People from business development and sales should understand the implications of adtech and its benefits. Let's look at some of those implications
FREMONT, CA: Gone are the days when every family member watched the same shows at the same times in the same place, i.e. in their living rooms. Since the advent of television in the 1950s, the last decade was the most happening decade for the advertising industry.
Today, viewers are streaming Digital content over the internet and have an absolute choice of what they want to watch, when they want, and from where they want. Similarly, advertisers can now automate media buys and micro-target individual consumers with the help of data collected through AI, and sell individual customers what they want and when they want. This trend has become so common that one doesn't need to necessarily in media or marketing sector to understand the implications of adtech and benefit from it. Let's look at some of those implications.
Digital Streaming
It is shocking but true that last year viewers have cut the cord or wires at the rate of seven per minute. All the channels are now distributed and streamed over broadband internet. This, to some extent, has given a blow to the television advertisers, but on the other hand, has opened up a new opportunity for potential advertisers. Advertisers can now stream their ads in the digital contents and viewers may have to mandatorily watch it, unless they pay an ad-free subscription fee to the channel or the digital platform. Remember, advertising shouldn't disappear anytime soon, as an informed customer is always a smart customer.
Data-Driven Targeting
Advertisers do follow us. Use of the cookies, hyperlocal location data, and cross-device identity graphs help advertisers to find and analyze consumers and their preferences. One might find it a coincidence that they come across the most relevant advertisement they have searched for, but that's not actually a co-incident. The cookies that get saved when one visits a particular website, say for shopping, gives the information to the advertisers, which helps them to target audience more accurately. Audience targeting is the new moral imperative. Advertisers can now target individual customers as per their demands rather than targeting a general demographic watching a TV show.
Subscription Models vs. Ads
Almost all digital players, including Netflix, Amazon, and Apple, have entered the paid-subscription bandwagon. Some of the hybrid players are squeezing out the advertisers from their platforms at a time when data-driven audience targeting is going through a reformation by serving relevant ads to the right people. With numerous subscriptions needed for all the streaming options, subscription fatigue is common. The pay-as-you-go model doesn't work for everyone, hence affects the viewership to a large extent. Research proves that viewers only pay for an average of 2.8 subscriptions.
