Facebook and Google, the “twin behemoths” eating media’s lunch, may be joined by a third diner.
Subscription video is gobbling up audiences, increasing fragmentation and narrowing options for both brands and agencies, according to Omnicom Media Group ANZ chief executive, Peter Horgan.
Speaking at MCN’s PartnerFronts, Horgan said the “spin down” in audiences for linear TV is “challenging for seller and buyer alike”. Growth of subscription video on demand (SVOD) compounds the challenge.
“It is taking attention, viewer time, leisure time,” said Horgan.
“In the long-term we don’t know how that will play out, whether there will be some kind of hybrid model, with potentially a lower cost of entry for some tolerance of advertising. But I think that is over the horizon.”
In the face of exponential fragmentation, Horgan said Omnicom’s priorities for 2018 are “to use our data capabilities to simplify clients path to market, bring addressability at scale to life and help our clients sell more product”.
Addressability, he said, will be a major focus.
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