Why do companies still advertise on TV
Anyone who has opened their partner's Facebook account by chance knows that there are completely different products to be seen on the advertising space than in their own account - so no sneakers or underpants, for example, but, let's say, Kickstarter campaigns and scented candles . Of course, personalized advertising has been around for a number of years. But in the meantime it is not only the case that shortly after an online order the items that have not been bought appear on Facebook, combined with the friendly yet intrusive question: "Have you forgotten something?" Rather, that is exactly what could happen during the commercial breaks for football matches.
Facebook has just announced that it intends to show 20 Champions League games on the US market next season, the cooperation of the social network with rights holder Fox Sports includes twelve group games and four games each in the last sixteen and four in the quarter-finals. "We want to help our partner to get new viewers," says Dan Reed, responsible for such sports collaborations at Facebook; he has already arranged deals with the Mexican soccer league and the US league MLS: "We're all about soccer." What Facebook is still betting on: Earning a lot of money with personalized advertising.
On traditional television it is usually still wonderfully the same: During the half-time break in football, alcoholic cold drinks and vehicles are advertised because it is still the case that men watch mainly and that they like to drink beer and buy cars. Following the same logic, there is advertising for Prosecco in the breaks of soap operas. And everyone - women, men, beer drinkers, sparkling wine slippers, drivers - see exactly the same advertisement.
When television comes over the web, viewers can be identified by their IP address
The evolution of traditional television advertising began a few years ago when personalized advertising began on the Internet and streaming portals showed their first own programs. Nonetheless, TV stations will generate advertising revenues of more than 160 billion euros worldwide this year; If you add the sales from advertising to digital videos, it should be more than 190 billion euros. Silicon Valley companies like Facebook, Amazon and Google parent Alphabet want as much as possible of this. But companies with big budgets still advertise especially when a particularly large number of people are sitting in front of the television.
Since November 2016, Facebook has been testing, in cooperation with Apple TV and the streaming provider Roku, how the delivery of personalized advertising films could work. Facebook would like to monetize the immense knowledge of its two billion users worldwide via the company's own Audience Network, which also mediates advertising outside of its own universe. In addition, in the US, millions of Americans are now canceling their cable contracts. They take out individual subscriptions with streaming portals, obtain clearer TV packages from providers such as Roku, Sling TV or Vue, order live sports directly from apps in the leagues and watch series on the channels' apps, some of which are financed by advertising.
The advantage for Facebook, to put it simply: television is delivered via the Internet, the viewers can thus be identified - via the IP address as a household or even as an individual via a Facebook account. Facebook is able to show personalized advertising during the breaks in the Champions League games. So not just beer and cars, but sneakers and underpants. Or just Kickstarter campaigns and scented candles.
"Of all digital platforms, Facebook uses its data most efficiently for personalized advertising," says Tracey Scheppach. She is the founder of Matter More Media and advises companies on the selection of advertising space: "The future of TV advertising is likely to be to deliver advertising content that is as specific as possible."
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