Four times a year, we invite you to our Data for Breakfasts, an opportunity to bring together our clients and discuss hot topics in the industry. Here's our key takeways from the last edition.

The television and video industry is undergoing important transformations, presenting both challenges and opportunities for advertisers. Our focus for this edition of our Data for Breakfast was to explore these changes and understand how to effectively navigate the evolving landscape.

Linear TV is Here to Stay

Recent research by the Institute of Practitioners in Advertising (IPA) has highlighted the power of video in enhancing brand metrics such as awareness and purchase intent. Video not only drives short-term ROI but also has substantial long-term benefits.

Today’s video landscape comprises several key formats:

• Linear TV: Traditional scheduled viewing on television.

• BVOD (Broadcast Video on Demand): Streaming options provided by traditional broadcasters. Ex: Tou.tv

• SVOD (Subscription Video on Demand): Platforms like Netflix and Disney+ offering ad-free content for a subscription fee.

• AVOD (Ad-supported Video on Demand): Free content supported by ads, available on platforms like YouTube and ad-supported tiers of SVOD services.

The lines between these formats are increasingly blurred. For instance, many SVOD platforms now offer ad-supported options, making them functionally similar to AVOD.

In English-speaking Canada, SVOD subscriptions have surpassed linear TV, a trend that started about six years ago. However, linear TV still commands the highest weekly consumption, especially among older demographics. Despite the growing subscription base for SVOD, there has been a slight decline in 2023, indicating possible subscription fatigue or the impact of rising living costs.

Traditionnal TV remains a vital component of the media mix. It continues to attract significant viewership, especially for sports, news, dramas, and reality programs. Premium events, such as the Bye Bye show in Quebec, still draw massive audiences.

Traditional broadcasters are adapting by offering new advertising formats like in-play ads during live sports, countdown ads at the start or end of breaks, and creative overlays during credits. Self-serve platforms like Cynch allow advertisers to target specific audiences and track campaign performance, enhancing the precision and effectiveness of TV buys.

Digital Video is Advancing, but is still in Evolution

The shift towards Connected TV (CTV) has accelerated in recent years. The rise of on-demand services and internet-enabled TVs has transformed the way audiences consume content. Demand-side platforms (DSPs) like DV360, The Trade Desk, Amazon, and Yahoo have made it easier to integrate CTV into overall video strategies, allowing for data application, frequency management, and inventory access through auctions or reserved buying.

Exclusive content partnerships, such as Amazon’s deal for Monday Night Hockey and Fubo TV’s rights to the English Premier League, are attracting new viewers and enhancing platform appeal. Additionally, CBC's plan to offer Olympic content programmatically through The Trade Desk exemplifies the growing integration of live events into digital platforms.

However, the fragmented nature of these platforms presents challenges in deduplicating users across different services. While measurement tools are not yet perfect, the high attention and growth of CTV make it an essential part of the video strategy. Innovations such as ads overlaid on paused content and curated content sponsorships are examples of new formats gaining traction.

The Importance of Unified Video Metrics

Achieving the right balance between different video formats involves considering various factors such as cost, targetability, and frequency of purchase. Unified measurement remains a challenge, with agencies citing the lack of cross-screen measurement as a barrier to growth. Solutions like Numeris VAM provide valuable insights but have limitations, particularly in distinguishing between subscription and ad-supported viewership.

So what can we do with what we have now? Omnicom Media Group's proprietary planning tool, OMNI, leverages audience propensity data, channel reach curves, and attention norms to create effective media plans. The tool helps in balancing the mix of premium, curated, and open inventory to optimize cost per second viewed.

Preparing for the Future

Looking ahead, the video landscape will continue to evolve, with linear TV maintaining its significance despite declining viewership. The digital boom presents new formats and opportunities, but the industry must strive for unified metrics to measure media performance accurately.

Addressable television in Canada lags behind the US due to infrastructural and regulatory challenges. However, the integration of linear TV with digital video, precision targeting, and data-driven optimizations will drive future growth. As advertisers push these boundaries, a holistic approach to video will emerge, blending the strengths of both traditional and digital formats.

We believe, the evolution of TV and video requires a nuanced understanding of the landscape, strategic use of data, and an adaptable approach to media planning. By staying attuned to these changes, advertisers can effectively navigate this dynamic marketplace and maximize their reach and impact.