At Wednesday’s Screen-up event, the Electronic Media Interest Group (IGEM) is organizing the conference segment dedicated to the topic of «digitization.» Industry experts and broadcast executives will discuss its opportunities and risks. In an interview, IGEM President Stephan Küng discusses the impact of digitization on television advertising, what issues are currently on IGEM’s agenda, and how TV advertising has changed as a result of the new RTVG. What impact does the digitization of the media have on TV advertising? Stephan Küng: A major change is the ability to access television content anytime and anywhere. This gives users the option to skip commercials. I think that conventional spot advertising will decline slightly in the long term, but special advertising formats will gain in importance. So those would be the risks of digitization? Not necessarily, because in return, new forms of advertising will emerge in the mobile sector. The conditions will change: advertising surrounding live events, for example, will likely grow in importance, since such events are actually watched live even when the option of time-shifted viewing is available. A live event is simply more interesting «live.» We also need to make users aware that without TV advertising, there would be no content to watch. I can’t imagine a scenario in which a broadcaster would have access to financing models other than advertising revenue in the medium term.
What opportunities does digitization offer TV advertisers? Advertisers can become content providers: It is possible to produce and distribute content cost-effectively.
Some might see that as a risk. Well, the clear distinction between traditional programming and advertising is defined by law and remains in place. However, new formats are now available to advertisers. One example is the automotive group BMW, whose concept is being presented at Screen-up. BMW operates its own Internet TV channel and has the option to convey its messages there—without violating the separation between editorial and advertising content. It’s important that advertising remains transparent to consumers; they must not be misled. This is absolutely the case with BMW.
What do these new formats offer advertisers? They can provide added value to the target audience—more than a traditional commercial could. Offers like the one from BMW help build a closer relationship between the viewer and the brand. But one thing is clear: opportunities for some can mean risks for others. These new forms of advertising will pose a threat to traditional TV commercials. Broadcasters need to think carefully about how to handle this.
Could a solution be to show less advertising that, in turn, reaches viewers more effectively? In principle, the amount of advertising regulates itself, because consumers decide how much advertising they want to see. Too much advertising is certainly counterproductive. It’s also important to have research technology that can measure time-shifted and location-based advertising. With these new forms of advertising, providers will continue to be required to provide proof of usage.
How quickly will digitization become widespread in the television sector? Digitization is already a reality and enables a vast variety of content. No existing content is disappearing; instead, new content is being added. Traditional television is not going away. The use of electronic media, however, will become even more fragmented. This is an ongoing process.
How has traditional television advertising changed since the introduction of the new RTVG? In this regard, of course, we must distinguish between the SRG stations and the private broadcasters. Very little has changed at the SRG. As for foreign commercial stations, I believe the trend has been very positive: thanks to the new commercial breaks, the programming feels much more harmonious; previously, it often seemed fragmented. Program planners abroad had devised coherent programming concepts that were torn apart by our legislation. In my view, the new regulations represent progress for consumers as well as for media planning. However, I would like to see further liberalization, particularly with regard to advertising for wine and beer.
It’s possible that she is advocating for the advertising slots on foreign broadcasters because the media agreement with the EU requires an amendment to the RTVG. What is IGEM’s position on this? You’re asking me this question too soon—we’re currently analyzing the consequences in detail. However, IGEM has not yet taken a position on this matter.
What else is IGEM focusing on right now? First and foremost, digitalization. A second area is research, where we’re committed to driving further development. Like digitalization, research also faces major challenges. In addition, we’re focusing on training and information; in November, we’ll once again be offering a workshop on the topic of «Hands-On Digitalization.» We’re also concerned about the looming advertising bans.