THE NEXT

GENERATION

OF TV ADVERTISING

Jeremy Weiss

THE PROBLEM

Declining viewership and the rise of on-demand media is causing a massive re-think of the traditional

television revenue model

PERSONALIZATIONThe de-massification of media

towards personalized feeds, coupled with relatively cheap

subscription costs and "all- you-can-eat media" has led to an uprising of online and on-

demand streaming      services. [1]

accounted for about half of the overall 3% decline in TV viewing among U.S.

audiences.

In 2015, 

Image by: "Methodshop.com'. Sourced from: Flickr

[2]

CORD  CUTTINGand proliferation of television content has led to serious declines in TV advertising revenue and return on investment. 

The growing trend of

Image by: Zechariah Judy. Sourced from: Flickr

[3],[4]

LESS OF IT LIVEWe are consuming more television but watching

and ad revenues are shrinking. [5]

We also have a new

expectation of relevance in our

ads.

Photo by: Cory Doctorow. Sourced from: Flickr

[6]

TELEVISION ADVERTISING NEEDS A TUNE-UP.

THE RESULT?

How can the industry replace or retain some of its

$65 BILLIONin annual ad revenue? [5]

Shows partnering with brands to create sponsored promotion

vehicles [7]

BRANDED

PROMOTIONS

Delivers an increase in

programming realism [6]

PRODUCT

PLACEMENT

Providing relevant commercials to

specific households based on big data [8]

TARGETED

ADVERTISING

SOME SOLUTIONSNetworks have been experimenting with some

options.

But, the real money is in bringing

NATIVE ADVERTISINGfrom online to the small screen. [9]

Businesses must move from interruption marketing to permission marketing to

retain their audience. Brands have become the new

publishers and their content must be

"status-update worthy." [10]

NATIVE ADVERTISINGis desired marketing communications that appear in-

stream. [11]

It minimizes disruption and is consistent with the experience a consumer is enjoying. If it is virtually indistinguishable from other material, we are less

likely to turn away. [11]

Native advertising on network TV started to heat

up in 2016. Networks are attempting to write story lines around the products advertisers are trying to

sell.

And the only way to avoid the product placement

would be to stop the show altogether. [9]

$36Expected US Native Display advertising revenue in 2021.

Billion

$17 US Native Display advertising revenue in 2016.

Sponsored content will be the fastest growing native format over the next five

years

Billion[9]

This is going to

CHANGEthe way we watch TV.

Native ads will result in fewer, more targeted commercial minutes

  10Viceland airs 10 minutes of commercials, down from standard 16 minutes per hour.Minutes

   4 Viacom reduced commercials by 4 minutes per hour.

Minutes

Viceland launched their network on a Native Advertising model.

[7]

[12]

Last season, Fox’s “Empire” partnered with Pepsi for a 3 episode arc. It culminated in a

music video starring a main character promoting Pepsi.

NATIVE ADVERTISING IN ACTION

[7]

Advertising savvy brands will capitalize on their native advertising with real-time marketing, joining

the conversations around the buzz their shows create as they happen. [13]

On demand and online media are changing the face of television, and

the rise of native advertising means the content on our screens might have more to it than meets the eye.

[1] Matrix, Sidneyeve. 2017. FILM 240: Module 1 Lecture 1 Media Convergence. Video.

[2] Spangler, Todd. 2016. "Netflix Caused 50% Of U.S. TV Viewing Drop In 2015 (Study)". Variety. http://variety.com/2016/digital/news/netflix-tv-ratings-decline-2015-

1201721672/.

[3] Paskin, Willa. 2015. "In The Streaming Age, Nothing’S A Hit Anymore". Slate Magazine.

http://www.slate.com/articles/arts/television/2015/11/tv_ratings_in_the_streaming_ age_why_nothing_can_be_called_a_hit_anymore.html.

[4] Jackson, Emily. 2016. "Broadcasting Revenues Dip As Canadians Move Online For Radio And Television: CRTC". Financial Post. http://business.financialpost.com/fp- tech-desk/broadcasting-revenues-dip-as-canadians-move-online-for-radio-and-

television-crtc?__lsa=a067-7999.

[5] Wolk, Alan. 2015. "When Netflix And Other On-Demand Services Killed The TV Ad Golden Goose". The Guardian. https://www.theguardian.com/media-

network/2015/feb/05/netflix-subscription-services-television-ad-revenues.

WORKS CITED: 1 OF 3

[6] Matrix, Sidneyeve. 2017. FILM 240: Module 2 Lecture 1 Advertising Strategies. Video.

[7] Poggi, Jeanine. 2016. "Dear TV: We Love You. You're Perfect. Now Change. (But Not Too Much.)". Ad Age. http://adage.com/article/media/future-tv-

advertising/303565/.

[8] Paul, Jonathan. 2016. "Addressable TV, Coming Soon To Canada". Strategy Online. http://strategyonline.ca/2016/06/21/addressable-tv-coming-soon-to-canada/.

[9] Meola, Andrew. 2016. "Native Advertising Is About To Take Over Television". Business Insider. http://www.businessinsider.com/native-advertising-is-about-to-

take-over-television-2016-5.

[10] Toole, Catherine. 2017. "Brands As Publishers: Inside The Content Marketing Trend". Curve. Accessed February 26. http://curve.gettyimages.com/article/brands-

as-publishers-inside-the-content-marketing-trend.

WORKS CITED: 2 OF 3

Jeremy Weiss

The Next Generation of TV Advertising

All photos included are Creative Commons Zero Licensed unless otherwise noted.

[11] Campbell, Colin and Lawrence J. Marks. 2017. "Good Native Advertising Isn't A Secret". Business Horizons 58 (6): 599-606. doi:10.1016/j.bushor.2015.06.003.

[12] Lynch, Jason. 2016. "Viceland Is Shaking Up TV Advertising By Running

More Native Ads That Look Editorial". Adweek. http://www.adweek.com/tv- video/how-viceland-shaking-television-advertising-169935/.

[13] Krashinsky, Susan. 2014. "A Sunday Shift: The Rise Of Real-Time Ads". The

Globe And Mail. http://go.galegroup.com.proxy.queensu.ca/ps/i.do? p=CPI&sw=w&u=queensulaw&v=2.1&id=GALE%7CA357218028&it=r&asid=5ca8b1

8d1e7c7674fa4d7d6ba9738cd9#.

WORKS CITED: 3 OF 3