– EDITORIAL –
Stéphane Coruble, Managing Director of RTL AdConnect
This year we are celebrating RTL AdConnect and RTL Group’s 25th anniversary of TV Key Facts.
RTL AdConnect is RTL Group’s international advertising sales house. At RTL AdConnect, we approach TV as a driver of innovation. Over the decades, we’ve seen and participated to the redesign of a network where TV is Total Video, where your daily fix of your favourite content spreads across platforms, from one screen to the next, where watching content is a journey. We’ve come a long way since TV Key Facts’ first publication in 1994, and despite the industry predicting the demise of TV for the last decade (or so it feels), the bottom line is the same. TV is still alive, kicking, evolving and constantly reinventing itself. It gives us a chance to sit back and reflect on how far we’ve come and help predict what the next coming years might look like for TV – from AVOD to SVOD, from programmatic to addressable and beyond. Over the next few pages we’ll analyse the trends, challenges and opportunities to success and differences between countries on everything from brand safety and Ad tech to measurement and the impact of GDPR. We tried to look back and forward 25 years, bringing together insightful research and articles written by international media experts from renowned companies across the industry.
We believe in coopetition and alliances
The TV industry always had a privileged position in the advertising market, but the world is changing and online giants combined with an evolution of the media consumption are pushing broadcasters to rethink the way they address the new expectations of advertisers and consumers. For several years, broadcasters have been driving forces to keep up with the technology side and they are succeeding where digital is struggling. But the pressure on broadcasters is still at its peak, with data-driven insights and precise TV audience targeting soon to be a must-have. We see alliances being created, regional or local broadcasters are teaming-up to face a more global competition. There has never been so much data to measure and learn from, and TV can deliver more precision in measurement and user data, while offering brand save environments and access to premium contents. So many possibilities to access video content are today available thanks to technology, broadband penetration and new mobile and connected devices. The new battle is the battle for attention of the consumers. Broadcasting and digital offers both bring valuable strengths to the market; they are complementary, not competitive. The mix of reach, scale, precision in measurement in TV, and precise targeting, flexibility, rich data for the digital, makes for impressive results. Still, TV is unrivalled when you think about its incomparable reach, quality content production, ad effectiveness, ability to innovate through addressable TV or OTT, new ways of programmatic buying, virtual reality, and its ability to adapt to all audiences.
On average, in prime time, it’s 263 million viewers that sits in front of their screen to watch TV, and it is responsible for 71% of the total profit generated by advertising. We see no slowing down of “institutional” TV events gathering very wide audiences year after year, such as the Super Bowl attracting 112 million viewers, or the Chinese Spring Festival with 169 million viewers. We also see incredible performances on new programmes such as BBC’s Blue Planet II series, which attracted 14 million viewers, the biggest audience of the year in the UK. Look again at the incredible audience results generated by the World Cup in 2018. On a daily basis we’ve seen a decrease in TV consumption over the last five years. But looking at the larger scale from 1993 to 2017, the level of global TV consumption is still on par with that of 25 years ago and even at its steepest point in decades in Europe! Mobile, OTT, addressable, new on-demand services or vMVPDS will bring Total Video to the next level and address all target groups. And at its very centre: more formats, originals and quality content. TV is powerful, efficient, cost-effective and brand safe. It’s not going anywhere….It’s going everywhere.