The Evolution of TV Advertising

Published on
June 8, 2023
Navigating the Shifting Landscape

In recent years, the world of television advertising has experienced a significant transformation, largely driven by the shift from linear TV to on-demand and streaming services. As smart TVs have become the new standard, connected TV (CTV) has emerged as the norm, bringing with it a variety of terms and definitions that have shaped the industry. At LightBoxTV, we have been at the forefront of this evolving landscape, exploring the challenges and opportunities that arise from these changes. In this blog post, we delve into the various facets of the evolution of TV advertising and provide insights into the dynamic nature of this space.

The Rise of Connected TV:

Connected TV first gained popularity through on-demand viewing, with broadcasters offering supplementary services known as BVOD (Broadcast Video on Demand). Simultaneously, native CTV apps, unaffected by traditional broadcast regulations, emerged as AVOD (Advertising Video on Demand) platforms. Additionally, subscription-based services, such as SVOD (Subscription Video on Demand), gained a significant audience but initially avoided advertising until more recently.

From On Demand to Streaming:

CTV has progressed beyond simple on-demand viewing to incorporate streaming and programming on a linear schedule. As this evolution occurred, the term FAST (Free Ad-Supported TV) gained traction as a catch-all phrase to encompass these developments. BVOD was often sold as a complement to traditional linear TV buys, while AVOD leaned heavily on programmatic advertising. However, it is important to note that not all programmatic technologies seamlessly translate to the TV environment due to various technical nuances, such as identification protocols, lack contextual metadata, and domain-related factors (this is one for an upcoming post). 

Navigating Distribution and Carriage Deals:

One of the complexities arising from the evolution of TV advertising is the multiplicity of distribution and carriage deals. The same content can be accessed through different paths, often with varying levels of granularity and additional data layers accessible only via specific routes. For buyers seeking a unified plan that considers reach and frequency in a holistic manner, understanding and managing these dynamic distribution dynamics becomes crucial.

The Walled Gardens Resurgence:

Interestingly, while other forms of advertising have moved away from walled gardens, TV advertising has witnessed their resurgence. Inventory owners are increasingly investing in technologies that restrict access to their inventory or data, making them available only through their proprietary channels. In order to effectively plan campaigns, it is essential to navigate this constantly evolving landscape. With most activation tech only accessing a minority slice of the pie, managing this requires new purpose built tech. Platforms like LightBoxTV are independent of inventory and developed to solve these TV first challenges.

Unravelling the Challenges: Audience Targeting, Tech Limitations, Measurement, and Activation:

The evolving TV advertising landscape presents several challenges that we will explore in detail in this blog post series. We will delve into topics such as audience targeting, investigating how to find and engage audiences in a holistic manner across different inventory sources. We will also discuss the limitations of existing technologies and the compatibility of various measurement solutions with different inventory sources. Furthermore, we will analyse the activation process, examining whether a single platform is sufficient or if multiple platforms are needed, and how data integration can tie everything together for a cohesive view.

Coming Up Next:

As the evolution of TV advertising continues to reshape the industry, staying ahead of the curve requires a deep understanding of the shifting dynamics. LightBoxTV is committed to sharing insights and expertise to empower advertisers and buyers to navigate this rapidly changing landscape. In our upcoming blog post, we will delve into the concept of fragmentation and its implications for planning and running TV campaigns. Stay tuned as we uncover the intricacies and opportunities in this new era of TV advertising.


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