Allen Klosowski, senior vice president of Advanced Solutions Group at SpotX, recently discussed the top traditional TV trends to watch for 2019 — from changes in advertising strategies to data challenges and new technology standards. Check out this video to learn more about our predictions for traditional TV in 2019. Additionally, you can read the full interview with Klosowski below.
What traditional TV trends should the industry watch in 2019?
Some of the current trends we’re starting to see in the industry is the idea that linear TV and OTT are starting to kind of have a convergence on both the buy-side and the sell-side.
What we’re seeing at the agency-side is that the TV teams and the digital teams are now starting to work more closely together to start thinking about how to reach the audiences that have moved from traditional TV avenues into OTT. And they’re starting to look at the ad delivery across both traditional TV and OTT as one holistic approach. So that means bringing some of the digital strategies into TV, but that also means bringing some of the TV strategies into digital.
At the same time, we have the sellers — the customers of SpotX who are using our platform — starting to look at how they take their linear inventory and their digital inventory and package it in a way that TV buyers and digital buyers can start using to reach the audiences they’re looking for. So, this has presented several challenges to the market right now.
One of those challenges is really about data. What does data and measurement look like in a converged world where it’s not just mobile and desktop and connected television? Now it’s mobile and desktop, connected television, and traditional linear television — including pay TV, cable environments, and over-the-air broadcast environments.
We spend a lot of time with our customers and partners talking about this and about how we solve this from a measurement standpoint. So we look at things like universal reach and frequency of audiences across all of these different devices, and then how do we make it easy for our customers to take all of their inventory and package that up in a way that they can easily get it so that the buyers can action on it across all of the different integration endpoints.
And that’s a challenge I think that the industry is really going to spend a lot of time on probably over the next several years, but we’re seeing great in-roads being made today with several of our partners on that front and a lot of our customers as well.
Additionally, what we’re seeing from the buy-side is now that they can start looking at kind of TV in a completely addressable manner. It’s about how do we take things like our advertiser first-party data, bring it in, and then leverage that so we can actually serve personalized advertising on television screens using things like CRM data or other data.
Learn more: 2019 Video Advertising Trends white paper
Can you tell us more about the data challenges many in the industry currently face?
I think some of the other challenges when you start thinking about it is the way that TV has been traditionally transacted (sometimes at the household level). Digital really starts opening up at the individual level, and then you can start looking at all of the different ways that you can start breaking down a household and your advertising strategy as you start to get more granularity into where the ads are getting delivered.
And particularly when you have a combined media environment where somebody may be consuming similar broadcast OTT content on their mobile device and then also on their TV, you can say, “Well, we’ve got co-viewing that’s factored in — the whole family is sitting down and we’re watching this advertisement or this programming together.” How do we personalize that versus taking that same insight and applying it to a device that’s very personal and very, very much one-on-one?
So the idea that bringing all these data sets together and then looking at whether it’s a household data set or whether it’s an individualized data set or whether it’s a data set that you can actually bring in based on context around what content people are viewing — all of those are starting to come to the forefront. And there are big implications that are going to happen between the planning of the campaign, the actual execution and optimization of the campaign, and then the reporting and delivery underneath that campaign to see how you measured your results — whether that be attribution, whether that be measurement, or whether that just be baseline-level metrics.
What changes in linear TV technology do we expect to see next year?
We’re seeing actually a few really exciting trends in the linear TV environment. One of those is actually the idea that in many cable environments, we’re seeing a shift to adaptive bitrate technologies — which are things like HLS and DASH. Not to get too into the weeds, but what that ultimately means is that the future of cable looks very similar to the current state of OTT. That means that you can do personalized, individual advertising using data to each and every household — and it’s not necessarily a connected TV; it’s a traditional cable environment package.
In addition to that, we’re also seeing in the broadcast space, kind of an expansion of some of the ideas that have been pioneered by Europe around HbbTV being adopted in the United States as things like ATSC 3.0, which as that standard emerges not only will you do personalization of advertising in a similar nature inside of cable environments but you’re also going to be doing that inside of broadcast TV environments using ATSC 3.0 to deliver personalized ads and actually change the broadcast stream that’s going to that TV — or actually change the ads at the TV. Each broadcaster is going to be able to do that with this new technology.
What all of this means for the industry is that the future of TV looks and feels a lot like OTT.
Click here to learn more about how we expect traditional TV to evolve in 2019.
You can also check out the rest of our predictions for video advertising in 2019:
A Look Back on Ad Tech in 2018
Brand Safety and Transparency Predictions for 2019
Data Activation Predictions for 2019
CTV and OTT Predictions for 2019 (coming soon)