The Future of Converged TV

It is necessary to take a result-oriented approach to marketing, the value of utilizing all available avenues, including TV, to obtain the best results is the key to future success. Today, marketers are playing smart and have rejected the common and traditional brand promotion techniques. Instead, they include connected and linear TV into the overall marketing plan to increase the impact and reach of their investment.

Digital advertising has created a whole new world of opportunities, while TV advertising has seen substantial changes recently. Through convergent TV, advertisers can now target individual audiences on various devices at various times of the day rather than only relying on conventional commercial spots during specific TV programs.

Customers have a wide range of options for content and watching platforms in the market today. As a result, leaders in the broadcast industry, including over-the-top (OTT) providers, traditional linear broadcasters, and digital-only video publishers, are changing their business plans to accommodate this new era of watching. However, during this period of transformation, broadcasters have faced a number of difficulties, including cross-screen monetization, the adoption of new technology, and a change in organizational mindset in favor of digital.

The world of television has seen tremendous changes in recent years. With the growth of streaming services, on-demand viewing, and internet-enabled devices, the traditional TV model has undergone a significant shift. This has led to the emergence of a new concept known as converged TV.

Converged TV is a term used to describe the integration of traditional TV broadcasting and internet-based streaming services on a single platform. In this article, we will explore the future of converged TV, the challenges it faces, and the potential it holds for the future of entertainment.

What is Converged TV?

Converged TV is a term used to describe the integration of traditional TV broadcasting and internet-based streaming services on a single platform. This is done through the use of set-top boxes, smart TVs, and streaming devices that can access both traditional and online content. The convergence of TV has allowed viewers to access their favorite shows, movies, and sports on a single platform without having to switch between different devices or services. As technology advances and internet-enabled devices become more ubiquitous, viewers are increasingly demanding on-demand content that is accessible from anywhere, at any time, and on any device.

What is the significance of a Converged TV Strategy?

Converged TV is the fusion of traditional television programming and digital advertising methods. Its importance lies in the fact that approximately 35% of the U.S. population has cut the cord, meaning advertising solely on traditional television may result in less than desirable outcomes as you may miss out on a third or more of your target audience.

By employing a converged TV strategy, you can combine the time-and-place model with an over-the-top (OTT) component that allows you to reach viewers regardless of where or how they consume content. Neglecting to allocate any portion of your budget to this strategy may lead to a significant loss of brand awareness.

Converged TV offers numerous benefits over traditional television advertising, including increased campaign effectiveness and improved return on investment due to its targeting capabilities. It also allows for accurate and timely performance measurement to inform future advertising decisions and expands the variety of ads that can be served to viewers, such as interactive and shoppable ads that encourage direct engagement.

What are the Converged TV Advertising Strategy’s Economics?

Depending on variables including the complexity, frequency, and data usage of the adverts, convergent TV advertising costs may change. However, the value of the tactic is included in the cost. You may realize considerable results by fine-tuning your strategy as your campaign reaches the precise target market for your brand.

It is essential for advertisers to stay current on the best ways to target consumers as digital advertising develops. Investing in data collecting is becoming more and more valuable because any knowledge you can gather about your customers might influence involvement in the future and guide decisions about your marketing approach.

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Why is convergent TV so promising for the future?

It is promising because of the following reasons:

1. Personalized Content

Personalized content is a key feature of converged TV that makes it a promising platform for the future. By using data analytics and artificial intelligence, converged TV providers can analyze viewer behavior, preferences, and interests to deliver personalized content that is tailored to individual viewers’ needs.

Personalized content enhances the viewing experience for viewers by providing them with content that is relevant to their interests and preferences. This helps to keep viewers engaged and reduces the likelihood of them switching to other platforms or providers. Additionally, personalized content can help to increase viewer satisfaction and loyalty, leading to long-term relationships between viewers and providers.

Personalized content on converged TV also enables targeted advertising. By analyzing viewer behavior and interests, providers can deliver advertisements that are relevant to viewers’ needs and interests. This not only enhances the viewing experience for viewers by providing them with advertisements that are relevant to them, but also creates new revenue streams for providers through targeted advertising.

2. Interactive Content

Interactive content is one of the key factors that makes converged TV so promising for the future. Interactive content refers to content that viewers can interact with in real-time, such as games, quizzes, polls, and surveys.

Interactive content enhances the viewing experience by providing viewers with a more engaging and personalized experience. Rather than passively watching TV, viewers can actively participate in the content, making it more interactive and entertaining. This not only enhances the overall viewing experience but also increases viewer engagement and retention.

Moreover, interactive content also provides a valuable opportunity for providers to gather data and insights about viewer preferences and behavior. By tracking viewer responses to interactive content, providers can better understand what viewers like and tailor content to their preferences. This can help providers increase viewer engagement, retention, and satisfaction, ultimately leading to increased revenue and growth.

Another advantage of interactive content is its potential to create new revenue streams for providers. For example, providers can offer sponsored games, quizzes, or polls, allowing brands to engage with viewers and promote their products or services. This can create new revenue opportunities for providers, while also enhancing the viewing experience for viewers.

3. Targeted Advertising

Targeted advertising is one of the most promising aspects of convergent TV for the future. Traditional TV advertising is often broadcasted to a wide audience without taking into account their preferences or interests. However, with the use of data analytics and artificial intelligence, converged TV can deliver targeted advertising that is tailored to individual viewers.

Targeted advertising enables providers to deliver more relevant and engaging advertisements to viewers, leading to higher engagement rates and better return on investment for advertisers. By analyzing viewer data, providers can gain insights into individual preferences and behaviors, such as their favorite shows, genres, and viewing habits. This information can then be used to deliver personalized advertisements that are more likely to resonate with viewers.

Converged TV providers can also use targeted advertising to create new revenue streams. Advertisers are willing to pay a premium for targeted advertising, and providers can use this to their advantage by delivering highly-targeted and engaging advertisements to viewers. This not only generates more revenue for providers but also creates a more positive viewing experience for viewers by delivering relevant advertisements that align with their interests.

4. Aggregator Platforms

Aggregator platforms play a crucial role in the growth of convergent TV by making it easier for viewers to access and discover content from multiple sources. These platforms act as intermediaries between viewers and content providers, bringing together content from different sources onto a single platform.

One of the key benefits of aggregator platforms is that they provide viewers with a simplified and streamlined viewing experience. Rather than having to switch between different apps or services to find the content they want, viewers can use a single platform to search for and access a wide range of content. This simplifies the viewing experience and helps viewers to discover new content they may not have found otherwise.

Aggregator platforms also provide benefits for content providers. By partnering with aggregator platforms, content providers can reach a wider audience and increase the visibility of their content. This can lead to increased revenue opportunities for providers, particularly if the platform includes targeted advertising options.

5. Seamless Viewing Experience

A seamless viewing experience is one of the key features that makes converged TV so promising for the future. Converged TV integrates traditional TV broadcasting and internet-based streaming services on a single platform, providing viewers with a seamless and personalized viewing experience.

In the past, viewers had to switch between different devices and platforms to access their favorite shows and movies. For example, they might use a traditional cable or satellite TV service to watch live broadcasts, and then switch to a streaming service like Netflix or Hulu to watch on-demand content. This fragmentation of content made it difficult for viewers to find and access the content they wanted, and often resulted in a disjointed viewing experience.

Converged TV eliminates this fragmentation by bringing together live broadcasts and on-demand content on a single platform. Viewers can access all of their favorite shows and movies from one place, making it easier and more convenient to find and watch content. This results in a more seamless viewing experience, as viewers no longer have to switch between different devices and platforms to access the content they want.

6. Flexibility

Flexibility is one of the key features that makes convergent TV so promising for the future. Traditional TV broadcasting is limited by fixed schedules and channels, which means viewers have limited control over what they watch and when they watch it. In contrast, convergent TV offers viewers a high degree of flexibility, allowing them to watch their favorite shows and movies on-demand, from any location, and on any device.

One of the main advantages of this flexibility is that it allows viewers to watch content when and where it is most convenient for them. Viewers no longer need to schedule their lives around TV programming or worry about missing their favorite shows due to conflicting schedules. Instead, they can watch their favorite shows and movies at their own pace, on their own schedule.

Flexibility also allows convergent TV services to provide a more personalized viewing experience. By using data analytics and artificial intelligence, providers can personalize content recommendations based on viewers’ viewing history, preferences, and demographics. This means viewers are more likely to discover new content that is relevant to their interests, which can enhance their viewing experience and increase their satisfaction with the service.

The Growth of Converged TV

Converged TV has seen significant growth in recent years due to the increasing demand for on-demand content and the growth of internet-enabled devices. According to a report by Parks Associates, the number of U.S. households with at least one streaming device increased from 50% in 2015 to 74% in 2021. Furthermore, the report predicts that the number of U.S. households with streaming devices will reach 87% by 2025.

Converged TV is a rapidly growing phenomenon that integrates traditional TV broadcasting and internet-based streaming services on a single platform. This integration provides viewers with a seamless and personalized viewing experience that traditional TV broadcasting cannot match.

The growth of converged TV is driven by a number of factors. Firstly, the increasing availability of high-speed internet connections and internet-enabled devices has made it easier for viewers to access streaming services. Secondly, viewers are increasingly demanding on-demand content that is accessible from anywhere, at any time, and on any device. Converged TV provides just that, allowing viewers to watch their favorite shows and movies on-demand, from any location, and on any device.

Providers are also investing heavily in creating exclusive content and original programming to attract new viewers and retain existing ones. This not only increases the value of converged TV to viewers but also creates new revenue streams for providers.

The growth of converged TV is also facilitated by the emergence of aggregator platforms. Aggregator platforms are services that bring together content from different providers, making it easier for viewers to find and access their favorite shows and movies. This simplifies the viewing experience for viewers and creates new opportunities for providers to reach a wider audience.

How to Gain an Advantage in Converged TV Advertising?

To gain an advantage over competitors who are likely targeting the same audience as you, it may be wise to invest in a team of marketers or partner with a marketing agency that is proficient in various areas of content creation and digital strategy.

Additionally, it is important to keep in mind that a portion of your audience may have abandoned traditional TV or does not use it as their primary method of consuming content. Adopting a converged TV advertising strategy can help close the gap left by those who have cut the cord.

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The shift to “converged TV” has had a profound impact on every aspect of the advertising industry, from reaching audiences across platforms to leveraging data-driven technologies for personalization at scale. Advertisers are using data, technology, and innovative thinking to thrive in this multi-faceted converged TV media landscape full of opportunities while meeting demands for transparent, holistic measurement to inform real-time optimization strategies.

Things Marketers and Advertisers need to know about Converged TV

Marketers need to start preparing for the shift to converged TV now, as the industry is experiencing a significant transformation in television. It is moving away from being a linear, device-specific medium and towards screen-agnostic addressable premium content. To navigate this disruption successfully, marketers should consider the following strategies:

1. Pay attention to the pace at which things are changing:

Television is quickly becoming more converged. Although linked TV is becoming increasingly popular, traditional TV advertising is still a potent tool. Over 55% of US consumers had access to linked TV last year, and this percentage is anticipated to reach 60% within the next three years, according to a recent eMarketer estimate.

However, since traditional TV still has a substantial audience share, it is unlikely that there would be a widespread change in favor of one media over another. Marketing professionals need to handle this change cautiously and understand the value of both linear and linked TV advertising. A better strategy than concentrating only on the future is to implement connected TV while also enhancing linear advertising with programmatic capabilities and data-driven insights along with the acceptance of connected TV advertising.

2. Upfront planning for television advertising:

Upfront planning for television advertising has traditionally relied on demographic data, but this approach is evolving. By leveraging first-party data to define strategic targets, marketers and agencies can bring the precision of digital advertising to their linear television buys.

In addition to improving the accuracy of targeting, data-enabled upfronts allow marketers to align their television advertising with other channels such as digital and social media, enabling a more cohesive omnichannel strategy. The ultimate goal is to make significant advances in upfront planning and management, with converged analytics serving as the foundation for intelligent buying decisions. By embracing data-enabled upfronts, marketers and agencies can not only improve current performance but also prepare for a more data-driven future.

3. Optimize digital as that is the way to reach cord cutters

Marketers must use digital channels to target the 33 million U.S. consumers who have cut the cord in order to address the effects of cord-cutting on growth and sales. However, cord-cutters are frequently excluded from traditional TV planning since digital and TV planning continue to operate in distinct silos.

Adopting a data-driven strategy for television planning enables marketers to determine who their advertising is reaching and who it is not. Marketers and agencies can increase their television planning efforts, bridging the gap between conventional and digital media, and reach a larger audience by integrating digital channels and utilizing data-enabled planning.

4. Optimize ad frequency across channels

To effectively reach consumers who consume both traditional television and digital content, marketers and agencies must optimize their ad frequency across channels. Bombarding consumers across multiple channels can result in wasted ad dollars and oversaturation of audiences. By implementing frequency optimization strategies, marketers and agencies can suppress audiences when necessary to avoid reaching them more than intended. Suppression is the key to controlling costs and driving ROI, and it complements the amplification capabilities of digital platforms.

5. Converged Strategy is for a long time:

Successfully converging traditional and connected TV requires a long-term strategy that addresses various challenges in data, tools, organizational structure, and operations. It will take time and effort for marketers and agencies to make upfronts smarter, optimize frequency, and incorporate digital into TV planning while still targeting cord-cutters effectively.

Advertisers are already realigning their TV business to adapt to the changing landscape, and this trend will only accelerate in the coming years. It is essential for marketers and agencies to engage in a clear and open dialogue to set realistic expectations and shape the future of converged TV.

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There has been speculation about the decline of linear TV due to the rise of streaming services and the pandemic-induced surge in OTT/CTV adoption. However, the truth is that linear TV still holds significant sway, with almost two-thirds of Americans subscribing to both linear and streaming services.

Therefore, to achieve maximum audience reach, marketers need a diversified advertising strategy that combines both linear and CTV/OTT. While linear TV excels in broad audience reach, it has limitations such as difficulty in targeting niche audiences and measuring its impact in an addressable way. Additionally, its longer-term buys make it less agile, making it challenging to shift budgets to achieve optimized results.

Although CTV can provide more precise targeting and real-time agility, it currently lacks integration with linear television for measurement purposes, making it challenging to understand how the two channels influence each other. Additionally, CTV has limited capabilities for brand measurement and does not account for attention levels, which means that although an ad spot may have played, it’s uncertain whether anyone was present to view it.

However, with a converged TV strategy that combines both linear and CTV/OTT, brands can use these channels to achieve brand and performance objectives simultaneously. Moreover, one channel can inform the other, providing marketers with the opportunity to target essential metrics at the household level while avoiding oversaturation.

While having more touchpoints with audiences can lead to deeper and more meaningful connections, managing a converged TV strategy can be overwhelming, especially for those unfamiliar with the CTV/OTT space.

Having a media partner who is knowledgeable and equipped with cutting-edge ad solutions is crucial, especially as the industry continues to evolve. With Flip, marketers can gain insights on where their performance is coming from and effectively optimize their media buying strategy on the OTT/CTV side, leading to increased return on ad spend (ROAS). This can also inform where added brand support may be needed on the linear side.

As consumer behavior and viewing habits change rapidly, marketers need an agile and innovative media partner to help them prepare for the future of convergent TV. One key factor in choosing a partner is their ability to integrate rich data from multiple sources, providing valuable insights. With the rise of automatic content recognition (ACR) data, connecting TV/Video data with other digital efforts is now possible. By incorporating ACR data into their measurement and optimization strategy, media partners can help marketers understand how many people saw their ad on a smart TV and made a purchase or visited their website. It’s essential to choose a media partner who is forward-thinking and embraces new data sources to help you stay ahead of the curve.

Other things to keep in mind are:

1. Ensure trust and transparency in your partnerships:

Collaborate with media partners who are honest about the limitations of different channels and can assist you in discovering ways to overcome these challenges. It is likely that a partner who claims their technology can solve all problems is overpromising.

 2. Utilize ad solutions that streamline the process:

The management of all components in a convergent strategy can be challenging, so it is important to have user-friendly tools that deliver value and ROI. Avoid tools that consume too much time and effort, resulting in a net loss, regardless of the campaign’s effectiveness.

 3. Emphasizing the importance of continuous learning

Emphasizing the importance of continuous learning, trying new things, and adapting to the fast-paced evolution of convergent TV is crucial. Having an agile media partner who is willing to experiment and take a thought-leadership approach can provide a strong advantage. There is no one-size-fits-all solution to digital advertising, and the same applies to convergent TV.

By partnering with Digital Remedy to push boundaries, test strategies, and ultimately optimize campaign performance, marketers can stay ahead of the curve amidst constantly changing consumer behaviors and heightened competition in the advertising industry. To explore how to leverage your convergent TV strategy to its fullest potential, don’t hesitate to speak with one of our team members.

The Future of Converged TV

Converged TV holds great potential for the future of entertainment. One of the key areas where converged TV could see significant growth is in the area of personalized content. With the convergence of TV, providers now have access to a wealth of data about viewers’ preferences and habits. This data can be used to personalize content, making it more relevant and engaging for viewers.

Another area where converged TV could see growth is in the area of interactive content. With the growth of internet-enabled devices, viewers can now interact with their favorite shows and movies in new and exciting ways. For example, viewers can use their smartphones or tablets to access additional content, such as behind-the-scenes footage, interviews with actors, and interactive games.

Converged TV could also see growth in the area of advertising. With the convergence of TV, providers now have access to a wealth of data about viewers’ habits and preferences. This data can be used to personalize ads, making them more relevant and engaging for viewers. Furthermore, converged TV could also allow for more targeted advertising, where ads are shown only to viewers who are likely to be interested in the product or service being advertised.

Conclusion

In conclusion, the future of converged TV holds great potential for the future of entertainment. With the integration of traditional TV broadcasting and internet-based streaming services, viewers can access their favorite shows and movies on a single platform, and providers can use data to personalize content, make it more interactive, and deliver targeted advertising. However, the challenges facing converged TV, such as the fragmentation of streaming services and data privacy concerns, need to be addressed to ensure its continued growth and success.

One potential solution to the fragmentation of streaming services is the emergence of aggregator platforms. Aggregator platforms are services that bring together content from different providers, making it easier for viewers to find and access their favorite shows and movies. One example of an aggregator platform is Roku, which allows viewers to access content from a variety of streaming services on a single platform.

Overall, the future of converged TV is promising, but providers need to address the challenges it faces to ensure its continued growth and success. By delivering personalized and interactive content and targeted advertising, converged TV has the potential to revolutionize the way we consume entertainment.

**The primary author of this article is our contractual staff writer – Sakshi John.