We are facing a pandemic to a degree we’ve never seen in modern times, and there is a whole range of emotions in trying to deal with this new reality. We can’t avoid being afraid. However, part of me can’t help but see the current events as a force for good.
All around the world, countries, companies, and individual people are making long-overdue changes now that we finally have the right incentive.
Inspired by the 2019 State of Digital Marketing report by Luma Partners, I’ve decided to combine what they have shared with some of the data points I’ve been collecting over the past few months and come up with my 4 predictions for the TV and video industry in 2020 and related trends over the next two or three years. Based on these predictions, we can also speculate what advertisers and companies should do to keep their competitive edge.
It has been a long hiatus. A new role at ABI has kept me busy in the past six months. During that time, I wrote a couple of pieces for AdExchanger that took me away from this blog, but I have had an itch to write a new opinion post.
As a digital marketer who is now responsible for a large TV budget, I decided to write about the current state of the TV advertising industry. It’s not surprising that someone with my background would be critical of a medium that has hardly evolved in the past 70 years, but I feel I can provide a different perspective. Besides, there’s little point in me discussing some hot topics of the digital marketing industry. Marc Prichard is already doing a tremendous job at demanding transparency and fair practice in the digital space, and he definitely has more pull than I have. There are also people with the caliber of Scott Galloway and Elizabeth Warren arguing for the need to break up and regulate “big tech.” They have eloquent and extensive arguments; there’s little I can add there.
I see three idiosyncrasies as clear signs that the TV industry is desperate to reinvent itself to avoid disruption or obsolescence. While not extensive or equally applicable to all the players in the market, these signs serve to make a larger point:
- Audiences are traded like crude oil
- Semantic innovation
- Fluctuating moral compasses
In this analysis, I don’t want to only point out what’s wrong. I also want to offer some thoughts on how the TV industry could evolve to live a new golden age and truly oppose players like Amazon, Netflix, Facebook, and Google, who are not afraid of short-term losses, sit on piles of cash, will likely spend north of $30 billion in content, and pride themselves of being “category disruptors.”
For the past ten years working in digital marketing, the world has been divided into Branding and Performance Marketing. Branding is full of large budgets and not much accountability for their results. Performance Marketing (or Direct Response) has ugly creatives but gets beautiful, carefully documented returns.
Advertising has not always been lik…