subscription video on demand (SVOD) – How are planners working around new media?

    In June of 2022, Kantar published research about global watching trends titled The-future-viewing-experience. It’s interesting and well done, with clear explanations of how ad creation and placement have changed to accommodate the modern, fragmented marketplace. Some of the information puts the viewing habits of local audiences in the hands of brand guardians, while other pieces of information are national in scope. Since these studies provide a local and global feel for where audiences have relocated and are engaging their media, I plan to go into the nuances of them in my work this month.
The media and entertainment industry is worth trillions of dollars, thanks to constant innovation, widespread availability of the internet, and people’s insatiable need for new material. Though this comment by Manish Bhatia, chief product officer at Kantar, is subjective and disputed, it does show that the lines between technology and entertainment continue to blur. Subscription Video on Demand (SVOD) services, such as amazon Netflix, Disney+, and HBO Max, has hit critical mass, which implies they have amassed enough users to be profitable. Specifically, they have amassed almost 200 million paying customers throughout the world. Video-on-demand transmission services with advertising (AVOD) are a recent innovation in the world of advertising that lets you watch content while also being exposed to ads from specific brands. It’s interesting to see Netflix, a provider of SVOD services, also offering AVOD content to a targeted demographic in Kenya, where it’s legal to do so. To make up for the money lost from not having a licensing deal with third parties, an SVOD service may need as many as 180–200 million customers, according to research from Ampere Analysts. Currently, what are the totals?

    Disney+ had 118 million subscribers as of October 2021, with a goal of 230–260 million by the end of 2024. Already with over 200 million users, Netflix has seen its expansion stagnate as the market grows crowded and consumers become more cost-conscious. (Report by Kantar, 2022)

    Following this dramatic shift in numbers, Google launched its own programmatic advertising tool, Display & Video 360, which brings Google’s ads to Google TV and other connected TV providers.
Viewing habits have evolved no matter how we look at it. Therefore, how do those entrusted with the care of a brand find and use relevant content from around the world?

    No matter how we look at it, people’s viewing habits have shifted. The question then becomes how do brand guardians access regional and global content? Concerns have been raised about the impact that local material has on ratings and popularity. Where can critical mass be attained, and what happens to local companies when audiences migrate to foreign subscriptions? Is it essential to include commercials for Bidco oil during Man vs. Bee, on amazon original? Or could this be an opportunity for many of our brands to become global?

    Media planning becomes a headache, and data and tracking become a nightmare, for brand stewards. As I’ve progressed in my career in media and communication, I’ve requested that our clients perform a needs assessment or situation analysis to identify the relevant KPIs. The strategy and tactics of the campaign are then based on findings from the analysis. The brand steward must be open to new ideas and fronts, no matter how complex they may seem, and attempt to enter new terrain, even if the results of the study don’t fit with particular narratives.

Consider the following narratives in light of the dilemma we face as guardians of media and brands.

In Case 1:
A tweet about “tweeps” in Kenya who make money on the internet made me laugh out loud. One of the women with whom the author collaborated on her thesis was visiting New York from Texas. I have no idea how he pulled it off, but the suggestions he got from his pals were priceless… one said. Tell her you’re at the World Rally Championships in Naivasha, Kenya (World Safari Rally). While this may seem dishonest, it exemplifies how the spread of the internet has lowered the barriers to making offers and values in every corner of the world. Now that members of the generation gap are entering adulthood, businesses are struggling to figure out how to reach this demographic.
Case Two
The High Court’s judgment mandating that ISPs like Safaricom delete pirated content from the pay-television provider’s website means that Multi-Choice has won a legal tussle with the ISPs (Onsongo Dennis n.d.). A business daily in Kenya ran this headline a few weeks ago after Multichoice had petitioned the court to force ISP providers in the country to stop allowing customers to watch live streams of sports and other international events via illegal sites.
Then, how do these two examples instruct one who is responsible for a brand?
In a world where many of our cookies will have been burned by 2023, online data may be lacking in truth and actual value despite its regal status.
We work in the digital world, but you won’t find us in the usual places where people advertise online.
The price that Multichoice has put on the rights is more of a cause for alarm than the potential inaccessibility of the sites. However, technology is advancing swiftly, and Kenyans will be able to easily avoid the system if they have the option of masking and using a virtual private network (VPN). Academic writers can easily make it appear like they’re in New York while, in reality, they’re probably locked up in a Kahawa apartment.

Although getting locally produced content onto subscription video on demand (SVOD) amazon and ad-supported video on demand (AVOD) platforms is no easy task (most have strict production regulations regarding acceptable camera equipment, audio equipment, and sleeping arrangements), it is being done in various regions of the world. 

As product placement becomes more common and takes up a larger share of marketing expenses, ad agencies will need to shift their business models away from the linear approach of a straightforward advertising plan and toward a more pragmatic, scientific approach based on simple hunches and working ideas. I know it’s a tough sell to tell clients, but… Nothing is more definitive than this time of change.

The owners of media organizations must adapt their operations to better serve their target demographics. The subject of what our people eat remains crucial, as does the possibility that their tastes have shifted or that we are too afraid to explore a different path.

Mediatec media and marketing acts as a brand protector and communicator within the industry, and as such, we have created measurement and management tools for brands that can be tailored to the specific needs of each of our clients.