In Search of the Best of Both Worlds
There's a new trend taking shape, which, not surprisingly, will have major international media companies scaling back on the number of commercials they air during primetime shows. This change has been brought about by fierce competition for a younger audience moving to devices and platforms that offer them an ad-free experience.
This shift has also been affected by on-demand video sites as well as the tremendous clutter dominating the marketplace. The move, seen as unprecedented, is not only aimed at improving the consumer experience, but is also directly related to a new pricing mechanism.
Though such news may come across as shocking, considering that ad revenue is the principal stream for these organisations, a significantly smaller number of ads will drive demand to new heights. In turn, this will also raise the price of TVCS. In other words, networks should be able to charge more per slot since there will be less supply and a greater likelihood of viewers seeing the promo.
Another strategy being considered hopes to take matters in a different direction by substituting the typical two-and-a-half minute stream of commercials with a thirty-second interactive ad.
Looking at the phenomenal changes sweeping the global communications’ industry like a tsunami, most, if not all media conglomerates are frantically looking for new ways to address the threat to best fit their existing corporate structures.
To make matters worse, the scale and growth of ad blocking software highlights the economic impact associated with it. Usage of ad blockers grew by 41 percent year on year with an estimated loss of global ad revenue during 2015 at $21,8 billion.
What the future holds for the communications industry remains, in light of such changes, anyone’s guess. Yet what is clear, are the regional advances made, which by most accounts, are set to elevate the market and all those in it or wishing to enter, as potential candidates of this new revolution.
On a more definitive note, we at Arabad wish our readers a Merry Christmas and a Happy New Year.