How COVID-19 Is Changing The Marketing & Entertainment Landscape
A Brand Programming Perspective
By: Geoffrey DeStefano, Founder and CEO of Brand Programming Studios
These are turbulent times. For most of us, the Coronavirus has affected our jobs, businesses, social dynamics, family life, and of course our daily routines. When we consider the entertainment and marketing space and think about how content is changing amidst this pandemic, we realize we’re witnessing a leap into the future.
At a time when marketing and communications has already gone from a complicated to a complex state, now more than ever the media and entertainment industry is rushing to streaming and subscription-based non ad-supported models, while the digital platforms are introducing ad blockers. Now the question is: Where do brands fit in this new environment?
In light of the changes that are taking place, understanding how to develop, produce and program innovative creative content across all platforms is even more a necessity for today's brand-driven companies than ever before.
Looking at today’s entertainment/media and marketing/advertising landscape, a few things are certain: The space is rapidly changing and the structural nature of how people consume information and content is in a state of flux; businesses are converging based on the transition from an ‘interruptive, push’ model to more of an ‘opt-in, invitation or pull’ model; and there is an ongoing shift to a nonlinear, on-demand world. ‘Content anytime, anywhere, anyway the audience wants it.’
With millions of families practicing social distancing and self-quarantining, more content is being consumed than ever. Streaming subscriptions are increasing even as employment and the markets suffer. Cord-cutting is anticipated to accelerate, particularly with live sports on-hold. Additionally, networks are moving up launch dates, desperate to keep their audiences engaged as watch-time rises to record numbers.
Industry leaders like Netflix and Disney+ have already begun to take advantage of their vast library of content, and are releasing content early to entice consumers. Smaller streamers like CuriosityStream, Sundance Now, and Acorn TV are expanding consumer services (such as discounted subscriptions and lengthened free trials) and promoting their services even more via digital marketing channels.
What does this mean for advertising? Brands need to create programming that has the ability to not only raise their financial value through products and services but raise their human value as well, by touching and moving people along the way. Brand value needs to be measured by more than just sales and statistics, it should also reflect the value brands bring to people and the communities they live in through communications that inform, engage or entertain audiences.
In our ever-changing industry, a number of agencies have tried to build expertise in the entertainment business but have fallen short because of a lack of understanding how the Hollywood system works. Traditional advertising companies have and will continue to struggle with programming because it is always approached through the media buying side of the business, with a focus on CPM’s and TRP’s, rather than building audiences through strong creative content.
The Hollywood community (internal media studios, networks, agents, managers and talent) would also like to go directly to the brands and cut out the advertising agencies. This move is not in an effort to create advertising, but a way of getting their hands on some of the media money being spent in order to offset their production costs and deficits. Hollywood also does not see the advertising business for what it is: both a buyer and, more importantly, a seller. Ad agencies are in the business of developing and selling long-term ideas, and need to do everything possible to gain a competitive advantage in this area. Hollywood sees them at times as unnecessary and is much more focused on a short–term financial transaction or deal for talent.
Hopefully, and most likely, most of these industry changes forced by the Coronavirus are temporary. However, the exponential acceleration towards on-demand content, cord-cutting, streaming, and adblocking will have lasting effects on the way audiences consume content. Amidst this rapidly-changing environment, brands that are able to build, maintain, and monetize audiences through meaningful and effective programming will stay ahead of the game and come out on top as our lives begin to normalize.