Convergence will ‘disrupt TV buying strategy’
A new report from Forrester predicts that convergence will disrupt established TV buying strategies and practices, thus rendering them ‘ineffective’.
‘Convergence Disrupts Europe’s TV Ad Market’ looks at the landscape of TV advertising across the continent, and says that over the next three to five years, marketers will need to adopt new tools and strategies in order to achieve effective reach and results from video advertising.
The report says that there are five prevalent trends across Europe: on-demand viewing, TV anywhere, original online professional content, addressable advertising and programmatic buying.
“YouTube isn’t just cat videos anymore,” said Forrester analyst Jim Nail in a blog post on the report. “There is an explosion of high-quality professional content that won’t ever be broadcast.”
Nail also said that internet ad buying has had to adopt a more automated, data-driven mechanism to manage the complexity of online advertising, and cites AOL’s purchase of programmatic buying technology from Adap.tv.
“The big agency holding companies, distributors, and programmers all see it coming, and while there is some concern about pricing pressure in this kind of transparent, open market, there is optimism that it will actually draw more buyers to the market and thus support prices,” concluded Nail.
The report surveyed more than 22,000 European online adults and conducted interviews with companies including Adap.tv, AOL’s Be On, BBC, BSkyB, Virgin Media and YouTube.