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Digital Disruption and TV Media Buying – What Brands Need

March 6th, 2019   ||    by Gary Milner

I recently wrote an article about digital transformation and the 6D’s. My argument was that we are still at the disruption phase of the cycle. In North America the TV ad business is a $70 billion market , representing approximately 50% of total media spend. Approximately 5% of that is digitally bought and as OTT increases in use by consumers, more and more of the TV spend will be digitally planned, bought and measured, creating a full onion of digital enabled media.

What marketing problems does this transformation to full digital media buying help solve for brands? What are they looking for?

  • Efficiencies so that their money is spent on media transactions, not processes.
  • Ability to reduce waste and target by a specific audience rather than gender and age (an example could be buying local audiences at scale on local TV).
  • An omnichannel solution that measures media across devices and channels.
  • New measurement currencies that aren’t panel based and reflect real behaviors and outcomes (sales on own site or through partners)
  • Ability to use first party data in media campaigns, across channel leveraging the investments made in adtech.

I was at the Matrix Media Ad Sales event in Miami in February and there clearly is an opportunity for Videa to become a standard for local TV buying to help with the brand elements listed above.  Continued growth of agencies using the system and more stations leveraging it for management of inventory will be crucial to achieving scale to satisfy brand needs.

The key threat is that OTT inventory scales to allow local audiences to be reached at sufficient scale. This is someway off but with Disney, AT&T and other potential ad entrants (Amazon and Netflix?) alongside existing players such as Hulu/DirecTV, Sling/Tubi, this is possible.

The next 3-5 years in the TV media market will be an exciting journey.


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