A new report from GigaOm shows that television ad spending, just crossing $75 billion 2013, is on the rise, but the general core business in itself is actually in flux. With audience ratings dwindling and secondary screens taking precedence in comparison to general TV viewing, changes need to be made in certain areas. However, not all the news is negative, as television viewership in itself remains at an all-time high.
How execs can keep up with this changing landscape is a tricky business, but the report shows that there are certain trends that indicate where things are going. For instance:
Online video spending is peanuts, and mobile is just getting started. Nonetheless, the Association of National Advertisers (ANA) estimates that multiscreen ad spending will grow from current level of 20 percent to 50 percent of budgets within three years.
Social media’s titans are achieving audience reach that may surpass that of U.S. TV networks’, and the social networks are emerging as sources of several TV-enhancing services including combination buys, increased audience engagement, and media metrics.
Lack of industry standards for cross-channel performance measurement is hindering broad adoption and market growth, and it is frustrating all constituents of the television supply chain. But multichannel video distributors are well-positioned and able to collect real-time click stream data analogous to web and online media channels.
The first-place digital-derived TV techniques will play out in any sort of volume is for addressable inventory on cable-owned local spots and video on demand.
Intelligent cross-platform media buying and planning is in a maturation phase. Key challenges still lie in the methodologies for data aggregation and standardization for things like de-duping viewership and the impact that has on impression valuation (for ad buyers) and viewership metrics (for buyers and sellers), but advertisers and program networks are moving quickly to adopt where they can.
The full report can be read here.