Gen Z and the Future of Television Advertising

In an effort to understand the future of television advertising, Tremor Video and Hulu partnered on a study to research the viewing habits of Generation Z compared to Millennials and Gen X. Gen Z is not only watching less television than their forebears but how they choose to access shows and movies is unique.

Even the language differentiates generations. The vast majority of Gen X say “watching TV” means access through cable or satellite whereas the majority of Millennials and Gen Z consider watching by an online source to qualify.

The reliance on streaming videos allows Gen Z to watch more at one time than through traditional cable or satellite. As reported in “How Gen Z Connects to TV: Exploring the Generational Divide in the Future of TV”, 60% of Gen Z watch multiple episodes in one sitting compared to just 44% of Gen X.

In an interesting twist, Gen Z is actually more receptive to advertisements and are the most likely to share video ads through social media. However, advertisers should be aware that Gen Z expects ads to be relevant to what they are viewing.

With 48% of Gen Z saying they watch less television than their parents, it would be wise to target ads thoughtfully. By advertising across platforms (48% of Gen Z say they browse social media while watching TV) and reducing ad loads, advertisers can reach Gen Z when it most counts.

Image Recognition and the Future of Targeting

With the rise of Instagram and Pinterest, the Internet has become increasingly visual. While text-based targeting is still relevant, the recent shift in how consumers use the Web has brought image recognition technology to the forefront.

Companies, such as Cluep in Toronto, have developed engines to scan public images, recognize a brand or product, and then determine the consumers’ interests or lifestyles. This presents an amazing opportunity for advertisers.

The CEO and co-founder of Cluep, Karan Walia, reports that even beta tests of the platform are receiving significant increases in conversions and click-through rates.

Coca-Cola utilized an image recognition engine for a recent Gold Peak campaign. By serving ads to Instagram, Facebook, and Twitter users who had posted photos containing iced tea, Gold Peak creative click-through rates increased four times their usual rate.

Image recognition allows brands to not only target potential consumers but also research their lifestyles and preferences. DigitasLBi, the digital agency for Miller Lite, scanned Instagram for photos containing beer to provide a new perspective on beer drinkers. 

Even Pinterest has tapped into image recognition technology. For the past year, Pinterest’s related pins have been selected based on visual similarities to previous pins.

Digiday reports that while many social platforms do not allow advertisers to utilize their image recognition capabilities, brands can still drive sales through image-based targeting by partnering with companies that have their own engines and servers.

The Power of Data and Transparency in Media Buying and Planning

Adweek released its list of the 15 Most Innovative Agency Executives in Media Buying and Planning this week. The detailed list not only highlights the extraordinary qualities of the honored individuals but also the challenges of media buying and planning strategy in a rapidly evolving industry.

The rise and fall of various advertising formats has created a challenge for media buyers and planners. This becomes especially problematic when tools traditionally used for planning, such as Nielsen, lack transparency.

Scott Hagedorn, CEO of Hearts & Science, says of Nielsen, “they might be missing 40 percent of total video, because they’re missing a lot of the OTT data”. As millennials increasingly view content on mobile apps, the lack of streaming data presents a problem even while mobile devices allow for more individualized targeting.

The inclusion of data in creative strategies has helped agencies remain productive during times of change. The vice president of media operations for Horizon Media, Jennifer Dass, describes the most vital data as being, “accurate, actionable, and easily interpreted”.

In recent years, media planners and buyers have evolved into the realm of marketing strategists and the power of change is emphasized throughout Adweek’s article.  Andrea Millett, president of Havas Media New York, says, “I believe strongly in continuing to try new ways of doing things, new models and new iterations in every aspect”.

Transparency between agencies and clients is described as being essential in order to effectively reach target audiences. While this requires a simplification of media strategy at times, the resulting cooperation allows for “both an upper- and lower-funnel approach”.

Whether the campaign is digital, social, traditional, etc., top-notch media buyers and planners utilize individual skills as well as data and creativity to aid clients and consumers on the media journey.

Risks of Influencer Marketing

Influencer marketing has been a hot topic in the past few months with media companies increasingly hiring influencer managers to help build brands. Influencers can bolster trust between a brand and its consumers but there is risk associated with this strategy.

Anyone who has been online within the past week has probably heard of the Fyre Festival fiasco. What was supposed to be an exotic music festival experience, complete with celebrity endorsements, quickly soured. From the cheese sandwiches and lack of alcohol to the questionable lodgings (literal disaster relief tents) in the Bahamas, the “once-in-a-lifetime musical experience” had guests scrambling to book flights back to the U.S.

Not only does this reflect poorly on the event organizers, including rapper Ja Rule, it also harms the credibility of the celebrity influencers who have been promoting the festival for months. AdWeek reports that it is expected for consumers to be more wary of influencers’ endorsements. So how can brands avoid potential fallout when using influencer marketing?

Devon Wijesinghe, CEO of InsightPool, recommends for brands to develop relationships with influencers rather than simply paying for a product post. Shared values between a brand and an influencer result in more authentic, trustworthy endorsements. Jennifer Aniston’s long-term partnership with Aveeno is an example of a successful celebrity endorsement.

It is important for brands to remember that while an influencer can be paid to promote something, it won’t always have the intended outcome.