42 Executive Summary Taking the pulse
A hard habit to break
Gill Hind COO, Enders Analysis
Region: UK Interviewed by: Kate Bulkley
Enders Analysis has gained a reputation as a sage among consultants to the TV industry, so when one of its senior executives warns of the threat posed by connected TVs to smaller channels it's worth paying attention. Enders predicts that 60% of TV sets in the UK will be connected to the internet in three or four years’ time, which poses a threat to smaller channels because their audiences are so small already. Smart phones and tablets will
take away some viewing from the traditional big broadcasters. But they can retain the big audiences if they are smart. “When you are talking about an existing public service
“We think that online video
advertising has impacted press display advertising more than TV revenue,” she says. “Going forward it will start to impact TV a bit more. Whereas now online video adverts represent 3% of total TV advertising, in three years it will be 6% to 7% of total TV revenues.” Hind believes that
broadcasters need to think about three things in particular as they embrace the new connected TV and device world of audience consumption. First, the need to put more resources into the distribution of content, making sure that it is available on all devices. “This is a change in technical resources but it is
“Getting the measurement system correct has to be top of broadcasters’ and advertisers’ agendas”
broadcaster with strong content offers, including live sport and big Saturday night entertainment and long-running soaps, then the audience is really theirs to lose,” says Gill Hind. “The average viewer is consuming over four hours of TV a day and for a large part of the older demographic that will remain on the main set because that is a hard habit to break.” Online video is attracting
increasing amounts of advertising, but Hind says that proportionate to TV advertising, the numbers will remain, for the foreseeable future, quite small, with the majority of online video ads going to traditional broadcasters’ content that has been put online.
also requires a change in mindset,” says Hind. Second, she believes
broadcasters have to be clever about how they use short-form content, particularly as a marketing tool to drive audiences to their longer-form programming where they should continue to be able to attract bigger audiences and more lucrative advertising. Third, the role of data, and
understanding how to track audiences as they move from TV to other devices, needs to be front and centre. “Tracking your viewers and targeting advertising across TV, tablets and PCs and wherever else the audience might be, is key.”
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