Is television dying?  Empower doesn’t think so and nor do local TV stations.  Station managers are embracing the challenge of loss of viewership to cable and turning it into an opportunity to deliver more targeted impressions to the advertiser.  While this may mean stations are rethinking their business model, they’ll be in a much better position if the stations are the ones defining that new model versus having others define it for them.  To stay current, local TV stations are reinventing themselves with emerging video platforms – providing more options for consumers to interact with an advertiser’s brand.    While some of these platforms are in the infancy stage, now is the time to test and learn about the impact these options might have on an advertiser’s business.

TV is Expanding

Television is growing its audience by offering viewers niche programming and new distribution channels. The upcoming digital conversion will expand television program options.  After the digital transition, local stations will have the ability to broadcast multiple subchannel signals. The station’s opportunity will be to develop additional programming schedules that have the viability to draw an audience.  One approach for stations might be to lure viewers with higher-quality local content that is not covered by national programs.  Also, the subchannels are likely to be themed, for example some stations will be running old movies from the MGM library, or going for laughs and airing “all sit-coms all the time”.  Many are broadcasting local weather 24/7.   These subchannels may stop viewers from clicking over to the cable networks.

Emerging Platforms

Even though television still captures some of the largest audiences, stations are working to keep up with the changing consumer habits by introducing emerging platforms.  New distribution channels include Video on Demand and online video.   The proliferation of choices simply means more ways for a consumer to receive an advertiser’s message, and it speaks to the importance of surrounding the consumer with multiple platforms, so that she can watch what she wants when and where it’s convenient for her.

Speaking of convenience, Video on Demand (VOD) allows consumers to order programs of their choice at any time.  With VOD capabilities available on most cable services, the number of VOD-enabled households has grown to over 32 million.  An advertiser can also use the VOD format to share information about its product.  This type of VOD allows consumers to engage with a brand for longer than thirty seconds.  Empower recently ran a VOD campaign for a tourism client.  The average viewing time of the advertiser’s video was over six minutes, twice the industry’s standard.   This type of engagement is priceless!  New accountability measures also allow advertisers and agencies to read results quickly and adjust the campaign appropriately.

Viewing video content is not limited to the consumer’s television set.  Local television station websites play a key role in viewer engagement, thus creating opportunities for advertisers.    Viewers can interact with content online that is most relevant to them and when it is most convenient.   Some local stations offer live online chats during newscasts.  During a recent snowstorm in the Midwest, several stations encouraged viewers to go to their websites and “twitter” about how the weather was affecting them.   Through the exchange of quick, frequent responses, “twittering” allows one to start a “dialogue”.   In addition, stations are launching viewer rewards programs, providing motivation for viewers to engage with their websites.   A recent study showed 44% of consumers have taken action after viewing local ads on a television station website.  Consumers trust their local stations to provide news, information and entertainment, and this trust has now expanded to include ads found on their websites.   

Pre-roll video opportunities exist on many local station websites, typically within news content.  Often companion banner ads can be negotiated to run adjacent to the pre-roll spot.  Similar opportunities exist on network sites such as NBC.com or CBS.com.  To the advertiser’s benefit, there are restrictions on ad-skipping with online video, yet viewers have shown they are willing to watch these ads in return for free content online.   It’s important to note that while online video is growing, it is not stealing viewers from TV.  According to a study done in mid-2008, 31% of adults are viewing online video.  Of these adults, online video viewing did not interfere with their TV watching. 

Mobile video platforms continue to develop at amazing rates as the industry is constantly evolving its standard graphics software for rich graphical user interfaces for wireless multimedia.    In 2009, sixty-three TV stations in twenty-two markets reaching 35% of U.S. households plan to launch Digital TV, providing live, local and over-the-air TV to a number of mobile devices, from cell phones to laptops.

Television Lives On in New Ways

Consumers will continue to seek out their favorite TV programs, or as Empower calls them “passionate media connections”.   The challenge for stations is to deliver that content in distribution channels consumers prefer.   Because emerging venues such as online video, VOD, and mobile media have yet to attract significant mass audience, now is the time to test and learn with these platforms.  At Empower, we have the tools that not only identify the consumer’s passionate media connections, but also the tools that determine how viewers want to consume that content.  Additionally, Empower continues to reach out to Station General Managers to collaborate on how both we and the station can help increase our clients’ sales.  Empower is committed to continuing this dialogue so that our clients can remain in the forefront of this ever-changing media landscape.

“Wherever, whenever, however” – the new mantra for television.

By Cathy Reed, Client Strategy Director, Cathy.Reed@empowermm.com