IAB Asks NewFront Sellers: Is Mobile Video and Connected TV Competing with Traditional TV? (4 of 5)
In this installment of the IABlog series, NewFront founders and presenters reveal how they see the relationship between emerging video consumption devices and good, old TV. We asked them:
There’s a theory that mobile video and connected TV will start taking big chunks of consumer and advertising time out of basic cable fare. Is this happening? If not, why not?
Jonathan Perelman, GM of Video & VP Agency Strategy, BuzzFeed
Over half of our views are coming on mobile. I wrote something recently that said, for the last 7-10 years, people have been wondering if it’s the year of mobile. The reality is every year is the year of mobile ever since then. I was on the subway this morning and someone was watching a full-on movie on their phone. That 5 years ago was not something anyone would ever consider. Mobile is only going to grow and become more and more important to consumers and thus to advertisers.
IAB: Do you think mobile is competing with TV at all audience time or advertising budget?
Perelman: No, but we do see a lot of BuzzFeed video being watched during primetime, which that means someone is presumably sitting on their sofa maybe watching something else while on a social network. Someone passes along a video to them, and they’re going to click and play it while they’re watching something else. So I think, there’s maybe a burgeoning competition, but in terms of numbers and dollars it’s not so much a completion.
Peter Naylor, SVP Advertising, Hulu
Everyone is limited to just 24 hours a day. That’s a constant. The variable is how people choose to spend their time, of course. There’s been a trend for many years that points to the rise of time spent with media and the rise of multi-tasking. So the media pie is getting bigger, but the slices of the pie are getting thinner. People now have the ability to time shift, device shift and place shift their media, and they are taking full advantage of all screens. We are essentially competing for mindshare and time share -quality content coupled with a best-in-class user experience is the key to being an essential part of a consumers daily entertainment choices.
Erin McPherson, Chief Content Officer, and Jason Krebs, Head of Sales, Maker Studios
McPherson: A lot of folks from the TV industry side say, “TV’s never been healthier,” which in many ways is true. The data I’ve looked at most recently showed consumption rising on traditional television platforms, as well as on digital. The secret here lies in—I won’t even call it second screen because second screen has come to mean a screen that interplays with your first screen—I’ll call it multiscreen. They are watching YouTube videos while they have the game on. Or they’re watching video in their Facebook or Twitter feeds, while they’ve have a reality show on. So the television is on but are people watching? How are they watching and how are they engaging? At Maker, consumers don’t just view, they engage.
Krebs: It’s the classic lean back and lean forward. We have a lot of lean forward, people interacting with the content, with the comments, with the sharing, as well as interacting with the ads themselves. We have a pretty vibrant business in ad creative that is purely interactive, where people can dive in more.
Ben Dietz, VP Sales & Business Development, VICE Media
It’s not like we study the Nielsen ratings and go “ABC morning news is down 20%.” It’s more anecdotal, what we hear from our millennial audience. They’re consuming more on mobile. They’re consuming more online. They’re consuming more in a time-shifted fashion, and then beyond that they’re looking deeper into content that falls outside of mainstream broadcasts. We hear loud and clear from our audience that they’re shifting away, and that we believe very firmly that with audience will come dollars. It’s not happening as quickly as we’d like and there are inequities in the marketplace such as the rate that we can get for mobile, which needs to come to parity quickly. But we see it happening, and it will happen more in the future.
About the 2014 Digital Content NewFronts
Each year, thousands of people attend the Digital Content NewFronts to witness great new original video content, learn marketing best practices, and hear headline-grabbing announcements about partnerships that will change the course of the digital medium. This powerful series of presentations proves that digital video is the right place for brands to engage with consumers because consumers are engaging with digital video. Presenters include AOL, DigitasLBi, Google/YouTube, Hulu, Microsoft, Yahoo, and more. Learn More & See Schedule
IAB Cross-Screen Marketplace, Spotlight: Video, May 15, 2014
If you’re interested in digital video, IAB is bringing together thought leaders from both brands and agencies for the IAB Cross-Screen Marketplace. We’ll reveal how the buy and sell side are partnering to develop, deploy, and evaluate the success of multi-screen/multi-channel content and brand experiences, and the increasingly powerful role video is playing in this revolution. Learn More & See Agenda