Targeted TV ads fall short on inventory, Disney will win the internet, and Google will win gaming
Ad Execs say Targeted TV is unrealistic
A few weeks ago - a number of TV networks banded together to create an advertising platform that would allow for highly targeted TV ads. This week, DigiDay published an article based on interviews with top advertising executives who say that this platform has severely limited inventory. https://digiday.com/marketing/agency-ad-buyers-say-isnt-enough-addressable-tv-inventory/
TV networks are still struggling to figure out how to deliver on the same ROI of digital, and with tighter spend control. Creating a platform that changes allows for custom audience targeting flips the story - but if there's no inventory on the platform - it sounds like the networks have a much bigger problem. The lack of inventory will lead to a reluctance to use the platform - which means a lack of long term investment. Money will continue to flow into online ad platforms like Google and Facebook.
Disney is launching their version of Netflix
This article gives 9 amazing reasons why Disney is going to absolutely dominate in Subscription Video On Demand (SVOD). https://redef.com/original/nine-reasons-why-disney-will-succeed-and-why-four-criticisms-are-overhyped?utm_source=JonLitwacks+newsletter
In short - Disney will be moving into the video streaming space - and will likely succeed because they have significant IP (content).
With Netflix, Disney, Warner and Amazon all getting into the SVOD game - will we just buy all of them? Or will we start to pick and choose? The reason I ask is this: Will content matter if the cost is only $15 / month? Each of these networks knows how to create great content. Some might be more targeted about it, but ultimately - I'm happy to pay $30 / month so I can watch Netflix specials and Captain Marvel at the same time. It's a hell of a lot cheaper than $200 / month.
SVOD is going to consume TV.
Google announces their own game streaming platform
If you're not a gamer yourself - here's the skinny on why this story is epic. If you want to play Fortnite, or any other popular title today, the hardware can cost anywhere between $400 and $2,000. Most of that hardware comes with its own limitation on what titles you'll be able to play - and that limitation usually comes from the publishers... Who usually own the hardware.
Google announced a platform that anyone can play through their computer, which will actually be streamed to from a high power gaming server. No hardware required from the end user other than a PC. They also announced partnerships with major game development platforms that would make it easier for publishers to work with their platform.
Google may be able to completely dominate the gaming market (a market they don't really play in right now) by creating the one digital product that will unite all gamers into one platform... By consuming all the other platforms.
It's becoming more and more apparent in more than just TV that companies that can master product development are laying waste to traditional companies that haven't truly transformed digitally.
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