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In his TV Day presentation called "(Everday is T)V Day," Michael Kelley of PricewaterhouseCoopers spoke about the media outlook and trends. The global advertising spend is expected to drop 2.7% in 2010, but rise 1.4% in 2011, 5.9% in 2012, and 6.1% in 2013.
Kelley discussed the changing face of advertising. It is:
- connected
- mobile
- social
- targeted
- interactive
- branded content
- fragmentation
- cross-platform
He also pointed out that we consume media in three ways, with the:
1) Head (content consumption)
2) Heart (passions, brand affinity)
3) Hands (mobility - the remote control for your life)
Head
The consumer:
-Eager for technologies that simplify and provide control (DVD, BB, Sub TV, VOD = > double globally)
-Digital Drifters" consume more!
The advertiser:
-Losing awareness with brands and campaigns
-Shifting budgets to content creation to "stretch" brands beyond traditional ads
-Digital tracks views, engagement, sales
The implications:
-How do we get people to pause on ads instead of skip -- the "27 second spot"
-Brands >50% of spend to "branded content"
-Data and tracking are the new "currencies"
-Brands will really begin to sell other brands
Heart
The consumer:
-LOVE brands
-Give up info about lifestyles, interests, hobbies
-Still care about privacy
The advertiser:
-Consider profiles the new ratings; want more info about less people most likely to buy
-Going from CPM to CPM+ and CPA, CPP, loyalty
-Tapping new touch points -- their own
The implications:
-Still pay for impressions; much more for clicks, transactions and loyal relationships
-Value prop: Life is more enjoyable and efficient -- "life management"
-How does the eco-system benefit?
Hands (portability = mobility)
The consumer:
-Device growth from 2.3 billion to 3.4 billion in 2011"and going "smart"!
-Want "life management" apps - 4PM daily text w/dinner recipe, take medicine, change oil, buy movie tickets, coupon wallet
-Drawn to social network, user gen content, opinions - new forms of search?
-$299 Net Books devices with video capacity expanding...every day!
The advertiser:
-Want greater ROI from $160+ billion (US) on DM
-Going to location-based applications
-Blending mobile with brand experiences
The implications:
-Advertising and commerce opportunities?
-Video differs widely: TV, online and mobile
-Brands to supplement all forms of content
-Detect buyers of cars, movie goers, etc.
TV extends viewers to portable mediums (mobile & online). It provides the opportunity of cross-platform interactivity, such as watching an episode of Martha Stewart Living and being able to download the recipe from the show (cable to mobile connectivity):
1. Customer view cooking show
2. Viewer presses a button to receive recipe
3. Cross-platform interactivity
4. Viewer receives desired information on their mobile phone.
To view this presentation, click here.
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