We all understand that the genesis of streaming services has significantly changed consumer behavior; the way people watch video content is much different now than it was even a decade ago. But what is the precise nature of these changes?
2020 promises to be an impactful year as we head into what could be an unprecedented election cycle. No matter what you think of the candidates, one thing is very clear: This is going to be a critically important year for advertisers.
There was a time when TV was just, well, TV. You had a few broadcast channels available to you, or perhaps a host of cable options, but that was it. In today’s world, of course, “TV” is a much more fluid concept. Streaming services have created countless avenues for viewers to seek programming. And, it’s now possible to consume shows across a variety of device types, not just your actual television set.
Here at enCOMPASS, we put a big focus on the merits of video marketing. There are a number of reasons for this, but what it really boils down to is this: Video marketing works. Because it’s easy to digest, online consumers have come to prefer it over text and even images. The rise of video has completely changed the way people consume information on social networks. What’s more, video content is easy to share. And, for business owners who may not feel as comfortable writing content, video can be a more relaxed fit.
Many Americans are already gearing up for what’s sure to be an eventful 2020 election cycle… and that includes advertisers as well as key advertising platforms.
As you might imagine, TV advertising is big business. By some estimates, the amount spent on TV advertising each year surpasses the $80 billion mark. Historically, the bulk of this money is spent during upfronts week, which is when TV networks enthusiastically show off their latest round of programming, and advertisers opt in on the programs where they’d like to have a presence. Any ad inventory that’s left over following upfronts is sold, typically for a much lower price, on what’s known as the scatter market.
Programmatic advertising has become a major area of focus in the advertising industry; it also happens to be something we discuss frequently here at the enCOMPASS blog. That’s because, quite simply, programmatic advertising is an effective way for brands to spread their message in an increasingly fragmented media landscape
For years, fixed CPM has been the standard in digital ad-buying. This model allows advertisers to bid on impressions at a fixed cost per thousand, which is useful in some ways but limiting in others. For example, most auction-based ad platforms have prices that fluctuate day by day, hour by hour, even minute by minute, based on a whole host of factors. As such, it’s very difficult to know when you’re simply paying the best possible price, maximizing your ad budget.
When it comes to marketing, the temptation is often to spend more money; a greater ad spend will yield more desirable results, or so the thinking goes. This isn’t always the case, however, and a more prudent goal for marketers is to spend the least amount of money possible while still getting great results—in a word, improving marketing ROI.