COMMENTARY

Sports May Have To Carry Fall TV

• by Wayne Friedman , Staff Writer, July 24, 2020

Major League Baseball returned last night to TV screens -- but how much will it and other sports mean for TV this fall?

TV ratings for baseball and other sports will be eyed closely.

More than a number of reports suggest national/local TV advertising for Major League Baseball has been sold well as it enters a modified 60-game shortened season. 

All this is drastically down from a regular 162-game season. So the end result will be far lower advertising revenues this year. Still, we imagine unit pricing/cost per thousand viewers have seen a sharp rise -- at least double-digit percentage gains.

Last year, Major League Baseball pulled in $583.8 million from national TV advertising -- $196.3 million for the regular-season games and $387.5 million for the post-season, per Kantar Media.

Looking forward: How much pressure are we putting on sports TV programming overall to save the day for TV this fall -- especially if there is little in the way of new entertainment programming -- scripted, unscripted of otherwise.

Big sports TV will be ready to due its part -- with NFL, NBA, Major League Baseball and NHL all jamming for attention at the same time. NASCAR and PGA golf have already been on the air with modest results.

Laura Martin, senior analyst from Needham & Co., says the return of sports could impact what it might mean for TV streaming services.

"Streaming services like Netflix, Disney+, Apple+ etc. that benefited from live sports being dark have the most risk to their U.S. reported sub adds during the second half,” she writes.

Further, Martin believes the successful return of live sports will mean record ratings in the second half of 2020. Another side benefit: Traditional pay TV platforms -- cable, satellite, telco, and/or virtual -- will get a bump up in subscribers.

Apart from sports, there is another wrinkle for new streamers: Come November/December -- with or without all the sports coming online -- Disney+, Apple TV+, and others will be subjected to possible subscriber declines, due to expiring free year-long promotions.

All this has the annual $150 billion pay TV platforms business on the line -- not just the $70 billion in total TV advertising.

So sports TV will giveth as well as taketh away -- just like a good, closely fought baseball game. 

When's the last time you visited a pet store or veterinarian? Here's a thought: Philip Jay LeNoble, Ph.D.

COMMENTARY

Dog Days Of Summer

• by Steven Rosenbaum , Featured Contributor, July 27, 2020

We’re now experiencing the dog days of summer -- so why not use the heat, and the hounds, to explore some trends?

There’s no doubt the pandemic has impacted the dogs that provide essential companionship in these home confinement times.

For one, it seems dog products are a fast-growing category. The global dog training equipment market is set to grow at a steady rate during 2021-2026. As reported by Adify, categories slated to grow include dog bark control devices, dog training clickers, collars and  harnesses.

And there’s more. The pet dietary supplements market is expected to grow at a compound annual growth rate of 6.4% from 2020 to 2027 to reach $1.05 billion by 2027.

And then there’s pet food. QY Research published a report titled “Global Pet Foods Market Research Report 2020,“ predicting that the global market will develop generously and succeed in volume and value during the predicted time period.

At the same time, there’s a growing concern about dog welfare as well. The COVID-19 pandemic hit Dallas hard. Operation Kindness, one of the region’s largest no-kill shelters, jumped in to make sure dogs were cared for, too. The nonprofit’s pet food pantry provides food, toys, and other supplies to pet owners who are struggling financially. In June, the pantry distributed 6,502 pounds of dry food and 23,782 ounces of canned food. “There are families and pets in need, and we can help them,” said Natalie Buxton of Operation Kindness.

And dogs are doing more than providing companionship in these trying times —- they’re also being trained to sniff out the scent of COVID.

According to a pilot study published in BMC Infectious Diseases by the University Veterinary Medicine Hannover — and reported by CBS News — eight armed forces dogs in Germany could identify the virus in humans after just five days of training. The dogs sniffed the saliva of more than 1,000 people, both healthy and infected, identifying the virus with a 94% success rate.

“We think this works because metabolic processes in the body of a diseased patient is completely changed, and we think that the dogs are able to detect a specific smell of the metabolic changes that occur in those patients,” Professor Dr. Maren Von Köckritz-Blickwede said in a YouTube video on the study.

Dogs are also being drawn into current politics.

White House Press Secretary Kayleigh McEnany claimed on Friday that "Paw Patrol," a cartoon about rescue dogs, was canceled. McEnany said Trump is “appalled by cancel culture, and cancel culture specifically as it pertains to cops.”

But "Paw Patrol" fans, fear not.  Nickelodeon's Executive Vice President of Corporate Communications David Bittler told USA Today the show will remain on the air. The "PAW Patrol" Twitter account also confirmed this in a tweet, telling followers there's "no need to worry.”

So cartoon police dogs remain very much part of Nickelodeon’s schedule. No need to howl about it any further.

As the summer heats up, and the dogs settle down for a cool drink of water under a tree, fear not. Man’s best friend -- or more appropriately, human’s best friend -- is going to do just fine, and will be there for you in these challenging times.

BLM: WHICH ADS RESONATE MOST WITH CONSUMERS?

BLM: Which Ads Resonate Most With Consumers?

• by Laurie Sullivan  @lauriesullivan, Yesterday

As brands continue to shift their messages to support the Black Lives Matter movement, analysts are working to identify the advertisements and messages that resonate most with U.S. audiences.

Unruly studied the role and impact of race and stereotypes in advertising.

On Tuesday the company released data to help marketers better understand consumer reactions, emotions and sentiment in response to these ads. 

What resonated most? "No audio, heavy text overlay statement," said Terence Scroope, VP Insights and Solutions, Unruly. "In the case of Disney and Nike, you have no narrator, but a somber background. The entire ad is designed around the consumer reading it."

Scroope said the ads force consumers to use a different part of their brain that otherwise falls dormant while watching a video. McDonald's and Nike chose to focus on some of the names that have become part of the headlines in the cause. 

About 500 panelists in five age brackets—18-24, 25-34, 35-44, 45-54 and 55 and older—took place in the survey. Each watched a series of advertisements. The general trend for these videos found them more favored by younger consumers under age 34, compared with consumers age 45 or older. After each ad they were asked to answer questions in a survey.

Analyzed were spots from Nike, McDonald’s, NFL, and P&G. Inspiration was the strongest emotion consumers felt while watching, with 25% of viewers feeling inspired while watching Nike’s ad, 23% for McDonald’s, 28% for the NFL ad and 24% for P&G.

“There is always going to be a percentage of respondents who either feel contempt or disgust,” said Terence Scroope, VP Insights and Solutions, Unruly. “We saw Black Live Matter ads in the 10% range, which was higher than the benchmark for the U.S. market. Negative perceptions of these ads is always there. It’s a fallacy to think brands can make these progressive ads without offending someone.”

The NFL and Nike ads scored 52% in terms of brand favorability, up 13% above the U.S. average.

Inspiration was the highest evoked emotion, with 28% feeling inspired watching the NFL’s ‘BLM US’ ad and 25% for Nike’s ‘Don’t Do It’ ad.

When it comes to identifying emotions, inspiration consistently placed as the most common feeling felt intensely by panelists across all of the BLM campaign ads. Pride and warmth typically followed closely.

These levels of inspiration resulted in high brand recall — Nike at 45% and the NFL at 20%.

“We often saw Black Lives Matter listed as the brand being advertised in the recall question,” Scroope said.

An interesting, seldom seen emotion that also scored high for some these ads was sadness,” he said. In the case of McDonald's, NFL Players and P&G 'The Choice' ad, sadness was reported by an average of 11% of panelists compared to our U.S. average of only 1% for that emotion.

Unruly groups "sadness" with positive emotions as opposed to "negative" or "primal" emotions because sadness doesn't necessarily imply a poor reaction to the content, but rather a strong connection between the consumer and the content -- likely to make an imprint on their mind and boost brand recall, he said. 

Social cause-oriented marketing always walks a fine line, he said.

In the results from the BLM ads tested, as well as Unruly’s larger study around stereotypes in advertising, it is nearly impossible for any brand to field an ad without producing some percentage of detractors.

This is true when dealing with ads designed to support or address a social cause or message.

For the BLM ads tested, Unruly saw an average of 9.6% of panelists reporting disgust and 9.8% reporting contempt for the ads' messaging compared to 5% and 7%, respectively, for Unruly’s U.S. market benchmarks.

“While these ads did produce higher levels than average, even when we test ads with no social or political bend we still see these responses appear,” he said. “The takeaway here is that while some brands are cautious or anxious about wading into these types of cultural conversations, the downside is still fairly minimal.”

On the flip side, Unruly saw very strong brand key performance indicators across the board for the Black Lives Matter ads. Purchase Intent for all of the tested BLM ads exceeded U.S. benchmarks with an average uplift of 28% and similarly brand favorability also beat the benchmark for all of these ads, with an average uplift of 33%.

Time for media marketers to visit their new and pre-owned dealerships as the pandemic is changing current transportation values. Philip Jay LeNoble, PhD

AUTOMOTIVE

Consumers Change How They Think About Mobility

• by Tanya Gazdik , Yesterday

Although consumers are still showing apprehension about big-ticket purchases, lingering health concerns could make the idea of owning a vehicle very attractive to some.

Almost three quarters (74%) of those surveyed by Deloitte say the idea of vehicle ownership is valuable to them. This trend is being seen globally, including in France (79%), U.K. (69%) and South Korea (63%).

Personal vehicles serve as a way to maintain physical barriers for safety during the pandemic. Over half of U.S. respondents (56%) plan to limit public travel, including rideshare services, for the next three months. For those in the market for a new vehicle, used vehicles may give cash-strapped consumers an interesting option to consider, according to the study, “How the pandemic is changing the future of automotive.”

As a global health crisis starts to morph into an economic one, Deloitte is conducting a series of biweekly surveys around the globe to better understand the interplay between personal safety and economic vulnerability as a driver of purchase decisions and consumer behavior. The multi-wave “Deloitte State of the Consumer Tracker,” first launched on April 19, draws insights from over a dozen countries and queries 1,000 consumers in each market. 

Although the full impact will remain unclear for several months, the global automotive sector was already experiencing a downshift in demand, says Karen Bowman, vice chairman, Deloitte LLP and U.S. automotive sector leader.

Consumers who remain intent on acquiring a new vehicle may shift their expectations to either downgrade to a more affordable vehicle segment, and/or reduce the number of vehicle features included.

And enticing shell-shocked U.S. consumers into the new vehicle market post-recession will be harder, as 37% of U.S. respondents are delaying large purchases, 47% plan to keep their current vehicles longer, and 21% of current owners are worried about making upcoming payments.

Consumer distress regarding near- and longer-term financial well-being may outlast current health concerns, directly impacting the automotive supply and demand chain. 

Job security anxiety continues, with 30% of currently employed U.S. consumers fearful they will lose their job. This number is even higher across the globe, including Chile (74%), India (71%) and Mexico (65%), where consumers are even more worried about a potential loss of employment.

Even the process of buying a vehicle is fraught with anxiety. The growing use of digital tools could support overall demand, but a growing affordability issue may cause consumers to stay out of the market longer than expected.

Most consumers are not looking to buy their next vehicle online. Other than India (71%) and China (45%), interest in a fully online purchase process is limited to 25% of consumers -- or less -- in other markets around the world.

NBCUniversal Adds 11 New Advertising Formats For Marketers

NBCUniversal Adds 11 New Advertising Formats For Marketers

• by Wayne Friedman , 7 hours ago

NBCUniversal is creating 11 new advertising formats for TV marketers to consider for their advertising efforts.

Under its Content and Commercial Innovations effort, these formats are intended to offer better reach and engagement for marketers.

For example, one area “1:1 Talent Surprise” can have talent during commercial breaks offering up live, branded video chats. Another effort -- “Set on Set” -- yields content where talent can deliver brands' messages while on the sets of their shows.

When it comes to branded content, NBC says “Brand Experience” enables marketers to incorporate messages into TV shows -- in collaboration with NBCUniversal's writers, producers and talent. 

In addition, “Experiences at NBCU” offers a live (and or virtual) connection with fans and their content at special events. 

NBCUniversal says it now has 30 new innovative advertising formats. 

These originally started in the fourth quarter of 2018, with Prime Pods -- a single 60-second commercial pod for marketers. This was an effort to reduce the commercial clutter that marketers have long complained about.

Since then, NBC has launched Shoppable TV, which ties content to specific commerce, through a QSR code appearing on screen. NBC Universal Checkout is where viewers click and buy items they see through a dedicated commerce area.

NBCU says these new ad formats are working, as 92% of viewers appreciate commercial innovations compared to standard ads, while 88% are more likely to remember the featured brand; and 78% are less likely to change the channel.

COMMENTARY

How Does Peacock Benefit NBC TV Affiliates? Not So Much

• by Wayne Friedman , Staff Writer, 8 hours ago

Are NBC TV-affiliated stations pissed over the launch of Peacock?

If the new ad-supported focused streaming service is hitting too close to home -- that is, siphoning viewers and business away from its local TV advertising efforts -- the answer then is maybe.

This is at least what a report in Vulture is alluding to. It said a number of big NBC affiliates groups -- Gray Television, Hearst, Nexstar Media Group, Tegna, and Sinclair Broadcast Group -- decided not to run a “30 Rock”-themed half-reunion/half-business show on July 16. 

The show also looks to tout the Peacock launch, as well as NBCUniversal fall TV programming. Sources have confirmed to TV Watch some NBC pre-emptions among TV station groups have indeed occurred with the show.

The unusual effort from NBC’s national TV advertising unit combines a traditional (now virtual) upfront advertising business-based live event (postponed due to COVID-19) with consumer-interest of a popular show from NBC’s past.

For many years, TV networks have run summertime promo specials of upcoming fall programming, typically early in the evening before prime time and on weekends. They are like informercials for the TV networks and its TV station affiliates.

But the “30 Rock”/upfront show is airing in prime time at 8 p.m, a period where few if any pre-emptions typically occur. That the “30 Rock” special is also an “advertising-free” event, should tell you something: TV stations can’t make money off of it.

TV stations do pre-empt some fringe TV network programming from time to time -- especially when they can make more money with other content, local shows or syndicated content.

But one with a high-profile prime time cast attached -- airing essentially a new episode of the series -- has opened some eyes. Local TV stations can’t participate in this potential money-making event.

The flip side argument is the big streaming platform Peacock will help promote all things NBC -- including TV programming run on the NBC Television Network via NBC affiliated stations. All this to help TV stations combat growing digital competitors.

Here’s a hint says Vulture: Earlier this year, Peacock was considering a plan where it would run late-night Monday-to-Friday talk shows -- “Tonight” and “Late Show” -- earlier in the evening, thus hurting local TV stations' efforts to sell advertising in those shows,  essentially to be aired as reruns later that night.

And one other not-so-inconsequential fact: Peacock offers no ad-share arrangement, unlike what NBC has with its TV station affiliates.

So no advertising to sell in the special promo show, and no advertising to sell in Peacock?

Preening your feathers is always good. But you can understand why some want don’t want to rock the house for “30 Rock.”

COMMENTARY

Video Ad World Will Change More In Next 6 Months Than In Past 6 Years

• by Dave Morgan , Featured Contributor, 3 hours ago

All of America has changed video viewing behaviors over the past few months. More people are watching more TV. More people are watching more streaming services. More people are watching different programming than they watched last year. With all these new consumer behaviors, the TV ad industry has never been as fixated on upcoming summer and fall seasons as it is right now.

Will sports reopen? And if not, does that mean that even more U.S. viewers will cancel their cable and satellite bundles?

Will TV productions reopen enough to build out full, fall prime-time schedules? And if not, will this drive even more Americans to transfer their entertainment show loyalties to binge-watching on streaming services?

If TV loses its tentpoles of sports and prime time, what will its advertisers do? Will they trade context for audience-based buys on TV? Will they scour the emerging connected TV (CTV) world in search of linear-like reach?

The video ad world will change more over these next six months than it has over the past six years. Here are some of the reasons why:

Incumbent TV companies hard-pressed to respond to new viewer demands. TV viewers now want to watch what they want, when they want, with a great user experience and few or no ads. Ninety-five percent of what TV companies deliver today is not that.

Advertisers now want the best of both worlds: linear TV’s massive reach, impact and fast-cuming of audiences, with digital’s automation, flexibility, targeting precision and real-time measurement. And they want to do it closer in time to campaigns’ airing, not a year in advance. 

TV companies today can offer some of that in bundles or packaging, but not at scale as an ongoing, platform-delivered service like digital, and certainly not just-in-time.

Most advertisers haven’t developed robust Plan Bs. Many large brand advertisers don’t know what they will do if there are no sports on TV this year. Their businesses have been so dependent on sports for media outputs, brand integrations and experiential promotions that it hasn't been feasible for them to build out true back-up plans, particularly when the pandemic has massively limited their own operational capacities. So these companies are buying TV sports deals upfront, with no options to move their money to other media channels or companies if sports don’t happen.

More brands shifting marketing to consumer-first. The pandemic has been a massive accelerant for D2C businesses like ecommerce, delivery, gaming, personal financial services, communication services, and at-home learning. Not every brand can function this way, but every brand now needs to market like this.

That doesn’t mean the end of mass media like TV, but it does mean TV media will need to be increasingly delivered, measured and optimized for its direct consumer impact and return on investment -- not just to tick the GRP box as required by big-box sales channel deals and getting smiles around the boardroom when the super-expensive ads are previewed.

Big tech (and Google) is coming (again). For the past 20 years, TV companies have heard the footsteps of big tech advancing toward ownership of the living room and its central fixture, the television. For years, TV companies (and TV CEOs) had hoped that big-tech companies like Microsoft, Google, Facebook, Apple and Amazon would buy them out at big premiums, but to no avail. 

As LightShed Partners' Rich Greenfield, one of the smartest Wall Street analysts in this space, wrote earlier this week, the “War for Your Living Room” is now entering its decisive phase, and Google is the new player to watch.

How TV companies, marketers and agencies navigate these next six months will be fundamental to their long-term futures. The changes and disruptions will come fast, decisions will need to be made even faster, and actions will need to be executed perfectly. These six months will define the future of TV (and the control of your living room). 

What do you think?

Advertising Professionals Rethink Return-To-Office Schedules

Advertising Professionals Rethink Return-To-Office Schedules

• by Laurie Sullivan  @lauriesullivan, Yesterday

When advertising professionals were asked in a survey at what point would they be willing to return to the office, 81% of respondents said they still felt uncomfortable about the in-person experience.

While thousands of offices have shut down as a result of government-mandated closures in response to the COVID-19 pandemic, a new study from Sound Lounge, an artist-owned post-production facility in Manhattan, found that many professionals in advertising will remain hesitant to return to the workplace, even after government restrictions lift.

Sound Lounge surveyed 107 advertising professionals between May 27 and June 10, 2020, with additional responses trickling throughout the rest of the month. The study received participation from ad agencies, brands, editorials, production companies, audio studios, music houses, as well as VFX, color, and finishing studios.

Advertising professionals have varying opinions when they are likely to fully return to the office. Few indicated they were comfortable with the thought of returning in the coming weeks or months.

• 35.5% -- very uncomfortable
• 23.4% -- somewhat uncomfortable
• 22.4% -- medium
• 10.3% -- somewhat comfortable
• 08.4% -- very comfortable

While some said they could return to supervise sessions as early as July, many were certain they would like to remotely supervise their projects until fall or into next year.

• 13.5% -- July
• 13.5% -- August
• 29.8% -- September
• 13.5% -- October
• 03.8% -- November
• 01.9% -- December
• 22.1% -- Sometime in 2021

Respondents were also asked how they thought their companies would approach sending employees back into the office. Only 2% said they believed all staff would return.

• 01.9% -- all staff will return to office 
• 15.0% -- majority of staff will return to office
• 45.8% -- decreased capacity, hours staggering
• 43,0% -- minimizing our footprint and remaining remote

Those willing to return said they would provide their own Personal Protective Equipment, but many will still expect their company and post facilities to have PPE available.

Alternatively, a couple of respondents expressed that they "will not feel comfortable going back until PPE is no longer necessary" and that employees should "stay remote until it is safe to go back without masks."

After 'Disappointing' Meeting With Facebook Execs, Organizers Urge Continued Ad Boycott

• by Gavin O'Malley  @mp_gavin, Yesterday

After meeting with Facebook’s top brass on Tuesday, leaders of groups behind the #StopHateForProfit advertising boycott of Facebook called on advertisers to continue withholding their ad dollars from the company.

“#StopHateForProfit didn’t hear anything today to convince us that [Facebook co-founder-CEO Mark] Zuckerberg and his colleagues are taking action,” said Jessica González, co-CEO of the media watchdog group Free Press. “Instead of committing to a timeline to root out hate and disinformation on Facebook, the company’s leaders delivered the same old talking points to try to placate us without meeting our demands," she said, adding that she was "deeply disappointed" by their responses.

“Today we saw little and heard just about nothing,” said Anti-Defamation League CEO Jonathan Greenblatt, adding that Facebook seems to be unwilling to devote “energy and urgency” to the content issues raised by the boycotters.

Other boycott leaders in attendance included NAACP CEO Derrick Johnson and Color Of Change President Rashad Robinson.

In addition to Zuckerberg, Facebook representatives in the meeting included COO Sheryl Sandberg, Chief Product Officer Chris Cox, and VP for Global Affairs and Communications Nick Clegg.

During the meeting, the campaign’s leaders reiterated the specific steps they want Facebook to take.

These include hiring a high-level executive with civil rights expertise to evaluate the company's products and policies with regard to discrimination, bias and hate; submitting to regular third-party audits of identity-based hate and misinformation content, with the results published on a public site; refunds for advertisers whose ads were shown next to content that was later removed for violations of terms of service; shutting down hate- and violence-focused public and private user groups; and changing its “community standards” to reflect the Change the Terms initiative founded by Free Press and other groups.

As of Tuesday, nearly 1,000 advertisers had officially committed to participate at some level in the #StopHateForProfit boycott, including some giants such as Unilever and the Coca-Cola Company.

Last week, Clegg insisted that Facebook takes a “zero tolerance approach” to hateful posts on Facebook and Instagram, despite the company's adamant stance until recent days that it would not monitor or interfere with any political speech, even if it is false or violence-inciting.

Zuckerberg originally argued that letting President Trump bypass Facebook’s standard content policies -- even when he posts statements threatening violence ("When the looting starts, the shooting starts") was best because "ultimately, accountability for those in positions of power can only happen when their speech is scrutinized out in the open.”

In recent days, Zuckerberg said Facebook would begin labeling posts from influential figures that violate its content policies, and no longer allow “newsworthiness exemptions” for posts from public figures that incite violence or suppress voting.

However, he has also stated straight out that Facebook will not give into pressure about its policies, and has no intention of implementing the specific changes urged by the boycotters. 

And on Tuesday, Sandberg published a post reiterating Facebook’s stance: “We have clear policies against hate -- and we strive constantly to get better and faster at enforcing them,” she insisted.

On Wednesday, Facebook is releasing a final report on a two-year independent review/audit of its policies and practices that is already spurring more criticism of the company from press and groups that have already seen the content. 

COMMENTARY

The Media World, Brands, Are Changing -- For Good

• by Cory Treffiletti , Featured Contributor, 4 hours ago

“Change is the only constant in life.”

These words were first spoken by Heraclitus of Ephesus.  He was an ancient Greek philosopher with a relatively morbid outlook on life.

I am a born optimist, so I never took this statement or any of the endless paraphrases and restatements to be anything other than positive.  To me, change is a good thing.  It symbolizes evolution and is indicative of the fact that humans are fallible, we know it, and we’re capable of striving to improve.

There is a LOT of change going on right now in the media world, so that must mean there are a lot of good things happening, even in the face of COVID-19.

The media is finally becoming a force for change rather than the voice of the bully pulpit it had become in recent years.  The media had become polarizing, only catering to the voices of the far right and far left, but in recent weeks I have sensed a change that demonstrates a dissatisfaction with that tone and tenor.  

The media is supposed to be a conduit for information, and is now working to convince people to be responsible and wear masks in public to stem the spread of COVID-19.  

The Washington Redskins are looking to change their name.  The Cleveland Indians are expressing an interest in doing the same.  Statues are falling, and people are asking questions, forcing themselves to have difficult conversations.  Advertisers are boycotting platforms that refuse to take on responsibility for the content and conversations held within them.  

Large brands are forcing change by amplifying the voices of their customers.  

This is a unique moment in time because brands are becoming more than a voice for profit.  They are becoming a megaphone for their customers.  More importantly, people are listening.

In the ’60s, the voices that carried were those of specific leaders.  In today’s world we are experiencing a lack of leadership, and brands are being tasked to step up and help amplify the voices that do exist. 

I’ve listened to artists play music online and try to rally the spirits of the people sheltering in place. I’ve watched members of the sports community try to come up with a plan to engage the world during the pandemic and provide a welcome distraction. 

The last 10 years have witnessed the rise of the “purpose-driven” brand, and now that purpose is tangible.  Will that purpose be realized in the next year or two?  

It does feel as though brands are having their moment.  The pressure being exhibited on the Washington Redskins is palpable and does seem to be driving towards a true outcome of change.  Team owner Daniel Snyder may have once said, "NEVER — you can use caps," but it would appear NEVER happens in 2020.  If anything, this is most certainly the year when anything “that will NEVER happen” does happen.  

Can you only imagine what an ancient Greek philosopher would have to say about the world we are seeing unfurl before our very eyes today?  That quote resonates even more today than when it was last paraphrased by a well-intentioned public figure.

COMMENTARY

Pandemic Permanently Alters Gen Z

• by Aaron Paquette , Columnist, July 2, 2020

The following was previously published in an earlier edition of Marketing Insider.

Tragedies and hardships indelibly shape every generation coming of age. Those born in the Roaring 20s faced the twin shocks of The Great Depression and World War II. Boomers, Vietnam. Gen X, the Challenger explosion. Millennials, 9/11. And now COVID-19 serves as the seminal event that will forever change Gen Z’s outlook on life, health, money and the world around them.

True, older generations are experiencing the highest fatality rates from COVID-19. And almost every generation is feeling a pinch in their pocketbook with lost jobs, reduced hours, lower pay and dwindling retirement accounts.

Still, older generations also benefit from years, if not decades, of normal life, a strong economy and all of society’s rites of passage. By contrast, COVID-19 suddenly threw Gen Z out of school, canceled their proms and graduations, suspended their internships, and took away their service-sector jobs. Overnight, those about to enter the workforce went from experiencing the lowest unemployment rate in modern history to the highest rate on record.

For many adults, quarantine is “life on pause.” For Gen Z, however, it’s “life cancelled.” And just as my grandparents were forever shaped by The Great Depression and carried a “Depression mentality” throughout their lives, Gen Z will forever be marked by caution about their health, finances, and the trust they place in politicians and institutions.

Conversely, living through a pandemic will also inspire Gen Z to “double down” on their boldness in dealing with existential issues like climate change, income inequality and social justice. Seeing national government hamstrung in its response to the pandemic might encourage Gen Z to work toward solutions on the state or local level, or through nonprofits and online communities. Just as The Greatest Generation rose up to fight and win World War II, Gen Z might coalesce to help lead the nation and world toward a healthier, more secure, more united future.

What are the implications for brands targeting Gen Z?

*They’ll be teens for a long time. For many, the coronavirus will delay their education, first job, and leaving their parents’ house. Until the pandemic ends and the economy recovers, potentially years from now, they’ll be stuck as perpetual teens, living at home, depending on parental and governmental support, and cobbling together work and education as they can. So brands should be mindful that a 20-year-old Gen Z consumer might be more like a 15-year-old from three decades ago, and still require parental buy-in on major decisions.

*They’re not leaving the house. Not only will Gen Z be living at home for a long time, they might be living there 24/7. If bars, restaurants, nightclubs, malls, concert halls, beaches and airplanes are all considered unsafe and/or unaffordable, Gen Z might never venture out. So out-of-home and experiential marketing will lose most of their potency, and brands will need to find clever ways to reach teens and young adults via digital channels, at home, and with services that can be consumed virtually (like streaming concerts).

*Their stress levels have skyrocketed.  They were already terrified about getting into (and paying for) college, finding a job, saving the world from climate change, and staying in the country if they were Dreamers, or their families were undocumented. Now, COVID-19 has given Gen Z one more existential worry. For many, it might be the straw that breaks the camel’s back. Once the pandemic recedes, many experts fear an ensuing mental health crisis, striking the young particularly hard. Brands will not only need to soothe wounded psyches, but also help provide mental health resources, forge connections and find solutions to this generation's educational and employment dilemmas.

Together, Gen Z and the brands that serve them can find a way forward from this pandemic.

COMMENTARY

Millennials, Gen Z: What They Really Think About Today's News

• by Paul Neto , Yesterday

In a recent survey, we found that 18- to 39-year-olds perceived some problems with news quality during the pandemic. Are we doing them a disservice by assuming that they are unable to distinguish between real and fake news? Between quality and drivel?

Social media has long been blamed for falsely spreading “fake news” with impacts on the real world, such as swaying public opinion in the 2016 U.S. presidential election.

Yes, it is true our research found that young adults are relying primarily on social media for their information consumption (63%). Other studies have confirmed this number, with recent research from Alter Agents indicating 68% of this group rely on sources like YouTube and Snapchat for news. But traditional TV news comes in a close second, at 61%.

Still, Gen Z-ers and millennials are taking it all in with a grain of salt.

In fact, multiple studies have shown that older generations are more likely to share fake news without fact-checking. As digital content has been part of younger cohorts' everyday lives since they were able to get online, perhaps they are better “trained” to sift through the nonsense. Many of our respondents believed that the news they are consuming is not accurate, and is instead geared toward scaremongering (37%) or exaggeration (38%).  

What does this mean for brand communication? Perhaps we should go back to the drawing board to find out what young adults are thinking and feeling -- particularly as sentiment and behaviors may be shifting dramatically during a crisis. Uncovering a holistic view might not be as hard as brands think.

The next step is rethinking how we engage with the Gen Z audience in particular. This generation is less about building a vast network and more about focusing on personal communication and one-to-one relationships. This trend may lead to fewer, but more intimate, relationships built on new values.

This is evident in the apps they use, since millennials (and older) are considered the Facebook generation and GenZ exhibit higher engagement with friends on apps like Snapchat.

Marketers also can’t rely on traditional methods to elicit feedback from this audience. Traditional market research relies on use of email panels to engage and collect feedback from the population. This shift to less sharing and deeper engagement in trusted relationships may be in part the explanation of the decline in market research participation. Increasingly market research agencies and brands will require new methods and channels to have meaningful exchange with the Gen Z audience.

In short, we need new ways to connect with young adult audiences. We have found that the right ecosystem, built on trust, can help to engage them. As indicated above, the research on news consumption shows that they can see through the bulls**t. So, for example, providing users greater custody of their data, and providing guarantees for privacy, can help us tap into the insights from these important young adult audiences, and help us form communications that will resonate with them.