predict that radio advertising budgets will continue to fall, new technologies inspire optimism for the traditional medium, digital audio and podcasts. Through geo-targeting, interactive mobile apps and advanced analytics, radio can optimize its large and diverse audience to compete with digital advertising.

Radio’s integration of more sophisticated location technology with their mobile app will help stations get more airplay, and help advertisers prove that targeted ads are not only reaching the consumer, but also driving them into the store.

• Radio advertising spending will reach 18.33 million U.S. dollars in 2020. -PWC

• 57% of Americans older than 12 listen only to radio, while 21% listen to podcasts. - Edison Research and Triton Digital

• All age groups consume digital audio, though the 18-34 demographic are the heaviest users. -Piper Jaffray

• Audio listeners are also high earners: 41% of podcast users make over $75,000 annually. -Edison Research

• A Midroll survey found 67% of respondents were able to name a product or promotion mentioned in a podcast, and 61% indicated that they had bought something they learned about from a podcast. -IAB

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ABOUT IQ MEDIAiQ Media is the pioneer of real-time searchable TV, changing the way marketers access and evaluate their brand performance across earned and paid media. With over 22 million hours of TV content from 210 DMAs, iQ Media delivers spoken and seen logo recognition, competitor data, industry benchmarks and local to national-level audience data. Serving brands such as Domino’s Pizza, Energizer, NHL, Red Bull and Sonic Drive-In, iQ Media provides a single, user-friendly platform that helps marketing, PR and customer insights teams better understand earned and paid media TV ROI, moments after it happens.

For more information, please visit www.iq.media

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