30 years of evolution in the video market

In the early days, digital terrestrial TV marked a turning point, granting viewers access to an expanded array of channels and content. However, it was the advent of Digital Video Recorders (DVRs) that truly disrupted the industry. DVRs empowered viewers with the ability to time-shift their favourite shows, posing challenges for traditional advertising models that relied on scheduled programming. The subsequent rise of high-speed broadband, coupled with the proliferation of smartphones, tablets and connected TVs, marked a new era. It expanded the concept of “television” beyond the living room and brought video content to consumers’ fingertips. These developments introduced new challenges and opportunities for advertisers, who had to adapt to reach audiences across various screens and platforms.

Simultaneously, the advertising landscape underwent a revolution. Data targeting, programmatic buying, addressability, cross-platform measurement and attribution modelling emerged as powerful tools. Advertisers could now deliver more personalised and relevant ads, increasing the effectiveness of their campaigns.

In this rapidly evolving landscape, we face a set of formidable challenges. GAFA (Google, Apple, Facebook, Amazon) now dominate and command 50% of the advertising market and a staggering 75% of the digital advertising market. These tech giants have not only disrupted traditional advertising models but have also set the bar for data-driven, targeted advertising.

New entrants, such as Netflix and TikTok, have transformed the way in which audiences consume content. Netflix’s ad-free subscription model challenged traditional TV advertising revenue streams, while TikTok introduced short-form, usergenerated video content that captivated younger audiences.

The market itself has grown increasingly complex, with diverse offerings emerging each day. Advertisers are confronted with an overwhelming array of platforms, formats and channels to consider, making it crucial to find the most effective means of reaching their target demographics.

We grapple with inventory scarcity and the fragmentation of TV consumption across different viewing modes. Viewers no longer follow a linear path; they engage with content across a multitude of devices and platforms. This shift necessitates a more unified approach to advertising that spans both traditional TV and digital channels.

Unifying buying processes and reporting becomes paramount. Advertisers seek seamless solutions that enable them to reach audiences with consistency and track the performance of their campaigns across all channels. Furthermore, inflated prices that lead to higher CPMs and the growing need for General Data Protection Regulation (GDPR) compliance add layers of complexity to our operations, compelling us to find innovative ways to deliver value to our partners while respecting privacy regulations.

To address these challenges and seize the opportunities presented by this dynamic landscape, RTL AdAlliance has crafted a comprehensive strategy:

Our approach involves the creation of a global premium portfolio comprising local media champions. This strategy aims to provide scale and quality, enabling us to compete effectively with the industry giants. By consolidating our offerings, we provide advertisers with the ability to reach their audiences seamlessly, whether through traditional linear TV or digital channels, creating a unified and efficient advertising ecosystem.

Recognising the need for efficiency in a complex media landscape, we offer our partners single points of contact and a unified buying platform for all our media properties. This streamlines the engagement process and enhances the overall experience, reducing friction for advertisers seeking to navigate the evolving video landscape.

Leveraging the technological expertise within the RTL Group, we are committed to securing the transition of our linear TV activities into the digital and Addressable TV space. This underscores our commitment to remaining at the forefront of technological advancements. As viewers embrace new technologies and platforms, we ensure that our advertising solutions keep pace, offering innovative ways to engage audiences across the evolving video ecosystem.

In a world where informed decisions are pivotal, we continue to invest in insights and expertise. Our aim is to empower our clients with data-driven guidance that aligns with the evolving market dynamics, enabling them to make informed investment decisions. Data is paramount, so we provide advertisers with the tools and knowledge to navigate the complexity of audience targeting, measurement and attribution.

Partnership with The Trade Desk This collaboration has significantly enhanced our programmatic capabilities and expanded our reach, allowing us to deliver more targeted and effective advertising solutions to our clients. By harnessing the power of programmatic advertising, we can serve ads to audiences with precision and efficiency, optimising campaign performance across diverse platforms and devices.

Through our partnership with Realytics, we have achieved improved measurement accuracy. This enhancement equips us to provide our clients with more robust insights, enabling them to refine their strategies effectively. At a time when accurate measurement is essential for advertisers, this collaboration enhances our ability to demonstrate the impact of advertising campaigns and optimise their effectiveness.

The new life of the living room Our research project, ‘The new life of the living room’ – which we carried out in partnership with smartclip – has yielded invaluable insights into the shifting dynamics of consumer behaviour in the digital age. This research informs our strategies and helps us stay ahead of emerging trends. Understanding how viewers interact with content in the modern living room, including through smart TVs and other connected devices, is essential for tailoring advertising experiences that resonate with today’s audiences.

As we embark on this milestone 30th edition of TV Key Facts, we remain unwavering in our commitment to helping our partners navigate the Total Video landscape. Our journey through transformation continues, and we embrace both the opportunities and challenges that lie ahead – the transformative journey through time has not yet ended.

We recognise the critical importance of understanding new audience behaviours, meeting the evolving needs and strategies of advertisers, and staying attuned to the everchanging content, platforms, and products of publishers. In this way, we ensure that RTL AdAlliance remains a trusted and invaluable partner in the dynamic world of Total Video.

Stephane Coruble, CEO at RTL AdAlliance