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Yearbook Jan 2019

28 yearbook 2019 Television Global TV – The message is now the medium Content has finally taken the lead over the delivery medium. Linear, live TV has its strength in sport and news, but viewership of all other TV shows in their live forms is declining, writes FEDERICO DE NARDIS. W e’ve been reading, Federico de Nardis, CEO of GroupM listening to, and viewing the sad news that TV is dead since the start of the digital era. It is a very divisive topic with a strong ideological contraposition. We’re not going to follow that route, but are trying to make sense of the current complexity from an advertiser point of view. And in doing so, extracting ideas, analyses and full content from a GroupM global publication, The State of Video, written by two of the smartest minds in the global media industry: Adam Smith and Rob Norman (published in November 2018). Let’s consider the different forms of TV and video currently at play, and what will affect advertisers the most. Linear TV ratings continue to fall worldwide, but TV is still the best and most effective reach medium. Big advertisers are not leaving linear TV, yet. On the contrary, in developed markets there are many new entrants in direct-to-consumer businesses that have exhausted all the reach and awareness performance media has to deliver. Over the Top (OTT) and Subscription Video on Demand (SVOD) viewing continues to grow and there are early signs they might replace, and not just complement, linear TV viewing within households. Netflix, probably the most successful of these services, has already reached 190 markets. Sub-Saharan Africa Increasing data application to linear TV is supporting more accurate audience planning, but addressable TV is only really available at smaller scale in the United States. When we consider the full video ecosystem, though, the constant growth of the three global giants – Google, Facebook and Amazon – seems to pose the biggest threat to linear TV because they: • Invest in new models (Facebook Watch, IGTV on Instagram, YouTube Premium); • Invest heavily in rights, especially sports e-rights; • Have more appeal to younger target audiences, as they are native on different platforms. But they still have to convince the biggest advertisers they can offer a brand safe environment, and not enter into viewability measures that keep When we consider the full video ecosystem, the constant growth of the three global giants – Google, Facebook and Amazon – poses the biggest threat to linear TV


Yearbook Jan 2019
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