In recent years, the prosperous development of Internet video services has clearly documented changes in media consumer behavior. According to research conducted by eMarketer, a market research company, by 2020, the United States will have 200,200,000 smart TV users. According to Jeff Green, CEO of advertising trade technology company The Trade Desk, “The changes taking place in smart TV are one of the big things in the media industry to reverse the overall situation. Part of this comes from the pressure exerted by online video services on traditional media, and each media company All need to develop a strategic advertising strategy."
As more and more high-quality content flows to online video platforms, TV continues to rely on advertising revenue to maintain its operation, and it will have an interesting phenomenon: higher advertising relevance, fewer numbers, and improved consumer experience. And how did this happen?
Green believes that the most promising aspect of smart TV is that the ads can be delivered accurately. Regardless of the history of the development of the current advertising industry or the entire media industry, the biggest problem lies in the "wide spread of the Internet." In other words, today's advertisers are able to place advertisements for accurate consumers, regardless of where consumers are, compared to the advertising space used to buy “Super Bowl†games in the past and the traditional advertisements for advertising banners. Or what is being watched, advertisers can use this to adjust the consumer's purchase intentions, thus connecting the target audience. In fact, despite the fact that the sporting live broadcast is the last stack of traditional television to win over the audience, more and more large-scale sports events such as the “Super Bowl†can be watched on the online video platform.
Nowadays, everyone is keen to discuss what consumers want is on-demand services, thus ignoring the aforementioned “time **†– what monetization television means for the television industry. Green said, “Not long ago, people thought that the media industry would undergo a major change after at least 20 years. I would like to say that they neglected the role of capital and capital played a pivotal role in the media industry reform. At the same time, consumers are at another level. Driven by the changes in the media industry, they want to personalize and customize video services and they have to pay for it."
Today's TV industry is indeed in an awkward situation. Advertisers exhibit more ads to attract consumers to spend more money. All this is to make up for this eroding system, which is obviously unsustainable. “There is a point of cost-effective stimulation that can prompt us to enter the smart world more quickly,†Green said. “This is why our company bundles our future with the future of the TV industry, and Netflix’s financial The director of the board enters the board of directors. We are convinced that television will catch up with the internet and that the reason why it is developing so rapidly is that its monetization model is just like a timing issue."
This view can be supported by Disney and its upcoming streaming media service. One year ago, Disney, which owns ESPN, the world’s largest sports television network, was not yet able to access online media platforms and tactical advertising. However, no major media company in the world today lacks its own strategic advertising strategy.
High-quality content is the engine for new television media revenue
The Trade Desk is expanding its smart TV products to allow advertisers to target potential customers who have a TV purchase intention. Ways to achieve this include: positioning consumers in the smart TV environment through first-party and third-party data; measuring the impact of smart TV ads through digital television and traditional TV measurement standards, including video viewing integrity and total viewership Rates and conversions resulting from commercial advertising; repositioning of household groups that watch smart TV commercials through other devices, activating an omni-directional positioning strategy rather than focusing on individual users.
The Trade Desk's assessment of smart TVs will allow buyers of traditional media advertising to understand that if a smart TV advertising strategy is adopted, each viewing point can increase the degree of information arrival and the corresponding costs. This means that advertisers no longer have to be limited to research reports to estimate the likelihood of a family watching a TV show. Instead, advertisers can more accurately understand audience viewing behavior.
Since each smart TV has an ID, whether it is the ID of the TV device itself or it exists in the Roku set-top box or just because you are logged in, these will form an operating mechanism to allow the advertisement to be silently delivered to the target audience. “Now we can get a clear picture of each family’s specific information, which makes advertising very accurate,†Green commented. “You can even know that you’ve launched 17 ads for a consumer’s mobile phone this week. Therefore, you will not be running TV commercials to avoid being too frequent, so that you can achieve integrated control within the entire platform."
This also means that The Trade Desk can accurately know how many people saw an ad, and measure the interaction and related purchases in all aspects. "Advertisers began to measure advertising effects in an unprecedented way, which is why we believe that the transition from traditional TVs to smart TVs will bring about a better world." Green also said, "The original in-stream advertising period has now disappeared. With so many advertisements, they have been highly integrated into the content we watch daily, and advertisers naturally have to pay more for this. This form allows many high quality content to enter our vision. And can continue to develop."
Mash, the most watched TV show in the past, has more than 100 million people watching. There were only 13 television stations at the time, but now there are hundreds, not to mention one great invention - the Internet. Media resources and channels have become increasingly fragmented, making consumers more and more vulnerable to loss in the embarrassing environment. In other words, when Mash is broadcast, advertisers can buy the end-of-the-show ad slots to ensure 100 million potential customers can see it. But now they can still spend money on TV commercials, but in reality this does not help consumers to have a good impression on their brands.
In the face of such a dilemma, the only way to consider the flow of traffic and consider the advertising of all platforms is the road to success. Compared to Google and Facebook, The Trade Desk has a great advantage in that it does not have its own media platform, which allows it to show customers all the platform-related data they want to purchase for maximum transparency.
In addition, the fragmentation of media resources and channels and the rise of new media companies have made some big brands and large organizations urgently need an objective technology service provider to help them make rational purchases. The trend of this large environment has given The Trade Desk a tremendous space for its television advertising industry.
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