Even in the midst of today’s digital transformation, the way TV ads are bought and sold hasn’t really changed in nearly 50 years. As much as we want to believe that the industry is ready to take advantage of digital targeting and a data-driven approach, there are many parts of the TV ad world that are stuck in the past—believe it or not, there are still media agency buyers, TV stations and sales reps hand-writing orders. Clearly, they have a lot of catching up to do.
The good news: The industry is finally realizing that while technology may be intimidating, it is necessary to stay ahead. At Videa, we recently surveyed TV ad buyers and sellers to get a sense of how they are being affected by technology. The bottom line: sluggish processes and the increasingly competitive landscape are causing real concern, but buyers, stations and reps are concerned about how new technology will affect their jobs.
The cost of inefficiencies
The survey shows that industry professionals believe that they must use technology to their advantage. “I would say the threat that we face is trying to keep up digitally. Especially with streaming services such as Netflix and Hulu, it is making real-time television a thing of the past,” said a TV station respondent in the Videa study.
There’s no doubt that there are system inefficiencies across the TV industry. Wasted time from outdated processes and workflows, paired with more mediums and channels, means everyone is balancing heavier loads. Over half (53 percent) of media agencies surveyed blamed pricing negotiation(s) for wasting their time; while 36 percent of TV reps said they feel they lose clients due to the lengthy inventory selling process. Reps also cited makegoods and under delivery as key concerns.
So who holds the power to change these inefficiencies?
In many instances, it is in the hands of the broadcaster. Broadcasting executives are being hit by innovative technologies every day—ATSC 3.0, industry standards, cloud-based automated platforms, the list goes on. It’s one thing for an organization to realize it needs to adapt to new technology to be more efficient. It’s another to implement the changes these technologies bring about.
Transparency through open standards
Change does not happen in a vacuum. Television, especially local television, thrives on a diversity of players. It’s not a world where there is a single platform. It’s time to move away from a walled garden ideology to develop a set of open APIs that will allow the current best practices for automated spot buying to be translated into a universal method by which partners can easily buy local TV spots.
This will result in faster change within the industry. The easier the technological change becomes, the more it brings advantages such as easier integration with partners, ease of execution and advanced communication between buyers and sellers.
Anxiety over change is natural
It’s not unusual for there to be resistance to change. As the Videa study notes, many people in the TV advertising world are concerned that they’ll be out of a job. In fact, all three groups surveyed—reps, TV stations, and media agencies—expressed concern about their competitive advantage slipping due to lack of change or reluctance to invest in better technologically-driven solutions. There is an understanding that advanced technologies will help them do their jobs better, not eliminate the human element altogether.
Imagine if an automated solution for buying and selling TV advertisements could take away some of the less efficient manual processes and provide straightforward benefits like having availing, ordering and posting all in one place. This would give more time for buyers and sellers to focus on what matters most: better customer results and nurturing relationships.
Chinese philosopher Lao Tzu said, “if you do not change direction, you may end up where you are heading.” It’s time for the TV industry to adopt new technology to stay competitive.
Download the full results of the Videa survey here.
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Shereta Williams brings two decades of professional and industry experience to Videa. As president, Shereta leads the organization’s overall strategic and product direction. Shereta has over ten years of experience with Cox in various investment, strategy and development roles focused on digital media and broadcast television.
