[Interview] Justin Lebbon (Adwanted Events) about the Netherlands edition of The Future of tv Advertising

On 24 september 2024 Screenforce and Adwanted Events will organize a Netherlands version of The Future of tv Advertising combined with Screenforce Day. We speak about this as well as developments in the Netherlands market with Justin Lebbon, Managing Director of Adwanted Events.

Can you explain what AdWanted Events is and what the concept of The Future of TV Advertising consists?

The future TV series – which is the largest collection of events in the world on tv advertising – have always been about the evolution of tv advertising to be more digital like; better measured, better targeted and data-led. More recently, the events have focused on the challenges (and opportunities) of traditional broadcasters as consumers are watching more streaming content, and how this impacts the ability of clients to plan and execute across multiple sources of inventory. And finally, effectiveness. It’s always underpinned everything we have debated at the conference. How can tv companies and brands utilize new distribution platforms and technologies to maximize campaign effectiveness?

What can visitors expect at the Netherlands version of the Future of TV Advertising?

Visitors can expect insights in how broadcasters are evolving their proposition to give advertises what they require to make daily media and marketing decisions. In addition to that, would like to remind clients on how advertising actually works and why they have to be mindful of effectiveness when considering all the new tools and techniques available to them when it comes to executing campaigns. Additionally, we will hear how clients view the existing tv ecosystem and what they expect from it in the future in order to continue to support it with advertising dollars.

Recently telecompaper announced there is more viewing of streamingservices then lineair tv. The number of households without a tradition tv-subscription is growing and is currently more then 15 procent. NOTE: The Netherlands basically doesnot know FTA households as private/commercial general interest tv was since its launch only available on a subscription base on cable/IPTV/DVB-T2/satellite

How do you see this development of less and less lineair subscriptions/viewers?

I honestly believe this provides a problem for advertisers. 80 years or so of linear tv has proven time and time again to be one of if not the most effective advertising mediums there is. Replacing that with multiple streaming solutions, driven by technology is largely unproven in terms of effectiveness. Whether the new world of IP delivered television, combined with data led and targeting solutions, holds up against the power of mass marketing is still very much in debate. However, it will provide plenty of opportunities for innovation not just for advertises but for consumers too.

I do believe there is a positive path forward for both advertises and tv companies, but it will take a little time, some experimentation and investment to make it all work together. The danger is, in my view, that domestic broadcasters who often support local news and programming, will be unable to compete with Global platforms and streamers. I do not think this would be a good outcome for consumers and advertisers and the industry should rally around to support local/domestic media outlets.

Besides a decline of numbers of liniair subscriptions there is also a decline in the tv-advertising revenue. How do you see this developments and what does this mean for the industry you think?

This is a major issue. Advertising revenues have grown or held pretty firm over the last few years. However, all new money is pretty much funnelling to the global platforms. This for me is a massive problem. No brand wants one or two media outlets when it comes to spending their marketing money. Advertising supports an entire ecosystem from original, local programming and news, which in turn, supports democracy.

We cannot have a future that doesn’t allow for domestic media owners to compete fairly. Unfortunately, money is pouring out of tv and moving to digital. And it needs to move in the opposite direction for local and domestic tv companies to survive and thrive. I think we will see more consolidation and many markets will simply have fewer domestic tv brands operate. The hope is that we will still see plenty of domestic tv brands around the world competing in their own countries alongside global platforms. I strongly believe brands and agencies should do a lot more to support their local media outlets not just to support journalism/ democracy but also because it works from marketing science perspective.

Streamingservices more and more announce advertised supported subscription versions (SAVOD), especially being sold by Ad Alliance (RTL Nederland). In fact a add-on to the idea of total video. What is your idea about this?

Tv has always been funded by advertising. In fact, tv does not work as a business without advertising. There are only one or two global platforms that can operate profitably with no advertising whatsoever. Still, to promote growth, they are launching ad tiers and I don’t blame them for it. I think the problem here is supply. Tv is currently flat (in terms of ad spend globally) and the big issue is the volume of supply for advertisers. That could push prices down, which, for me, isn’t good for tv companies. Good quality content costs a lot to make. If tv revenue falls, you can expect cheaper inventory to fill our tv screens. Which consumers do not want and they will go elsewhere. So in order for tv companies to survive they need high-quality inventory, engaged audiences and good rates fort their content.

The Netherlands seems not to be anymore on the forefront if it is about tv- and mediadevelopments. How do you explain this and how can the Netherlands get its pioneering role back?

TV has always been the glamour pick for buyers. As seen on tv is what you would hear from brands in stores. “As seen on YouTube” doesn’t quite have the same ring to it. And I don’t think that has changed. I do Think tv needs to get its confidence back. When you look at the statistics, most European markets are down 10 minutes of viewing time across their total TV propositions. That’s not a lot. I think tv has a lot to be proud of and confident of in the future. I just think the model needs adjusting slightly. Needs to be easier to buy, more digital like with targeting and data and tv companies must do better by working with brands directly. They need to fundamentally change how they work within their local markets. And that’s beginning to happen and you’re beginning to see the results of that from some leaders in the market.

Addressable commercials is a fact today (at VodafoneZiggo with Talpa Network and RTL Nederland). Is this development here to stay, what are your expectations?And how do you see this situation elsewhere in the European Union and the United States?

Addressable is an important part of the equation. There is no doubt that buyers will pay more for data-led inventory. The main issue here is just how long it takes and whether broadcasters can simplify the buy and give clients scale. I don’t think it’s any good for broadcasters in small markets like the Netherlands to offer fragmented services across different providers. Make it easy, make it simple, make it consistent and go to clients with a collaborative solution so they don’t believe Google is the only company who can provide this.

RTL Group is intending to sell RTL Nederland to DPG Media. VodafoneZiggo is also hard working on Ziggo Sport. In a lot of countries private broadcasters are not a stand alone company anymore and part of bigger telecom or publishing companies. How do you see the future of stand alone broadcasters?

In many markets around the world, broadcasters are part of larger groups, including Telcos. In Canada, for instance, Bell Media owns a local broadcasting brand and a huge Telco business from where they can leverage data for Canadian brands. I think you’ll see more of this in terms of partnerships, or perhaps even acquisitions. I think where you do see this, especially in Europe, buyers can be confident about the quality of the data they are executing against.

Justin: in Cannes you had a session with Ton Rozestraten (Ad Alliance/RTL Nederland) about his view of NMO and the slow innovation. You said it is pretty extreme and you did not expect this. How do you look back on what happened there?

I was surprised at the delivery, but, equally, it is not that surprising to hear it. Tv has traded and survived from its linear business for so many years and the change required is very difficult to navigate. And it’s not just change from people in Ton’s position; it’s also change from how the entire tv advertising ecosystem works. That includes how agencies engage with tv companies too. In the past, and currently, the tv business has been extremely profitable for everyone involved and that business model has been turned upside down.

So of course, people are going to get frustrated when the speed of innovation is not where it should be. It needs to match how digital moves, innovates and changes the game. If it doesn’t, the business will not survive. And I think that is why Ton Rozestraten is frustrated. He has buyers waiting to pay a premium for a service and it is out of his hands as to whether he can deliver that.

We are seeing this all over the world and JICs in various domestic markets are under huge pressure. I don’t think they will all survive. I think we will see a future of some JICs combined with tv companies who will self report based on adservers/outcomes/ digital metrics. I honestly don’t think brands really care to pay a premium for independently monitored measurement. If they did, they would be putting Google under much more pressure than they currently do.

Registering for Screenforce Day / The future of TV Advertising Amsterdam is still possible by clicking on this link

www.screenforce.nl

www.adwantedevents.com

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