Mediaweek panelists discuss the benefits for brands
Everything old is new again, but it’s also better when it’s new. According to the panelists speaking at the Tiers of Joy: How Ad-Supported Streaming Is Changing TV session at ADWEEK’s Mediaweek event Tuesday, sponsored by Samsung Ads, this applies to old-school-style television advertising making its way onto streaming platforms.
ADWEEK TV reporter Saleah Blancaflor welcomed Magna vice president of strategic investment Larene Mantel, Samsung Ads vp and head of ad sales and operations Michael Scott, and Zenith president, integrated investment Neil Vendetti for a discussion on how far ad-supported streaming has come, how brands are capitalizing on it, and where we go from here.
“The model over the years worked really well,” Vendetti said. “You watch ads: You see content.”
With the emergence of ways to consume television-like content beyond broadcast and cable TV, that traditional model was no longer the only way to reach viewers, who now had access to multiple platforms, many of them subscription-based and ad-free.
Despite that, Vendetti always saw the old model returning, saying that it has been a struggle for years to recapture audience and reach, as viewers “go into this subscription-video-on-demand black hole where we can’t find them.”
Mantel pointed out one obvious shortcoming of the old model, saying, “Linear TV didn’t have the ability to understand what people are doing after they see that ad.”
The FAST and the furious
She added that 70% of streaming hours are spent watching ad-supported streaming, and from the advertiser side, “There’s really a lot more opportunity for brands to play in, and the pricing is becoming a lot more efficient, so brands can play there.”
Vendetti agreed on the importance of ad-supported streaming in the media mix, saying, “It is necessary to incorporate into a larger video strategy, but deserving of its own strategy. All of us need to give this the attention that it deserves before we can maximize the output that we’re getting from it.”
Scott put in a plug for his employer and the session’s sponsor when discussing free ad-supported streaming television. “It’s FAST in the acronym and it’s also fast in consumer behavior,” adding that Samsung TV Plus is the most-used application on his company’s TVs because “it’s tough to really beat free: Free usually wins.”
What do I want to watch?
On the consumer side, Vendetti lamented the fact that there is no one single portal where viewers can access all the content from all the platforms they use, and Mantel stressed the need for making content discovery easier, as well as for contextual targeting so that viewers see more relevant ads.
Scott agreed, noting that the average TV viewer takes eight minutes between turning the set on and finding something to watch.
“We will never have a four-minute ad break,” Scott said, adding that Samsung is striving for shorter ad breaks, deeper engagement with viewers, and a more positive ad experience, calling it a “very intentional balance between serving our consumers who have bought beautiful Samsung televisions and our advertisers.”
What’s next?
While Scott touted the ability that social platforms have to remain part of the journey from ad impressions straight through to conversions, he said, “It would be tough to buy a Toyota that way, from screen to purchase.”
He sees big opportunities on the advertisers/agency and platform/media sides, with developments such as data clean rooms that let advertisers bring in first-party data while Samsung provides impression-level data.
He concluded, “If you’re thinking of advertising-based video-on-demand as something to dabble in, you are way, way behind.”
Read the original article in Adweek here.
