Netflix is under pressure from brands seeking to halt the decline of television, it was reported on Thursday, October 19, 2017. The big names in advertising are now seeking to be present on the major legal streaming platforms in the face of their overwhelming success. Of course, it is impossible to put old-fashioned advertising, as it is still known on TV or on the Internet. But product investments are expected to increase.
Have you watched the Daily on TMC this week? Weren’t you also surprised by the fact that two guests two evenings apart, directors Albert Dupontel and Vincent Macaigne, said on a TV set that they no longer watch it? It’s ironic, yet it’s a sign of the times: whether it’s you or the people around you, you may feel that there are fewer and fewer people watching television.
Of course, this is the effect of the internet, the ubiquity of replay and the rise of streaming over the last decade – first in illegal form and more recently thanks to Netflix and Amazon, among others. A trend reinforced by the multiplication of screens: TV is no longer likely to bring together as many people as before. And by correlation, not watching TV has become more common.
In any case, the smartphone and the computer have already been taking many hours of visionary time out of the small skylight for a very long time. Many contents are of course still available on TV, but in a world where the Internet makes it possible to build up an à la carte programme, of a richness that seems almost infinite, it is difficult to make the weight.
So, yeah, TV’s nice and on the wane. Besides, the marks are also starting to feel the wind shift. They are at very, very high risk of losing what they get from advertising cuts during flagship shows. And it seems that the higher Netflix goes up, the more it seems obvious to them that this is where to put advertising. A feeling reinforced by the global side of the platform.
The problem is that, unlike TV, for which we pay a licence fee, but still get advertising, on Netflix we pay, both to stay within the law and, above all, not to see these kinds of cuts anymore. Our American colleagues at Variety explain that when brands smell the scorching smell, they adapt and start up their road rollers. But it’s not easy, especially with Netflix and Amazon, who manage very well without advertising to maintain and even grow their business model.
In the United States, we get organized. Nielsen, for example, announced on Wednesday the implementation of a tool to measure the audience of each episode of the series broadcast on Netflix – figures that the platform, however, prefers to keep confidential. And try to bounce back on Netflix’s massive investments in original content creation by pointing out that they could lighten the bill.
Of course, as you can imagine, in exchange for this participation, brands may require product placements. Claudia Cahill, the content manager at Omnicom Media Group, explains that “Netflix is probably the one that has set the highest bar against advertising. While noting that on the Amazon side, “we’re all working together to understand how to connect all the offerings – data, ad models, e-commerce – to create something robust for our customers [brands].
Moreover, Netflix is not totally immune to advertising in the form of product placements. According to Veriety, Branded Entertainment Network has managed to place products inseries such as House of Cards, and Fuller House. On closer inspection, this type of advertising is a blessing for advertisers: unlike classic commercials that make you look away, these discreet placements are much more effective, since they allow brands to enter into conversations and habits in a subtle and cultural way…