Beyond the Box: The Metamorphosis of Television
Co-authored with Jacqueline Johnson, Assistant Media Planner/Buyer
TV Everywhere could be a big moneymaker for advertisers and networks. Viewers now have the option of watching their favorite shows on TV at home, on their laptop or even on their mobile device at no additional cost, which will change the way TV is purchased from a media standpoint.
Gone are the days when the family would gather in the family room to watch their favorite primetime TV shows. The VCR dabbled in changing this habit, but the DVR completely mastered this concept. Now viewers have the option of watching their favorite shows on TV at home, on their laptop or even on their mobile device at no additional cost. This concept is known as TV Everywhere.
The growing demand for TV Everywhere has transitioned TV from a platform device to an experience, which is beneficial to both the viewers and advertisers. With TV Everywhere, cable operators are allowing mobile access to customers who pay for TV service, improving customer satisfaction and creating new revenue opportunities. And one of the main perks is that unlike DVR, consumers do not have to plan ahead to use it.
TV Everywhere could be a big moneymaker in the future for advertisers and networks. According to Needham & Co’s Laura Martin, TV Everywhere could bring an additional $5.6 billion into the ad market each year. Since commercials will be the same as television, revenues will not be lost from ad skipping if the fast-forward button is disabled. This will also change the way TV is purchased from a media standpoint. Companies will be able to buy packages, which allow them to advertise across multiple platforms, and purchases will be focused more on impressions rather than ratings.
David Verklin, one of the cable industry's most influential executives, explains in this video why he's bullish on the future of television, and why the reasons have as much to do with new media as old.
In a world where technology is rapidly advancing, service providers will need to produce a consistent viewing experience across multiple devices in order to keep up. How do you think TV Everywhere will influence a shifting approach to advertising?