One of the most sacred piece of consumer advertising in the past was the 6 second spot in Television. Advertisers qued up to buy the spots and display their advertisements. Ad agencies and spot buyers were in vogue as they were the levers that enabled brands in their quest for more consumers.
All this is about to change and the advertising agencies are in for a disruption. This opinion of mine is based on the following trends that I see playing out in the markets:
- Despite having changed medium (Television to online streaming videos), video advertising did not change. They still play advertisements either at the start of the video or in the middle of the video, just as in Television, maybe with a little more control on the target audience.
- Compare this with the evolution of online advertisements. From the old banner ads to targeted, contextual advertisements even within your email client (Gmail) or promoted tweets in your twitter stream.
- Most brands have now become content creators and act more like media houses online. Most of the brands have their own content team and continuously generate content.
- Recent announcement of no-cash deal between Kit Kat and Google to name their latest Android release Kit-Kat.
- More and more brands want to create original content to get the attention of a specific niche of the consumer market. From streaming content created by the studios to creating their own original series, Netflix has come a long way. Same is the case with Coca Cola. The amount of original video content that they develop and share online has increased multiple fold.
- Advertisement free content (ad free HBO) is becoming more prevalent now than ever before.
All of these trends point to a future of video advertising which is very different from the current 6 second or 20 second ads.
I think that based on the existing trends, we shall see the following:
- More brands will come together and plan joint campaigns. For example a washing machine brand, a detergent brand can come together and do joint campaigns. IF brands can tie up with other brands that can be logically coupled (same consumer, part of the same “jobs to be done” family of tasks, similar positioning, etc).
- Brand placements inside of the movies and Television series has been around for a long time but never became mainstay. This will change. We shall start seeing more and more brand placements in original content.
- This could then potentially lead to original content being created around these brands. For example, there could be a series like Friends, where every time the friends sit together and share memories, they do it with a can of Coke. Every time they speak on a phone, they use an iPhone or a Samsung Galaxy S4. It the story requires them to go out for a trip, they could visit India (of course sponsored by the Indian Tourism Industry). You get the point. What is even more interesting is that It might even cost much less to create these content than to pay for a six second spot during the program for the brands. This also enables the brands to have control on the audience segment that they want to create the content for.
So, you can see a host of original video content being produced by some of the leading brands.
Is that good or bad for the brand, I don’t know. However, this is great news for all the artists who have ideas and want to convert them into original series. They will have a lot more people willing to invest in them to create good high quality content.
As a consumer, I don’t mind who creates the content as long as the content is interesting and engaging and I am not interrupted in between the program to show some advertisements.
So, this does create a positive cycle for everyone involved.
Do you think this is what we shall see in the near future or if my understanding is totally flawed? Lets discuss this as comments on this blog or on twitter.
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