Can TV Bring Salvation to Magazine Media?
[Sponsored Content] Publishers can benefit from the shift in advertising from TV to online video.
It's no secret that digital advertising spending is stealing away television advertising budgets. But while TV execs are actively developing new strategies to either delay or co-opt this emerging future, it represents opportunity for those in magazines now.
Here's why. Linear TV ad spending is projected at $66 billion in 2016, but $1.5 billion already shifted from TV to digital in 2015. Although $1.5 billion amounts to less than 3% of $66 billion, this is still a huge amount in absolute dollars.
This isn't a new trend by any means, but one that continues to build momentum. Importantly, most of the beneficiaries are relative newcomers to video.
Here are the factors that underpinned that $1.5 billion transfer in 2015:
Underperforming programming. With 406 new scripted shows in 2016, there's more competition for audience than ever before. TV shows that aren't meeting their audience ratings are losing advertisers.
Changing media consumption habits. Consumers are increasingly spending more time online, away from their television sets. And even those watching video online aren't watching in the same way.
For example, instead of tuning in to linear TV, audiences are watching some of the most popular shows in one sitting (thanks to such streaming services as Netflix and Hulu) or skipping shows entirely. That's making a good business for such alternatives as Twitch and is driving audience away from TV.
- Appealing video content online. There are many examples of success in video, but YouTube stands above all. After only 10 years in business, YouTube is now believed to earn more than $7 billion in annual revenue.
Despite all the criticism of its "less-professional" content, YouTube is every bit a competitor to broadcast TV.
Here at MediaRadar, we've recently added TV intelligence into our platform. So we took a close look at the data to understand the opportunities outside of traditional TV and video streaming sites.
Here are three discoveries:
Online video advertising on MPA sites has low overlap with TV. There were 3,025 advertisers placing TV spots in Q4 of 2015 on national broadcast and cable networks, while 2,430 placed online video—excluding Facebook and YouTube—in the same period.
Of the 3,025 brands, however, just 269 placed on MPA member Websites in this same period. This hints that there remains a big opportunity for publishers to pursue "traditional" TV advertisers.
Top ad categories show little overlap. The top advertiser product categories (based on paging) for MPA members are apparel, travel, retail, professional services and home furnishings. However, of those top five, only two overlap with TV's top five: retail and home furnishings. Making inroads with TV advertisers will mean forging stronger relationships in product categories less associated with magazines.
- TV advertisers also value magazines. Of national TV advertisers, 50% are buying cross-platform in TV, online and magazines. This is not to minimize the very different silos that TV, print and digital are purchased by. But on the other hand, some of the biggest, highest-margin deals are done across media formats, including print.
Just as TV advertisers are rethinking their strategy, magazine media needs to do the same. Recruit new prospects who are open to shifting away from TV. Upsell existing customers who already buy with your magazine, but not with online video. Target early adopters who have already started the shift from TV to online video.
Finally, find the product categories that are spending on TV, but not with you, and show them the value of partnering online video with magazine media.