As an increasing array of connected devices is shaping the IP-delivered video landscape, broadcasters must advance their IP-delivered video advertising strategies to ensure sustainable growth in the monetisation of their content, a new report by Videoplaza is suggesting.
The ad management platform provider says that it has released its report, published in collaboration with analyst house IHS Screen Digest, to enable the online video industry to “understand more about the fragmented multidevice world we live in today.”
It says that the world is changing: TV advertising growth is flat in Western Europe and the US. Whilst TV is still a hugely important medium for achieving reach, audiences are shifting across other devices. Indeed the research shows that but growth in many markets over the next five years necessitates diversification of the traditional ad model.
Videoplaza notes that if personal devices such as smartphones are taken into account, there are already more connected devices than PC or TV households in developed markets, a dynamic that requires media owners to develop services which can be accessed via these devices or risk missing out on growth, and losing ground to competitors.
Moreover, Videoplaza asserts that the surge in connected devices is leading to a double fragmentation for media owners – a horizontal fragmentation of their aggregate audience across devices, and a vertical fragmentation of individual consumption – split across individuals’ device portfolio. This, the company suggests ultimately affects delivery cost and ability to monetise an audience reach scattered across devices.
In a call to action, Videoplaza urges the connected device community to forge itself into a cohesive ecosystem, both from a reach and monetisation perspective. It stresses that “re-uniting” the audience fragmented across connected devices and restoring the associated advertising reach through a device-agnostic approach is imperative if the new IP-delivered TV is to become a viable alternative platform for large-scale brand advertising.
Furthermore, to take full advantage of this opportunity, Videoplaza suggests that broadcasters are well advised to partner with players which can offer them data-driven answers to the questions which surround device advertising consumption, so that they can focus resources and innovation on what sets them apart in an increasingly competitive world.