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Netflix Forsee’s The Death Of The Commercial

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I just read through a very interesting article via Issie Lapowsky on Wired – ‘What Television Will Look Like in 2025, According to Netflix’.

It makes some great points, one about the commercial and a powerful one for brands to realise and understand before its too late. The demise of the commercial.

The Commercial Will Finally Die

Netflix has already proven that it’s possible to build a big business in television without advertisers. Subscription fees, it turns out, do the trick. That means that the proliferation of internet TV may be the final nail in the traditional commercial’s coffin. That would change the entire economics of the advertising industry over the next decade, Neil Hunt explained. “The ad-free model seems to be very popular with consumers,” he said. “We have to imagine that the Geicos and the Wendys and the Chevys will have to find a different place to advertise their wares in 2025.”

But there’s another possibility. According to Hunt, the same technology that delivers personalized content to viewers could also help internet TV service providers select more targeted ads to show their users. “Maybe you only see that Chevy ad if you’re ready to buy the car today,” Hunt said. That means viewers would see fewer ads, and advertisers would get to reach a more relevant audience.

What will advertisers do? Where will brands go?

My belief is Branded Entertainment. Stories that carry the core message of the brand in their very own show. Audiences have been fast forwarding, skipping commercials so they can watch the shows they WANT. Rather than a collection of short sales messages.
These types of branded entertainment that carry aspects of the brand. What resonate with their audiences, the brands vision, values, history. Are all part of the brands story world.

BECOME the show that audiences seek out. BE the talking point. PROVIDE engaging storied entertainment. This doesn’t mean stories directly about the brand or product.

Even the great brand stories that I talked about on BrandStories have taken short format. The 30-60 second duration of an ad will slowly die out on TV. Be that televisions, internet or mobile TV. Unless it is in context.

And maybe we should stop using the word television, TV. Just call it what it is – Video On Demand. Users choose the video whatever it is, when they want, they stream and watch it how they want. By doing so demand more content, more stories of a similar nature.

Dan Ball
Dan Ball
Brand Narrative Designer at Novel Influence. Dan decided to set up Novel Influence to help brands navigate the multi-platform and provide a new age approach to effectively connect brands with an audience. The approach was telling and sharing brand stories. This approach use a framework that assists brand creating ecosystems, authentic social good and authentic stories around the brand. Dan Ball on Google
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