Prediction #2 – There will be significant growth in connected TVs
Coming off the heels of CES this year, we saw a tremendous shift in focus from 3D TV to connected TV. All of the media hype appears to be living up to the expectations. According to the recent State of the Video Industry report, growth in video ad spend on connected TVs shot up 20% from 2011, with another 38% of advertisers adding this device to their media plans within the next 12 months. When we surveyed our clients to find out whether or not it was impacting their business is 2012, it wasn’t surprising that 40% of ad networks are feeling the demand for connected TV ads from their agency customers. More interesting though is the impact it’s having on publishers.
More than a quarter of them are hearing what buyers are saying and are now trying to figure out how to support them in this new environment. And while it represents a huge opportunity for publishers, it doesn’t come without challenges.
Yes, media companies have loads of valuable content, but figuring out how to get it onto other devices like connected TVs requires a different approach. Here are three key questions publishers need to ask themselves and be prepared to answer before stepping into this new TVideo world:
- Do I have the capabilities in place to distribute content cross-platform?
- Do I have the capabilities to speak the language of the future video buyer? How fluent am I in GRPs, TRPs?
- Do I have the right resources to connect with all of the manufactures and ultimately the ability to do business with them?
Click here to read Part One: 2012 video ad predictions “checkpoint.”
Henk Van Niekerk, VP Sales, Platform for Adap.tv
*(Adap.tv clients were surveyed including agencies, publishers, ad networks and service providers. The survey took place in May 2012)