The convergence between TV and digital is coming…and the signs are pretty obvious. Not only have cable stocks plummeted in the last few weeks, some of the biggest players in traditional TV (Disney, Time Warner Inc., etc.) have seen decreases in advertising revenue, especially in the last quarter, according to The Wall Street Journal.
"I haven't seen this much red in a long time," said John Miller, a portfolio manager at Ariel Investments, watching the broad stock decline. "It seems like people's concerns regarding cord-cutting have accelerated."
And the move from cable TV to over-the-top (OTT) options is continuously picking up speed. According to The State of Digital Video by Luma Partners, U.S. consumers have approximately tripled the amount of time spent away from the TV watching digital video (with more than a quarter of viewers watching Youtube) since 2011. Other online companies like Facebook have cashed in on new video formats; Facebook alone gets 4 billion daily video views from its autoplay videos.
The line between linear and digital TV will continue to blur as TV companies and cable networks scramble to come up with solutions that integrate digital video. So how can direct marketers prepare for the convergence?
As the mobile buying experience improves and blends with other digital advancements, new advertising opportunities will open up, giving marketers more ways to put products in front of consumers. The Google Buy button is a great example. In the coming weeks, mobile users will begin seeing a Buy button when they search for purchasable items.
“Physical and digital commerce are converging at an incredible pace,” said Dave Richards, global managing director of Accenture’s Retail practice. “By investing in mobile applications and frictionless digital payment tools…retailers can provide a seamless bridge between customers’ online and offline experiences. All sales channels must be equally desirable to the consumer, so that the path to purchase is not chosen based on satisfaction in one channel over another, but simply on what is most convenient at that time.”
Not sure how to build a marketing strategy that’s ready for digital convergence? Marketing Architects has nearly two decades of direct response marketing experience in all industries, from medical device to education and online business. We can work with you to build a responsive omni-channel market campaign equipped to take on the changing media landscape.
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