The TV industry is in the midst of rapid change. The devices used for media consumption are shifting from the traditional television set to mobile and digital, while linear broadcast channels are giving way to the likes of OTT players such as Now TV, Netflix and Amazon Prime.
While incumbent media owners are launching their own subscription-based digital channels in response – from ITV and BBC’s Netflix streaming rival, Britbox, or Channel 4’s revamped, ad-free All 4 service – advertising will remain essential for traditional broadcast if it is to remain the dominant channel for content consumption.
However, as video channels fragment, and advertisers shift exclusively from linear TV to multiplatform, they are encountering difficulty in measuring and evaluating the performance of their content across channels. It’s a problem that the TV industry across Europe must address – if the performance of TV ads can’t be benchmarked against the wider digital channels that advertisers are increasingly using, broadcasters risk losing essential ad revenue.
To tackle this issue head on, here at Adobe we partnered with TV industry heavy weights Sky, TVBeat, Alphonso and MTM, and formed a TV Consortium in May 2018. In the last year, we’ve spoken with over 300 TV industry executives across Europe through a series of roundtable events, and have gained their insights on the current state of the industry across Europe, as well as what the future holds.
Our key takes from these discussions? Today’s TV operating model doesn’t place advertiser needs front and centre, and without common metrics for ad viewability, brands can’t offer the best experience across multiple channels.
In fact, of those we spoke to, nine in 10 of the TV industry executives called for urgent change, stating that new initiatives for TV advertising measurement, data and metrics are urgently needed if the European TV industry is to remain competitive.
Three quarters also (72%) stated that that the industry must seek new definitions and common principles for ad viewability, and a further two-thirds (64%) believe standardised definitions for TV and video impressions must be developed.
In response to these findings and to help the TV industry in Europe remain competitive and offer more consistent experiences across channels, the TV Consortium has identified five key priorities to take them there. These include:
- Ensure that TV Audience Measurement (TAM) solutions remain the gold standard in media measurement
- Support the development of scalable, consistent pan-industry standards, definitions and solutions
- Develop the industry-wide data assets and capabilities required to cater to new advertiser needs
- Maintain TV’s status as a brand-safe, fully viewable, and effective advertising medium – committing to clear principles
- Invest in training the next generation of data scientists to meet TV’s needs
Together with Sky, Alphonso, TVBeat and MTM, we believe it’s essential that the TV industry across the entire ad supply chain works together to address these priorities, so as to maintain TV’s position as the dominant channel for content, and advertising consumption.
On our part, we’ve launched a full report – ‘Next Generation TV Metrics and Data Strategies: Priorities for the European TV Industry’ – which explore these priorities in further detail and offer a roadmap for the industry’s future. You can download the full report here.
And it’s no coincidence that the report has been launched during Ad Week Europe 2019. We’ll be on the ground throughout Advertising Week to discuss the TV industry’s future in more depth, as well as taking part in wider panels on 2019’s biggest advertising trends.
We hope to see you at the show and stay tuned for more updates from the TV Consortium in months to come. For more info on what we’re doing at Advertising Week, click here.