According the Greek philosopher, Heraclitus of Ephesus, “change is the only constant in life.” And unlike the superficial phenomenon we call change in Nigeria, real change often comes with an epochal tendency.
To the CEO of Apple, Timothy Donald “Tim” Cook, “real change glides on the waves of technology.”
Around the 1950s, the arrival of television technically threatened the supremacy of radio; fast-forward to the mid-80s when VCR and Cable access became available, they both sent shivers down the moat of traditional TV networks. Then moving along this trajectory of technological evolution, the newest as we have it today contextualizes the concept of “cord-cutting.”
According to Bloomberg BusinessWeek, “cord-cutting” is used to describe the pattern in which viewers (cord cutters) cancel, or reduce their subscription to traditional Cable TV, in favor of new competing channels available on the internet or mobile phones such as: Google TV, Apple TV, Hulu, Netflix, YouTube, YouView, BitTorrent, BBM Channel etc.
In other words, online and mobile TV experiences are technically the new threat to the ecosystem of traditional Cable TV and Free-to-air TV services.
Research has it that, Cable TV comes with the baggage of being “unreasonably expensive and unfairly rigid” when compared to the emerging Over-The-Top (OTT) channels, otherwise called online/mobile TV. The argument includes that; online TV is not only nearly free, it’s equally heavy on entertainment contents with little or no intrusive ads. Most online TVs aggregate profit from content subscription and distribution. Recent report states that, mobile TV viewing is strongly on the rise with over 76 million Americans reported to be watching video contents on their mobile phones while on the go.
According to PwC’s Global Entertainment and Media Outlook 2012-2016, (due to cord-cutting) smartphones sales are forecast to increase from $79 billion in 2011 to $ 141 billion in 2016, a 12.3% increase compounded annually. Similarly, tablet sales are projected to grow from $28 billion to $100 billion in 2016, a 29% annual growth rate. Without a doubt, cord cutting, which first surfaced in the US around 2010, is a strong contender in most Western countries today.
Suffice it to say that Cable/traditional TVs are still having field days in this part of the world, (though cord cutting is beginning to bite in South Africa), the fact remains that; online TVs are slowly but surely gaining traction in Nigeria. A large chunk of Nigeria youths are smartphone enthusiasts, hence sooner or later, cord cutting will strongly catch up with us. Perhaps in anticipation of this, most local TV channels in Nigeria are now building stronger presence online via apps that allow for program streaming on smartphones, and also creating Internet Operating System that expands viewers experience and enables social TV.
Other online based TV channels in Nigeria include, Iroko TV, popularly referred to as the Netflix of Nigeria; Royal TV, Kogo TV, Ustream TV (franchised), Mercy TV etc. These online/mobile TVs are steadily growing to wrestle significant number of subscribers off traditional Cable TV. However, it’s pertinent to note that some Cable TV service providers are now, either catering for mobility or buying into these emerging online TV platforms.
Question: How set is our ad industry in the face of the cord-cutting palava?
Modes of communicating brand messages have evolved with new forms of digital distribution in multiple territories. Though some practitioners might argue that cord-cutting is not an issue worth losing sleep over, and that traditional TV viewing is still big and more effective when deployed for campaigns, however, the key point is that: ad agencies, advertisers and media buying companies should continue to employ more integrated marketing strategy that includes digital in its entire gamut, inclusive of the new OTT channels (Online/Mobile TVs) to keep maximizing viewers experiences with brands.
According to Adam Crozier, Chief Executive Officer of ITV, “in the not-so distant future, a campaign would be deemed very successful if it enables users to interact with every aspect of what is on screen—metadata about the elements of the branded content, its social forums, comparison pricing, purchasing, and more. To gain this type of advantage, ad agencies will need to build the culture of collaborating with other parties across the value chain.”
And more importantly, ad agencies should endeavor to up the ante by training their people (regardless of departments) to become more digital savvy. An agency is as good as its assemblage of people.
… I’m Just Saying.
Facebook Comments