OMD Transcend 2015

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  • MEDIA TRENDS 2015

  • 2

    TINY TV TV becomes a niche channel

    TV 3.0 TV channels start to distribute their own content online

    VERTICAL DESCENTInternet verticals suffer as content is shared via other means

    The TrendsAUTOMATIC AUDIENCE Programmatic moves towards audience buying in online video and mobile

    PREMIUM MOBILITY Premium inventory on mobile becomes available

    CLOSED COMMERCE eCommerce channels become their own ecosystem

    SEARCH-TO-ORDER Search goes beyond keywords

    MONETIZE ME Social focuses on monetizing audiences

    SOCIAL SINGULARITY Social leads the way in creating single user data

  • 3

    Tiny TVTV becomes a niche channel

    The flocking of eyeballs online is by no means a new

    phenomenon, but the scale of the movementlast year

    time spent on online video matched that of time spent

    on TVmeans that for many advertisers TV can no

    longer be viewed as a broadcast channel for all

    audiences. TV remains a key channel to reach over 45s,

    but is becoming a supplementary media for other

    audiences.

    Advertisers should focus on buying better

    within local markets and creating better

    partnerships with one of the 4,000+ TV

    channels in China, and harnessing the

    power of provincial satellite TV channels

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    15-19 20-24 20-29 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

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    Avg TV Daily Time Spent (Min) Avg Internet Daily Time Spent (Min)2

    TV Daily Reach Internet Daily Reach

    Reach

    %

    Daily

    Min

    sThe role of TV moves from mass to niche as

    audiences flock to new media and screens

    across markets in China

  • 4

    TV 3.0Last year, Hunan TV launched their own digital TV platform,

    marking the end of their content being shared on other

    platforms online. Previously, shows like the smash hit were hosted on online video platforms like iQiyi. As TV channels put up a fight to win back their audiences, online

    video sites are rising to the challenge by creating their own

    shows. Locally made content will have to go from strength to

    strength as the Chinese government clamps down on foreign

    digital content, spelling the end of next-day availability of

    American shows.

    The opportunity for brands lies in sponsorship and

    product placement for locally made shows.

    TV channels start to distribute their own content online

    TV channels fight the content war by creating their

    own online channels

  • 5

    Vertical DescentInternet verticals suffer as content is shared via other means

    Netizens have become more

    sophisticated in terms of how and

    where they find content. The

    strength of individual website

    content and the growth of in-app

    social sharing has seen users

    abandon the use of portals as a

    means to get their information.

    Impressions on most verticals

    barring that of automotive and

    travelhave dwindled.

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    2,000.00

    4,000.00

    6,000.00

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    10,000.00

    12,000.00

    14,000.00

    16,000.00

    18,000.00

    Website Traffic to Portals

    sohu.com [] sina.com.cn [] qq.com []

    ifeng.com [] 163.com [163]

    Advertisers need to plan to be everywhere their users are,

    not only on content specific sites, or have stronger content

    plans ensuring their messages spread further than ever.

    Portals have been

    suffering a slow

    death as netizens

    change their

    content sharing

    habits.

  • 6

    Automatic Audience

    Programmatic moves towards audience buying in online and mobile video

    Centred on a single view of

    a person across devices and

    sites via DMPs, audience buys

    allow brands to finally move

    beyond siloed media based

    buys. Couple the ability to

    target audiences better than

    ever with the rise of time spent

    on mobile, and programmatic

    buys will increasingly shift into

    the mobile space.

    Currently, only an approximate

    5% of programmatic buys are

    for mobile inventory, but that

    number is expected to shift to

    about 20%.

    Audience data is fast

    becoming the new trading

    currency of programmatic

    media trading.

    Advertisers need to focus

    on building their data

    smarts to not only ensure

    their buys are audience

    based, but to build

    holistic understanding of

    their audiences closing

    all the data loops.

    Beyond that, inventory on

    online videos have also

    opened up to programmatic

    buying and we can expect

    programmatic online video

    buying to increase from

    15% of all programmatic

    buying to about 50%.

    Now, more than ever the

    need for a Data Management

    Platform is crucial.

  • 7

    Premium mobility

    Advertisers have been pushing for more integrated digital buys,

    previously hindered by the lack inventory in mobile. This will change

    in the next year as premium inventory is now increasingly

    becoming available.

    Premium inventory on mobile becomes available

    Whilst the challenge of tracking mobile ads will

    not disappear in the next 12-18 months, advertisers

    can look forward to better means with engaging

    with their consumers on mobile and should take

    advantage of that.

    As consumers spend more and more

    time on mobiles, advertisers and media

    vendors are getting on board and

    providing better mobile inventory

  • eCommerce sites have now built up

    a loyal and consistent baseall who bypass

    other digital assets to go directly

    to their sites. eCommerce traffic is far

    less reliant on search, only an approximate

    22% of traffic to eCommerce sites are

    referred to from search vs. 41% of traffic on

    Social Network Sites. In fact, eCommerce

    sites are becoming a force of their own

    in delivering traffic.

    Advertisers need to think

    about how and where they

    place tactical and

    promotional messages

    if consumers are now

    bypassing more traditional

    consumer channels

    to purchase their goods.

    Closed Commerce

    eCommerce channels become their own ecosystem

    Source: Alexa, CNRS 2014 , http://wenku.baidu.com/link?url=pGfGpkYh3Wo9cKtaPTN7ALsuhxouB2Q4h5vkG_eN2vQvVw3TLRKmB3vYmh-9K4Ux-Yjmg1TZwu71hOZf6lNhgXKnX2bkfKH7UZabXWBgf_u

    What has not been said about

    the rise of eCommerce in China?

    Tao Bao is a top referrer to other

    websites, contributing to an average

    of 3.9% of traffic referrals to Chinas

    top 5 websites.

    Other eCommerce websites

    41.8%The sheer scale of online

    shopping means that

    eCommerce websites have

    become an ecosystem of

    their own.

    Of Chinese citizens have

    shopped online the past year.

  • 9

    Search-to-order

    Search goes beyond keywords

    Search is a key element of any

    brands always-on strategy.

    For the past few years now,

    search engines have tried to

    move beyond just selling links

    and keywords, this year they take

    it up a notch.

    Advertisers need to embrace the new search,

    and build plans to engage with their audiences on

    search sites via Brandzone, develop custom content

    based on search analysis and ensure their SEO/SEM

    strategies become even more personalized.

    With new search players

    in the marketQiHoo (360)

    increased their market share

    10% in the past year and New

    Sogou makes up 15.1% of

    searchthe competition in

    search will only mean better

    options for advertisers. Already

    search engines are selling more

    innovative formats.

    Better yet, advertisers and

    search marketers are using

    search data to create custom

    content on landing pages and

    messaging on search pages. All

    this means search will take

    relevancy to the next level.

  • 10

    Monetize meSocial focuses on quality not quantity of users

    Social has long since past its infantile stage. Advertisers have

    moved beyond just the acquisition of fans and now are focusing on

    getting a ROI from the millions of followers theyve worked so hard to

    engage.

    Advertisers need to be even smarter

    about the way they do social:

    Using data to analyse their fans to

    understand which personas are

    mostly likely to purchase

    Understanding motivations

    and how fans want to interact

    with brands

    Ensuring content that drive sales

    Ensuring eCommerce abilities are

    up to scratch.

    As eCommerce grows and the links

    between digital activity and purchase

    become closer, brands are looking

    to prove that social does indeed

    drive business.

    With WeChat releasing advertising

    on WeChat moments, the link from social

    advertising to sales can finally be realized.

    Advertisers can finally directly measure

    the impact of social advertising on sales .

  • Social Singularity

    11

    Social leads the way in creating single user data

    In January, WeChat finally

    opened up advertising

    for WeChat moments

    to advertisers.

    Advertisers need to think holistic