By: Jamie Williams, Chief Customer Officer & Co-Founder of The CLV Group
David Mitchell certainly had a lot to say about Google and Facebook reaping the rewards of junk food ads in the UK. The sour taste Mitchell has could be made sweet if he looked at Tech Giants’ work through a different lens and evaluated how traditional TV broadcasters can keep up holistically. Google and Facebook duopoly is predicted to make up about 69.1% of the digital market share in the UK. This figure is proof that the Tech Giants are loud and proud about their focus to deliver value to their users. Additionally, this isn’t a new trend…
So why do consumers continually return to “Big Tech” platforms? Because they help their customer find exactly what they want. This user first mentality has proved to be the ultimate blueprint for customer satisfaction. Publishers, content providers and broadcasting companies will continue to struggle until they offer something equally of value to a consumer. For example, great content, unique experiences, community and conversation. The tech giants know their consumers, study their preferences and innovate accordingly. Therein lies the quid pro quo…users login, because they have to, want to or need to…whatever that answer, the “Big Tech” platforms have the largest pool of known users in the world.
How should publishers and broadcasters respond? The “reach” claim was always the pledge along with editorials and content for the publishers and broadcasters… the question now is, can they turn reach into “known users” ? Ad dollars will continue to shift towards Google, Facebook (including Instagram), Twitter and TikTok. Competing means innovating and investing in direct relationships with your customers to develop your own 1st party data asset, which can be appropriately monetized, Disney are a prime example of this, albeit with opportune timing of launching during a pandemic.
Mitchell, we are on your side regarding junk food advertising being allowed online and not on television. No argument can be made in favor of this matter. But the financial future of broadcast advertising can be just as secure as the Big Tech companies if they paid closer attention to their own recipes.