TV Ad Market on the Rebound with Technology

The TV advertising market suffered major set-backs in 2009, but appears to be rebounding strongly- in part thanks to technology. The adoption of new technology is changing viewer habits, and opening the door for new monetisation strategies:

1.Multi platform promotion: With 86% of Americans already using their phones while watching TV, real-time marketing has come into its own. The 2011 Oscars were a great example of brands taking advantage of multi-platform behaviours. For instance, Best Buy centred its online push on its ad. The retailer used its Facebook page to host a charity auction for clothes worn by Ozzy Osbourne and Justin Bieber in an ad that ran during the Oscars.

2.Product placement: Placement advertising already accounts for 5% of TV advertising spending in the USA, and has just become legal in the UK. New technologies are already starting to make it easier for viewers to find out more about product placements in-video, or on companion devices while they watch.

3.Connected TV: As connected TV enters the mainstream, a whole new swath of advertising real estate is opening up. A few companies, includingTiVo and Microsoft, have released ad products tied to broadband-video services designed to be accessed on television sets, not computers. Meanwhile Sony is rumoured to be considering selling video ads that play before premium programming on its connected TVs.

4.Better Targeted Advertising: Broadcasters and pay TV operators alike already know the high value of targeted advertising. With new technologies being released, targeted advertising is getting more accurate and effective- although barriers still stand in the way.

With pace of innovation accelerating, it will be interesting to see how these new technologies feed the advertising landscape, providing new and more effective real estate. Naturally, a lot of the progress we see today will be dependent on legislation and consumer acceptance.

Whether the relationship between new technology and TV is just a brief rebound or something more permanent remains to be seen - but the future looks optimistic.

Emma blogs for TV Genius over at the TV Trends Blog. TV Genius is a software company that has specialised in TV content discovery, recommendations, search, and interactive TV guides since 2005.

 

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