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Disruption and the Opportunities for Videa in the Era of Digital TV

February 25th, 2019   ||    by Gary Milner

I recently wrote an article about the exponential era of media buying, based on the book, “Bold” by Peter Diamandis. His logic was that digitization leads to a process that drives exponential change, ending with a whole industry becoming democratized and in the hands of the consumer. For example, think about how photographs went from cameras, films and processing all belonging to different companies (Canon/Kodak and retailers) which all went to instant global capture and transmission, decimating an entire industry. It all went to Facebook, Apple and Samsung.

So, how does this relate to the TV ad business and Videa? My view is that we are at the stage of disruption still on the curve. Huge opportunities exist for those who choose to engage and change the game. And, those who don’t, won’t or can’t engage will be left to fade to dust, in the same manner as befell Kodak.

Why is this so? Well, the North American TV market is a $70 billion-dollar market with (arguably $3-7 billion) at most in the form of a digitized buy. This is half of all media spend and is the last bastion of digitization of the whole media spend. Once digitization is complete, the onion is complete, all media is buyable through software and able to be democratized and in the hands of anyone with computer access.

Naysayers may say this won’t happen, but the reality is we buy TV the same way we did in 1975 while viewing behavior is dramatically changing with streaming and has firmly evolved in the 21st Century. More streaming is more digitization and disruption.

The cord cutting numbers reinforce this and I believe will accelerate with new services such as Disney and the ever-looming threat of Amazon and Netflix releasing an ad supported component to their offering.

What does this mean for automated TV buying and selling platforms, like Videa? Well, if you look at the needs and problems of the budget holders (brands), Videa will help solve those issues and add value to local stations, agencies and brands.

In the end, transformation is inevitable.

More on this and the barriers to overcome adoption of automated solutions in part two.

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