2017 will undoubtedly see a significant shift in the way “TV” is delivered, what it looks like, and how advertisers will be able to use it like never before to initiate consumer engagement.
7 Ways Brands Will Transform TV and Media Strategies in 2017
1. 7 WAYS BRANDS WILL
TRANSFORM TV & MEDIA
STRATEGIES IN 2017
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Good news for marketers: This connected world
presents a ton of opportunity to innovate and find
better ways to engage their audiences, even on
traditional mediums like TV. The real trends and
innovations in 2017 reflect the speed at which the
industry continues to change in response to this
connectivity, and how quickly consumers’ behaviors
and preferences adapt to ongoing evolution.
TV has emerged as a central player in the connected
world. Because consumers can essentially turn their
laptops, tablets and phones into “TV” devices, this
timeless medium is quickly becoming the all-device
connector of consumers and content. And, of course,
where there are consumers and content, there are
advertisers and brands vying to get their attention.
This means that 2017 will undoubtedly see a significant
shift in the way “TV” is delivered, what it looks like, and
how advertisers will be able to use it like never before
to initiate consumer engagement.
HERE’S A BIG
PREDICTION FOR 2017:
CONSUMERS ARE
GOING TO CONTINUE
LIVING CONNECTED
LIVES, ON THEIR TERMS.
SHOCKING, RIGHT?
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1. EARNED MEDIA WILL FINALLY GET
THE MARKETING CLOUT IT DESERVES
Marketers are cashing in on its power of influence.
With media and consumers across the globe constantly consuming and churning out
content--on social media, online and TV--there’s a huge opportunity for earned media.
Why? Because it consistently beats paid media when it comes to consumer perceptions
of brands.
Earned media, however, rarely works alone. Marketers who make it a part of their
marketing ecosystems along with paid and owned media will experience the greatest
ROI.
A recent report by IPA found that adding television to the marketing mix increases
effectiveness by 40%. TV advertising is also the best medium for generating top-line
growth that drives profit, with a 2.6% average annual market share point gained by
brands who invest in it.
IPA revealed that this is also true online: paid online media is much more effective than
unpaid.
So why is this trifecta of earned,
paid and owned so important for
marketers in 2017?
• Owned media typically increases
the effectiveness of a paid
campaign by 13% and earned
media by 26%. -IPA, 2016
• More than half of millennials are
more likely to be influenced by
earned media. -BazaarVoice
• Over 92% of consumers trust
earned media, with only 50%
trusting paid ads. -Webbed Feet
• Earned media drives 4x the brand
lift of paid media. -BazaarVoice
• Brands relying on earned media
marketing save over $14 for every
new customer acquired. -Hubspot
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2. ADVERTISERS WILL INCREASE THEIR
SPEND IN TV MEGA EVENTS AND
SPONSORSHIPS
Traditional TV isn’t going anywhere.
Each year is inundated with major tent-pole events that get advertisers’
creative and financial juices flowing. From the Super Bowl and NASCAR to
March Madness and the World Series, these heavily-watched TV events
give brands access to concentrated audiences over multiple consecutive
days or weeks. Honor, glory, and pride are on the line in the arms race for
the best creative and the most eyeballs.
As advertisers come to relish the fact that their beloved medium of TV is
not going anywhere anytime soon, they are also thinking about creative
ways to leverage TV mega events to captivate their audience.
Here’s why in 2017, we should expect
to see marketers continuing to show
love for sports sponsorships.
• March Madness ad spending
topped $1 billion in 2012. Since
then, ad investment for the
college basketball tournament has
continued to grow, nearing a record
$1.19 billion in 2015. -eMarketer 2016
• Sports is the genre with the least
amount of time-shifted viewing.
Sports only command 18% time-
shifting share, as compared to other
genres at 50% to 72%. -TiVo, 2016.
• Total Super Bowl ad spending has
seen a 118% increase over the past
decade. -Kantar Media, 2016
• TV will continue to grow and remain
the top video advertising format
through 2020, with growth up to
$77B in ad spend. -eMarketer 2016
• Global sponsorship spending grew
5% in 2016 to $60.2 billion. -IEG
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3. TV ADS MAY FINALLY BE
PERSONALIZED
2017 could be the year first test actually run.
Every year, personalization, or rather, finding unique ways to get closer to your target
audience comes up on prediction lists. Marketers have been eagerly chipping away at
this over time, from email to display, to ecommerce experiences. The last big medium
left, of course, is TV. Targeting people with individualized TV commercials using cable or
satellite boxes is, quite literally, the future of TV.
But, addressable TV advertising has been held back while the market waited for
consumers to catch up. However, with more homes having connected devices, and more
device options for watching TV, it’s safe to say the market is ready. Addressable TV can
better pinpoint and aggregate an advertisers’ target audiences, to encourage more
engaging ad units, and, even better, to actually measure the impact of that advertisement
and its effectiveness beyond ratings.
Here’s why we see 2017 as the year
personalized TV comes into play.
• One in three U.S. adults now
owns a connected TV and 1/3
of connected TV owners stream
video to their TV daily. -IAB, January 2015
• Advanced TV commands a 2.5%
click through rate, as compared
to desktop rich media at .10% and
instream video at .46% -Brightline IQ
• Advanced TV show a +4.9 lift in
purchase intent as compared to
traditional TV at +3.6 -Brightline IQ
• Starcom/MediaVest Group claims
their clients’ campaigns are 37%
more effective using addressable
TV vs. linear TV advertising
vehicles.
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4. BRANDS WILL RAMP INVESTMENT
IN LOCAL TV BUYS
And correlate revenue accordingly.
Brands spend millions to connect with consumers through multiple channels and targets,
but it’s not always easy to show which investments performed most favorably. Further,
today’s always-connected consumer means that brands of all sizes, in all places, need to
be more mindful of a very important consumer detail: their location.
One of the biggest events of 2016, the Presidential Election, proved that a focus on
TV ad spending in local markets was the winning strategy. Beginning in September,
iQ Media found that Clinton spent 71% of her ad budget on local ads and only 28% on
national. Similarly, Trump has spent 85% on local and only 15% on national. While other
factors were at play, both played a ground game to speak to a more targeted audience.
We see marketers’ taking the local
route in 2017 because:
• U.S. local advertising revenues
are projected to reach $148.8
billion in 2017. - BIA Kelsey
• 61% of consumers agree that,
“I would like my favorite brands/
companies to play a bigger role in
my community. - Mintel/Havas Worldwide
• TV ads reach 87% of people over
18. - The New York Times
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5. ADVERTISERS WILL BECOME
PART OF THE TV CONTENT, AND
CREATE DIGITAL EXPERIENCES THAT
CORRELATE
More people are doing more things online while watching TV.
The idea of the second screen is not a new one, but how advertisers use that other
device to their advantage will come into focus this new year. Mobile devices have
become a companion to many people when they watch TV, whether it’s browsing related
content or discussing it socially.
As with anything in media or video, it’s all about crafting a good story and inviting your
audience to participate. In fact, research shows that brands that invite their audience to
take part in their story receive an overwhelming 78% approval rating, as compared to
those that continue to rely on more passive tactics.
Here’s why second screen’s
continued seat at the couch will push
marketers to be more mindful of its
content next year:
• 31% of TV viewers browse the
internet for content related to
what they are watching, while
they are watching. -Ericsson, 2016
• 19% of TV viewers join online
discussions about the content
while they are watching. -Ericsson, 2016
• A survey from TiVo indicates
that digital viewers multitask while
watching TV. More than half of
respondents said live television
was the TV or video format
during which they most likely
multitasked. - eMarketer
• 53% of respondents to an
eMarketer survey said they were
most likely to multitask during
live TV vs OTT or time-shifted
content.
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6. BRANDS WILL USE REAL-TIME TV
MEASUREMENT TO MAKE QUICKER,
SMARTER BUYS ACROSS MULTIPLE
PLATFORMS
TV finally has a place at the table with digital.
As digital and TV collide, it’s no surprise that buyers and sellers alike are demanding
better measurement options. And the industry is making moves. Comscore and Roku
joined forces this year to help customers leverage the vCE currency for measuring OTT,
and helping advertisers see when and on which device a consumer viewed an ad.
When it comes to linear TV, marketers will begin to demand more data at a faster rate in
order to keep up with their digital, programmatic counterparts, and have an apples-to-
apples comparison. In fact, noted in an AdAge article from earlier this year, “The Video
Advertising Bureau, whose members include TV networks and pay-TV companies, is
recommending that observers and advertisers use average audiences as the standard to
compare traditional and digital platforms.”
So, here’s a few reasons why brands
will push for this in 2017:
• TV accounts for 72% of adult
audiences in any given minute. - VAB
• In any given minute, TV accounts
for 95% of video consumption for
all adults. -VAB
• The average 18-to-34-year-old
audience watching TV on
both linear and on TV brands’
platforms is about 5.3 million,
compared with 1.8 million in the
demo on Facebook in any given
minute, 1.3 million on Pandora
and 1 million on YouTube. - VAB
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7. AUDIO ADVERTISING MAKES A
COMEBACK
Long live the power of the spoken word.
While many predict that radio advertising budgets will continue to fall, new technologies
inspire optimism for the traditional medium, digital audio and podcasts. Through geo-
targeting, interactive mobile apps and advanced analytics, radio can optimize its large
and diverse audience to compete with digital advertising.
Radio’s integration of more sophisticated location technology with their mobile app will
help stations get more airplay, and help advertisers prove that targeted ads are not only
reaching the consumer, but also driving them into the store.
• Radio advertising spending will
reach 18.33 million U.S. dollars in
2020. -PWC
• 57% of Americans older than 12
listen only to radio, while 21% listen
to podcasts. - Edison Research and Triton Digital
• All age groups consume digital
audio, though the 18-34
demographic are the heaviest
users. -Piper Jaffray
• Audio listeners are also high
earners: 41% of podcast users make
over $75,000 annually. -Edison Research
• A Midroll survey found 67% of
respondents were able to name a
product or promotion mentioned in
a podcast, and 61% indicated that
they had bought something they
learned about from a podcast. -IAB
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ABOUT IQ MEDIA
iQ Media is the pioneer of real-time searchable TV, changing
the way marketers access and evaluate their brand performance
across earned and paid media. With over 22 million hours of TV
content from 210 DMAs, iQ Media delivers spoken and seen logo
recognition, competitor data, industry benchmarks and local to
national-level audience data. Serving brands such as Domino’s
Pizza, Energizer, NHL, Red Bull and Sonic Drive-In, iQ Media
provides a single, user-friendly platform that helps marketing, PR
and customer insights teams better understand earned and paid
media TV ROI, moments after it happens.
For more information, please visit www.iq.media
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