The future of television and radio advertising. Shocking changes in advertising budget structure that will be seen in 2010

It is obvious for everybody who understands the media industry challenges and dynamics, that television and radio as it exists today will not survive for long. Brand advertising dollars shrink, advertising revenue declines, the audience shifts its attention to new media forms.

The way I see television and radio evolving is by moving away from a single offer media. Yes, media bundle is a step forward – TV plus Radio plus Web, but it’s already “same old”. The focus of networks innovation should shift towards customized advertising solutions. Solution advertising is the only form of advertising that can sustain and accelerate growth of “traditional” media.

I see a lot of multi-category media consolidation as an upcoming M&A trend in the next few years. If you are keen to get a piece of the action during the acquisitions you might enjoy reading an article “The smooth road to the riches”.

Basically broadcasters will grow to be gigantic media agencies that offer tailored multiplatform solutions to wide range of advertisers.

I predict that television and radio content will blend with advertising more organically. Today, if we speak about film and television series, advertising comes either in form of product placement or intrusive, irrelevant 15-30 seconds ads that have nothing to do with the content itself.

I see this dynamic changing. Ads will appear after the content that presells the product, demand will be created by the show indirectly. Advertised products and services will be immediately available for the purchase online.

For those who doubt ability of the audience to multitask on numerous media, studies conducted by Integrated Media Measurement Inc. demonstrate that the number of prime-time viewers who simultaneously go online while they watch TV skyrocket.

Accordingly to the study, conducted from September 2008 through January, viewers were online during nearly 9.3 percent of their prime-time viewing. The time spent watching broadcast television while surfing the Web steadily increases.

So far the broadcast networks have been using this founding to aggressively promote their online presence, but soon they will realize where the real golden opportunities are – in “closing” the viewer; it will lead to accelerated flow of advertising dollar pouring back to the networks.

It only supports the idea of integrated multiplatform approach to campaigns that can result not only in repeat ad views, but in conversions that every advertiser dreams of.

From multiplatform advertising we now enter the era of simultaneous multiplatform transactional advertising. Today our company offers number of performance marketing solutions for inter-platform interaction between advertisers’ offers and the audience that is willing to make a purchase. While we are still in stealth mode with few media monetization products, our patented technologies will see the market till the end of 2009, offered by few major television and radio networks. Stay tuned.

To summarize all said above, the core difference between now and tomorrow is that broadcasters and advertisers will move from service provider-client relationships to partnerships and profit sharing engagements.

TV advertising will be moving away from counting eyeballs with the same speed as online advertising is moving away from impressions. See why CPM is dead.

Television will stop being perceived as mainly brand advertising, it will rebuild its strength on new performance marketing models offering more transactional approach and accountability for the results. Television will no longer be perceived as a deep whole where brand marketers throw their advertising budgets; instead broadcasters will directly effect the bottom line of companies-advertisers; they will provide solutions to measure MROI and monitor the campaign performance.

Soon to be launched by IdeaMama patented PPD Strip technology (stay tuned for the announcement) is one of many solutions that will be widely adopted by top TV and Radio stations. The agreements with major media companies are already in progress and it is a matter of months while advertisers can “go transactional” on television in prime time for unbelievable low fixed price plus commission from sales.

It has been never possible before on national television before, it is inevitable now. What was unheard of till 2009, will become a norm in 2010.

The next generation of media will be defined by the players who can deliver integrated, persuasive content across all platforms that pre-sells advertisers’ offers in ethical, non-invasive manner, providing information for the audience that viewers can rely on.

Early adopters of these new trends will define the media industry of the next decade and capitalize on these trends.

Followers will loose the game as new advertising budgets will be allocated to competitors that react faster to the market demand for a change, a change of the eyeball game that doesn’t fit to new ways how buyers want to interact with advertising, and how advertisers want to by media.

This change will force media buying agencies to revise their business models as well, as now standard media kits won’t be sufficient collateral for closing new accounts and keep the existing one.

It’s time for creativity on all fronts. It’s THE show time, baby!

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by Olga Kostrova, CEO of IdeaMama Group:




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