TV tipping point puts pressure on RoI

TV at the Tipping Point evaluates key trends in linear TV and found that while there was a significant decline in adult viewing, it was even steeper for 16- to 34-year-olds where a 30-45% decline in TV ad viewing by 2022 is predicted.

In addition, these shrinking audiences combined with rising costs would put pressure on RoI said Ebiquity.

The consultancy called on the UK TV industry to do more to ensure a transparent audience measurement framework.

The report said: “In the UK, the data doesn’t currently exist to enable advertisers to plan with certainty how to continue to build cover once linear TV has hit its reasonable maximum. Barb’s Project Dovetail currently does not indicate the reach of the commercial broadcasters’ online channels alongside linear TV. It is also unlikely to include YouTube and other social VOD platforms.

“From an advertiser’s perspective this is not good enough. The industry needs to do more to advance a transparent and unified audience measurement framework. Beyond getting audience measurement right, traditional broadcasters also need to increase their share of the streaming market and find smarter ways to sell their advertising inventory, at acceptable cost to advertisers.”

Ebiquity claimed the Hulu model as a possible way forward as individual national broadcasters may not have the scale and technology to compete with Netflix and Amazon. Hulu offers various levels of subscription ranging from mostly ad-funded to ad-free although it is currently still losing money.

Christian Polman, chief strategy officer at Ebiquity said: “Netflix, Amazon Prime and other streaming services are changing TV, with far reaching implications for advertisers and broadcasters. Our evidence suggests that as of today no other single media line is ready to ‘take the crown’ from broadcast TV, however advertisers should continue to review the evidence and adjust their marketing strategy when necessary.”