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  • How does the consumption of content on demand affect advertising?

    25 January, 2018

    Over time, new technologies have been stealing ground to what already existed and advertising has had to adapt to new challenges. The appearance of television caused the radio to lose prominence, for example. And the Internet is changing consumption habits little by little by having all the information and programming of the contents at hand, at any time and anywhere.

    Thus, the new content distribution model that goes directly to the consumer is influencing to a large extent the advertising ecosystem, but it will not destroy it. It will make it transform and adapt to new trends. One of the paradigmatic models in the distribution of audiovisual content is Netflix, which has not ceased to increase its subscribers and is in full international expansion.

    RELEVANT DATA TO BE CONSIDERED

     Multi-device video consumption is growing year after year worldwide and 47% of households in the United States are subscribed to an online video store like Netflix

     The payment by subscription has been imposed as a definitive business model more than the payment for viewing, based on low-cost economic subscriptions, affordable for the young audience they are targeting

      According to a survey by IAB Spain, an association that represents the advertising and digital communication sector in Spain, 50% of digital video users are willing to accept ads in exchange for free content

     With the growing trend of streaming, the rates of the ads shown within that content have been increased

     

    ADVANTAGES OF THIS MODEL

     

    1. The freedom of the user to view an advertisement as many times as he wants

    2. The possibility of requesting more information about each product and interacting in some way with the content

    3. Its rapid expansion through external applications and smart TV makes it look the trend that will have in the future to adapt easily to it

    4. To the advertiser, this publicity allows him to obtain exact information on the number of GRP’s, profile of the viewers, preferences regarding programming

     

    HOW TO TAKE ADVANTAGE OF IT

    Se prevé que la mitad del consumo televisivo será bajo demanda en 2020, con más de 50.000 millones de dispositivos conectados y con acceso a contenidos multimedia. Con la extensión del uso de ad-blockers, este nuevo modelo se presenta como una buena alternativa para poder hacer otro tipo de publicidad que no pueda evitarse. Por ejemplo, con programas patrocinados por marcas, el propio branded content o con publicidad nativa.

    It is expected that half of television consumption will be on demand in 2020, with more than 50,000 million devices connected and with access to multimedia content. With the extension of the use of ad-blockers, this new model is presented as a good alternative to be able to do another type of advertising that can not be avoided. For example, with programs sponsored by brands, branded content itself or with native advertising.

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