Media Ecosystem: It Only Works if Everybody Wins

This explosion in choice has led to fragmented and declining viewership for networks and media companiesamp160 Declining viewing means declining revenueamp160 So what did networks doamp160 They increased the ad loadamp160 The resultamp160 Increased clutter that makes it harder for marketing messages to break through and even worse it totally discourages viewersamp160Ad overload drives more viewers especially the most valuable viewers to adfree services like Netflix and Amazon Primeamp160 This further reduces adsupported viewing putting even more pressure on media companies to increase the ad load in order to preserve revenueamp160 Not to mention an increasing proportion of the highestquality creators and content the stuff that39s winning Emmys and Golden Globes are on platforms that run no adsamp160And around it goesamp160 Stay on that path and adsupported TV is in a selfinflicted death spiralThe good news is that the industry is slowly waking up to this reality fumbling for the light switch of innovation and a way outThe way forward starts with a simple insight Create more valueamp160 More value for marketersamp160 More value for media companiesamp160 More value for consumersamp160 We have to unwind the shortsighted decisionmaking where one part of the ecosystem media companies benefited at the expense of the others consumers and marketers and respect the important role each constituency plays in making the industry healthyThe industry has historically not done a great job creating value for all partiesamp160 Media companies ad tech providers agenciesamp160and marketers have hoovered up consumer data while also subjecting the audience to everincreasing ad loads and in some casesamp160creepy ad targeting practicesamp160 It39s no wonder that consumers especially the savviest and most affluent have been voting with their feet and moving to adfree servicesSo what to doamp160 Rather than trying to fix a broken system in small increments does a consumer notice let alone change their viewing behavior as a result of seeing 10 fewer ads over a year we should be investing in innovation that develops a new paradigm to benefit all parts of the ecosystemamp160 This isn39t easy but it can be doneValue Exchange Engagement AdsAs described in a recent IAB Internet Advertising Bureau publication value exchange ads offer consumers a choice something of value in exchange for engaging with the advertisement Not surprisingly this is getting real traction Pandora for example worked on a custom optin ad experience with HP that it reports led to a 34 lift in purchase intent YouTube ran a campaign for NBC39s The Good Place where viewers who didn39t push the famous quotSkip Adquot button were rewarded with an exclusive clip from the show39s upcoming seasonamp160amp160amp160Our company trueX pioneered optin engagement ads Viewers are given a clear choice to engage with a brand and give better attention in exchange for removing an entire pod39s worth of ads The IAB put it best in their optin valueexchange playbook quotFor this type of advertising in exchange for optingin the value exchange for the consumer is directly related to accessing the media experience that the user intended to access at that destinationquotThink about all the value that simple choice creates Viewers get something they desperately want control over the ad load they receiveamp160 Brands get the halo of providing viewers with that control and guaranteed attention to their message every time Media companies can substantially reduce the number of ads they show this isn39t smoke and mirrors over the last three years our parent company increased content viewing 22 while reducing ad time by 25M hours and by providing a more valuable advertising model to marketers also maintain their monetization rates How much more value are marketers getting On average our engagement ads deliver 5x more brand lift than standard fullepisode video adsThis is what we mean when we say it doesn39t work unless everybody winsamp160 The media ecosystem is a delicate balance of marketers media companies and consumersamp160 All three have to feel like they are getting more valueThe concept of value exchange is at the core of this innovation and the best way to ensure consumers are getting their share of a fair deal Over the last three years we39ve served over half a billion engagement ads heartening news and a good indicator that the ad industry buyers and publishers in particular are finally starting to notice what consumers have known for a long time that we can actually do more with lessThis is Part 1 of 2 Tomorrow we will address how the concept of a valueexchange can be applied to the industry39s measurement challengePhoto credit Agnieszka Boeske UnsplashClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Media Ecosystem: It Only Works if Everybody Wins

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Pooja Midha

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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Pooja Midha

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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