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The Washington Post launched its first-ever interactive ad on its official Apple TV app this past week with hopes to increase consumer attention while attracting further ad dollars, according to Digiday.
The Post tapped creative digital firm Velocity Made Good to craft an ad for Jaguar that enables the ability to click and move around the inside and outside of the automotive company’s new F-Pace model. The ad will shut down after 15 seconds if there is no sign of viewer engagement, as to avoid any frustration for those that do not want to interact.
Last year, Apple introduced an open app platform on its Apple TV, allowing publishers to post video directly to it. The Post uploads roughly 20 videos a day there, but this is the first time the company is utilizing an interactive format.
While still in rather early days, interactive video presents a unique opportunity for both brands and publishers to:
- Increase engagement and view rates. Completion and view rates on connected TV and OTT devices were higher among interactive video ads than standard pre-roll ads, according to video marketing firm Innovid. View rates were 3.8% higher while completion rates were 7.5% higher, when compared to pre-roll ads. These higher engagement metrics allow for companies to charge a premium price for these ads.
- Overcome ad-blocking. Sixteen percent of US online users actively use ad-block software this year, which is expected to more than double by 2020. Outside of asking users to turn off ad blockers (or whitelisting their sites), publishers and brands can produce creative and personalized ads to change the “intrusive” and “annoyance” perception of the overall advertising ecosystem consumers have today.
Over the last few years, there’s been much talk about the “death of TV.” However, television is not dying so much as it's evolving: extending beyond the traditional television screen and broadening to include programming from new sources accessed in new ways.
It's strikingly evident that more consumers are shifting their media time away from live TV, while opting for services that allow them to watch what they want, when they want. Indeed, we are seeing a migration toward original digital video such as YouTube Originals, SVOD services such as Netflix, and live streaming on social platforms.
However, not all is lost for legacy media companies. Amid this rapidly shifting TV landscape, traditional media companies are making moves across a number of different fronts — trying out new distribution channels, creating new types of programming aimed at a mobile-first audience, and partnering with innovate digital media companies. In addition, cable providers have begun offering alternatives for consumers who may no longer be willing to pay for a full TV package.
Dylan Mortensen, senior research analyst for BI Intelligence, has compiled a detailed report on the future of TV that looks at how TV viewer, subscriber, and advertising trends are shifting, and where and what audiences are watching as they turn away from traditional TV.
Here are some key points from the report:
- Increased competition from digital services like Netflix and Hulu as well as new hardware to access content are shifting consumers' attention away from live TV programming.
- Across the board, the numbers for live TV are bad. US adults are watching traditional TV on average 18 minutes fewer per day versus two years ago, a drop of 6%. In keeping with this, cable subscriptions are down, and TV ad revenue is stagnant.
- People are consuming more media content than ever before, but how they're doing so is changing. Half of US TV households now subscribe to SVOD services, like Netflix, Amazon, and Hulu, and viewing of original digital video content is on the rise.
- Legacy TV companies are recognizing these shifts and beginning to pivot their business models to keep pace with the changes. They are launching branded apps and sites to move their programming beyond the TV glass, distributing on social platforms to reach massive, young audiences, and forming partnerships with digital media brands to create new content.
- The TV ad industry is also taking a cue from digital. Programmatic TV ad buying represented just 4% (or $2.5 billion) of US TV ad budgets in 2015 but is expected to grow to 17% ($10 billion) by 2019. Meanwhile, networks are also developing branded TV content, similar to publishers' push into sponsored content.
In full, the report:
- Outlines the shift in consumer viewing habits, specifically the younger generation.
- Explores the rise of subscription streaming services and the importance of original digital video content.
- Breaks down ways in which legacy media companies are shifting their content and advertising strategies.
- And Discusses new technology that will more effectively measure audiences across screens and platforms.
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