Great New Consumer Opportunities
For the average consumer, there has never been a better time to be a
fan of video. There is an embarrassment of riches that can be accessed
through a myriad of portals and services. The challenge though,
according to Richard Au, Head of Content Acquisition, Amazon Channels,
is "how do you find what you like and discover new content?"
Enter the FAANG (Facebook, Amazon, Apple, Netflix and Google)
companies, which are quickly developing an enviable range of video
content that is increasingly matched with easy-to-access ad tech for
advertisers. Data plays a huge role not only in the ad tech but also in
content curation. Amazon, for example, has developed algorithms that
take a look at the content choices of other people who watch similar
content. "We also note what you subscribe to and create a personalized
experience and editorial for any new content coming up," Au explained.
Great New Media Challenges … and How to Overcome Them
The advancements of FAANG have created stress on the legacy business
model. David Levy, Executive Vice President Non-Linear Revenue,
Fox and Aaron Radin, Senior Vice President Partnerships and Portfolio Products,
NBCUniversal,
weighed in on the broadcast television model. "The future of TV buying
is to enable audience-based buying at scale through efficient automated
platforms," Levy said. "We need to introduce new measurement solutions
beyond cost and reach that properly value attention."
To that end, competitors such as Fox and NBCU have to begin to work
together to forge these protocol solutions and build pipelines. "The
keys to success are automation, APIs, data, scalable ad products,
markets and measurement," Radin explained. This needs to be
accomplished in an accredited, industry-based manner. Cross platform
solutions are pivotal. "Google and Netflix have great automated buying
options to buy at scale across platforms," he added. "We need to find
ways to present all of our inventory, across all platforms, converging
our inventory and enabling transactions."
The legacy model of advertising will be tough to change. "How do we
take 16 minutes of ads in a program and place it in an environment that
has fewer ads?" Levy asked. "We need to get a lot better at
measurements including attention, where they are in the funnel, the
quality of attention and any change in perception. If we are just
measuring cost and reach we have no chance."
Great Unknowns
As cooperative as the legacy media players might become, there are
still the unknowns that can negatively impact the business. Jeffrey
Weber, Chief Executive Officer, ZoneTV noted that we are in this
in-between time where new aggregation models for content and channel
choice haven't yet settled into an industry standard. Its hard for
consumers to find content that they may like. Weber believes that
operators need to harness the power of the electronic programming guide
and help viewers locate the right content at the right time.
Lance Neuhauser, Chief Executive Officer,
4C,
said it is important to make the most of every data set. He stated
that, "Social is the largest set of anthropological information now
available," he said. "It is the largest focus group." He sees that
consumers are using ad breaks to engage in social media or texting. "We
need to start from the future and work our way back, and recognize that
consumers no longer need to watch ads," he advised. "They can
fast-forward, subscribe, pick up their phones, etc." Linear TV is
playing catch up -- and it will be slow. "You have linear trying to
change with 50 years of infrastructure," he added.
Great Advice
The best advice, which was repeated throughout the day, was that
businesses need to focus on the viewer and not on the platform.
Re-focusing on the end user can enable a more flexible and successful
business model that reinforces a strong future for television.
This article first appeared in www.MediaVillage.com