Online video content: understanding the future of TV

16 months ago

Online video content: understanding the future of TV

We live in a video-centric world. From leading social media websites to brands, businesses and sports clubs: the focus is firmly on online video. And for good reasons: not only is video endlessly more engaging and entertaining than image or text, but it also enables you to affirm action, remove buyer remorse and convert fence-sitting leads with a higher success rate. But since the dawn of moving images, a lot has changed in the way we consume them. So how is the TV landscape changing? And why is this important for you as a media company or business? Let’s have a look at the current state of television.

Right now, the digital disruption of the TV industry is in full swing and the viewer is the one who’s in control. A prime example of this transition? The death of the TV movie marathon. Commercial-filled James Bond extravaganzas or Christmas time Home Alone reruns have become a thing of the past.

It’s no longer the TV stations that dictate what we get to watch. It’s the viewer who controls the water cooler conversation. Viewers decide what they want to watch, when they want to watch it and even on what screen they prefer to watch it. Video on demand (VOD) is changing the way we consume content. Digital platforms outside of the traditional TV ecosystem (Facebook, Netflix, Hulu, Amazon Prime Video) are taking over and doing so fast.

In short, if you want to truly engage your audience or customers on every screen they use, you have to trigger them with online video. Look at Facebook: its mobile growth is all about video. Same goes for Snapchat, YouTube and Instagram. Everything growing is driven by video.

Video: the new page view

The page views an online article gets are getting less and less important. It’s all about what percentage of your revenue is derived from video. If this isn’t on the foreground of your business, then you’re in big trouble. Because your competitors are starting to adopt video left and right and you’re missing out. What’s more: this year will be ‘a bloodbath’ among the world’s biggest media companies’ as they fight for a future in an industry still coming to terms with digital disruption, says Shane Smith, the co-founder and chief executive of online news producer Vice.

To illustrate this immense rise of disruptive digital broadcasting, we’ll have to look at some numbers: right now, the digital TV revolution is putting more than half a trillion dollars into play. Traditional broadcast TV is transforming by the ever increasing number of internet and over-the-top (OTT) video platforms. Up for grabs is an annual market value of over 570 billion dollars, 25 billion of which is represented by major OTT platforms like Netflix, Amazon and Google’s YouTube. In short, the landscape has changed, resulting in a completely new TV market filled with big business opportunities for companies willing to adapt.

Traditional linear is losing ground

From the perspective of the consumer, the worldwide embracement of streaming video is a logical one. Because why would you still watch that classic nineties movie for the twelfth time and get bombarded with commercial breaks for products that hardly interest you, if the alternative is hand picking what you want to watch? Linear, traditional TV watching - zapping past channels, TV guide in hand - is quickly becoming an ancient relic and advertising is ever so smartly being catered towards individual viewers.

According to a recent report from technology and market researcher Forrester, ‘linear’ is on a downwards slope. Millennials are spending less and less time watching normal TV programming and the target group 11 to 18 year olds has even almost completely abandoned linear TV. Forrester’s research dictates that now even grandparents around the world are starting to turn off their TV set and are opting for streaming video and on demand watching. What a time to be alive.

Addressable TV

So, about that future. With linear television under pressure and video on demand on the rise, what will the next step in the evolution of TV be? That could very well be addressable TV, a technology that let’s advertisers target their commercials per household, based on data like demographics, geography and viewing habits. That’s completely different from the way advertisers are currently operating: they sell their advertisements to broadcast stations, who then decide when their commercials are shown to a large audience. It’s wide spread, usually part of a big chuck of advertisements in between TV programs and far from narrowly targeted.

Right now, when you’re a woman watching a romantic comedy on TV, it’s not uncommon to see an ad for a sports deodorant for men. And as a man watching a soccer match, you could see an advert for sanitary napkins at halftime. All because you’re part of a very populair target audience. That’s the consequence of linear broadcasting and something addressable TV is slowly but surely replacing.


With viewing habits and other online interests and data monitored and available, advertisers are now able to target viewers with specific ads. All with a higher chance of attracting potential customers. As a viewer, you’ll see ads based on your location, your online shopping habits or your viewing interests. Just like online shopping right now, where ads are served based on your previous browsing history and product preferences. In the United States and Great Britain, addressable TV is huge right now and major TV networks are increasingly adopting addressable marketing campaigns to better target their audiences.

As a company trying to get into the online video market, there are a couple of important steps you need to take to adjust to the shifts across the TV industry. To stay ahead as a competitor in the digital age, it is important to understand what the value of your own online content platform can be, how to create new revenue streams with that platform, what the true value of your data is and. how to interact with your viewers to turn them into participants. More on those components in coming articles.

If you want to learn more about the opportunities your own video platform and targeted advertising can bring your company, contact TradeCast, check out our video below or meet TradeCast at IBC 2017 (hall 9, booth 9.LP10):


tel: +31 85 201 09 80

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