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Foundation Capital’s Ashu Garg says “TV is dead, long live video” while discussing the future of video

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By Nesh Pillay, Reporter

June 8, 2015 | 3 min read

Foundation Capital’s general partner, Ashu Garg discussed the foreseeable future of video and advertising at the IAB’s Digital Video conference in New York earlier today.

According to Garg, television’s demise doesn’t mean the end of video.

Garg believes that the “big bang” of mobile video coincided with the launch of HBO Go.

This “bang,” he said, sparked a major shift in consumer behavior.

Now, consumers are able to watch almost anything they want on demand. He cited a study by Verizon, which concluded that 60 per cent of people are now watching their content on demand

“Consumers, particularly millenials, choose what they want to watch, when they want to watch it, and on what they want to watch it,” he said.

This increase in on-demand content marks the end of what Garg calls ‘linear content’ and the rise of streamed content, marked by Netflix’s goal to reach 200 countries by 2016.

In order to cater to this shift, advertisers need to reevaluate the way they reach consumers.

“This shift will transform all of advertising,” said Garg, “not just digital.”

While digital video accounted for only five per cent of ad spending in 2012, this will change drastically by 2020, Garg believes.

“I think it’s possible that half of all video advertising [budgets] will be spent on digital,” he said.

However, these increased budgets must be spent properly, producing contant rather than traditional advertising.

“The best advertising is always as good as content,” said Garg. “Within a decade, all advertising will be content…as Snapchat, Vine and Periscope become more popular…marketers will produce this content instead of professionally produced ads.”

In conclusion, Garg reminded the audience that video can actually grow with the death of traditional television and that advertisers are in the perfect position to embrace this growth.

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