As the TV landscape continues to evolve, and the internet, far from killing television, scrambles to join the TV ecosystem, Kantar Media has been looking at what the future holds. Our report: From Television to Total Video: Five trends guiding the evolution of TV audience measurement looks to understand the move from TV (Television) to TV (Total Video).
1. The growth of broadcaster video on demand
Focusing primarily on ‘catch up’ for recently broadcast programmes and live streaming (popular for sports coverage), broadcasters have embraced online services as both a strategic and commercial imperative. The growth of online video on demand (VOD) has gone hand-in-hand with growing broadband penetration, speed and the increasing ubiquity of personal connected devices. Online VOD allows broadcasters and platforms to expand the life of content and maximise its reach, to extend the broadcast experience to other devices, and so target harder to reach ‘digital natives’ on mobile connected devices. It’s clear that ‘television’ audience measurement is no longer about just measuring the TV set, but about measuring television as a cross-platform, cross-device medium.
2. New entrants offering TV-like services
TV-like services are a highly attractive proposition for a series of new entrants. Subscription video on demand (SVOD), like Netflix and Amazon, and advertising funded video on demand (AVOD) services, like YouTube, have proliferated. Whilst social networks are live-streaming TV programming and content, and video aggregators offer apps on mobile devices and smart TVs.
There is a real measurement challenge with these walled-garden over-the-top (OTT) systems. Access to the data within can be restricted, controlled by the platform owners themselves. SVOD and AVOD are making inroads into viewing, contain native video content and are therefore of interest to the wider TV industry. However SVOD services like Netflix and Amazon Prime do not rely on advertising for funding and therefore have no particular imperative to ‘share’ a measurement system with others.
3. Targeting niche audiences with channels and video on demand
Over recent decades most TV markets have followed a similar pattern, moving from channel scarcity (restricted by broadcast bandwidth and regulators) to channel abundance. This growth has been driven by greater bandwidth on cable, broadband and satellite systems, the transition from analogue to digital television and low barriers to entry for online-only channels and services delivered OTT via increasing broadband speeds.
YouTube has facilitated the rise of multi-channel networks for cars, fashion and food with some having millions of subscribers worldwide. Meanwhile Hulu, Amazon, Sony, Vimeo and Roku all distribute online niche channels. In the UK the move of BBC3 from broadcast to online-only VOD acts as a pilot for how to target a niche young demographic in the future.
4. The rise of extended TV: viewing on connected devices
With connected devices seemingly everywhere, it is startling to remember that the first smartphone launched in 2007 and the first iPad as recently as 2010. Consumers had been able to access online video via PC and broadband since the millennium, but personal connected devices seem to be the real game changer.
Mobile has proven to be a massive opportunity for television services to widen their coverage and for TV as a medium to become even more ubiquitous. Data from NBC and BBC Rio Olympics coverage has demonstrated just how heavy usage of online video now is, particularly for major events across time zones, which may not coincide with access to the TV set.
5. A TV ecosystem powered by data
Whilst TV currency measurement remains of paramount importance, the TV and advertising ecosystem is now extremely ‘data rich’, with information to enhance TV currencies available from set top boxes, web servers, subscriber databases and social media conversations.
This data can be used to shape the development of new services and programming and build direct relationships with viewers: data-driven marketing. Advertising can be targeted to discrete groups. Return on Investment (ROI) can be assessed by following the consumer journey and overlaying shopper data with viewing data. Meanwhile the planning and buying process is becoming increasingly automated via programmatic trading, which places ads where audiences are in real time.
Source : Kantar Media