Must Read for marketers : The Next 18 Months – “
This is the final part of a four part essay MA+A founder Bob McKay wrote to explain why everything about digital advertising is about to change in the next 18 months. Bob is a confirmed speaker at the Tampa Bay Business Journal’s Disruption Day on Oct. 1.
Traditional media is going to be a “shit show” next year.
We predict that buying media in a traditional sense in 2017 will be parallel to calling your cable company and trying to register a complaint with service. Very trying.
While everything we talked about this week is going on, technology innovations are behind the scenes advancing the programmatic buying of traditional media. Right now through programmatic buying I can access 20-percent of cable, satellite, and even more TV app inventory. This means through buying means I don’t deal with a media rep. The media rep is going the way of the “on the floor” stock traders. [imgof]
Our prediction is that in 18 months (the beginning of 2017) the access to traditional media inventory will be prominently available through programmatic platforms. You will need to be buying your media in a similar fashion to way display through Google Adwords is bought. Instead of going to many publishers or broadcasters to get your spots purchased through the rep buyer relationship, it will instead be automated. That might sound scary if you’re a media rep or a media buyer, and it is.
Their “cheese is going to get moved”. If you’re comfortable with the media rep coming by and selling you on their station and dropping of concert tickets, then enjoy it while you can. However, if you begin to plan and get aligned with companies that know these technologies it will be a positive. When the scale is available through programmatically buying traditional vehicles, our prediction is that the commercials will be 25-percent less expensive.
No having to pay sales rep commissions, the media companies don’t have to pay health insurance, and they can eliminate the entire traffic department, and other functions. This means radio and TV stations will run much more automated. We can then purchase more scale through these areas while intermingling video pre-roll buys or online radio through technology.
Why is this significant? Not being ready for these changes will make your media more expensive and also more susceptible to poor customer service. The traditional media companies are going to move to automation for cost savings and that is going to lessen person to person media placement.
Now after hearing all this there is a huge bright side.
If you are prepared and ready to make the investment in time and technologies you will be ready to beat your competition. There are not many marketers that are ready for this, and as we know with major disruption, some people will never see it. They will continue to do the same thing they always have.
The forward thinking marketers will be prepared. They will also be armed with new technology that allows for more cost efficient pricing. These marketers will now be able to apply more first and third party data to their campaign for more precise targeting. This is available right now with online display and video pre-roll. Those capabilities will now be available for radio and TV. We have a B2B client where we have had tremendous success delivering display ads to their ISP location addresses of their target/client buildings. When people inside their offices go on line to look up local news, sports, weather or professional information through web sites we are bidding high on those impressions — it’s basically modern day direct mail without it getting thrown in the trash.
Marketers will have better targeting availability through all these vehicles and also better tracking to how the consumer reacts to your message. As every smart TV gets installed, it allows the consumer to go directly from your TV ad to client’s web sites and research the product or make a purchase. We will be able to track that and understand how the consumer journeyed through that sales funnel. We can see the messages that attributed that sale and then replicate that method. We can also see what is not working and in real time shut the poor performance down (how exciting!!)
Efficient media buys, with more trackability and the ability to change direction instantaneously. If you’re forward thinking the next few years are a marketers dream!