Monday, October 30, 2023

70% Of Netflix, Disney+, Max Subscribers Still On No-Ads Tiers

 

70% Of Netflix, Disney+, Max Subscribers Still On No-Ads Tiers

More than 70% of U.S. adults who subscribe to Netflix, Disney+ and/or Max report being on those services’ ad-free tiers, according to a Gfk survey conducted for local television trade group TVB.

The scenario is reversed with Hulu and Peacock subscribers, with 57% and 64%, respectively reporting that they are on ad-supported plans. Subscribers to Paramount+ and Discovery are about evenly divided between ad-free and ad-supported plans.  

Eighty-eight percent of adults report having at least one video streaming service/SVOD. (All paid video streaming services, with or without ads, are termed "SVODs" in this report.) Of those, 92% report having at least one ad-free paid streaming service, while just 8% report using only streaming services with ads. Just 12% of all adults report having no paid streaming subscriptions.

Few subscribers report having both the ad-free and with-ads tiers of a given service’s plans, ranging from 2% of Max subscribers to 9% of Discovery+ subscribers.

Meanwhile, although 18% of respondents report watching no broadcast TV, broadcast TV and local TV news website/apps were found to reach 88% of those who subscribe to SVODs with no ads.

The survey, conducted in June among 4,000 U.S. consumers 18 and older statistically representative of that population segment, also found that two-thirds subscribe to Netflix, 58% to Amazon Prime Video, 43% to Hulu, 37% to Disney+, 28% to Peacock, 27% to Max and 25% to Paramount+. Apple TV+, ESPN+ and Discovery+ range from 18% to 11%, and just 5% report having the solo Showtime app.

Younger adults tend to have more SVOD subscriptions than older adults: 97% of those 18 to 34 have at least one SVOD service, versus 85% of adults 35 and older.

And in a finding that differs from other recent surveys, younger adults were also found to having more ad-free subscriptions: 80% of those 18 to 34 subscribe to Netflix and Disney+ without ads.

Younger adults also tend to have more TV sets per household: three, versus 2.5 for older adults.  

Hispanics and Black/African Americans have more TV sets (2.8 and 3.1 respectively) than the average for all adults (2.6) and tend to have a higher rate of subscriptions to SVOD (94% for Hispanics compared to 88% for adults 18+). Hispanics are also more likely to have ad-free subscriptions, with 79% subscribing to Netflix without advertising.

The TV set was cited as the top choice for viewing streamed content across all the major streaming services, cited by between 76% (Apple TV+) and 81% (Amazon Prime Video). Mobile is No. 2, cited by between 7% and 11%, depending on the service.

On the traditional TV front, significantly more respondents report watching broadcast networks than cable networks, no matter the demo.

Nearly two-thirds (65%) of those 18 to 34 view local broadcast news on a TV, with 60% using local TV news website/apps.

Eighty-two percent of all adults report watching broadcast TV, and 81% report watching local broadcast TV news either on TV or through an app/website.

Three quarters (76%) who own a TV (which is 92% of all adults) watch local TV news, and 56% use a local TV website/app.

Local TV news is the most trusted news source (79%). Local TV news websites/apps (70%) are the most trusted digital source, while social media (40%) is the least trusted platform.

More than a third (38%) report having downloaded local broadcast TV news apps to their TVs, and 45% to smartphones, tablets or PCs

Consumers Could Save $366 Per Year Via Ad-Supported Streamers

 

Consumers Could Save $366 Per Year Via Ad-Supported Streamers



The average U.S. streaming household could save $366, on average, by switching from premium SVOD tiers to ad-supported/AVOD tiers, according to new research from Parks Associates.

The average streaming household subscribes to 5.6 streaming services, and the top services, including Netflix, Prime Video, Hulu, Disney+, Max, Paramount+, Peacock, and Discovery+, offer or plan to offer an ad-based option that is, on average, $5.44 cheaper per month than their basic, ad-free service, per the analysis.

“The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options,” said Jennifer Kent, vice president, research, Parks Associates. Still, “not everyone’s favorite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences,” she notes.

Nielsen Delays Sunsetting C3 And C7 Data Another Year

 

Nielsen Delays Sunsetting C3 And C7 Data Another Year

Although the Nielsen One cross-platform impression-based service is still on track to debut in September 2024, Nielsen says its now venerable C3 and C7 ratings "currency" media-buying metrics will be around for another year.

Those panel-based measures -- the average commercial minute ratings for three and seven days of time-shifted viewing based from around 40,000 households -- were due to stop at the time the new cross-platform Nielsen One platform is scheduled to start up for the new 2024-2025 TV season in September. 

The panel-based measurement will continue for at least another year, according to the company.

The continued popularity of C3 and C7 currencies during this past TV upfront advertising selling period in the summer slowed down the push for new “alternative” currencies, which were expected to come online then.

Deirdre Thomas, chief product officer at Nielsen, reportedly said buyers and sellers are not ready to give up C3 and C7 currency.

Nielsen released the first C3 ratings data for TV viewing for the 2009-2010 TV season.

Now, until next year, Nielsen will offer traditional panel-based audience measures (C3/C7) as well as new 'Big Data" impression-level measurement for clients who desire it, according to media agency executives.

"Big Data" comes from cable, satellite, telco, and virtual pay providers from TV set-top boxes and other technology, as well as TV set manufacturers, who offer automatic content recognition (ACR) data. Total 'Big Data' households are now at 45 million. 

Starting in September 2024, Nielsen One, the company’s new cross-platform measurement effort, will be launched -- offering this new, more granular, impression-level measurement and planned to be the single currency Nielsen offers to the marketplace. This data will be validated by its people-based panels and ACR data. 

Panel-based-only measurement based on some 40,000 households will go on as well, after September 2024, Nielsen says, with "data to be offered for historical purposes in an effort to aid in our clients transition to evolved measurement sets." 

Nielsen says Nielsen One can offer better accuracy with impressions as well as reach and frequency data. Impression data -- as compared to more general ratings data -- helps media buyers and sellers square linear and streaming viewership.  

Recently, Nielsen has made a 'Big Data" ACR/Smart TV deal with LG, and has made similar deals with Vizio as well as other platforms including Roku, Dish Network, and DirecTV.  It is also adding Comcast Corp. return-path, set-top-box data.

In addition, Nielsen will offer an Individual Commercial Metrics data stream available for transactions, and will provide impact data as planned later this year.

Nielsen has initiated an audit of this service with the Media Rating Council.

This story has been updated.

Women's Sports Growing On TV, Streaming - But Have a Way to Go

 

Women's Sports Growing On TV, Streaming - But Have a Way to Go

If desperate linear TV networks -- and local TV stations -- believe live sports is the main programming content draw that will keep viewers staying around, why not expand our vision of that content?

So, in that regard, where do women's sports fit in?

Apparently, there is some movement here. Women's sports now comprises 15% of all U.S. sports media coverage, according to new research by The Collective, a female-focused practice within Wasserman, a sports and entertainment representation company.

That may not sound like much, but consider that for years it remained at a more microscopic level -- around 4%.

What is driving all this new focus and attention on women's sports? Social media and streaming. 

According to the study, an average of 26% of streaming sports coverage has been dedicated to women’s programming since 2018 -- over 4,000 hours annually. Social-media accounts have dedicated over 18% of their sports posts to women's sports in 2022. 

Looking more specifically at sports networks focused on women's sports, the Pac-12, ACC Network, ESPNU and SEC Network garnered the highest share of women's sports coverage from 2018-2022 -- all more than 15%.

Still, there is a long way to go -- especially in the pro ranks. There are just a fraction of women's pro sports team events on TV compared to men's pro sports. -- the WNBA being one of the biggest. 

The study, conducted by Wasserman's global insights team, gathered data in partnership with ESPN Research, which funded the research.

For 2018-2023, it looked at data streams of linear 100 TV networks containing sports programming, as well as streaming platforms (ESPN+, Paramount +, Peacock and Amazon Prime); and more than 25 social media platforms; and other digital sites.

Summer and Winter Olympics already provide plenty of female-oriented sports -- pulling in higher levels of women sports viewers into the mix. Pro golf and pro tennis have also been a constant over the years on some TV networks.

In terms of where some of the next level of women's sports may come from, how about the nascent National Women's Soccer League? Or the new forthcoming soccer group -- USL Super League? Pickleball, perhaps?

The NFL made it a point that it witnessed a higher number of women viewers when Taylor Swift appeared in the stands to see her close friend, Travis Kelce of the Kansas City Chiefs play over the last several weeks.  Collectively, female viewing grew to more than two million.

But that's not all. This year's NCAA's Women's March Madness tournament witnessed an unexpected, sharp 43% rise in viewership to 2.2 million for the four Elite Eight round games on ESPN. Figure that there was a few female viewers taking the game in?

While sports is a seemingly must-have among linear TV networks and stations, a broader female viewing audience for sports programming would also be a major reason to play ball.

Streaming 'Everything' Bundle Coming? Linear TV's Demise Closing In

 

COMMENTARY

Streaming 'Everything' Bundle Coming? Linear TV's Demise Closing In

As TV consumers, we want everything -- preferably in one place. Picking and choosing a streaming platform here or there can be fun (as well as unsubscribing from time to time). 

But consumers might really want to have an easier time figuring out this whole TV network/platform buying thing -- at least according to Jason Kilar, former CEO at WarnerMedia and Hulu.

And not just for consumers -- but also for business executives running legacy media companies, who are facing challenges with their mostly money-losing streaming services.

Here’s the deal, he says: Give consumers a new form of pay TV “everything” bundle, in a new age streaming version.

Admittedly, this is something President and chief executive officer of Warner Bros. Discovery David Zaslav has also been considering -- even as he has methodically been cutting back on TV and movie production costs at Max. 

Kilar believes, as many others do, that Netflix seemingly has an insurmountable lead, with more 230 million global consumers and -- compared to other wannabe platforms -- really doesn’t lose many subscribers to “churn.”

Why? Netflix is big -- real big. It is the mothership streaming product for consumers.

Apart from this, Kilar thinks Hulu -- a place he used to work -- could have been a nascent streaming “everything” bundle thing.

He believes it could still evolve into that, at least as a model.

And think about it from the “everything” bundle perspective. Initially, major media companies were partners in Hulu -- NBCUniversal, 20th Century Fox, and Walt Disney. 

Still, he believes all this will take some determination and long-term thinking -- and yes,even more cost and investment. 

It's uncertain whether any of these Wall Street sensitive big media companies could buy into this -- enduring even more years of billion-dollar annual losses for their streaming D2C services.

If this isn’t the answer, what is?

Know this: Declining linear TV businesses are waiting for no one to save them.

Maybe send them a care bundle.

Friday, October 20, 2023

Americans' Trust in Media Remains Near Record Low

 GALLUP

Americans' Trust in Media Remains Near Record Low

STORY HIGHLIGHTS

  • 34% have a "great deal" or "fair amount" of confidence in media
  • 38% with no trust at all outpaces great deal/fair amount for first time
  • 70% of Democrats, 14% of Republicans, 27% of independents trust media

WASHINGTON, D.C. -- At 34%, Americans' trust in the mass media to report the news "fully, accurately and fairly" is essentially unchanged from last year and just two points higher than the lowest that Gallup has recorded, in 2016 during the presidential campaign.

Just 7% of Americans have "a great deal" of trust and confidence in the media, and 27% have "a fair amount." Meanwhile, 28% of U.S. adults say they do not have very much confidence and 38% have none at all in newspapers, TV and radio. Notably, this is the first time that the percentage of Americans with no trust at all in the media is higher than the percentage with a great deal or a fair amount combined.

These data are from a Sept. 1-16 Gallup poll, which, in addition to the low rating for the fourth estate, also found weak confidence ratings for the three branches of government.

The percentage of Americans with a great deal or fair amount of trust in the media has not been at the majority level since 2003, although before that -- in three readings in the 1970s and seven readings between 1997 and 2003 -- it was the norm. The public's confidence rating for the media has averaged 42% since 2004.

Partisan Divide in Media Trust Persists

Americans' trust in the media remains sharply polarized along partisan lines, with 70% of Democrats, 14% of Republicans and 27% of independents saying they have a great deal or fair amount of confidence.

There has been a consistent double-digit gap in trust between Democrats and Republicans since 2001, and that gap has ranged from 54 to 63 percentage points since 2017.

There are several notable findings in the degrees of trust registered by partisans:

  • For the third straight year, the majority of Republicans indicate that they have no trust at all in the media. This figure jumped 10 percentage points in 2020 and has been at or near 60% since then. This year, 57% say they do not have any confidence, while 29% say they do not have very much.
  • At 27%, independents' confidence is at the lowest point in the trend. This is also the first time that it has fallen below 30%. Meanwhile, 41% of independents say they have no trust at all and 32% do not have very much.
  • While the great deal/fair amount of confidence reading among Democrats has never fallen below the majority level, the proportion with a great deal of trust has not topped 26%, and it is currently well below that at 18%.

There are some significant differences within several subgroups of partisans. These findings are based on aggregated data from 2020 through 2022, which allow for sample sizes that are sufficient for analysis.

  • There is a clear pattern by age, whereby older Democrats and independents are more trusting of the media than their younger counterparts.
  • While liberal and moderate Democrats register roughly equal levels of trust in the media, independents' trust differs markedly, based on their political ideology: Those who describe themselves as liberal are the most confident, and conservatives are the least confident. This pattern is similar among moderate and conservative Republicans, though it is somewhat less stark of a difference. (There were not ample numbers of liberal Republicans or conservative Democrats to perform meaningful analysis among these groups.)
  • Independents with a college degree are more likely than those without a degree to express trust in the media, but there are no differences among Democrats or Republicans based on college education.

Bottom Line

Americans' confidence in the media has been anemic for nearly two decades, and Gallup's latest findings further document that distrust. The current level of public trust in the media's full, fair and accurate reporting of the news is the second lowest on record. This new confidence reading follows Gallup's historically low confidence in both TV news and newspapers in June and a new low in December's annual rating of the honesty and ethics of television reporters. Newspaper reporters received similarly low ratings in the same poll.

Partisans remain sharply divided in their views of the media, with most Democrats versus few Republicans trusting it. These divisions are entrenched and show no signs of abating.

The High Cost of Misinformation for Brands, Publishers, Platforms

 

The High Cost of Misinformation for Brands, Publishers, Platforms

Misinformation across news publishers and social media has fueled protests and riots worldwide, which continue even after Israel and the U.S. released documentation that the attack on the Gaza hospital this week came from Islamic Jihad — a smaller, more radical Palestinian militant group that works with Hamas — via a misfired missile within the Gaza Strip.

The lack of vetting for news indexed in search engines and streaming through social-media news feeds has compounded the chaos. Much of the misinformation has come before it could be verified. News outlets like CNNThe New York Times and The Los Angeles Times retracted poorly vetted parts of stories that originated and went viral on social media.

Brands running ads or marketing content across these platforms will need to consider another keyword — war — to use when excluding content to appear adjacent to. Misinformation can damage the loyalty and trust of consumers. 

Social media X users, who now must pay to be “Verified” to have a blue checkmark, pushed 74% of the most viral false Israel-Hamas claims, according to NewsGuard analysis.

The analysis no doubt considered posts like the one from U.S. Representative Rashida Tlaib. The news broke as Tlaib shared it on X, accusing Israel of bombing the hospital. 

Tlaib, along with some media outlets, took the word of Gaza's Health Ministry, which is controlled by Hamas, with reports of 500 dead due to an Israeli airstrike.

Hours later, Tlaib spoke at a gathering where hundreds of pro-Palestinian protestors were arrested for staging demonstrations at the U.S. Capitol after being told that Israel bombed a hospital in Gaza, although U.S. President Biden had announced that the deaths and destruction at the Gaza hospital was caused by Palestinian rockets.

Jonathan A. Greenblatt, CEO and national director of the Anti-Defamation League, argues, “it is mind-boggling that the media
presented claims from terrorist groups and assigned blame on Israel, without question.”

Headlines have since changed, but the damage is done, prompting riots worldwide in which protesters accuse Israel and the U.S. of killing hundreds of innocent people. Posts like one from a leading news publisher still report that the "Hamas-run Health Ministry in the Gaza Strip says at least 500 have been killed in an explosion that it says was caused by an Israeli airstrike."

During the first week of the conflict between October 7 and October 14, NewsGuard analyzed the 250 most-engaged posts -- likes, reposts, replies, and bookmarks -- promoting one of 10 false or unsubstantiated narratives relating to the war. Seventy-four percent -- 186 out of the 250 posts -- were posted by accounts verified by X, according to NewsGuard analysis.   

Collectively, posts advancing misinformation received 1,349,979 engagements and were cumulatively viewed by more than 100 million times globally in just one week. Posts are indexed in Google Search and Bing.

It seems some X posts are being blocked from indexing in Bing. X blocked Google from indexing its posts in July, and then reversed the decision. 

NewsGuard said it also identified false or unsubstantiated information related to the war spreading on Facebook, Instagram, TikTok, Telegram, and elsewhere. 

Disinformation about the Israel-Hamas war shows why advertisers and brands need content moderation.

YouTube on Wednesday introduced a watch page to help users get information from “authoritative” news sources like its Top News and Breaking News shelves. 

Google’s video site did not mention misinformation and the war, but rather cited being “committed to connecting people to high-quality information they can trust, particularly in times of elections, unrest, and natural disasters.”

The content is dynamic, relying on algorithms rather than people to curate the information. The page will pull together long-form video, live streams, podcasts, and Shorts on news stories on one page.

To open the watch page for a specific news topic, users need to click on a video with the newspaper icon on the home page or in search results. This feature will roll out on mobile devices in approximately 40 countries, with desktop and living-room integration to come.

The goal is to provide an updated news experience to help readers access credible and diverse voices.

Alden Global Capital, the hedge fund that owns 65 daily newspapers, including the Chicago Tribune and Baltimore Sun, has taken a stand on the use of terminology. All of its publications ran editorials on Wednesday, calling on news media to describe
Hamas as a terrorist organization and the Oct. 7 assault as a terrorist attack, Axios reports.

Media Daily News reached out to Gannett to determine what the publisher is doing to ensure that teams working with marketers ensure that targeting aligns with their message, but the publisher did not respond by the time of publication.

Premium Video Ad Views, Audience-Based Targeting See Strong 1H Growth

 

Premium Video Ad Views, Audience-Based Targeting See Strong 1H Growth

Despite lingering economic concerns, the expansion of hybrid ad-supported/ad-free models helped spur healthy 6% year-over-year growth in premium video ad views in the U.S. in first-half 2023, according to FreeWheel’s latest Video Marketplace Report.

Connected TV ad views grew by 11% in the U.S., while mobile views grew 19%.  

The first half was also marked by 80% growth in use of audience-based targeting in premium video ads in the U.S., the Comcast-owned ad-tech company reports.

Looking at ad views, Europe saw even higher growth — 15% — translating to combined average U.S./European growth of 9%.

Large-screen viewing continues to dominate in the U.S., with connected TV accounting for 76% of ad views and set-top box (STB) platforms another 5%. Just 13% of ad views originate on mobile in the U.S., and 6% on desktop.

In contrast, European audiences’ ad views are balanced between large CTV/STB (53%) and small mobile/desktop (47%) screens.

Looking at ad composition by CTV device, Roku is far more dominant in the U.S., at 44%, than in Europe (9%). Amazon Fire TV is in second place in both regions, but at 16% in the U.S., versus 26% in Europe. Smart TVs drove 12% of U.S. CTV ad views, but 24% of European views.

 

TV everywhere/TVE — authenticated streaming services accompanying a cable/satellite subscription — remains the most common distribution platform type in both the U.S. and Europe, but Europe, and France in particular, use STB devices much more. Free, ad-supported streaming /FASTs now account for nearly a quarter (23%) of views in the U.S., although still at 7% in Europe.

 

On the targeting front, the 80%-plus year-over-year increase in impressions using audience targeting in the U.S. translated to 68% of targeted campaigns employing behavioral data, and just 32% using demographics.

In Europe, where GDPR and other regulations limit use of behavioral data for marketing, the reverse is true, with 69% of targeted campaigns using demographic data and 31% behavioral.

A similar pattern prevails in use of programmatic in premium video, which expands buyers’ access to ad supply. In the U.S., programmatic views increased by a significant 21% YoY. Fully 85% of those views were generated by CTV campaigns, versus just 8% in Europe.

 

However, buyers’ desire for more direct paths to publishers and transparency into the validity of video impressions is still being limited by a lack of metadata standardization in CTV and STB inventory, FreeWheel acknowledges.

In fact, 65% of premium video transactions in the U.S., and 81% in Europe, were through direct and other non-programmatic deals in the first half.

Just 21% of programmatic views in the U.S. were generated by guaranteed deals, versus 53% in Europe.

More reverse scenarios: Live (versus video-on-demand) content accounted for 64% of programmatic video impressions in the U.S., but just 9% in Europe.

And across all video ad views, 54% are driven by live content, versus 46% by video-on-demand, in the U.S., versus 18% through live content and 82% through VOD in Europe.

There's at least one similarity in the regions’ video content habits, though: Long-form formats account for 70% of ad views in the U.S. and 70% in Europe

Don't Wait to Prioritize Brand Awareness -- Act Now

 

Don't Wait to Prioritize Brand Awareness -- Act Now

In 2023, CMOs worldwide expect to spend 9.1% of company revenues on marketing compared with 9.5% in 2022, and down from 12.1% in 2016, according to data from Gartner. 

With decreased budgets, the need for immediate results has led too many marketers down a path that prioritizes only performance media tactics over brand-building tactics and campaigns. This is often short-sighted and favors a buy-now message that does not develop a meaningful emotional connection with the consumer.

According to Morning Consult, 77% of Gen Z consumers are willing to try new brands in most categories, the highest share of any generation. But in an environment where there are plenty of choices, consumers must be repeatedly told why they should shop a brand.

So, how do brands remain top of mind, move fast enough to keep pace with consumers’ shifting expectations, and stay true to what made them beloved in the first place? It starts with a solid foundation.

Prioritize brand tactics within your budget.   Due to flat or decreased marketing budgets, you’ll need to shift where and how your marketing budget is spent. You should have a portion allocated to awareness tactics. These efforts should integrate paid media, events, public relations, and partnerships, and may flex into one area over another based on your brand's priorities.

While you may optimize awareness campaigns based on media metrics such as reach and engagement, it is important to evaluate as part of your marketing reporting KPIs that are tied more closely to business outcomes. Try assessing CAC:LTV ratio, paid vs. organic traffic mix over time, and social sentiment.

Develop a data framework. Consumer behavior is changing at lightning speed, and we recommend looking holistically at your customer data framework at a minimum every six months to stay relevant. When planning a brand campaign, ground yourself in your existing customer data and the ideal future customer profile. Once you have clear audience segmentation, you will be able to guide future decisions on where to invest and what to message to each respective customer segment.

Prioritize customer values. With a clear understanding of your customer at the center of decision-making, develop content that communicates your brand’s value proposition and ties to your customer’s values. It sounds simple, but it’s not. We often see brands skipping over this critical step in developing a solid brand awareness strategy.

Test, learn, iterate, and RE-INVEST. Brand awareness campaigns are not silver bullets -- but with an aligned group of stakeholders and the ability to assess performance, evolution is possible. Think of your brand awareness strategy as “always on,” with key campaigns activated throughout the year.

If one doesn’t succeed, forge ahead with a deeper understanding and ability to pivot strategy. We often see brands reallocate these funds for ROAS-driven marketing campaigns. Each time you stop, the work gets harder as your brand loses momentum. Be transparent with the results and keep going.

Igniting meaningful growth for brands in today’s crowded marketplace requires consistently communicating your brand value proposition to consumers. It demands a re-prioritization of marketing budgets to brand awareness tactics and campaigns, which should be rooted in deep customer understanding, communicate a clear value proposition, and be evaluated rigorously to drive future optimization.

Wednesday, October 18, 2023

FAST Channels Rising: Still Worried About Ad Frequency and Fatigue?

 

FAST Channels Rising: Still Worried About Ad Frequency And Fatigue?

If TV consumers are flocking to FAST channels -- which continue to have a lot of advertising -- should we still worry about advertising glut and fatigue?

The connected TV (CTV) world -- which does include FAST (Free Advertising Supported Television) channels -- still has the issue of “frequency” to address, where too much of the same advertising messages can dull our viewer experience. 

This can make us yawn a lot, use more of the mute button on our remotes, and gaze into our mobile phones and/or into empty space.

No matter. Brands are not getting their desired “engagement”.

If too much “frequency” of ad messaging remains a major concern from brands -- on linear TV and now on streaming -- how do we account for the ad-supported growth?

And we are not just thinking of those free FAST networks, but low-cost, ad-supported premium streaming options coming from the major TV-network based media companies. 

Consumer behaviors seem ingrained in the past -- that of broadcast/cable network advertising-supported TV. They are okay with it. 

But this new turn comes amid a lot of heat for those budget-conscious consumers who sweat over their new collective monthly entertainment costs -- pay TV, streaming, broadband, etc. -- and other bills.

It wasn't that long ago that the media business press -- including yours truly --- would mull and analyze the data around the glut of “non-program content” -- national/local TV advertising, on-air promo messages -- when it comes to linear TV, especially cable TV networks.

Now? Not many of those stories. Advertisers and brands have much bigger issues -- desperate in the pursuit of alternatives to declining TV reach, as well as dealing with measurement and currency issues as a number of alternative platforms such as streaming continue to rise.

Quick moves to FAST and other ad-supported platforms -- by viewers and advertisers -- seem like a knee-jerk reaction to a streaming industry that initially started up with an intended focus on premium content and a premium viewing experience.

With all of this, should brands still be worried about frequency and fatigue? If so, maybe this concern extends beyond just linear TV and streaming to other media channels.

In the short term you may get a “yes and no” answer. Maybe down the road those advertisers and brands will offer up a ‘no” and a knowing answer. 

Friday, October 13, 2023

Recommit To Best Practices in Hispanic Marketing

 

Recommit To Best Practices in Hispanic Marketing

In today's marketing landscape, it's no secret that the U.S. Hispanic population has been rapidly growing for well over 20 years. What some marketers may overlook is that this demographic is a significant growth driver for various sectors and brands, with increasing purchasing power and upward mobility.

In fact, a recent report by UCLA Center for the Study of Latino Health and Culture highlights that if the U.S. Latino population were its own nation, it would boast the world's fifth-largest GDP, surpassing countries like the United Kingdom, France, and India. What's more, the U.S. Latino GDP experienced the second-highest growth from 2020 to 2021, trailing only China.

So why do many clients and their agencies seem to neglect established best practices in Hispanic marketing, despite the increased focus on delivering authentic brand storytelling?

The answer lies in a misguided belief that, as the U.S. approaches a multicultural majority, broad-market campaigns with diverse casts are sufficient for multicultural marketing. Specifically, when it comes to Hispanic marketing, there's a misconception that the growing number of U.S.-born Hispanics (60% of the segment) results in a weaker connection to Latino culture and less affinity for Spanish-language content. However, Pew Research Center data contradicts this, revealing that 77% of Hispanics remain familiar with their cultural roots, with over half considering Latino culture central to their identity.

While greater diversity in mainstream campaigns is certainly commendable, this alone falls short in effectively engaging Hispanics and other multicultural audiences. Why? Because diverse cast members in these campaigns typically play generic roles, sometimes even portrayed in a polarizing or offensive manner. Winning over Hispanic consumers requires a deeper level of insightful and authentic storytelling that not only makes them feel seen and heard but also understood.

As we celebrate creative excellence during Hispanic Heritage Month, I challenge all marketers, both on the client and agency sides, to take a moment to assess their Hispanic marketing efforts and reaffirm their commitment to the following best practices:

Lead with Spanish while integrating English strategically.  A majority (71%) of U.S. Latinos speak Spanish, and 66% are bilingual and proficient in both languages, according to Claritas. Speaking Spanish helps Latinos connect with their culture and heritage. Despite misconceptions, younger Latinos are increasingly choosing to reclaim the Spanish language, confidently and unapologetically.

Recognize growing diversity AND foundational commonalities. The U.S. Hispanic population is rapidly diversifying, representing 22 Spanish-speaking countries, including Puerto Rico and Equatorial Guinea, and encompassing various racial backgrounds. But we also share foundational commonalities that create bonds through their heritage, language, and cultural influences, fostering mutual understanding and support.

Invest in media and content with cultural resonance and consumer trust. Nielsen research shows that Hispanics trust content that resonates culturally and authentically with their experiences. Spanish-language media, which deeply resonates with Latino interests, values, and beliefs, is particularly trusted. Ignoring this could result in lukewarm brand connections and missed opportunities.

Customize strategies and creativity for strong brand connections. While the majority of Hispanics are bilingual and proficient in English, mainstream ads often fail to connect with them on a deep, emotional level. Quantitative studies consistently show that Spanish-language ads outperform English ads, appealing to Spanish-preferred Hispanics, bilinguals, and English-preferred individuals alike.

Brands that genuinely engage consumers on their terms, whether through language or culture, thrive. Ignoring these best practices and underestimating the power of culture does a disservice to both consumers and brands, leaving potential opportunities unexplored.

Without Scripted Shows, Fall Season Is Network Twilight Zone

 

Without Scripted Shows, Fall Season Is Network Twilight Zone

What a strange fall season this is.

This past summer, the TV Blog covered the networks’ contingency plans for a fall season without new, scripted shows due to the writers’ and actors’ strikes that halted all production.

But now that this fall season of non-scripted shows, game shows and scripted repeats from seasons past is up and running, we are getting a look at how these plans play on TV.

Give the networks credit for finding content to fill their evening hours in the absence of their new shows and returning hits.

But at the same time, the whole thing seems weird when casually sitting down to watch TV on a typical weekday evening. 

Grazing around the networks the other night, it finally dawned on me: Network TV this fall has entered some kind of twilight zone. 

Come to think of it, maybe running some old, classic “Twilight Zone” episodes would not have been a bad idea.

Game shows, game shows everywhere. On ABC, it’s “Celebrity Jeopardy!,” “Celebrity Wheel Of Fortune,” “The $100,000 Pyramid” and “Press Your Luck.”

On CBS, it’s “Buddy Games,” “Lotería Loca” (possibly the first American network TV show with an all-Spanish title*) and “Raid The Cage,” which premieres Friday night (October 13).

“Raid The Cage” is adapted from a format conceived and first aired in Israel and subsequently sold around the world.

A few years ago, NBC even made a pilot with the new title “Perfect Escape,” but never aired it (according to Wikipedia). 

But now, it’s coming in handy for CBS. Co-hosted by Damon Wayans Jr. and Jeannie Mai, the show has contestants running pell-mell into a “cage” festooned with prizes, and then attempting to grab as many as they can before a door on this enclosure closes.

The prizes include various tech products, watches, jewelry, vehicles such as ATVs (at least, that’s what one of the vehicles looked like) and more. In the photo above, the visible prizes include a giant teddy bear and an electric scooter.

The winners are those who manage to accumulate prizes with the highest dollar values. The two-person team that amasses the highest dollar value wins.

Elsewhere in prime time, various competition shows reign -- on NBC, “The Voice” and “America’s Got Talent”; and on CBS, “The Amazing Race” and “Survivor.”

ABC has a new season of “Dancing With the Stars” and a new hit (or at least ABC says it’s a hit), “The Golden Bachelor.”

Fox’s prime-time lineup at the present time includes “Hell’s Kitchen,” “Kitchen Nightmares,” “Lego Masters,” the new “Snake Oil,” “Special Forces: World’s Toughest Test” and “The Masked Singer.” 

The result is a rarity in many of our lives: A fall TV season with none of the usual sparkle, hype and hope.

Or to put it another way: Where’s the new “Matlock” with Kathy Bates? For me and millions of others (presumably), the absence of this show says it all about this year’s fall season. 

We're Your TV Streaming Network - And We Messed Up, Please Pay More

 

We're Your TV Streaming Network - And We Messed Up, Please Pay More

Streaming price hikes seem to be sending the wrong signals to consumers -- a message that will be incorporated into an increasingly scrutinized value equation.

All this seems to result in a deepening bifurcated marketplace -- while at the same time generating more cash to streamers to minimize net losses.  

At the same time, they are keeping their ad-supported pricing options the same -- no doubt pushed, in part, by some of the completely free FAST services, which have seen growth.

But the overall bottom line seems to be suggesting something of a mixed message, along these lines: “Hey, we made a mistake. We messed up. Our streaming programming -- uninterrupted by ad messaging -- is actually worth much more than we realized. We need you to pay up.”

“Oh -- and by the way -- if you really don’t want to spend that much, here’s the same content with advertising. You know, like what you always had in the old days.” 

TV studios and networks' messaging about price hikes have never approached potential TV viewers with this kind of brutal honesty. Under the old system, TV programming just appeared free (over the air, with advertising) or after paying a third-party distributor (a pay TV service) to get what appears like more free programming.

Now, consumers can judge TV networks themselves not just on programming quality, but the financial equation attached to their hard-earned entertainment cash. This is one queasy, definition downside of what "direct-to-consumer" means. 

From all of this, you may wonder why subscriber “churn” numbers -- those streaming subscribers who month to month stop and start subscriptions to streaming platforms -- could be seeing even more entropy. 

Sure, consumers just want to pay for that one show they watch on Netflix, Paramount+, AMC+  that comes around every 6-8 months with new episodes.

But throw in the likelihood that moderating or declining streaming TV production will put a deeper crimp on business in the coming years.

Will everyone just go to lots of FAST networks -- or watch more fringe sports on TV like pickleball until something really good comes around?