- The more consumers get accustomed to paying for streaming content without ads, the tougher it will be for traditional TV brands to reach consumers, says a top ad agency exec.
- Netflix, Spotify and others are forcing the ad business to rethink its models.
- Tech giants like Amazon are also changing the way people discover brands, which is upending traditional marketing strategies.
Greg Johns is the executive vice president and chief digital officer of Canvas Worldwide, a media buying agency that works with big marketers like Honda.
Johns is tasked with helping brands reach an increasingly ad-averse group of consumers – particularly an emerging generation of people who have grown up binging their favorite shows on streaming services like Netflix and never signing up for cable.
Business Insider sat down with Johns at the 2018 Consumer Electronics Show in Las Vegas to talk about the impact of streaming video on the ad industry.
Here are some highlights:
On whether we’re seeing a generation of consumers that will forever have very little tolerance for interrupting ads
Johns: Forever is too strong. But there’s no doubt that something we’re going to have to come to grips with is that even beyond millennials, people are being trained to consume content without advertising alongside it.
And that’s not just Netflix. Spotify’s success can be partially attributed to this. For the first time in the history of the internet we have a generation of people paying for content.
The ad-supported model is under attack. It may not be an existential crisis. But it will not look the same in five years.
Why advertisers should have hope
Johns: There’s an upper limit. Eventually the economics don’t work. If you can get everything in one place, you won’t need 10 different subscription products. That’s a problem for the ad business. But if you Read More Here