Since its invention in the late 1920s and early 1930s, television has been gaining ground to become an essential device in people’s daily lives. But its beginnings were not easy.
In the 1930s it was still considered a novelty, while radio continued to occupy the forefront, broadcasting the audience’s favorite programs. This made the adoption of television very progressive, due to its technology and not all households had one.
It was not until the 1950s that this format took off, due to the movement of many radio programs to television. It didn’t take long for consumers to stick to screens, with the TV becoming a “way of life” and a dominant form of entertainment. Such was the change that many large brands transferred their advertising spending to this format to connect with an audience, which was growing more and more, through specific messages or the promotion of a single product.
Arrival of the Internet and New Demands by Consumers
Over time, television diversified as networks competed to attract consumer attention to new cable, premium and independent channels. In addition, the rapid adoption of the internet brought even more changes, as consumers watched content online, allowing them to view their favorite TV programs anytime, anywhere.
Today, the disappearance of analog television has already been a reality since the early 2000s. In the last 10 years, digital transmission has suddenly reached everyone’s hands. In fact, it is estimated that across Europe, there are 8.9 connected devices per capita, which is more data than ever and more individual points of contact.
With accessible content, consumers demand a more relevant online advertising experience in exchange for their attention. How can advertisers do it?
With the emergence of new channels, viewers suddenly had a universe of program options, responding to diverse interests, cultures and desires. Access to them was expanded, and with it consumer preferences, as they had more control over what they saw and when they saw it. But this is nothing new, if we look back.
Back then, video cassette recorders or VCRs were the first devices that allowed consumers the flexibility to view any content on their TVs whenever they wanted. Even record shows before digital video recorders (DVRs) came along.
This paved the way for other devices, especially the video on demand (VOD) and subscription-on-demand (SVOD) channels that we enjoy today. This phenomenon has made digital video consumers more in control of their experience of what they see.
What Does it Mean for Advertisers?
Traditional and digital television, which were previously two different worlds, have collided, transforming the future, not just for viewers, but also for media owners, advertisers and media agencies.
However, and although it is still relevant, a decline in the way of watching television the traditional way is beginning to be observed. A factor strongly influenced by the popularity of video on demand, subscription on demand and the various viewing devices connected to the internet.
This leads to increased opportunities for advertisers operating in the new digital video landscape and who have understood the components of this new world locally.
Brands, eager to reach the right audience, have already begun to orient their TV strategies towards programmatic; a movement accelerated by uses and consumer preferences. With consumers willing to accept traditional television advertising, connected TV provides the “best of both worlds” for marketers. It combines the scale of attention we see on traditional TV with the precision and flexibility of digital.
On the other hand, due to the increasing number of ad-free on-demand content services, more and more connected television (CTV) viewers say that they would be happy to watch ad-supported content, to reduce the cost of their subscriptions. This makes it a perfect new ground for advertising. When combined with powerful targeting methods and programmatic automation, consumer attention is the default. This makes viewers, who actively choose what they want to see, lead to a longer dwell time of advertising.
The Future Relies on Advertising
According to Xandr’s 2020 Global Relevance Report, at least half of advertisers around the world are using a specific strategy to serve better video ads. The New Television Horizon has a programmatic philosophy of optimized and sustainable markets for television commercials, transaction models, ad delivery methods and metrics, regardless of device, to drive an ecosystem built on the relevance.
To capitalize on growth, advertisers must continue to train in CTV and audience-based buying value. Not only in that, but also in the ways in which their technology partners can help them overcome the challenges of the industry and unlock the full opportunity of connected television, as the viewing habits of their consumers evolve.
In conclusion, while the biggest changes and regulations in television have taken years to occur, for the first time people working in the digital advertising industry have a vested interest in rapidly improving the advertising experiences of viewers, thanks to technology. Taking advantage of the site, the sound and the movement to inform, entertain and build trust between brands and the public is something we can all relate to.