Thursday, April 9, 2015

Live Ads provide exceptional value

The value of TV advertising has changed
TV has been an established form of advertising for many years, where companies pay a lot of money for minutes, or even seconds to present their product or services to the public. In recent years, we feel the value of this has changed with so many people recording, or live pausing, on top boxes or decoders, and then watching their show delayed, enabling them to fast forward over the ads. The result is that the money spent on advertising is wasted.

Comparing Live Stream advertising with websites and TV
Live Streaming is a relatively new form of media in terms of how advertising is structured. Unlike general web sites, which gain status for advertising based on views or clicks to count the value of ads, Live Streaming is more atoned to TV, where the viewers are sitting back, watching a show. Ie the screen is on all the
time, unlike a website, where the viewer clicks away to the next page within about 3 seconds, and totally ignores any ads. Further to this, Live Stream advertising cannot be recorded or live paused, so the viewer is unable to store and watch later. The result is that the ads cannot be fast forwarded over.

Type of viewers versus value of ads
Live Streaming tends to have less viewers than conventional TV. The reason for this is that people will sit down and watch TV, sometimes not caring what is on, but just to watch something, even if they are not interested, or there is nothing better on the other channels. The impact on advertising here is once again wasted, if the ads are targeted but the viewers are not, eg tyres or oil ads during a motor race, are not going to gain customers if the viewers are not intently interested in the automotive components available on the market. Live Streaming viewers are generally, involved or serious about the show, as they have gone to the trouble of logging in on the computer, going to the appropriate website, and often plugged it into the TV to watch on the big screen. These people are targeted viewers, and so worth so much more to advertisers.

Table comparing the advantages and disadvantages
TV
Websites
Live Stream
Targeted
Yes
Yes
Viewer Numbers
Highest
High
Low
Related Viewers
Yes
Yes
Can't Skip Ads

Yes
Can't Click away
Yes

Yes
Full Ad plays
Yes

Yes
Cost of Advertising
High
High
Low
Future Viewing Methodology
Yes
Yes


Summary
We find it very hard to determine the value of advertising, considering the current number of viewers on Live Stream, compared with viewers on TV. Certainly the other factors in the above table show Live Streaming to be far more beneficial and cost effective, but the question of how many viewers are required on Live Streaming, to equal the higher numbers of other media, taking into account the targeting and compulsion to view the ads, is difficult to substantiate.


Looking ahead to the Future, modern TV is moving towards viewer on demand, and internet based broadcasting services, so we will see more viewers adapt their viewing methods to the internet/computer Live Streaming type of viewing, in preference to sitting in front of the TV and watching whatever happens to be on. So the low viewing numbers and low costs  for Live Streaming advertising will grow quickly in the next few years.

CTASLive is 100% NZ, owned and operated by Ctas NZ Ltd. CTASLive provide Live Streaming services for sporting events in NZ.

CTASLIVE is a trademark of Ctas NZ Ltd.

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