Welcome!

Blog Feed Post

TV’s Cry for Help

Welcome to the TV industry’s latest bit of magic … prestidigitalization. It’s a new twist on the old sleight-of-measurement trick. Here’s how it works. You buy TV the old-fashioned way because, well, that’s how you buy TV. The ratings suck. You want to pay less because you’re getting less. TV says, “You’re not getting less. Look at our newly crafted, data-driven metrics. We’re delivering premium audiences across omni-channel touchpoints and generating better return-on-ad-spends than ever!” If you can brush the buzzwords off your shoulder, you respond, “Yeah, but Nielsen says the ratings are down.” And TV triumphantly concludes, “Nielsen sucks! Here’s how we prestidigitally measure your success.”

Artisanal solutions don’t scale

As it turns out, TV is right. They do have newly crafted, data-driven metrics, and they can deliver premium audiences across omni-channel touchpoints, and Nielsen does suck. (Sorry Nielsen, I love you guys, I really do. I’ll defend you in a moment.)

At an unusual cross-industry meeting last week to discuss TV’s problems and ostensibly start fixing them, NBC Universal sales chief Linda Yaccarino said her company will try to wean itself off a single currency. That means Nielsen. The problem is that every TV sales group has devised artisanal, hand-crafted, un-scalable, data-driven metrics to justify your ad dollars. In some cases, metrics can even vary between different divisions of the same networks. There is no common currency that encompasses industry-accepted messaging units and the delivery of quality audiences.

Even if such a currency could be agreed upon, it would be so obviously biased toward a desired outcome, it would not have practical value. Look over there … let’s blame Nielsen!

Nielsen for better or for worse

It’s super easy to blame Nielsen for everything. Even with its investments in new technology, it has not adequately adapted to behavioral changes in media consumption­­—at least not in a way that favors TV. According to Nielsen, in 2016 (the last fully reported year) its revenues within the Watch segment (the TV ratings biz) increased 5.7 percent to $2.9 billion. Audience Measurement of Video and Text revenues increased 7.5 percent primarily due to its ongoing investments and continued client adoption of its Total Audience Measurement system. Nielsen has a de facto monopoly on ratings, and business is up, so it is not under any significant evolutionary pressure to do anything more than it is already doing.

The prestidigital smoke screen

But Nielsen is making TV look bad compared to its data-rich rivals. “If only we were measured right,” laments the TV business, “you’d see. TV is awesome.” Put another way, if we could manipulate a new metric the way we manipulate Nielsen, we could continue to charge you ungodly sums without having to deliver attributable business outcomes.

Of course, the pressure on TV ad sales is not Nielsen’s fault (although every crisis needs a villain). The blame can be placed squarely on changes in consumer behavior. While this has been prophesized for years, and everyone has agreed in theory that television viewers were evolving their behaviors, no one could agree on the timing. This is not a linear exercise; the pace of technological change is exponential and the industry is now getting an up-close-and-personal view of what an empowered consumer is (and is not) willing to put up with.

A new currency won’t solve the problem

Mass marketing and its component parts are facing an existential crisis. With enough data, machine learning tools can (and will) optimize for marketing outcomes in ways that will soon render Nielsen and other “research” companies (and departments) obsolete. If a message finds its target, and phones home about it, and an outcome is determined, there’s nothing else to know. Marketers have never wanted to buy a GRP or a CPM, they want to drive velocity or brand awareness or create purchase intent or some other metric of their own choosing. They’re not governed by how well they buy ads, they’re governed by revenue, and everyone is under extreme pressure to perform. Not to put too fine a point on it—in case you were not paying attention—today, every company is a tech company. Try to get through a meeting without using the word “data.” It is almost impossible.

The art form vs. the platform

TV, the art form, is in its platinum age. But the future present of video packaging and distribution is on-demand and digital. TV the platform simply cannot survive under its current business model. It must evolve.

Last week, Amazon introduced its new Elemental-based, AWS Media Services, an array of broadcast-quality media services that enable anyone with an Amazon Web Services (AWS) account to process, store and make money from video. You want to see real magic? “Abracadabra! You’re a broadcast-quality, omni-channel television network!” This is a level of competition the traditional TV business has not anticipated. Disney blew a zillion dollars acquiring the part of BAMTech it did not already own—just to get into the streaming business with an established technology and workflow. Give me 10 engineers and 10 weeks, and a credit card to open your AWS account, and I’ll build you 100 percent of that capability (and more) for a fraction of what Disney spent. The pace of technological change is exponential. Believe it, own it, leverage it. As for TV? It’s not time for prestidigitalization, it’s time to “presto-change-o.”

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

This article originally appeared in AdAge.

Other Articles You May Enjoy

Stop Doing Meta-Work Now!

Messy Desks Are Perfectly Optimized

Why Lose-Lose Is Almost Always A Winning Strategy

iPhone X Review

Who Should Be The President of the Internet?

Chipping People: Are You Ready?

ICOs: What You Need to Know

How Do You See the Future?

The post TV’s Cry for Help originally appeared here on Shelly Palmer

Read the original blog entry...

More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

Latest Stories
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...