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Hard Truths – Join the TV Media Movement

April 2nd, 2019   ||    by Gary Milner

At the recent 2019 4A’s Decisions 20/20 conference, Nick Brien, CEO of Dentsu Aegis Network Americas, cried out the hard truths agencies must face in order to evolve as an industry. So, what were those hard truths?

  • Too slow to change
  • Too incremental with legacy structures
  • Legacy mentalities
  • Legacy behaviors
  • Legacy relationships

Amid the digital tsunami that has hit the media industry, the $70bn TV market has remained untouched. But that is all changing. It’s the next media tsunami that will change how TV is planned, bought and measured as automation takes hold, driven by digital technology and best practices.

There is a saying in marketing, “follow the consumer”, well the consumer is:

Dropping standard cable and satellite TV and moving to more and more streaming TV (or OTA), driving automated software-based TV ad buying as a table stake in execution.

Therefore, brands are watching this and will place money where the audience is, but more importantly will look to efficient buying processes and costs to transact, whether linear or digital.

So, how does this relate to local TV ad buying?

Videa surveyed marketing and advertising professionals with six or more years of experience in the TV advertising and buying industry, some of whom were from ad agencies, to understand how adaptable these professionals are to change and to staying relevant.

  • More than 50% said that TV buying is difficult
  • 33% said that the current process of buying and selling TV inventory is unsustainable
  • 50% are holding onto their old ways

Full details of the survey can be found here.

This clearly parallels Nick Brien’s call for change.

Without a concerted effort to change it is distinctly possible local TV ad revenue will leak to digital systems that start to plan, buy and measure local targeted and connected TV inventory. Increasing audience sizes on Hulu, YouTube TV, Sling, DIRECTV and others will allow local campaigns to be delivered at scale through digital software systems. One thing is for certain, audience forecast numbers are constantly under estimated and will likely be higher than what’s forecasted. This could happen much quicker than expected. Take a look at the stock price of Roku or the Trade Desk and you’ll see double to triple digit gains, delivered in anticipation of a share of the $70bn TV advertising market.

Making TV Ad Buys Easier and More Measurable

Less time needs to be spent on traditional manual processes that take up a TV buyer’s day. Managing makegoods processes (that can take up to 20% of a buyer’s time), requests for proposals, insertion orders, trafficking, managing emails, spreadsheets and phone calls are all activities that can be reduced with technology-based systems, such as Videa’s.

Integration of Nielsen and Comscore data with inventory gives a forward supply of inventory  that creates easier TV ad buying management rather than todays manual processes through spreadsheets.

Automating can not only reduce makegoods volume, it also helps manage any makegoods that need to happen between buyers and sellers through one common system. That same automation can drive flexibility to optimize an in-flight campaign that traditional processes cannot do easily. Speed of delivery of campaign performance enables this.

It also helps with freeing time on simple management of tasks to look at outcome metrics with other parts of the agency (increased searches, more foot traffic, brand lift by DMA etc.).

Insights, transparency, visibility are all things that agencies and brands are asking for and that can all be delivered through a partner like Videa.

We are in an era where brands will increasingly have higher expectations of local TV advertising, based on the sophisticated media buying platforms available to them to manage connected TV planning, buying and measurement.

There is no going back, agencies need to adopt technology to drive local TV planning, buying and measurement.

That means Joining the TV Media Movement.

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