Cord cutting isn't just a consumer topic. Business models can fall victim to the trend, as well. Google recently announced that it will be shutting down its marketplace for traditional television advertising to focus on digital video solutions. It is clear that even the largest advertising platforms can no longer invest in trying to better the 'old' system, and must move full-steam ahead with digital video to stay competitive.
It has long been accepted that we create stories to cognitively process and order our experiences, gain perspective and to structure the world. People use stories to understand who they are as individuals and as members of society. The importance of narrative as a communication tool is undisputed.
Consumers also interpret their exposure and experience with brands via narrative thought processes. For example, if you ask someone ‘why did you buy a Volkswagon?’ you might get a personal story of how the purchase fits with their needs or prior experiences “I had a Civic before, but with two kids now, I did some research and feel a VW is the safest car in its class; it’s the smart choice.”
Advertising has long been (implicitly) aware of the power of storytelling. Some adverts tell complete stories, some continuing stories, like the famous 1980’s Nescafe Gold Blend couple (voted most romantic advert of all time in the UK), while others encourage self-generated narratives by evoking simulations of product use. Consumers then overlay these stories onto existing narrative structures and connections are made.
But as we shift to the new model of digital media, are we losing the opportunity to tell stories?
In Matt Spangler’s series ‘The... Read more
Last week, Dave Morgan (who founded behavioral targeting company Tacoda way back in 2001), called TV "the world's most powerful media platform," though it suffers from a "major problem." Fragmentation.
"Now, I think, is the time to bring much more science to the television program promotion process."
Well, announced today (PaidContent), he's doing just that as he launches, Simulmedia. According to the company's website, they're "pioneering the development of predictive technology to help television companies deliver the right on-air promotions to the right viewers at the right time."
On a related note, the NY Times reports today that Cablevision is testing a new television ad targeting technology in 500,000 New York area homes. "Cablevision will use its targeting technology to route ads to specific households based on data about income, ethnicity, gender or whether the homeowner has children or pets."