Tuesday, April 18, 2017

Cheddar, Web Video Maker, Bets Millennials Will Use TV Antennas






Cheddar, an online business news channel that targets millennials, is betting it can coax young viewers to look up from their mobile phones to watch old-time broadcast TV, and it’s giving away antennas with Dunkin’ Donuts to prove it.

The network will air programming on digital UHF stations in five markets that reach more than 4 million homes. Cheddar is renting the broadcast spectrum from DTV America, which owns the licenses. Dunkin’ Donuts, which already advertises on Cheddar, will distribute antennas at events in those markets.

While young viewers don’t watch much regular TV, some are buying antennas to supplement their Netflix and Amazon binge-watching with still-free over-the-air-programming, said Jon Steinberg, founder of Cheddar and former chief operating officer at BuzzFeed. The company cited data showing the number of broadcast TV homes is rising, even as cable-TV accounts have peaked and are shrinking.

“Anywhere we can provide a stream that replicates that cable news viewing experience is where we’re going to be,” Steinberg said in an interview.


Steinberg said he’s also working on getting his network carried on new “skinny” bundles of live TV channels streamed online.

Cheddar, which formed a year ago and has raised about $13 million from investors like Comcast Corp., has positioned itself as a business news channel for young people who don’t pay for cable. About 1 million people see Cheddar live each day, largely through social media like Facebook and Twitter.

The company has two feeds. One is a paid version that airs eight hours of programming a day, including six hours that are live. It’s distributed on Dish Network Corp.’s Sling TV, Amazon.com Inc.’s Prime, and via its own app, where subscribers pay $2.99 a month.
Cheddar’s entry into television is just the latest example of online media securing a place on traditional TV. Several digital media companies, including BuzzFeed, are exploring ways to get their online video programming on broadcast and cable TV channels to increase revenue.

Monday, April 17, 2017

Do You Have The Reach? + Does “Creative” = Wasted Effort?






Reach is hot. It’s getting some well-deserved love in this fragmented media landscape for good reason: Companies typically grow by expanding their customer base, not by getting current customers to buy more often.

“The research shows that if you have an effective advertising campaign, your No. 1 priority should be to reach as many people with that campaign as possible.” — David Poltrack CBS’ Chief Research Officer

“You clearly need your broad reach of vehicles from an awareness perspective.” — Allison Miazga-Bedrick, North American Marketing Director of the Chocolate Filled Bar Brands Portfolio at Mars
“It’s very clear for fast-moving consumer goods that there’s a direct correlation between reach and sales, so we need to map out the right reach.” — Efrain Ayala, Social Media & Mobile Manager/North America & Europe for Reckitt Benckiser

“The focus is on reach and continuity.” — Marc Pritchard Chief Brand Officer at P&G
This can be an extremely positive development for radio but there is another aspect of “reach” we might also want to touch upon when meeting with clients.

Bill Harvey, a much-accomplished and respected media executive/researcher/consultant, touched upon a concept he referred to as “reach velocity” in a blog last year. Harvey provided data that suggested the speed at which reach is generated impacts ROI, with faster being better. Harvey wrote, “If two exposures are delivered in the two days before a shopping trip, this doubles to triples the sales effect.”

He continued: “If reach is high, but it built up slowly – say, if you put all of your money into monthly magazines (not to knock their value in other dimensions), then in any two-day period the percentage who received messages will be low.

Why did I bother to mention a “two-day” period?
The Ebbinghaus forgetting curve describes the temporal footprint of advertising’s effectiveness – it drops off sharply for the first two days, and then gradually after that.”

In his follow-up blog Harvey concluded, “This means there is reason to employ fast-reach media vehicles as a core to one’s schedule if one is a CPG brand. In all likelihood, this applies to all product categories to some degree as well, but probably applies most to high-velocity categories.”

There are a couple of marketing tenets at play in Harvey’s blogs. First, the reason why high “reach velocity” is important is that buying never stops, so it is in an advertiser’s best interest to minimize the time gap between each purchase occasion and the last advertising brand exposure.
The second is that most advertising serves to “remind” and not “teach,” which highlights the importance of “mental availability,” as the more often a product comes to mind in buying situations, the more often it’ll be purchased.

The third is, while advertising does have a “lagged” effect, there does soon come a point – Harvey’s data suggests within two days – when it needs to be refreshed.
All three are foundational to Erwin Ephron’s recency planning theory.
“Reach velocity” plays to three key radio’s strengths:
–         Near daily usage (according to Nielsen 5.1 days/week).
–         Frequency of daily use, 3.5x/day (Arbitron stat prior to the Nielsen purchase).
–         Resonance. Radio enables an advertiser to achieve efficient continuity, which fits nicely into Harvey’s two-day window.

We can also enhance radio’s “reach velocity” via the integration of 10s and 15s to supplement 30s or 60s, broad use of all dayparts as well as road-blocking commercial pods across stations.
Much radio advertising promotes time-sensitive or call-to-action events where reach, not frequency, should be the primary goal. Radio, via its 93% weekly usage and 97% monthly usage, has always been able to deliver the reach, now we can highlight another dimension and benefit of this metric in which radio also excels.
Bob McCurdy is The Vice President of Sales for The Beasley Media Group and can be reached at bob.mccurdy@bbgi.com 

Does “Creative” = Wasted Effort?
April 17, 2017
From time to time, a local station will crank out a brilliant piece of creative advertising. The staff will gather around, howling with delight while offering kudos all around. “Let’s enter it for an award!” they will exclaim. Salespeople will hold their tongues and grudgingly wince out a qualified smile as they wonder to themselves: “Nice. But, will it sell anything?”
It can’t be effectively defended that a “direct response” ad won’t work – at least to some degree. Of course it will work – again, to some degree. It is also true that the copy for these ads can be pulled off a template and produced in just a few minutes. The advertisers want little else and audiences expect little else. The sales folks are also part of this unacknowledged agreement. They, too, expect little else. Some might enjoy a little “creative” to take to the street on occasion. But, they won’t be holding their breath, either.
For “creative” to be appreciated and preferred, a number of elements have to be considered and understood, first. That these issues have yet to be put to bed, tucked in, and kissed has always left me baffled. I have always flaunted the idea that properly constructing “creative” is a more effective approach to radio advertising. Neither have I spent the totality of my radio career in Rakabakastan.
My “thing” in this space has been about making huge improvements in the writing and delivery of those very same “direct response” ads – something else that radio refuses to consider, never mind undertake. I have also been promoting the idea that on-air presenters are, likewise, desperately in need of similar improvements.
Here then, is a reminder of what radio advertising must include in order to be as effective as possible:
·         Gain and maintain audience attention. This is not as simple as it might seem. An audible beer-fart will get an audience’s attention. The challenge is about what happens after that.
·         Generate an appropriate and previously chosen emotional response from the audience.
·         And, if the advertiser is a stickler for such things, introduce the brand and/or the advertiser’s offer.
I believe most astute readers would agree that the capacity to accomplish all three of these (above) elements in a standard “direct response” ad is severely limited – right out of the chute. We are all stuck with the required, traditional form: “Tell ‘em who you are and how terrific you are. Tell ‘em what the ‘deal’ is. Tell ‘em how much it’s not going to cost. Tell ‘em to buy now. Then, tell ‘em again.”
I accept the reality that even this banal, superficial, insulting, and boorish approach has effects. This has been radio’s bread-and-butter reality for many decades. Having made no significant improvements, if any, however, leaves radio exactly where we have been for those decades – stuck in the glue.
Radio is in a position to consider more and better sales-oriented materials. The potentials to improve on revenues through more effective sales presentations are improving on a regular basis. For some, that happenstance would be cause for relief, maybe even celebration.
The material that hits the air, however, has been carved and left in a small park on the side of the road as if it were a stone memorial for lost opportunities. Any station that can make even subtle improvements in the quality and influence of its locally produced commercial content will have access to even better results for its advertisers.
Creative radio commercials might be recognized, one day, as a gold standard and a necessary component of successfully effective radio advertising. However, this proposal has been discounted by the industry as no more than a cute, novelty strategy. “Creative is all right,” they would say, “as long as producing it doesn’t take up time and resources.”
The suppression of “creative” radio advertising is also indicative of a more general approach to broadcast communications. Available, updated processes in the writing of “direct response” ads have also been bottom-shelved and forgotten in some recess of the janitorial supply room. The same can be said for the attention paid to the communication skills of the on-air folks.


Oracle Plans Aggressive Move Into TV Advertising

 By Published on
Oracle headquarters in Redwood City, Calif.
Oracle headquarters in Redwood City, Calif. Credit: wellesenterprises/iStock

"This is our first big move into the TV space," said Joe Kyriakoza, VP and GM of automotive at Oracle Data Cloud.

To put the partnership to use, an auto advertiser might work with Simulmedia to target luxury SUV buyers. The TV data firm would connect its viewer data to Oracle's data on in-market SUV buyers, which the firm gets through several purchase transaction data relationships with credit card firms, research firm IHS Automotive and others. Oracle can also layer in a brand's own CRM data and push it through Simulmedia's system. All of that helps marketers determine where on TV to best allocate their budgets.

"We look at this as an obvious a way to improve efficiency in TV buys," said Mr. Kyriakoza.
Simulmedia combines TV viewing behavior with transactional credit card data to target TV audiences on a household level and directly measure whether those ads led to actual purchases. The company has household level data on around 20 million people from cable companies and set-top box companies such as Tivo. Its platform does not access personally identifiable information.

Last month, Simulmedia linked up with an Oracle rival, Acxiom-owned LiveRamp, allowing advertisers to tie their TV advertising to online measurement more seamlessly.

While that LiveRamp relationship emphasizes the use of first-party data, suggested Mr. Kyriakoza, "The real value that we're [Oracle] bringing is this three trillion dollars in purchase data." Oracle says its transactional purchase data reflects $3 trillion in actual spending.

In September, Oracle joined with Visa to spin the credit card firm's transactional data into targetable audiences and campaign measurement tools for advertisers. Through that partnership, aggregated Visa transactional data associated with participating merchants and stripped of personally identifiable data is matched with Oracle IDs to build audiences for targeting mobile and digital ads, or to help brands measure whether ad exposure led to a sales transaction.

Advertising On VOD Rises 21%


TV networks' advertising-supported video on demand keeps growing.
Canoe Ventures says the number of advertising impressions grew 21% to nearly 5 billion in the first quarter for network TV programmers running video-on-demand platforms on traditional pay TV providers: cable, satellite, and telco.

Canoe provides ad technology -- dynamic ad insertion -- for advertisers to run those campaigns on big cable TV operators.

Nearly 2,300 campaigns ran in the first quarter of 2017 -- 75% from paid client ad campaigns and 25% from network TV promos. The biggest days of the week for advertising impressions were Saturday (805.6 million) and Sunday (816.9 million).

For the full year ended in 2016, advertising impressions were at 17.9 billion compared to 11.8 billion in 2015 and 6.3 billion in 2014.

Virtually all of the advertising on these VOD platforms occurs mid-roll -- during the TV program. Over 4.2 billion impressions ran this way, with 732.7 million impressions occurring pre-roll, before the TV show starts; and 95.0 million impressions running post-run after the TV show has ended.


Mid-roll campaigns averaged 3.84 commercials per break, while pre-roll was at 1.13; and post-roll, 1.05.

TV network executives put high hopes in growing advertising VOD services because TV consumers can’t fast forward through commercials.

Canoe Ventures covers 35 million U.S. TV homes via cable systems on Comcast, Cox, and Charter’s Spectrum.

Monday, April 3, 2017

Making Radio Tangible: Get Credit For Your Results & What Hubbard – And Other Radio Groups – Are Really Up Against


Radio Ink - Radio\'s Premier Management & Marketing Magazine



 (By Barry Cohen) When I started selling radio (in the Pleistocene Era), we entered into daily battle with the dinosaurs known as newspapers. These monsters devoured the local clients’ ad budgets, breathing fire and scorching the earth. The number one client objection we faced on a daily basis: “When I advertise in the newspaper, I know it’s working because customers bring my ad in. I never know if radio is working for me or not.”

All too often, prospects resorted to tactics like forcing the radio salesperson to write copy saying, “Mention this ad and get blah, blah off.” What do you think happened then? “No one mentioned radio (or your station), so no one heard the ad,” asserted the advertiser, smugly.
Where’s the flaw in this, you ask? Well, the radio ad may very well have reminded them of other advertising they saw, heard, or read, but as an intangible, it didn’t receive credit for the sale. There’s the phenomenon of “last reference” — when you query the customer, they will most often cite the last place they recall an advertising message. Asking them where they heard about you is simply unreliable. So it’s not a matter of whether your advertising measures up, it’s a question of whether your measurement measures up.

Today, we face a similar challenge with Internet advertising. The client will insist that they can track their Internet response with online coupons, “cookies” and other analytics. What to do? Educate the client on how to accurately gauge the results of a radio campaign by making it more tangible.

Help them understand the need to have more than one indicator to measure response. Viewed together, they provide a more accurate picture.

Here are a few ways they can do just that.

1.   Use a dedicated phone number that does not appear in any other medium.

2.   Set up a dedicated URL or landing page advertised only on your station.

3.   Make a special offer that does not appear in any other advertising.

Years ago, stations had loyalty club cards. When listeners flashed them, advertisers knew where the response came from, without question. They functioned as “radio coupons.” In addition, advertisers should look for changes in the geographic and demographic profile reflected in their traffic. Advertising on a 50,000-watt flamethrower for the first time may in fact bring in people from outlying areas that never patronized them before, so check those ZIP codes.

Similarly, if the advertiser sees a different age, gender, or ethnic mix that corresponds to your station’s audience profile, it also serves as a strong indicator that their radio buys are in fact generating traffic.

Free Lunches With Big Paybacks

Sometimes you have to ask the audience to do some of the work — but not too much heavy lifting. We did a restaurant promotion where we told the listeners of the Rock station to bring in a ticket stub from a Springsteen concert and get one absolutely free entree. The result? With only one week of advertising on one suburban station, we generated 856 documented responses (guest checks with ticket stubs attached).

How smart was that? Well, the restaurant owners understood that those patrons would also buy drinks and desserts, bring friends — and return to become regular patrons. We created customers, not just sales, and we got full credit for our results.

Should you tell people to show up at the retailer’s location wearing a station T-shirt? Ask them to write their own coupon? To e-mail in a selfie holding up your call letters? Yes, if the incentive is motivating enough. I’ll talk more about offers in my next article.

Barry Cohen is the managing member of AdLab Media Communications, LLC (www.adlabcreative.com).

What Hubbard – And Other Radio Groups – Are Really Up Against

March 30, 2017

During Radio Ink’s Hispanic Radio Conference Ed Levine’s story with Radio Ink, (“An Argument For More Deregulation”) where he detailed how his company is no longer fighting for advertising dollars with the newspaper, other radio stations, and a TV station in the market. He detailed how the unregulated world of digital (i.e. Google, Facebook, YouTube, etc.) are gobbling up ad dollars while radio continues to find itself handcuffed by FCC rules put in place back in the ’70s. We found another example for you thanks to BIA/Kelsey’s Mark Fratrik.

Fratrik made a presentation at Radio Ink’s Hispanic Radio Conference this week that included detailed research from the Washington, DC, market, where Hubbard’s WTOP was once again crowned radio’s billing champion. Fratrik drilled down the data to the local ad revenue level, where BIA/Kelsey says Hubbard took in $67.5 (The Hubbard number in the chart below is incorrect) in 2016.

And to help prove Ed Levine’s point, Facebook in Washington, DC, took in $51.5 million in local advertising revenue in 2016. Are you sitting down? It gets better. On top of the list was, you guessed it, Google. The online search company took in over $244 million in advertising dollars in 2016, nearly doubling the company second on the list (The Washington Post). See the chart below.
Perhaps Ed Levine has a point. Chairman Pai…are you listening?