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TV Advertising Trends in 2016

TV Advertising Trends in 2016 have been driven by the diverse, and readily available technologies we have unique access to today. Buyers are no longer relying solely on the traditions of yesterday to purchase their advertising for TV, and other platforms. Influencers like multimedia company, Vice, are operating across multiple channels by making content available everywhere with little exclusivity in regards to duration or location.

Changing the Standard of Media Buying

The once fairly constant paradigm of programmatic television advertising has been disrupted by an inconsistent and asymmetrical flow of information. In other words, sellers of advertising do not have the information and data that explains the value of their advertising to their targeted households. As AdExchanger.com discusses in a May, 2016 article, the buyers of the ads are receiving their data from Rentrak and other similar services which provide trends and data for targeting specific demographics, which creates an uneven playing field for buyers and sellers of programmatic TV ads.

Young adults ages 18 to 34 are, as Adweek.com states in a March 2016 article,  “not a monolithic group with a common set of technologies or behaviors. Their lives are in rapid transition.” This, along with their high likelihood of watching television primarily through subscription and streaming services, (many of which are ad-free) contributes to the difficulty buyers have in targeting advertising for them. This makes multiplatform, nonexclusive marketing an option worth looking into, particularly for reaching such a mercurial demographic. 78 % percent of independent millennials watch tv mostly through subscription on demand services, and 64 % of dependent adults watch through subscription services as well.

TV Advertising Trends

Sellers who forfeit the control of defining products and packages will experience an inevitable loss of pricing power which has serious implications for the TV advertising market for all parties, including consumers.  Sellers will need to have first and third party data to leverage information adequately. Adtaxinetworks writes that, “eMarketer predicts programmatic ad spending will account for 63 % of all digital advertising display spending in 2016.” This software-driven method of pinpointed marketing is a TV advertising trend that is here to stay.

Interestingly, Vice Media is able to make money from its programming on their channel, even when the ratings are low. They are combating the standard cable practice of 16 minutes of ads per hour, with only 10 minutes per hour, of which 8 minutes are national ads and 2 minutes are local ads. Vice favors the use of native ads, which appear visually consistent with the branding of their channel, these types of advertisements are appealing because research is showing that they get more views in the digital mediums as opposed to ads which might not be consistent with the branding of the channel or program being viewed.

Mobile Optimization

An emerging force in TV advertising trends is the use of formatted mobile ads in addition to digital ads. According to MarketCharts.com, adults spend an estimated 5 hours and 43 minutes per day on their mobile devices, 4 hours and 5 minutes per day on TV, and only 28 minutes on physical print media. This creates a large opportunity for buyers of ads to create formatted ads for mobile devices and tablets. Although the statistics show that users are on their mobiles more frequently, it does not mean that the ads seen on mobile devices are more efficacious than ads seen on television or even ads heard on radio.  Today’s TV advertising trends are ripe with opportunity across a wide swath of platforms and with a deluge of possibilities. What is right for someone’s company might not be right for yours. With time, education and proper execution the right ads will bring the results you desire, and then some.

Kameleon Advertising 6/20/16