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TV and video have a future together

News, 04 March 2016

NEW YORK: The advertising and media industries are more confident about the future prospects for linear TV than they were two years ago, while at the same time anticipating more viewing will move online, according to a new study.

The report from video ad platform Videology – TV And Digital Video Evolve As Complementary Allies – was based on a survey of 100 decision-makers from US advertisers, agencies and media companies, including both traditional and online-only video content producers.

Among those surveyed, 73% predicted there would be an increase over the next three years in the consumption of full-length shows online; 77% said smartphone video viewing would grow; and 79% expected that more time would be spent watching smart TVs with a direct internet connection.

None of that will come as a surprise, but at the same time 49% of respondents believed that time spent watching traditional TV will increase over the next three years, up from just 22% who thought that way in 2013.

"Despite tremendous growth in alternative viewing options, TV is not going away," said Scott Ferber, chairman and CEO, Videology.

"The future of video advertising is not about a one-way shift to digital video, it's a holistic approach to all screens," he added. "The lines between TV and video are all but indistinguishable to consumers, and the most successful advertising will take that same approach."

While the shift is not one-way, advertising dollars are nonetheless likely to move in the direction of digital video from linear TV, according to 71% of those surveyed, with programmatic buying growing in importance.

Managing the increasing complexity of television and video advertising will be among the top challenges faced by both buyers and sellers, with 69% of respondents citing the problems of co-ordinating the different technologies and formats for ads on each device.

Understanding cross-platform viewing behaviour and measuring campaign performance (both 54%) were also mentioned.

On linear TV specifically, buyers were most likely to cite challenges with targeting specific customers, managing diverse data sources, identifying appropriate content and holistically tying together linear and digital video buys.

Data sourced from Videology; additional content by Warc staff