The cable companies are struggling. Everyone knows this, but it’s worth repeating so the message gets across. It’s funny how everyone can see a dying industry or brand but still refuses to believe it. That’s because it was part of their upbringing and part of their adult life so they can’t imagine life without it. Sears is a good example. To a smaller extent, RadioShack. Those are just brands, though. Cable is an entire industry.
Some readers will know the following and others won’t. The cable companies have had to resort to desperate measures in recent years in order to keep their stock prices afloat. First, they continue to increase prices for their customers. This might sound backward to some people, but if a company is losing revenue, according to Fee.org, it must increase pricing in order to get that revenue back up. Otherwise, investors get nervous and sell the stock. Once big money starts leaving a position, others follow and short-selling increases. This can lead to a disaster for that company.
Cable companies also started buying smaller companies in order to show increased revenue. The average investor will fall for this trick, but the savvy investor will look at organic revenue or net income. They will then see that something is amiss.
The reason something is amiss is because consumer trends have shifted. More people are cutting the cord every day. There are two reasons for this. The most obvious reason is convenience with handheld devices (for content). The other reason is exorbitant prices for cable; people are fed up.
This is all good news for those involved with connected TV advertising, say https://moblyft.com/. If you’re not sure what this means, it refers to connecting the internet to the television. With connected TV, there is no need for cable. It reduces costs for the consumer while also increasing convenience. This, in turn, is great news for those who are advertising via connected TV.
Most connected TV advertisements are 15 seconds or 30 seconds, says https://www.millwardbrown.com/Insights/Point-of-View/Breaking_Out_of_the_30_Second_Box/default.aspx, and they take place during an app load or during streaming. The best part is that these ads can’t be skipped.
Then there is OTT, which stands for Over The Top. Think of consumers using Apple TV, Amazon Fire TV, Xbox, PlayStation, and Roku for content. This is how the 18-35 demographic wants their content, but it also stretches beyond that demographic in both directions, which directly relates to convenience.
If you’re involved in OTT advertising, you’re in the sweet spot right now. The ads are hyper-targeted because the consumer has control of what they want to view. On top of that, you’re spending less on advertising. There aren’t many times in life where you can receive better returns at a cheaper price, but this is one of those times. Traditional advertising via cable isn’t nearly as effective because consumers use commercial breaks as windows to move away from the television.
OTT advertising is the future. If you’re presently involved, then you should defeat those living in the past.