TV Is Changing. Its Relevance Is Not.

Amrita Hemdev
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By Amrita Hemdev
January 24, 2019
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It is undeniable that the TV landscape is vastly different today compared to a decade ago. The biggest change we’ve seen in the television industry is the rise of over-the-top (OTT) digital video media and its services. With the increased adoption of OTT digital video, along with the majority of broadcast and cable networks offering a plethora of viewing options, how the average person consumes TV content has changed remarkably and will only continue to evolve.

The explosive growth in Connected TV (CTV) has been largely driven by a rapid consumer shift in viewing behavior. By some accounts, CTV now accounts for over one in five hours of all TV viewing. With younger demographic groups, that shift is more pronounced.

 

So, from this moment forward, how should a local TV seller, media agency, or advertiser navigate the changes affecting the TV industry right now?

This shift in the television industry has had a large impact on pay TV or cable subscriptions. But while things are changing, this doesn’t mean the cable industry will just disappear.

It does mean, however, that advertisers have several ways to reach their target audience on TV via OTT ads. For example, if they wanted to reach viewers of the show Stranger Things, they would need to match their ads across many delivery paths. It also means advertisers need to follow the content, not the delivery system. Viewers care more about what they are watching than they do the viewing method.

The Changing Landscape of TV

While television continues to be a highly profitable, cash-generative industry, viewing habits are changing as a result of the rise in digital services.

This does not mean that the importance of TV is diminished. As a matter of fact, TV has gained even more relevance with the addition of new and engaging content that is readily available anytime and anywhere on multiple devices via OTT video streaming services.

Television is evolving, and OTT is a critical component of this new terrain. And while these changes are new, change itself is constant, which is why it’s important to stay on top of these shifts so we can help move the industry forward.

 

OTT ads give a similar end experience to the viewers just like TV ads.

OTT advertising delivers impressions in a TV-like environment, but with a higher engagement rate spurred from digital capabilities like targeting. Since OTT viewers actively select the show they want to see, they are less distracted and they’re not channel-surfing. And unlike cable TV ads, ads on OTT devices offer new opportunities for audience targeting, allowing for a more efficient way of reaching a selected audience set.

When OTT ads are played in the middle of longer content, viewers typically continue watching the content and even enjoy watching the ad if it is of their interest.

OTT video ads tend to be displayed full-screen without the controls to either minimize or skip them. OTT devices aggregate a viewer’s favorite content in a single location, providing a one-stop shop for premium video. Thus, OTT holds advantages for advertisers — the large screen is naturally viewable and the living room environment leads to higher engagement, typically averaging 97% or higher.

Therefore, TV buyers should start thinking about adding OTT advertising as a part of their media strategy.

 

The TV ecosystem is evolving.

It’s no secret that people love long-form video entertainment, which dates as far back as the early days of television. As it evolves, the combination of television and the digital attributes that OTT digital video provides is greater than the sum of its parts.

The real value of bringing data and technology to TV is better targeting and measurement and will lead to growth within the TV ecosystem itself. It’s about using the best of digital to the benefit of the TV market and allowing TV to evolve by narrowing the gap between traditional TV and digital.


For local advertisers looking to access cutting-edge marketing technology, ZypMedia promises the full package. We help local advertisers plan and execute their advertising campaigns.

When you're ready to grow your OTT sales, we're here to help you accelerate your success!

SpotX has ranked ZypMedia as one of the top 5 DSPs to help it reach 18x year-over-year growth in advertiser dollars spent on OTT in 2017. We help professionals like you sell over-the-top advertising every day.

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Amrita Hemdev

Amrita is an inbound marketer. She studied marketing and project management at UC Berkeley and proceeded to work in a fast-paced, digital advertising tech startup, with a goal of increasing brand awareness. She is currently the Content Marketing Specialist at ZypMedia. Passionate about digital marketing and having six years of experience in this field, she also started her digital marketing and creative agency, Sociato, based in India.
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