But the concept is more challenging than it may seem in a world where technology has disrupted old ways of connecting and created new pathways that marketers and advertisers are only starting to explore.
Because of realities like that San Jose, Calif.-based Adobe and its partners are introducing a host of new products and services to address them. Take Deloitte Digital, which yesterday announced the launch of MarketMix for Media, an over-the-top (OTT) audience engagement platform powered by Adobe Primetime OTT.
OTT refers to delivery of audio, video and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content.
How Customers Consume Video
Danny Ledger, principal and US leader for digital offerings at Deloitte Consulting, described the platform as a way for media and entertainment (M&E) companies to engage and understand their the video habits of their customers on platforms beyond traditional TV. It's a way to help them acquire, engage and retain their digital audience in order to help them succeed in today's digital ecosystem, he said.
Deloitte's platform is designed to help M&E companies launch, monetize, and manage direct-to-consumer (DTC) content offerings.
In addition to Adobe Primetime’s multi-screen OTT platform, it integrates with marketing and media solutions of the Adobe Marketing Cloud, as well as Foster City, Calif.-based Zuora’s subscription billing engine, and San Francisco-based Salesforce’s customer relationship management platform.
The direct-to-consumer model targets a key challenge for advertisers and marketers, specifically staying top of mind with their audiences. As Deloitte explains, businesses need to understand and react where their customers spends their time and how their content consumption preferences are changing.
Advertisers are especially struggling to reconnect with cord cutters — people who have abandoned cable and broadcast television in favor of online streaming services.
Since Internet ad revenues now surpass those of broadcast TV, the goal is to get advertisements in front of OTT content viewers who have shifted to the screens of mobile devices.
“We’re tying the whole direct-to-consumer experience really towards video consumption … We see a big white space of opportunity where there’s going to be a dynamic segment of population that has high broadband in-home Internet, but does not want to pay for bundle packages and subscribe to 300 channels,” Ledger told CMSWire.
According to Deloitte's most recent Digital Democracy Survey, only 45 percent of the population regularly consumes live TV content – seismic shift from traditional, linear TV to direct-to-consumer models.
The numbers drop even further among those ages 14 to 25: only 28 percent of that population watches live TV, and nearly 60 percent of those ages 14 to 32 are spending their TV viewing times on non-TV devices such as smartphones, tablets and laptops/desktops.
And the trend is expected to accelerate.
By 2018, Deloitte estimates 94 million US households will subscribe to a streaming service. That's 70 percent of all households. And about 21 million of households — 17 percent of the population — will not use a linear pay TV subscription.
Tapping Retail Lessons
“In today’s OTT direct-to-consumer world, media companies have to act more like retailers,” Ledger said.
“There are core capabilities that retailers have that media companies historically haven’t thought about. That includes … ‘How do you do effective sales marketing? How do you do a product pricing catalogue? How do you set up a storefront?’”
MarketMix offers digital marketing capabilities, including personalization with A/B and multivariate testing. It also provides multi-screen video streaming with ad-insertion, flexible billing, subscription and payment services, and customer support and case management.
MarketMix soft-launched in January at CES but officially launched at Adobe Summit, which runs here through tomorrow.