Tuesday, February 28, 2023

In The Imperfect Upfront Race, Time to Move to Front of the Pack

 

COMMENTARY

In The Imperfect Upfront Race, Time to Move to Front of the Pack

Still mulling over the coming upfront, with the ever-evolving story of alternative currencies? Is it the same old story with some massive new spin?

Nope. Not yet.

Even with ever more scarce linear impressions that broadcast TV network owners are trying to hold on to, brand marketers are still focused on reach, so they will continue to pursue linear. And that means upfront wheeling and dealing.

Take a look at Super Bowl advertising-inventory rates at $7 million per 30-second commercial -- and the relative stability of NFL, NBA, and Major League Baseball viewing. Sports programming in general looks to continue to be a factor going forward in moving the upfront.

Former GroupM prognosticator and media analyst Brian Wieser says new ad-tech companies -- specifically, The Trade Desk -- want you to believe CTV is coming big time and could usurp the entire upfront buying process, all moving to that just-in-time, short-term media-planning and -buying that digital media platforms continue to excel around. 

Wieser says brand marketers still love those big image campaigns along with the short-term, quick-hit marketing campaigns.

What would brand marketers do if they needed to, say, start or bulk up a brand campaign starting in a week or two? Whoah.

He writes: “Would it be better to wait until close to the campaign's launch date to see if desired inventory is available? Or would it be better to commit early? And if the marketer knows that other marketers are going to make their commitments around the same time, wouldn't it be better to do so before desired inventory has been secured by others?”

That is not possible. And even then, it is still difficult to get all the premium TV reach needed.

Sure, reach is getting harder to come by. But Wieser says not so fast: “Marketers will need to broaden their definitions of TV to include more online video, but most of the market is not there yet and unlikely to get there any time soon.”

He says Trade Desk's definition of CTV may not be what other executives believe it to be.

Trade Desk is counting on all those non-premium CTV platforms -- YouTube user-generated videos and other somewhat lesser-valued digital media-social video content.

That may not necessarily be where brand marketers might want to put their heavy resources for their major long-term media campaign plans.

No doubt alternative currencies are coming. But will they all be agreeable among all media sellers and media buyers? Hardly.

The upfront is far from perfect -- even as Nielsen-based currencies, including its national TV service, continue to be suspended.

Wieser reiterates what many have said regarding the TV network ad-selling process: “The U.S. upfront continues much as it has for so long not because it is good, necessarily, but because it is better than the alternative for most large brand owners.”

And the alternative for those marketers means media deals with no historical-based price protection going forward -- and worse. No upfront for some could really mean "on the down low'."

So, as they might say in the Tour de France, while cycling harder in the upfront race (and especially in a breakaway): "Get to the front... and work."

Uneasy Premium Streaming In 2023: Profitability, Revenue, Sub Growth - Moving Fast and Slow

 

COMMENTARY

Uneasy Premium Streaming In 2023: Profitability, Revenue, Sub Growth - Moving Fast and Slow

Paramount Global offers a clearer picture of what legacy TV-based companies are up against in the streaming world.

But the pacing seems to be all over the map -- in terms of positive and negative measures, both quick and slow-moving.

For sure, there are growing streaming revenues, but soaring costs as well -- all while the overall marketplace seems to be contracting, with consumers weeding out what they really want. That is the ‘quick’ piece.

At the same time, most platforms -- including Paramount -- intend to raise prices. Profitability is still a few years out. That's the "slow" piece.

Paramount's fourth-quarter 2022 results shows its TV media -- the company's main TV business -- posted $5.9 billion in revenue, down 7% versus a year ago. Revenue for its direct-to-consumer business (D2C) came in at $1.4 billion  -- nicely up 30% versus a year ago.

The bottom line, of course, comes with traditional cash flow: TV media is at $1.3 billion in revenue (rising 5%), while D2C cash flow is now expanding losses -- negative cash flow -- by 15%, at $575 million.

Paramount is in a range similar to other companies -- with a huge $1.7 billion to $2.3 billion in annual net losses for D2C.

The sliver of good news is that Paramount seemingly was able to rapidly grow 10 million subscribers to 56 million. Some other glimmers of hope: overall company-wide cash flow was 10% higher to $614 million -- all because of continued good news at its traditional TV media networks/stations.

Shareholders? Well, year-over-year, diluted earnings per share dropped nearly 70% to just 8 cents. Oooh..

This is, of course, a static picture in time. Paramount+ will soon merge with D2C app Showtime. There will be cost savings and the company will benefit.

But what happens after that -- long term? Paramount's TV media business -- as well as others -- is declining, though ever so slowly. It will still be around for many years to come.

Will traditional TV-based media companies just let their legacy business languish?

Think more like other media, which has been pushed aside by legacy media companies -- newspapers, radio, publishing, out-of-home, and yellow pages.

TV networks seemed destined to join that group of media also-rans -- now amid semi-fond memories of the past.

Are we in a sprint.. or a marathon?

U.S. Ad Market Falls For 7th Consecutive Month in January

 Here's a pretty good reason to make sure you're building your local-direct client base: Philip Jay LeNoble, Ph.D.

U.S. Ad Market Falls For 7th Consecutive Month in January

The U.S. advertising marketplace fell for the seventh consecutive month in January, declining 5.8% from January 2022, according to the latest update from the U.S. Ad Market Tracker, a collaboration of Standard Media Index and MediaPost based on a pool of actual ad spending data from the 12 biggest agency groups, including both holding companies and major independents.

The decline reflects an extra tough comparison with January 2022, which was up 23.1% over January 2021, which was the lowest January since SMI began the index.

Compared with January 2021, January 2023 increased 15.0%.

The top 10 ad categories fell 4.1%, outperforming all other categories, which declined at more than twice that rate: -8.7%.

Interestingly, digital's share of U.S. ad spending fell to 52% in January, which appears to be the seasonally weakest month in terms of digital advertising share, following December, which appears to be the strongest month of the year for digital ad buys.

Nexstar's Q4 Political Advertising Soars, Core Advertising Weak

 

Nexstar's Q4 Political Advertising Soars, Core Advertising Weak

Amidst overall soaring political ad revenue, Nexstar Media Group’s core advertising suffered in the fourth quarter due to softness in the national TV market as well displacement of political advertising in the period.

Core revenue for the biggest U.S. TV station group revenue was down 3.3% to $478 million, with political advertising rocketing up to $266 million.

Nexstar's stock price was down 4.3% to $183.96 in early Tuesday morning trading just after the company released its fourth-quarter financial results.

Although core advertising took a major hit, the company noted a “more stable advertising market” --- boosted by a new local TV advertising incentive program revenue of $37 million. It says core ad results were flat prior to the start of the fourth quarter period.

These results include Nexstar’s 75% majority acquisition of The CW, a deal that closed in September 2022. The acquisition of the CW helped soften the low results of core advertising.

For the year, political advertising pulled in $506 million -- Nexstar's best result ever in a non-Presidential year.

Overall quarterly revenue rose 19% to $1.49 billion for the quarter and climbed 12% for all of 2022 to $5.2 billion -- the first time the major U.S. TV station group exceeded $5.2 billion.

Distribution revenue for flat at $615 million with digital revenue inching up by 10% to $112 million.

Excluding The CW, fourth-quarter revenue amounted to $1.42 billion --14% higher.

The company's closely watched adjusted cash flow -- earnings before interest taxes, depreciation and amortization -- increased 32.5% to $661.8 million.

Thursday, February 23, 2023

Exchange Data Shows Media Payments Growing Increasingly Late, Especially for Manual Buys

Exchange Data Shows Media Payments Growing Increasingly Late, Especially for Manual Buys

In another indicator of the impact that weakening economics has had on the ad industry, payments to the media have grown increasingly late over the past two years, according to new data released by online ad-revenue exchange OAREX.

The data, which tracks digital media payments made both manually -- directly by ad agencies or clients -- as well as programmatically via ad tech middlemen, shows all forms of media-buying payments have been slowing down for digital media, but especially for manual ones.

While the percentage of late payments have grown to more than 40% of all digital ad buys tracked by OAREX in its report, the delta between manual and programmatic ones spread significantly, indicating that programmatic buys are indeed a more efficient system for paying the media during times of volatility.

The gap between manual payments -- those processed manually be ad agencies or clients directly themselves -- and programmatic ones processed by programmatic middlemen peaked at 13 points in June 2021, but has hovered between 8 points and 10 points through the end of 2022, according to the report.

Other factors may be at play in the trend, including the belief of many advertisers and agencies that more of their ad budgets go into "working media" when they buy manually vs. the "ad tech taxes" they pay when they utilize programmatic middlemen, but there's also a bottom line impact for their suppliers, which are seeing slower payments.

In fact, while only 3% of programmatic payments were more than 15 days late, according to the report's year-end 2022 data, 26% of manual buys were.

While the report does not delineate the late payments by specific agencies or clients, it does provide a breakout of major exchanges, DSPs and SSPs tracked by OAREX.

The data shows a wide range by programmatic payor, from 0% to 100% late (see below).

Why Women Excel in Sales

 This is quite a big article from Sales and Marketing Management...but as a sales and management trainer for the last 39 years...the below article is great! Philip Jay LeNoble, Ph.D. CA

Why are women good at sales? It appears that the traits where women are generally strongest are the very qualities sales professionals need to excel: listening skills, customer service, personal interactions.

In order to best serve customers, you must have a high level of emotional intelligence. Those with a high emotional quotient (EQ) are masters of the art of listening respectfully and actively. The fact that many women are naturally emotionally intuitive makes them a natural fit for sales, having an innate ability to build trust, nurture relationships, and listen.

Acquiring Emotional Intelligence

Whether you are selling as a cloud sales rep, an attorney or a bartender, the ability to listen well and engage others separates top sellers from middle-of-the-road salespeople. The underlying point of departure is emotional intelligence. For the most part, emotional intelligence is essentially common sense. But it is less common than you might think. People who are emotionally intelligent are likable, enthusiastic, and trustworthy. They are not difficult to be around, irritable, or negative.

People with a high emotional quotient (EQ) are self-aware, able to build and maintain meaningful connections with other people, empathetic, and enthusiastic. This is important in sales because people buy from people they like. You can have the most logical list of reasons why someone should buy from you, but ultimately your prospect will likely base their decision on your ability to appeal to their emotions. Of course, features and pricing affect purchase decisions, but emotions play a large role. So, the better you understand how your prospect feels, the better chance you have of closing the sale.

Sellers with high EQs have the patience to maintain enthusiasm through long sales cycles, adapt to their prospects’ emotional states, remain positive despite frequent rejection, and build strong bonds with customers that improve retention rates, client satisfaction, and customer success in the long term.

If you are looking to boost your EQ, here are a few things to keep in mind:

  • Be mindful of your own emotional state.
  • Listen more than you speak.
  • Spend time putting yourself in your customer’s shoes.
  • Take responsibility for your mistakes.
  • Don’t be afraid to be vulnerable.
  • Try to be positive whenever possible.
  • Always be curious—ask more questions.
  • Get comfortable with adversity.
  • Keep stress at bay.

Listen Like You Mean It

The days of telling a customer what you have to offer instead of asking what they need are over. To succeed, we must listen to customers. This requires leaving our desires at the door and tuning into customer’s true needs. It asks that we advise, not dictate. Serve, not sell.

Listening also means tuning into colleagues and competitors for advice in order to gain an understanding of both the customer and the industry. Unfortunately, what passes for listening today is waiting long enough for the speaker to finish, meanwhile preparing a response before taking the time to hear what they are actually saying. But you need to hear if you want to understand what someone means. To nurture active listening skills:

  • Be present. Stay focused on your conversation and remove distractions.
  • Paraphrase often. Repeat what you hear back to your prospect.
  • Focus outside, not inside. Hear what the prospect is saying, not what you are going to say next.
  • Try thinking aloud. Voice your thoughts along the way so you can determine whether you and your prospect are on the same page.

Taking this to an even higher level, Respectful listening has three levels. Three-level listening build trusts with clients, helps you remember more about them, and encourages them to share more with you.

  • Get Data: Pay attention to the facts that your prospect shared.
  • Get Context: Take time to identify why that is meaningful.
  • Acknowledge: Take what you have learned and acknowledge its significance.

Extending Yourself and Your Service

One of the defining traits of being an empathetic salesperson who actively listens is to continually ask yourself how you can better serve the person you are interacting with (whether a colleague, a prospect, or a current customer). It requires asking yourself what can I do to make this person’s life easier? Or, asking them directly.

Sales is a win-win opportunity when you spend time serving customers and building trust, rather than sweet-talking them into buying. Think of it this way: you are not selling something to someone, you are collaborating with your prospect to solve a problem. If you change your goal from getting the sale to helping the client, the sale itself becomes a byproduct, not the goal. Paradoxically, if you focus on helping the client you are apt to get more sales.

To be a better servant for your clients:

  • Have their best interest at heart.
  • Seek to understand their interests.
  • Offer advice that is useful to them.
  • Operate on their timeline, not yours.
  • Be completely transparent and honest.
  • Stay engaged post-sale to ensure your customer’s success.
  • Be proactive.

Get involved in tough discussions. Don’t shy away from challenging discussions. Instead, offer applicable solutions as soon as possible.

Don’t sell and run. Stay engaged and attentive to ensure your customer’s success, even after they sign on the dotted line.

Sell by doing, not telling.

The sooner you start providing a service, the better. Always show your trustworthiness through your actions, not words alone.

Every Interaction Matters

Every new interaction is a chance to build a relationship and your own reputation. To boost the impact of your interactions:

Pick up the phone or, better yet, meet in person to have a conversation. Too much happens via text or email. We are all busy, but it goes a long way to make the effort to spend time with your prospects personally.

Keep your tone positive. If you are always positive with your connections, they will associate you with positivity.

Make eye contact. Eye contact is extremely important when establishing a personal connection. Non-verbal communication matters. Both body language and your appearance give your prospects clues about your authenticity and investment in what you are selling.

Tap Into Your Soft Side

The reality is, people buy from people they like. Thus, it is important to appeal to your prospects’ emotions, not just their logic.

Listen more than you speak. Put yourself in your customer’s shoes.

Don’t be afraid to be vulnerable. Take responsibility for mistakes and acknowledge shortcomings.

Keep your own emotional state in mind. Make stress reduction and mindfulness a priority.

It’s Time to Diversify

As noted earlier, research clearly shows the benefits of diversifying the salesforce. Yet despite the supporting statistics, the shortage of women sales professionals is cause for concern. Women still only make up about 39% of the sales workforce, a number that has grown only by 3% over the past decade, according to a 2018 LinkedIn report. Furthermore, only 19% of VP and C-suite sales positions are held by women. What’s more, the sales profession has the second-largest gender equity gap in America compared with other professions.

Given this, innovative sales organizations of the future would do well to diversify their salesforce, their executive leadership team, and to work to rectify gender inequality in the workplace. 50/50 should be the lowest goal, however from what we have seen in the field, 75% female to 25% male might be most rewarding if you really hire for the right attributes and capabilities.

The traits that allow you to excel at sales aren’t gender dependent. As an industry, sales at every level need to become better at embracing all genders and cultivating the qualities that make sales a praiseworthy profession.

Uneasy Premium Streaming In 2023: Profitability, Revenue, Sub Growth - Moving Fast And Slow

 

COMMENTARY

Uneasy Premium Streaming In 2023: Profitability, Revenue, Sub Growth - Moving Fast and Slow

Paramount Global offers a clearer picture of what legacy TV-based companies are up against in the streaming world.

But the pacing seems to be all over the map -- in terms of positive and negative measures, both quick and slow-moving.

For sure, there are growing streaming revenues, but soaring costs as well -- all while the overall marketplace seems to be contracting, with consumers weeding out what they really want. That is the ‘quick’ piece.

At the same time, most platforms -- including Paramount -- intend to raise prices. Profitability is still a few years out. That's the "slow" piece.

Paramount's fourth-quarter 2022 results shows its TV media -- the company's main TV business -- posted $5.9 billion in revenue, up 7% versus a year ago. Revenue for its direct-to-consumer business (D2C) came in at $1.4 billion  -- nicely up 30% versus a year ago.

The bottom line, of course, comes with traditional cash flow: TV media is at $1.3 billion in revenue (rising 5%), while D2C cash flow is now expanding losses -- negative cash flow -- by 15%, at $575 million.

Paramount is in a range similar to other companies -- with a huge $1.7 billion to $2.3 billion in annual net losses for D2C.

The sliver of good news is that Paramount seemingly was able to rapidly grow 10 million subscribers to 56 million. Some other glimmers of hope: overall company-wide cash flow was 10% higher to $614 million -- all because of continued good news at its traditional TV media networks/stations.

Shareholders? Well, year-over-year, diluted earnings per share dropped nearly 70% to just 8 cents. Oooh..

This is, of course, a static picture in time. Paramount+ will soon merge with D2C app Showtime. There will be cost savings and the company will benefit.

But what happens after that -- long term? Paramount's TV media business -- as well as others -- is declining, though ever so slowly. It will still be around for many years to come.

Will traditional TV-based media companies just let their legacy business languish?

Think more like other media, which has been pushed aside by legacy media companies -- newspapers, radio, publishing, out-of-home, and yellow pages.

TV networks seemed destined to join that group of media also-rans -- now amid semi-fond memories of the past.

Are we in a sprint.. or a marathon?

Brands That Double Down On Data Will Win In (Impending) Recession

 

COMMENTARY

Brands That Double Down On Data Will Win In (Impending) Recession

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

Marketing budgets will inevitably shrink in 2023 as CEOs take a more cautious approach to spending ahead of the recession they’re predicting. But despite having ample time to strategize (recession worries have circulated since at least April 2022), some marketers will default to rushed, instinctual decisions.

2023 will be an opportunity for marketers to prove reaching new customers and increasing brand awareness doesn’t require marketing spend to balloon year-over-year. And some brands may even find there’s a silver lining to having less money to play with: It forces teams to rally around data-driven objectives to deliver targeted campaigns with less waste.

Use data to get the most bang for your bucks in 2023

In 2023, savvy marketers will take a methodical approach to avoid repeating the mistakes they made at the start of the pandemic — a time when last-minute judgment calls were the only feasible option. And a strong foundation of data will be key.

Here’s how to shore up your data capabilities so you can identify opportunities to make an impact with consumers without overspending.

Reevaluate your priority metrics. To chart a course based on accurate and actionable insights, conduct a comprehensive analysis of your data. Determine what’s available to you and what you’re willing to share with agencies and partners. Remember that the more data they can access, the easier they can help pinpoint and track metrics against your business goals.

Eliminate internal silos. You need to break down internal silos among business intelligence, brand marketing and performance media teams to optimize for profitability. We’ve seen a growing movement to unify teams over the past few years, and I expect it will accelerate in 2023’s forecast economic climate, where the ability to adapt and pivot will be critical. Compelling siloed teams to collaborate will allow for more transparency and creativity, and ultimately yield better results, like data-informed creative campaigns.

Prepare for Google Analytics 4 (GA4). Yes, the timelines are shifting, but make no mistake: Onboarding to GA4 will be a high priority for data-driven brands in 2023. For those outside the bubble, GA4 is Google’s new analytics tool that will replace the current Universal Analytics and Google Analytics 360 platforms. It’s designed to deliver more actionable metrics in light of evolving user behavior and more robust privacy regulations.

Brands that prepare early by dual tagging their websites will capture the most historical data. Capturing historical data is critical to evaluating performance in a year when return on ad spend will be scrutinized even more than usual.

This isn’t the year to push deadlines, circle back later or chase pet projects. Marketers need to level-up their data and eliminate internal silos so marketing and business teams can work in unison to advance business objectives. In this increasingly competitive and cash-strapped environment, brands without a clear data-driven strategy will struggle to make an impact.

Ad-Supported CTV Platforms Rise 55% In Time Spent, Ad-Free Streaming Down 30%

 

Ad-Supported CTV Platforms Rise 55% In Time Spent, Ad-Free Streaming Down 30%

Subscription-only, ad-free streaming platforms declined 30% (to a 36 share) in time spent during the second half of 2022, while ad-supported connected TV (CTV) rose 55% (up to 48% share), according to data from TVision.

This comes as two major premium streaming platforms -- Netflix and Disney -- both started up advertising-supported options of their respective services in the last months of 2022.

Also FAST platforms (Free Ad-Supported Television) such as the Roku Channel, Tubi, and Pluto TV continued to grow. But viewers were “significantly older and paid less attention than average CTV viewers.”

TVision says 83% of CTV-enabled homes use 7.3 apps (down from 7.7 apps during the fourth quarter of the 2020 pandemic period). Nearly 30% of homes use 10 or more apps -- about the same in late 2020.

Many CTV apps have witnessed slight declines in household reach. Reach is traditionally defined as the total number of people seeing a single piece of content or advertising. Netflix is at 61% (it was at 66% in the first half of 2022); YouTube is at 55%; Hulu 49%; Disney+, 37%; and HBO Max, 33%. Those with rising reach: Amazon Prime, now at 49%; Roku, 33%; Peacock, 29%; Paramount+,24% and Tubi, 23%.

A survey confirms other industry data when it comes to all individual video platforms (including streaming, legacy pay TV, virtual pay TV) ranked by share of time spent on the app.

In that regard, YouTube has ascended to the top with a 16% share.

Netflix is next at 15.3%, followed by Hulu with 11.4%, YouTube TV (the virtual pay TV provider), 6.4%; Spectrum TV, 6.4%; Amazon Prime Video, 5.0%; HBO Max, 3.9%; Peacock, 3.9%; Disney+, 3.8%; and Paramount+, 3.4%.

TVision uses eyes-on-the-screen technology to measure attention and viewing content, measured second-by-second, person-by-person. Viewers two years and older data here was collected from July 1, 2022 through December 31, 2022 from 5,000 U.S. homes, weighted to represent the country. Demographic data was self-reported

Wednesday, February 22, 2023

TV's Existential Challenge: Gen Z's View Time About Half Of Older Generations'












TV's Existential Challenge: Gen Z's View Time About Half of Older Generations'

Given the downward trends in pay-TV subscribers and the surge in popularity of short-form online video and gaming among younger consumers in particular, a new survey confirming that Gen Z spends far less time consuming traditional television than older generations isn't likely to come as a shock to either advertisers or media owners.

But the extent of Gen Z's behavioral differences with older groups as illustrated by these self-reported behaviors is pretty attention-getting.

Hub Research surveyed 1,900 U.S. consumers between 13 and 74, including 579 consumers between 13 and 24, in December 2022.

“Gen Z is just as passionate about entertainment as their Gen X parents and Boomer grandparents, but they are content omnivores, and TV is just one of a constellation of things competing for their attention,” sums up Jon Giegengack, founder and principal at Hub. “Most importantly: So far, there’s no reason to think they’ll outgrow their attachment to short-form video or gaming as they get older.”

Those over 35 estimate that they spend more than double the time on TV shows that Gen Z does. And Gen Z respondents spend more time on gaming (22%) and non-premium videos on platforms like TikTok and YouTube (21%) than they do watching traditional TV (17%) or video-on-demand movies (14%).

More than half of Gen Z viewers say they watch less “regular” TV because of the time they spend watching non-premium video.

 

Across age groups, the average time spent consuming video via MVPD boxes continues to fall and time on smart TVs and smartphones continues to rise, jibing with the acceleration of cord cutting.

 

But the age behavior gap is pronounced here, as well. Gen Z consumers spend about a fifth of their screen time watching through apps on a smart TV — the same as older consumers. But just 8% of Gen Zs’ time goes to watching shows through a cable box, compared to 31% among older viewers. Gen Zs also spend more time watching on their cell phones than on any other screen.

Looking at social video platforms, the survey also confirms that relatively new TikTok has eclipsed even YouTube in self-reported time spent viewing. 

Among Gen Z consumers who use both platforms, 54% say they spend more time on TikTok, including 40% who spend “a lot more time” on TikTok. Further, 73% say that if they could only use one, they’d keep TikTok. 

Why CTV is the Most Effective Buy for QSR Marketers


Wonderful article for your local-direct clients to see the value of Smart TV aka CTV. Philip Jay LeNoble, Ph.D.







MediaPost








Why CTV is the Most Effective Buy for QSR Marketers

    Author: Justin Gutschmidt, Head of National Sales at Premion

     

    With return-to-office in full swing, the battle for reaching on-the-go breakfast and lunch customers is brewing for QSR marketers. Along with lingering inflation, QSRs face growing competition to promote value in attracting and retaining customers as price-conscious consumers are quick to switch loyalty for the best deals. In fact, two in three customers say they download restaurant apps or loyalty programs to find deals and freebies, according to a Bluedot report

     

    As QSR advertisers place an emphasis on finding the most effective ways to reach new and existing customers — and to ensure that their ad dollars work harder with minimal waste, many are already embracing Connected TV (CTV) advertising to reach a vast and engaged audience. This year, eMarketer projects that US adults will spend 4 hours and 49 minutes per day watching TV — and nearly 40% of that daily TV time will be spent streaming.  Additionally, 86% of US households are projected to be Connected TV households.*

     

    CTV advertising is proving to be effective for driving full funnel results for QSR marketers — and 92% of ad-supported OTT viewers visited a QSR in the last 6 months, according to a November 2022 MRI-Simmons Cord Evolution study.  Among the report’s other notable audience findings:

    • 88% of ad-supported OTT viewers visited a QSR in the last month. 
    • 83% of people who used a QSR coupon are ad-supported OTT viewers.
    • 87% of people who visited a QSR more than 9 times in the last month are ad-supported OTT viewers.
    • 88% of people who spent more than $100 at a QSR in the last month are ad-supported OTT viewers.
    • 87% of people who agree that eating at a QSR helps them stay in budget are ad-supported OTT viewers.

     

    From driving brand awareness with demographic or contextual targeting to intender and audience-first targeting, QSR advertisers have access to a wide array of CTV targeting capabilities. Additionally, QSR brands can make their CTV campaigns more personalized with the use of dynamic creative ads. For instance, a QSR brand can embed a scannable QR code to promote their newest menu offerings and special offers and provide directions to the nearest location. This adds an extra layer of relevancy for driving performance with specific localized and personalized call to actions.

     

    With advanced measurement and attribution capabilities, QSR advertisers can measure the effectiveness of their CTV campaigns in more precise ways and connect CTV viewership with direct business results. Additionally, QSR brands can go deeper to understand the true impact of their CTV campaigns on viewer perceptions with brand lift studies. For a popular fast-food restaurant chain, we measured the impact of our CTV holiday campaign that introduced desserts and baked goods to holiday shoppers living near their restaurant locations. Our brand lift study measured a +1143% lift in ad recall of the holiday message, +91% lift in awareness of the dessert offering availability, +52% lift in awareness that these desserts make a good gift, and a +363% lift in purchase intent among the viewers exposed to the campaign.

     

    Beyond following the streaming shift, QSR advertisers that take advantage of the plethora of new targeting and measurement capabilities will ensure that their ad dollars are spent wisely to reach high-value audiences to drive measurable outcomes.

     


    Regular-Season College Basketball Sees 7% Increase In Viewing, TV Spend Up 22%

     

    Regular-Season College Basketball Sees 7% Increase In Viewing, TV Spend Up 22%

    Leading into next month’s high-profile NCAA Men’s Basketball Tournament, also known as “March Madness,” regular-season college basketball continues to see steady viewership -- up 7% over a year ago.

    National TV spend is sharply higher -- 22% more across virtually all TV networks airing , according to iSpot.tv.

    From November 10-February 20, total national TV viewing came in at 16 billion impressions, amounting to $99.8 million in advertising revenue.

    A year ago over the same period, impressions totaled 14.9 billion, while national TV ad revenue amounted to $81.7 million.

    TV commercials airing during the game have averaged a 97 “attention” index, according to iSpot. The attention scale is 0 to 200, with 100 the average. A year ago, TV commercials averaged a 108 index, iSpot said.

    “Attention” measures viewer attention based on a viewer's tendency to interrupt an advertisement on TV. That can include viewer actions that interrupt a TV ad such as changing the channel, fast-forwarding or turning off the TV, which decrease the creative's attention score.

    Typically, the three-week March Madness event is college basketball's overwhelming revenue driver. It roughly generates just over $1 billion in national TV advertising revenue for the three-week period across CBS and Turner TV networks, which air the games.

    Sports TV advertising remains a stable media buy for major brand campaigns.

    For the regular-season college games so far, the top five paid TV advertising brands in terms of impressions for viewers 18 years and up are Sonic Drive-In (437.3 million) followed by Lexus (426.0 million); Progressive Insurance (413.4 million); Capital One (305.4 million) and Geico (269.0 million).

    In terms of top TV networks airing college basketball this season, ESPN has totaled 6.3 billion impressions ($24.3 million in estimated TV spend), followed by ESPN2 with 3.3 billion impressions ($14.1 million); CBS with 2.2 billion impressions ($6.2 million); Fox Sports 1 with 2.1 billion impressions ($7.3 million); Fox with 1.7 billion impressions ($5.3 million); and ESPNU with 1.3 billion impressions ($5.8 million).

    Contextual Advertising and Today’s Flexible Workspaces are the Perfect Pairing

     

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    Contextual Advertising and Today’s Flexible Workspaces are the Perfect Pairing

    Contextual Advertising and Today’s Flexible Workspaces are the Perfect Pairing

    Publish date

    February 22, 2023 (ET)


    Just a few years ago, only a handful of forward-thinking companies supported remote work. But then, in a surprising twist, the whole world was forced into remote and hybrid work as a way of navigating lockdowns. Since then, employees and many employers have embraced the flexibility that hybrid work offers.

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    Similarly, some companies feel that the traditional, long-term lease may no longer fit their work model and real estate needs. They found new freedoms in exploring a hybrid experience, extending flexibility to their employees and increasing their ability to adapt to the needs of their business. Many turned to a growing number of coworking spaces. In fact, the number of co-working spaces, also known as flexible workspaces, in the U.S. rose from 4,000 in 2017 to 6,200 in 2022, an increase of more than 50%.

    Companies are now recognizing the importance of offering flexible work arrangements in order to attract and retain top talent. In today's fast-paced and constantly evolving business landscape, a competitive salary and benefits package alone is no longer enough. Providing the option for employees to work from various locations and during preferred hours has become one way that companies increase job and workplace satisfaction.

    For that reason, today’s businesses are increasingly turning to flexible workspaces, like those offered by WeWork, to provide employees with fully-furnished and customizable alternatives to the traditional office. These spaces have all the amenities of the traditional office — plus more — but do not require long-term lease agreements, utility costs, maintenance costs, and stagnant size arrangements, allowing easy scalability in a time when businesses are in flux. And now, WeWork offers bonus amenities like digital screens to keep workers informed, entertained, and engaged during their work day.

    The New Frontier for High-Value Professionals

    High-value professionals, especially, are in high demand and sought after by companies for their contributions to the success of the organization. In this new era of hybrid and remote work, these prospects are looking for a dynamic, modern, and inspiring work environment with benefits, perks, networking, and amenities that make the company they invest time in worth their commitment.

    They are typically affluent consumers and influential business decision makers — the hard-to-reach consumer whom most brands would love to engage. But how can your brands get inside the walls of this new world to meet these consumers in the most available moments of their day? The answer lies in the perfect pairing of curated content on digital screens and these upscale, modern co-working spaces.

    Engaging the Audience

    Much like the workplace, the digital advertising realm is changing. Privacy issues are forcing major browsers to disallow third-party tracking, and cookie-based advertising is no longer at the forefront of great advertising strategies. In 2020, just as remote work was ramping up, nearly half of digital media professionals responding to one survey said that the loss of third-party tracking was their biggest digital media challenge.

    And that doesn't even account for the increased use of ad-blockers and general numbness to internet ads. According to one Hubspot article, there are nearly 200 million ad block users around the world, and over half of the users who see banner ads don't trust them enough to click on them.

    This makes it harder than ever for brands to reach the type of high-value professional who drives the decision-making process — the same type of professional who is now spending the bulk of their days in inviting workspaces that encourage networking and a work-life balance, all in, as a Gensler survey puts it, “an effort make the office feel like a destination rather than an obligation.”

    This is where digital screens and curated content come into play. Today’s digital screens, placed in these upscale locations, offer a constant stream of real-time, relevant content that appeals to viewers and draws both their eyes and their attention.

    The right digital network provides a continuous feed of desirable content, such as national and local news, sports scores, stock updates, uplifting stories, transit information, and more. When placed in areas where a highly coveted demographic like those working at popular WeWork locations gather, this engaging experience is a prized amenity — and the perfect place to include contextually relevant ads right alongside the relevant content the audience loves.

    The Benefits of Reaching Your Audience in a Modern, Inspiring Space

    Ad agencies today have a prime opportunity to help their brands make inroads into this new frontier. The best digital screens provide workers in the space something to do when they have downtime and a way to bond with fellow workers. Ads on digital screens offer brands the ability to target specific audiences by demographic, industry, company size, job title and more. This ensures ads resonate and influence the audience to intentionally return to their desk just to research, explore, and purchase.

    By placing relevant ads alongside content that workers in a co-working space are actively engaged with, advertisers create a win-win situation. Targeted, desirable ads reaching these workers at multiple times throughout their day lead to influence that drives both personal and professional purchasing decisions. Ads that are relevant to the type of work employees are already doing and the lifestyles they have in common give workers a conversation starter and help encourage a sense of community in these spaces.

    Today’s Successful Brands Start Here

    Members of coworking spaces like those at WeWork are early adopters of technology and influential decision-makers in both their professional and personal lives. It only makes sense that Captivate, with one of the largest digital screen footprints in North America, would partner with WeWork to offer these upscale, hard-to-reach professionals the best amenities and value-rich content possible.

    To that end, Captivate delivers WeWork's highly impressive audience to advertisers. With advanced ad targeting, curated, relevant content and programming, and advanced measurement and attribution solutions, it’s a marketing strategy that brands won’t want to ignore. Visit us today to see how Captivate’s turnkey communication solution can help your brands thrive among today’s leading, hard-to-reach audiences