In March, especially in the United States, many advertisers asked television stations to suspend commitments for the summer.
The aforementioned affected both Open TV and Pay TV, partly due to the cancellation of events such as the Olympic Games.
However, a slight and slow recovery in the advertising revenues of these producers is beginning to be seen.
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Just as it happened to social networks, apps, search and other digital channels that grew in users, the pandemic plummeted the advertising profits of Open TV and Pay TV. It is not a completely unexpected phenomenon, considering that advertisers always cut marketing budgets first when crises come. But it did present a perfect setting to foster change. Literally, the producers evolve, or they can disappear.
Although a slow reopening of the economies is taking place slowly, several major barriers and challenges are still being presented to the producers of Open TV. According to Digiday, the most important has to do with the way in which advertisers acquire their advertising space. For years, the medium has been very rigid. Almost all investments are planned months in advance, committing resources in even annual periods.
The reopening of the economy does not mean that the pandemic has disappeared. And although Open TV advertisers are slowly returning their budgets, it does not mean that everyone has the confidence to commit millionaire resources than before. There is no certainty in the return of massive events like sports. Just as the reopening can continue little by little, it can take a sudden step back. Brands, then, are demanding flexibility.
A change without which Open TV cannot survive
It should be clarified that the problems of this medium are not unique. Many other content channels, in addition to Open TV, are suffering from lack of advertising. In radio, an even more complex situation is experienced, with the public locked up in their homes. Digital could be the key to the return of the brands, but the boycott of Facebook could have shown that it is not necessary to spend as much on these channels. And it is not expected to be revived in several more months.
But Digiday has a very important point. Flexibility is crucial during the pandemic. Over the past few weeks, all experts have reaffirmed time and time again that only the most agile companies will be able to overcome the problems of the health crisis. Even before COVID-19, digital channels were beating traditional media. Not only for the advantages in measurement and customization, but for being more relaxed in all sales.
Open TV has an awkward change in front of it. Abandoning the more rigid schemes of selling massive spaces implies more work and, potentially, less income in the short term. Not to mention that it is a complete change in your business culture. But you have to consider the option of making the process of selling advertising space more flexible. Otherwise, you risk abysmally slow recovery, and even the death of multiple players.
Other concerns about the state of television
Of course, Open TV should not only worry about completely restructuring the way in which it sells its content spaces. You also have to take into account the arrival of new ways to measure your results, for the benefit of your customers. It also has to analyze how it integrates new content to attract an audience in the midst of a crisis. And of course, she struggles with all the digital content offerings that can threaten her.
The Merca 2.0 Research Department is working hard to obtain even more information about the free television environment within the country. This, with the goal of creating the new edition of the Annual Open TV Study. If you want to participate in this poll, you have to click in this link and finish a short form. Help us discover how the tasks, challenges and opportunities of companies in the sector are evolving.
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