COMMENTARY New TV Ad Categories: Are They Up to Snuff? Place Your Bets

COMMENTARY

New TV Ad Categories: Are They Up to Snuff? Place Your Bets

• by Wayne Friedman , Staff Writer, 7 hours ago

TV network and station executives love new advertising categories. Over the last several years, they have put a lot of promise into sports betting and gambling, for example.

While that category continues to rise -- up 17% so far this year (through December 7) to $360.4 million in national TV spending, according to EDO Ad EnGage -- some recent observations have been made that these results as underwhelming. 

During a recent industry event, Nexstar Media Group executives were a bit less enthusiastic about some categories than others in terms of new TV brand advertisers replacing much of the decline seen in automotive TV advertising over the past periods.

More recently, automotive TV advertising has been rebounding.

Major national TV brands with high spending this year so far include FanDuel ($150.2 million), Draft Kings ($114.9 million), and BetMGM ($40 million), which continue to occupy top brand positions.

However, looking at the bigger picture -- for all gambling advertising -- MediaRadar touts the importance of the category. It says that for all of 2022, for example, total advertising from gambling marketers was up 40% to $866 million. 

In the fourth quarter of 2022 alone, the business spent nearly $300 million on all advertising -- growth that came despite having 3% fewer advertisers (475).

Roughly 80% of all gambling advertising goes into TV.

For sure, many will look at sports gambling and gaming pieces of the market to fuel more legal gambling business overall.

For example, in addition to the big three sports-betting marketers, there was the recent launch of ESPN/Penn Gambling's ESPN Bet. It already plunked down $9.4 million in national TV ad spend.

Nearly 30 states currently have online sports betting currently or are pending. Overall growth is projected to continue to slowly rise to the mid-40 range in the next several years, according to MoffettNathanson Research.

Still, some parts of the TV ad marketplace are puzzling and disappointing.

National spot -- a key component of TV stations advertising coffers -- might be a bit sluggish when it comes to categories including sports betting as well as media, healthcare and insurance, according to a recent report in S&P Global Market Intelligence. 

The bottom line? This activity -- or the lack of it -- has been a key element of a "mixed" ad market. Many executives will not want to make a wager on this cloudy picture.

This column was previously published in the December 11, 2023 edition of  TV Watch.

VIDEO YouTube Names Best-Performing Ads, Brand Strategies of The Year

VIDEO

YouTube Names Best-Performing Ads, Brand Strategies of The Year

• by Colin Kirkland , December 22, 2023

YouTube has released its list of its most popular brand strategies, such as tapping into longer-form videos, as well as which ads performed best on the video-sharing app, listing campaigns from Apple, Louis Vuitton and Pepsi.

According to YouTube, Apple received 18 million views for its 90-minute-long video called “Study With Me,” which featured actor Storm Reid using various Apple devices to educate viewers about maximizing study time.

Louis Vuitton also ranked high on the list. Utilizing a similar long-form strategy as Apple, the French luxury fashion house shared a 20-minute-long fashion show featuring Spanish recording artist Rosalia and other celebrities. The video currently has over 13-million views.

Pepsi landed a top spot as well for its "use of formats, lengths, and style” across various campaigns.

However, the ads that gained the most attention -- attracting hundreds of millions of views -- fell under the company’s branded “Rise Up Baby” series of Bollywood-style music videos, intended to engage a younger global audience.

YouTube was used by more U.S. teens than any other social-media platform in 2023.

YouTube has also provided a list of suggested strategies that brands can make use of while planning campaigns in 2024.

Most notable is the importance of long-form video, especially since more people are watching YouTube videos on their televisions at home. In fact, YouTube ranked as viewers' most-watched platform on connected TVs for most of 2023, according to Nielsen.

Longer videos give creators and brands more time to tell a story, feature celebrities and trends, and engage users for a longer amount of time with a potentially more impactful result. For brands who did it best, YouTube mentions Nissan's four-hour listening experience and Samsung’s live-stream of its entire Galaxy S23 Ultra launch event (which has over 19 million views).

But despite the growing popularity of long-form video, YouTube's fastest-growing content format is still Shorts, and YouTube suggests brands expand their promotions to the feature originally based on TikTok's short-form video feed.

“When YouTube advertisers added a vertical creative asset to their Video Action Campaigns, they delivered 10% to 20% more conversions per dollar on Shorts than campaigns that used landscape assets alone,” the company states in a blog post.

Finally, YouTube suggests advertisers make use of emerging AI tools in order to maximize their campaign targeting and performance, stating that “ AI-powered Video Reach Campaign mixes on YouTube earned an average return on ad spend 3.7X higher than manually optimized campaigns.”

 Thinking about our brains. Could this help? Philip Jay LeNoble, Ph.D.

COMMENTARY

The Psychic's Brain: Ephron On Attentiveness

• by Joe Mandese  @mp_joemandese, 7 hours ago

Of the many adjectives and descriptors used to describe Erwin Ephron -- guru, genius, simplifier, prognosticator -- I don't recall "psychic" being one of them, so I'm invoking it in this column, because after thumbing through the Advertising Research Foundation's excellently executed use of ChatGPT to curate and reinterpret some of his remarkable newsletter insights, I was struck by one he wrote that seems to have set the stage for the rapidly emerging debate surrounding so-called "attention metrics."

Needless to say, they weren't labeled as "metrics" when Ephron wrote his "Lizard Brain Learning: Attentiveness Seems to Have Grown Another Head" dispatch in July 2007, but after re-reading it, I think he identified what should be the core of the debate: Not whether media researchers could use new and emerging technologies to measure physiological markers of human attention, but how to interpret and what to do with them.

Here's how ChatGPT -- with an able assist from the human editors contributing to the ARF project -- summarized it:

"This newsletter humorously explores the concept of the brain's attentiveness, particularly in relation to advertising. The newsletter jests at the idea of one's brain being entertaining company, making references to constellations and witty remarks. It cites a point-of-view presented in the Media Research Club of Chicago Review that discusses how to address inattentive TV viewers in media planning. The piece highlights the notion that beyond attentive attention, there exists inattentive attention. The central argument revolves around the "Lizard Brain," a proposed instinctive cognitive system that's always alert, noting and categorizing stimuli without our conscious realization. The newsletter questions the relevance of this concept to media planning, especially considering that most disengagement with TV isn't due to inattentiveness but rather viewers no longer watching.

And here's how ChatGPT reinterpreted it for our contemporary context:

"In the current media landscape, where multitasking and fragmented attention are the norms, the idea of the "Lizard Brain" or subconscious processing is increasingly pertinent. As users switch between devices, platforms, and content, understanding how information is processed, even subconsciously, becomes crucial for advertisers. The reinterpretation underscores the importance of crafting memorable, impactful ads that can resonate even in a distracted environment. While the newsletter humorously critiques the notion of inattentive attention, the modern media landscape demands strategies that cater to both attentive and inattentive viewers. With advancements in neuromarketing and biometric tools, advertisers can gain deeper insights into how content is consumed, paving the way for more effective, subconscious-resonating campaigns. The challenge lies in balancing engaging content with the reality of fragmented viewer attention."

It's ChatGPT's last line that I think captures the spirit of what Ephron would be advising us all today: the challenge of how to apply it.

One of the things Ephron taught me long ago is that there is no perfect form of media research. Even explicit observational studies have their biases. And as good as neuromarketing, biometrics, and computervision are in unlocking some of the mysteries of our "lizard," mammalian, or contemporary human brains may be, we still need to apply our brains to interpret what those outputs actually mean.

There are 151 similar breakdowns -- summaries and reinterpretations -- in this special ARF fundraising initiative. I highly recommend reading all of them if you want to apply more of your own brain.

AUTOMOTIVE

Automotive TV Spending Down 8.9% In November, 15.8% YTD

• by Tanya Gazdik , December 22, 2023

Automakers spent an estimated $274.3 million on national TV spending in November, down 8.9% compared to a year ago. 

Year-to-date through December 14, spending is down 15.8%, according to iSpot. tv.

TV ad impressions were down 18.5% in November to 25.2 billion. But year-to-date impressions were up 4% to 306.6 billion.

The top five brands by estimated national TV spending in November were Hyundai ($27.5 million), Honda ($26.8 million), Toyota ($23.5 million), Chevrolet ($22.9 million) and Nissan ($17.9 million).

The top five brands by share of automaker household TV ad impressions in November 2023 were Hyundai (9.13%), Nissan (8.31%), Toyota (8.02%), Ford (7.35%) and Chevrolet (6.94%).

The most-seen automaker ads by share of household TV ad impressions, November 2023 were Kia: Bird’s Eye View (2.39%), Honda: Keep Dreaming (1.95%), Hyundai: Get In and Get Away: Vail (1.47%),  GMC: THE Truck (1.33%) and Ram Trucks: Holidays: Tree Sap (1.15%).

Although the NFL was the top source of estimated national TV ad spend for four of the top five brands (except Nissan), it was college football that had a more notable focus year-over-year for automakers in November, per iSpot.tv.

Automakers continued to harness the broad reach provided by football, taking advantage of big college and NFL games throughout the month of November, said Stuart Schwartzapfel, executive vice president, media partnerships at iSpot. 

“But the in-season tournament also helped NBA games score for automakers, as increased audience interest in those regular season games helped deliver more TV ad impressions year-over-year,” Schwartzapfel tells Marketing Daily.

As a whole, the industry increased its national TV ad spend on games by 45% this November compared to last, with Hyundai having the largest jump; up 252% year-over-year. Honda also increased its outlay on college football games by 64%, while Nissan upped spend on games by 22% this November compared to last, per iSpot.tv. 

The top five brands also went bigger on NBA games this year, including investments from Honda and Nissan, which didn’t advertise with the NBA in November 2022. Hyundai’s estimated national TV ad spend for NBA games was up 170% year-over-year, while Chevrolet shelled out 145% more money and Toyota increased its NBA outlay by 82% compared to November 2022. 

The biggest estimated spend increases among top 15 brands by spend, November 2023 vs. November 2022 were Ford (+201.2%), Nissan (+23.4%), Honda (+15.4%), Subaru (+13.4%) and GMC (+0.6%).

Notably, among the top 15 brands by November 2023 spend, only five actually increased spend year-over-year — and GMC’s growth was by less than a percentage point, per iSpot.tv. 

Football drove much of Ford’s climb, with the brand spending 61x more on NFL games this November compared to last, and 16x more on college football games; its investment in NBA games was also up by nearly 27x.

Football played a similar role for Nissan, which increased estimated national TV ad spend by 43% on NFL games as well as the aforementioned 22% on college football. Outside of sports, the automaker upped outlay in "The Voice" (+40% this November vs. November 2022) and "Modern Family" (Nissan didn’t spend on that show during November 2022), per iSpot.tv.

The top programs for automakers by share of household TV ad impressions in November 2023 were NFL (10.54%), College football (8.96%), NBA (0.99%), Men’s college basketball (0.68%) and "Today" (0.61%).

Football is again a key driver of automaker TV ad impressions, with the industry seeing an 18% year-over-year increase in impressions during NFL games and a 36% increase in impressions from college football compared to November 2022. Automaker impressions during NBA games were up 32% year-over-year, per iSpot.tv.

The top five brands by estimated national TV ad spend year-to-date through Dec. 14 were Chevrolet ($191.8 million), Hyundai ($168.9 million), Toyota ($166.4 million), Ram Trucks ($156.3 million) and Kia ($145.2 million), per iSpot.tv.

Automaker estimated TV ad spend was down nearly 16% year-over-year, but part of that is due to the Olympics and World Cup — large advertising events for many industries, including automotive — that happened in 2022 but not in 2023. 

Sports were still the primary focus for the industry as a whole, with automakers seeing a minor 2% year-over-year increase in estimated TV ad spend for NFL and a more notable +23% for college football, per iSpot.tv.

 Very interesting choice of young Americans, Gen Z preferring animals over humans.. Philip Jay LeNoble, Ph.D.

PETS

67% Gen Z, Young Millennials Choose Pets Over Kids

• by Tanya Gazdik , Yesterday

A recent survey shows a large number of Americans are choosing pets over parenthood.

Due in part to costs, 40% said they are choosing pets over kids, rising to a staggering 67% for the Gen Z / young millennials age group.

USA Today Blueprint surveyed 1,000 dog owners nationwide. 

Nationwide, 67% of people ages 18 to 26 say they are choosing pets over parenthood, at least for now. This percentage drops to 43% for ages 27 to 42 and to 28% for ages 43 to 58.

The Northeast has the highest percentage of dog owners (61%) who chose their dog over having a child, followed by the West, Midwest and Southwest.

The Southeast (21%) has the lowest percentage of people who chose dogs over children.

Almost three-quarters (74%) of those surveyed and 98% Gen Z/young millennials say that the cost of a child was the main reason they chose to get a dog. More than 80% of survey respondents opting out of parenthood said caring for a dog is easier.

Even though dogs cost less, the average cost of canine ownership is $376 a month or $4,512 a year, per USA Today Blueprint. A majority of owners (91%) have experienced financial stress over the cost of dog ownership.

Nearly 50% of survey respondents said they consider their dog when making career, travel and romantic decisions.

Nearly 60% of respondents say they consider their dog when it comes to housing options.

Dogs play the greatest role in decision-making for people ages 18 to 26. Nearly 90% of this age group say they consider their dog when making decisions about their career, and 80% say they think of their dog when making romantic decisions.

Radio Listeners Do More Shopping and Spend More.

 

Survey: In Holiday Homestretch, Regular Radio Listeners Do More Shopping and Spend More.

• Dec 15, 2023 Updated Dec 15, 2023
 

Scott Olson

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The National Retail Federation is projecting 158 million Americans will shop Dec. 23, the last Saturday before Christmas this year. NRF's long-range forecast for the holiday season is that retail sales from Nov. 1-Dec. 31 will see a 3-4% lift vs. 2022, resulting in record total sales between $957.3 and $966.6 billion. A new survey of 1,000 adults across the U.S. shows that radio listeners are more likely to be among those inserting and swiping their credit cards here in the holiday shopping homestretch.

For its 2023 Holiday Shopping Study, Katz Radio Group compared the shopping behavior and spend levels of regular radio listeners – consumers who tune into AM/FM radio at least a few times each week – with those of the average adult and to light and non-listeners of radio.

According to the rep firm’s survey, 85% of regular radio listeners participate in the winter holiday season. And when it comes to holiday purchases, they have more robust shopping lists than other consumers.

The Katz survey data show one in five (21%) regular radio listeners feel that they do "a ton" of holiday shopping. That is 17% more likely than the average adult, and nearly twice (+91%) more than for light and non-listeners.

The study found that regular radio listeners outspend other consumers during the holiday season. These listeners say they will plunk down an average of $626 during the holidays. Not only are they outspending the average adult by $72, but they also plan to spend a whopping $241 more per person than light and non-listeners of radio.

When it comes to how brands can best influence these valuable consumers, Katz says the answer is obvious: “Invest in AM/FM radio, start early, and end strong.” Its report says 35% of regular radio listeners reported beginning their holiday shopping before Thanksgiving. And by the end of the T-Day weekend, 56% of regular radio listeners had already begun making holiday purchases. “Hitting radio listeners early with holiday promotion messaging ensures brands stay top of mind with these early shoppers,” the report says.

But with the days until Christmas flying by like paper in the wind, Katz tells advertisers there’s still time to impact how these lucrative holiday shoppers' dollars are being spent. Four in 10 radio listeners saved their holiday shopping until December and are primed for retailers' final push of the season.

“With bigger shopping lists and budgets being spent throughout the season, regular radio listeners are ideal consumer targets for holiday advertisers,” the Katz report says. “Tuning in frequently, they are the consumers most likely to be exposed to advertising on radio, and best qualified with the intentions and funds to act on brand messaging.”

 Something scary about to pop in news TV that may spread and become a reality feature: 

What you see and hear nay not be real! Philip Jay LeNoble, Ph.D.

None of these anchors are real: Channel 1 plans for AI to generate news, broadcasters

Is this the future of news? "You can hear us and see our lips but no one was recorded saying what we're all saying."

Anthony Robledo

USA TODAY

The world's first news network entirely generated by artificial intelligence is set to launch next year. 

Channel 1 AI - Personalized Global News Network

Channel 1 released a promotional video explaining how the service will provide personalized news coverage to users from international affairs, finance and entertainment. The outlet said how their team of AI generated reported can offer a global perspective 24/7.

The reporters in the video appear to be human but are actually made from the scan of a real person. With digitally generated voices and zero human emotion, the reporters can tell the news in any language.

"You can hear us and see our lips but no one was recorded saying what we're all saying," an blonde artificial journalist who appears to be a real human person said in the video. "I'm powered by sophisticated systems behind the scenes."

Founder and entrepreneur Adam Mosam said the news aired on the network will come from legacy outlets and commissioned freelance reporters. Additionally, the AI will generate its own reporting from public records and government documents.

AI network to launch on streaming by spring

The creators Mosam and film producer Scott Zabielski said they aim to launch Channel 1 AI for free with ad-supported streaming on apps this spring.

The founders are also planning a Channel 1 app with its own translation feature by the summer.

New ways to cheat?Scientists say AI is emerging as potential tool to aid athletes, beat drug tests

Creators say program will re-create real events

The initial demo of the network relied on stock footage and photos however the creators said they intend to re-create events not captured by camera using generative AI, according to a story by The Hollywood Reporter published in July.

"The closest analogy I could give is when you talk about a trial that was covered with 'there’s no cameras allowed' and you’ll see the courtroom sketch," Mosam told The Hollywood Reporter. "What we’re looking to do potentially is to add visuals where we would clearly denote this is generated imagery. So we’re not trying to pull the wool over anyone’s eyes to say like, 'Our cameras were inside the Oval Office when this meeting happened.'"

Zabielski said that the channel follows what other companies such as Spotify and TikTok use to make the user experience more personal, adding "that’s something we don’t really see in news yet."

"This is terrifying. Sure, news will be easier and quicker to produce, but the costs overwhelmingly outweigh the benefits. AI news is a new frontier that will make it easier for bad faith actors to spread misinformation and disinformation. We can't even imagine the impact," Washington wrote.

"If you believe in the concept of 'fake news,' you have seen nothing," Ruby Media Group CEO Kristen Ruby wrote on X (formerly Twitter). "At least your news is presented by humans. When AI news anchors replace human news anchors - the concept of fake news will have a totally different meaning."

Questions raised about AI's journalistic integrity

Channel 1 has raised concerns about the accuracy and journalistic integrity of AI generated reporting.

LAist Associate Editor Aaricka Washington said the promotional video shows how easy it will be for AI news to spread misinformation.

 Better consider what you say on your mobile device as you may be heard by smart marketers. Philip Jay LeNoble, Ph.D.

Cox Media Group Claims It Can Target Ads Based on Conversations

• by Wendy Davis  @wendyndavis, December 15, 2023

In what appears to be a first-of-its-kind boast, Cox Media Group claimed in marketing materials that it can use microphones in smartphones and other web connected devices to listen in on people's conversations, and then target ads to people based on those conversations.

“It's True. Your Devices Are Listening to You,” the Cox Media Group (CMG) Local Solutions division wrote on a website (now archived) touting “active listening” technology. “With Active Listening, CMG can now use voice data to target your advertising to the EXACT people you are looking for.”

A separate blog post dated November 28 says the company's technology “detects relevant conversations via smartphones, smart TVs, and other devices.”

“We can identify buyers based on casual conversations in real time,” the company writes. “The growing ability to access microphone data on devices like smartphones and tablets enables our technology partner to aggregate and analyze voice data during pre-purchase conversations.”

404media first reported on Cox Media Group's claims.

Late Friday, soon after reports emerged about the company's technology, Cox Media Group stated that its marketing tools include “third-party vendor products powered by data sets sourced from users by various social media and other applications then packaged and resold to data servicers.”

The company added: “Advertising data based on voice and other data is collected by these platforms and devices under the terms and conditions provided by those apps and accepted by their users, and can then be sold to third-party companies and converted into anonymized information for advertisers. ...CMG businesses do not listen to any conversations or have access to anything beyond a third-party aggregated, anonymized and fully encrypted data set that can be used for ad placement.”

The company hasn't yet said whether this technology is actually being deployed.

Some consumers have long suspected that tech companies eavesdrop on conversations by activating smartphones' microphones, and then serving ads based on what's overheard, but there's never been any proof that this is the case.

What's more, Apple and other companies have always denied doing so.

“When we store Siri data on our servers, we don’t use it to build a marketing profile and we never sell it to anyone,” Apple stated in 2019. “We use Siri data only to improve Siri, and we are constantly developing technologies to make Siri even more private.” 

Some other companies have attempted to draw on smartphones' microphones, but in a more limited way than what Cox described in its marketing materials. The best known example is probably SilverPush, which deployed tracking software that monitored people's television use by embedding "audio beacons" in TV ads. Those beacons are inaudible to people, but can be detected by the software, which comes bundled with mobile apps. The software activates microphones in the phones, which then pick up the beacons and can compile a log of TV programs viewed while the smartphone was turned on.

SilverPush reportedly said the technology was in use in India, but not in the U.S. But the technology was still incorporated into at least a dozen Android apps, according to the Federal Trade Commission. In 2016, that agency warned developers of those apps against using this technology without people's knowledge.

 Your local-direct clients should always state their brand's benefits in their ads to add value to the consuming public. This is the only way for them to grow against all competitors in who advertise in their communities. Philip Jay LeNoble, Ph.D.

COMMENTARY

'Tis The Season for Brands to Deliver Meaningful Value

• by Laura Rollins , over 1 hour ago

The holiday season is frenetic for consumers and marketers alike. As consumers cope with the season’s hustle and bustle, marketers face big financial stakes, with holiday retail sales reaching $929.5 billion in 2022 and brands investing $1.9 billion in advertising in December alone, according to Statista, with even more anticipated this year.

As marketers, we think of brands as carefully orchestrated identities. As people, we think more simply: The products and services we use are part of our daily lives. No time of year makes this more apparent than the joyful yet stressful holiday season. Unconsciously, consumers ask: What brands help me maintain my sanity while conquering my endless to-do list -- and maybe even add some delight to my day?

The iconic brands that capture people’s attention during the chaos of the holidays are those that deliver meaningful value. Here are three simple ways to earn consumer attention during the holiday marketing onslaught.

Value my time.Over Black Friday weekend, I was buying an embarrassingly expensive hair styling device (in my defense, it was on sale!). Unfortunately, I struggled to complete the purchase on the brand’s website, inadvertently missing significant freebies that were part of the deal, which meant an hour on the phone to resolve the issue when I could have been doing something else.

Smart brands recognize that time is a commodity that’s as precious as money. Whether it’s Ikea offering insight on how their products can be used to get precious alone time during the party season, or Cutwater saving hosts from having to shake their own cocktails, it’s highly motivating when brands are prepared to help save us time this season.

Value my budget.During the holidays, spending adds up quickly. While most brands can't and shouldn’t be built on offers alone, this is the time when value can capture attention and create positive brand perceptions.

While many brands try to tug heartstrings over the holidays, with emotional and nostalgic creative hoping to inspire customer loyalty, companies like Chewy’s “Pets Just Aren’t Pets, They’re More,” and Aldi’s “Swindle” campaign, use humor to unapologetically focus on highlighting value and low prices.

Meanwhile, Target’s “However You Do It, Do It For Less” campaign positively highlights the value of saving -- with its upbeat vibe coming from its music, not jokes.

Value what I value.With our endless to-do lists, it can be easy to lose focus that the holidays are really about loved ones and the giving spirit. Companies can tap into the emotional draw of the season to humanize their brand. 

It’s also a great opportunity to live your brand perspective with consistency. Consumers appreciate this, with more than half of Aprimo 2023 Holiday Content Survey respondents (53%) saying they prefer brands that are consistent in their holiday messaging.

Many beloved brands, such as Patagonia, do this well. For example, the iconic brand focused its Black Friday saving message on helping to save an endangered part of Alaska's wilderness. 

In a season that’s most often defined by American consumerism, it’s the iconic brands that bring meaningful value to the season and into the lives of their customers that will capture much-desired consumer attention.