Facing Digital Cannibalism, Operators Can Consider Mobile-TV Ad Approaches

April 14, 2015
By: Tara Seals

While digital consumption of TV content continues to grow, advertising is following suit. Analyst group Forrester (News - Alert) predicts that digital spending will reach $103 billion within the next four years, compared to $85.8 billion for TV, a market share of 30 percent. But, that doesn’t mean that TV won’t remain a critical driver of revenue for pay-TV and broadcasters, especially when paired with mobile companion apps.

Strategy Analytics (News - Alert) meanwhile said that brands will spend more than $79 million on TV this year – 42 percent of all spending. But digital is set to hit 36 percent of all advertising spendings by 2019 and take the top spot from TV for the first time. Against this backdrop, smart advertising technology can help broadcasters keep TV advertising relevant in the digital age.

“Brands are flocking to digital advertising because it offers a level of interaction and accountability not seen in other more passive mediums,” Dan Wagner, CEO and founder of Powa Technologies, which offers mobile commerce platform PowaTag. “Broadcast has long guaranteed a huge mass audience, but businesses are effectively walking in the dark, with only the loose correlation of viewing figures and sales uplift to go by when judging ROI.”

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With 66 percent of Americans now regularly second-screening, according to Statista, mobile apps can complement broadcast ads.

He added, “Smart advertising is the key to broadcasters avoiding obsolescence, enabling viewers to immediately interact with adverts in real time directly, unlocking rich customer engagement opportunities as the ad is playing, rather than leaving it to chance that they will remember later.”

For instance, PowaTag allows users to scan the screen or hold their phones up to recognize specialized audio tags, allowing them to instantly complete purchases and donations, enter competitions and request product information.

“Brands are no longer willing to spend millions of dollars on advertising campaigns if they are unable to effectively measure the results,” Wagner said. “By creating interactive smart ads, broadcasters will be able to combine their huge reach with the visibility of digital campaigns, enabling the medium to retain its spot as the leading platform.”

Edited by Dominick Sorrentino