Digital and mobile video platforms challenge traditional TV’s advertising stronghold

Digital and mobile video platforms such as Netflix and YouTube continue to challenge linear TV, according to a new report by GroupM, the media investment arm of WPP.

YouTube now leads among the ad-supported digital players, having been widely accepted by major advertisers and embraced by publishers. Meanwhile, Facebook and Amazon are stepping up their game when it comes to digital video.

The latest State of Video report shows that linear TV ratings continued to fall. At the same time, advertising demand remained high suggesting that TV ads were as effective as ever.

The report also addressed the issue of effective measurement, which continues to be a core challenge for many marketers. Specifically, the measurement of viewing patters across various channels and screens presents an issue for advertisers.

Meanwhile, addressable TV is on the rise – albeit slowly. However, GroupM believes that more efficient, targeted and digital-like TV is the future.

“The ranks of television advertisers are swelling with new entrants, mostly direct-to-consumer businesses that have exhausted all the reach and awareness ‘performance’ media afford them. It’s reminiscent of the dot-com boom for television in the late 1990s; maybe it will end better this time,” said Rob Norman, Senior Advisor of GroupM. “One thing is for sure: linear television is still perceived to be as effective as ever, despite the absence of granular measurement.”

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