TV Ad Budgets Not Moving Online, as Buyers Demand Metrics: Video
Troy Dreier: Hi everyone. This is Troy Dreier coming to you from Streaming Media East 2016, where I'm having short conversations with the thought leaders of our industry. Joining me now is Robert Davis, executive director of content strategy for OgilvyOne. Welcome.
Robert Davis: Thanks, Troy. Appreciate it.
Troy Dreier: You're talking today on a panel about advertising strategy for over-the-top video. It's a very important area. It's where the money's coming from. I read a lot about it. Is there a shift in budgets from TV advertising moving to online video?
Robert Davis: We're all waiting for this shift to happen, and accelerate. I worry, right now, that the shift is in a lull. We're in a period where a lot of people are questioning the value of shifting the dollars. They're looking for consistent metrics, looking for a better story from the content providers on OTT, to move that content along. Part of it has to do with audience development. We're at a stage now where we need to see, from the advertising point of view, which audiences are going to gather around which OTT content and services.
Troy Dreier: One benefit that advertisers can get in online is data that really helps target who they're going for. Are they receptive to that? TV advertisers haven't had that historically. Do they want it? Do they still find it useful?
Robert Davis: They do want it. We're starting to see more of an interest in it. It's the one area where online trumps all the rest of the media. It's the kind of data, that we're getting now, is so intriguing, that it's hard to look past, right? The more targeted that we can be, especially with the plethora of content out there right now. The real wins are matching specific audiences against the right content, and then matching the right brand to that. Data is the key to that. It's not going to happen without good data, and without good insights coming from that data.
Troy Dreier: Data's been lagging for a while. Is it catching up? Are we seeing better things from the major agencies?
Robert Davis: We're definitely seeing better things. You've have a conundrum between the media agencies, and the creative agencies, and where does data fit in to connect the both of them? One of the things we've been doing at Ogilvy is looking at data across the board. How can it drive not only our media strategies, but how can it drive the creative strategies? How can it drive our content strategy? We've got a pretty good mix. It's the way of the future, I believe, data across everything.
Troy Dreier: There's this feeling with the content producers, like if we make premium video the advertising will come. There's just so much need for good, premium, video. Is that the case?
Robert Davis: There is. There's a little bit of a misconception. I don't think that there's an unlimited amount of advertising weight to support an unlimited amount of video content. One of the things that concerns me is the segmentation of the marketplace. What are the efforts that are going to be made for the audience to actually find the content to develop the audiences so it will be worth value to the brand? The idea that just being premium is good enough, is a short term strategy. It's not a long term play.
Troy Dreier: Do advertisers see a screen as equal to any other screen? Is a TV screen equal to online? Is it that online could be worth more because it's targeted?
Robert Davis: There are cases where online could be, and will be, worth more, without a doubt. A screen is a screen. The question is, what is the audience doing with it? How are they receiving the message? What reaction did they have to it?
Troy Dreier: Who's doing great work right now? Who should we look to?
Robert Davis: Great work overall, right now? I personally look to the original online content creators, people like the Young Turks, people like Rooster Teeth, who have been doing it for ten years, or so. They've learned the lessons of building audiences, and monetizing those audiences. There's a lot more to learn from them, than there actually is to learn from TV.
Troy Dreier: Excellent. Thank you for joining me. Coming to you from Streaming Media East, this is Troy Dreier.
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