TradeCast turns 1!
TradeCast turns 1: a look at the current state of television
The timing couldn’t have been better. This year, commercial television broadcasting turns 70 years old. And tomorrow, TradeCast celebrates its first anniversary. In the time between those two joyous events, a lot has changed in the way we consume video content. The digital disruption of the tv industry is in full effect and the viewer is now the one in control. So how is the TV landscape changing? And why is this important for you as media company or business? Let’s take a look at the current state of television.
Right now, the TV movie marathon is a thing of the past. No more commercial-filled James Bond extravaganzas or Christmas time Home Alone reruns. TV stations no longer dictate what we get to watch. The viewer controls the water cooler conversation. Viewers decide what they want to watch, when they want to watch it and even on what screen they prefer to watch it. Video on demand (VOD) is changing the way we consume content. Digital platforms outside of the traditional TV ecosystem are taking over and doing so fast.
Let’s take a look at the numbers to illustrate the immense rise of internet broadcasting: right now, the digital TV revolution is putting more than half a trillion dollars into play. Traditional broadcast TV is transforming by the ever increasing number of internet and over-the-top (OTT) video platforms. Up for grabs is an annual market value of over 570 billion dollars, 25 billion of which is represented by major OTT platforms like Netflix, Amazon and Google’s YouTube. In short, the landscape has changed, resulting in a completely new TV market filled with big business opportunities for companies willing to adapt.
Linear is losing ground
From the perspective of the consumer, the worldwide embracement of streaming video is a logical one. Because why would you still watch that classic nineties movie for the twelfth time and get bombarded with commercial breaks for products that hardly interest you, if the alternative is hand picking what you want to watch? Linear, traditional tv watching - zapping past channels, tv guide in hand - is quickly becoming an ancient relic and advertising is ever so smartly being catered towards individual viewers.
According to a recent report from technology and market researcher Forrester, ‘linear’ is on a downwards slope. Millennials are spending less and less time watching normal TV programming and the target group 11 to 18 year olds has even almost completely abandoned linear TV. And Forrester’s research dictates that now also grandparents around the world are starting to turn off their TV set and are opting for streaming video and on demand watching. What a time to be alive.
With linear television under pressure and video on demand on the rise, what will the next step in the evolution of TV be? That could very well be addressable TV, a technology that let’s advertisers target their commercials per household, based on data like demographics, geography and viewing habits. That’s completely different from the way advertisers are currently operating: they sell their advertisements to broadcast stations, who then decide when their commercials are shown to a large audience. It’s wide spread, usually part of a big chuck of advertisements in between TV programs and far from narrowly targeted.
Right now, when you’re a woman watching a romantic comedy on TV, it’s not uncommon to see an ad for a sports deodorant for men. And as a man watching a soccer match, you could see an advert for sanitary napkins at halftime. All because you’re part of a very populair target audience. That’s the consequence of linear broadcasting.
But with addressable TV, this could all end. With viewing habits and other data monitored and available, advertisers are now able to target viewers with specific ads. All with a higher chance of attracting potential customers. As a viewer, you’ll see ads based on your location, your online shopping habits or your viewing interests. Just like online shopping right now, where ads are served based on your previous browsing history and product preferences. In the United States and Great Britain, addressable TV is huge right now and major TV networks are using addressable campaigns to better target their audiences.
So, where does TradeCast fit in this landscape? The short answer: right in the middle. The TradeCast platform hands publishers, media companies and entrepreneurs all the tools needed to enter the online video market and start monetizing content and user data they themselves control. As the only end-to-end solution on the market that lets you easily manage, distribute and monetize your own, personalized interactive tv channel, TradeCast offers a traditional VOD/OTT broadcast channel with cloud linear programming and combines this with countless streaming and live video capabilities and smart, programmatic ad targeting.
As a company trying to get into the online video market, there are a couple of important steps you need to take to adjust to the shifts across the TV industry. To stay a competitor in the digital age, it is important to understand how the online video ecosystem has changed three important components of the television industry, namely consumer services, advertising and content development and distribution. More on those three components in coming articles.
If you want to learn more about the opportunities your own video platform and targeted advertising can bring your company, contact TradeCast:
tel: +31 85 201 09 80