Video experience no longer constrained by schedules, location, devices or narrow choice | Media Analysis | Business
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Research from leading global media investment management firm GroupM has revealed a video market that has changed in almost every way, with the social media giants at the vanguard of this revolution.

groupm 14nov2017The State of Video is a report penned by Rob Norman, global chief digital officer at GroupM and Adam Smith, futures director at GroupM. The study offers a look at TV trends, including changes in TV consumption habits; the evolving economics of television; addressability and the application of data to linear and over-the-top TV audiences; trends with sports and other appointment viewing; the competition in video brought by digital entrants; and measurement issues that must be addressed in today’s cross-screen environments.

Key topics include the future of sports on TV, discussing the ways broadcasters can continue to make live sporting events appointment-to-view with improved ratings and the impact on rights holders and how digital offers a more engaging environment and can attract new sports fans. It also looks at the challenge to television’s advertising from Google, Facebook, Twitter, Hulu, Snap and Twitter – and the video and revenue models of these key western players.

Ultimately the report observes that the video landscape around the world is unrecognisable from how it was just a decade ago. It notes that TV has always had three masters: distribution, advertising and user experience. For 60 years, the user came third, but now nearly every innovation seeks to liberate the user from the imposed schedule and commercial break, with producer interest yielding to consumer interest. The author argues that in a world no longer constrained by schedules, location, devices or a narrow choice of content, people are living in a world of abundance which democratises creation, atomises audiences and fragments attention.

GroupM, a division of global advertising company WPP, stresses that almost none of these changes benefit the original advertisers who helped build the television economy in return for the brand competitive advantages accruing from reach, scarcity and high barriers to entry. It warns that the 70-year symbiotic relationship between advertisers and television is threatened, driving advertisers, both traditional and new, to re-thinking audiences, and using advanced segmentation in what was once the paragon of mass marketing.

GroupM concludes that in disruption lies opportunity with television and video increasingly take on the data-rich, addressable characteristics of the Internet. It expects new forms of video will allow previously unimaginable segmentation by context, using data to target according to actual or probable behaviour rather than programme proxies.

Opportunities include the enhancement of ad targeting, which will unlock economic value by supplying the ability for sellers to ‘share a spot’ between multiple buyers, and opening of the ‘long tail’ to television sellers by transforming the geographic precision of delivery.