Wednesday, June 19, 2024

FAST TV Viewers Are Younger, 'Mainstream': Report

 

FAST TV Viewers Are Younger, 'Mainstream': Report


FAST TV viewers are “on the cusp of being mainstream” in comparison to pay TV subscribers and cord-cutters, according to a new report from Comcast’s Xumo, the company's wide-ranging internet TV brand.

One major data point is that 47% of regular pay TV subscribers also regularly watch free-ad supported linear TV streaming (FAST) networks. And 46% of traditional cord-cutters of pay TV watch FAST TV content.
 
More of the mainstream piece of the research shows that 72% of FAST viewers also watched cable or broadcast TV, with 86% of FAST viewers also subscribing to at least one premium streaming service.
 
Perhaps most revealing is that true FAST consumers focus on the word “free” when it comes to these channels, particularly streaming services: 43% don’t watch premium advertising video on demand services (AVOD), platforms that run limited ad messages and also require consumers to pay a subscription fee anywhere from $4.99 to $9.99 a month.
 
What do FAST consumers watch? Xumo says on its Xumo Play free-streaming TV platform, big viewing comes from news, movies and crime content.
 
More important to brands is that FAST TV also reaches an increasing amount of young viewers. 
 
The research says the average age of all FAST format users is 40.9. It adds that 58% of FAST viewers are between 18-44 (with 50% being male, 50% female). Overall broadcast TV and cable TV viewers are close to the U.S. census average -- 44% of TV viewers are aged 18-44.
 
Xumo says most age groups use between 1.9 and 2.0 FAST services, and that total time spent watching FAST TV content -- evening time periods -- is around one hour/40 minutes per viewer.
 
The survey was produced in the third quarter 2023 through the first quarter 2024 among 4,000 U.S. adults aged 18 or older

'Feeling Seen USA' Report Finds Support for Diverse Advertising

 

DIVERSITY

'Feeling Seen USA' Report Finds Support for Diverse Advertising

 

For as much as some marketers think that any diverse representation in advertising risks alienating a wide audience, a recent report from System1 shows that isn’t the case.

The “Feeling Seen USA” report by the digital marketing platform analyzed audience’s emotional responses to 98 ads that  focused on diversity and inclusion, across a nationally representative sample group drawn from the general public and a custom group comprised of the diverse group represented. Based on these responses, System1 then determined a quantitative score for each ad using its effectiveness metric -- with a star system ranging from one to six stars.

The main takeaway from the report is that such ads are more effective than average. “Again and again we found a broad base of support for and enjoyment of these inclusive ads,” System1 wrote. “If there’s a culture war to be fought, advertising isn’t a popular battleground.”


“We can all agree it's the right thing to do. That doesn't mean some people aren't worried about the risk,” System Chief Customer Officer and “Feeling Seen USA” author Jon Evans told Marketing Daily, while suggesting such fears placed too much emphasis on social media channels that aren’t reflective of how most people respond to such representation.

“If you take the conversation away from fear, the data supports it being the right thing to do" from a business perspective, “as well as the moral thing to do.”

System 1 found that the ads tested for “Feeling Seen USA” had an average score of 3.8 stars with a nationally representative general audience, compared to an average star rating of just two stars among the U.S. ads tested by System 1 overall.  To determine whether this result was not simply due to the sample over-indexing on high-profile brands with big marketing budgets, they also compared performance with other ads from such brands -- including Apple, Coca-Cola, Nike, and P&G.

The results showed a “consistent pattern,” System1 reported. “When a brand launched a diversity-themed ad, it outperformed their average ad output by at least 0.5-Stars and in some cases nearly 2 Stars.”

Among the top-performing ads measured by System1 were a holiday ad from Hallmark centered around a deaf child, which scored 5.9 stars across both nationally representative and disabled audience segments); and an American Airlines “Putting Them First” ad, which scored 4.5 stars with a nationally representative audience, and got a boost to 5.9 stars with both Black audiences and women.

“We found some ads which were loved among both the population as a whole and the included groups. We found some which fell flat. We found a few which worked fine for most people but didn’t ring true for the group featured in the ad,” ” the report summarized. “Most importantly, we found ads which were strong amongst a national sample and then even stronger among the groups whose lives and experiences they featured.”

The report refers to the latter phenomenon of an ad performing well with a general population but great among a feature group, as “the diversity dividend,” and concludes that it’s “one of the biggest benefits of aiming for diversity and inclusion in advertising.”

Oreo’s “Proud Parent” ad, for example, scored 3.3 stars with a nationally representative audience, but 5.9 stars with an LGTBQ+ audience.

The report included some takeaways from brands about how to approach inclusivity in advertising. Among these is the importance of focusing on an individual’s story, rather than trying to represent a diverse group in totality; and the need to not relegate such inclusivity to specific months or weeks focused on a given group.

“When you try to represent a big group [in an ad] and put lots of different people in it, and different stories, it appeals to nobody: it’s seen as tokenstic,” Evans told Marketing Daily, something he said was particularly important for LGBTQ+ representation.

“Tell one person’s story well, and it will create far more empathy and happiness within the audience,” he added, explaining such an approach will “come across as more authentic and other people [will] respect the brand more.”

National TV Ad Revenue Forecast to Sink 2.7% In 2024

 Even though this report was published earlier, it still has prominence re: local-direct advertisers. Local-direct is still the money maker for linear TV stations! Share this with your local-direct clients. Philip Jay LeNoble,Ph.D.

COMMENTARY

National TV Ad Revenue Forecast To Sink 2.7% In 2024

Linear national TV advertising revenue from broadcast and cable TV networks will sink 2.7% to $27.5 billion this year -- despite strong Summer Olympic and political advertising spending, according to estimates by MoffettNathanson Research.

Taking out the Olympics resulted in a 7% decline to $26.3 billion.

Overall, cable TV networks will sink 9% to $14.6 billion with broadcast networks slightly higher -- up 2% to $12.9 billion.

NBC, which will see a boost from the Paris Olympics, will see 23% growth this year to $5.6 billion.

CBS, which aired the Super Bowl this year, will inch up 1% to $3.4 billion.

ABC will sink 8% to $1.8 billion and Fox, which had the Super Bowl in 2023, will decline 25% to $2.1 billion.

Looking at cable networks, Walt Disney’s cable channels will fare the best -- up 4% to $3.7 billion.


Fox's cable channels will be flat at $1.3 billion, while NBCUniversal will be down 7% to $2.4 billion.

Warner Bros Discovery will see a 9% increase to $5.2 billion, and Paramount will sink 19% to $1.5 billion.

The following year -- without the Olympics and heavy political advertising -- is forecast to see more dire results, with overall national TV down 12% (falling 8% after the Olympics).

Total broadcast networks' advertising revenues are estimated to sink 15% (7%, ex-Olympics), while cable networks will see another 9% decline (8%, ex-Olympics).

Michael Nathanson, media analyst/co-founder of MoffettNathanson Research, writes: “We continue to expect 2024 and 2025 national TV advertising to be under pressure due to secular challenges, even with easier comparisons last year, especially at cable networks.

CPG Brands Score High Streaming, CTV Reach - And Lower Ad Frequency

 

COMMENTARY

CPG Brands Score High Streaming, CTV Reach - And Lower Ad Frequency

Consumer-packaged goods advertisers’ campaigns earned the highest unique reach -- 25.24% on CTV platforms -- more than any other advertising category, according to data estimates from TV/video ad-technology company Innovid.

At the same time, CTV platforms delivered lower levels of messages for CPG brands consumed by consumers -- at 6.63, lower than the 7.42 for all ad categories.

Frequency issues remain a major focus for modern TV-video marketers. “As the 100% digital era of TV approaches, the possibility of gaining more precise control of frequency is arriving,” say the authors of the report.

Engagement as a result of interactive video ad messaging on CTV platforms for consumer-product brands earns high marks -- earning a 2.47% engagement rate, which is much like standard video usage at a 0.25% rate.


Innovid says this engagement rate is the percentage of impressions where viewers took actions within the advertisement -- including scans, clicks, or taps. It also includes “choice-based” ads, which ask a consumer to view an ad before consuming content.

According to the report, 49% of CPG video ad impressions for the last two years come from CTV platforms, with 40% from mobile and 11% from desktop.

Looking at the broader retail category, other related research in the report -- from Roundel, a Target-owned media network -- says 91% of Target customers subscribe to streaming services --the same as in 2023. But over that time viewing/usage has dramatically climbed 40% to 22 average hours a week.

The authors say Target customers are “high adopters” in the streaming space, for example, with live streaming. Fifty-seven percent of respondents have viewed live events in the last month, and 53% have subscribed to a service just to watch one specific show or event.

When it comes to interactive video ads, research shows that Target guests report feeling comfortable spending around $30 when making purchases from their TV.

Roundel surveyed 2,876 Target customers to understand their interaction with connected TV advertising.

Research Finds 55% Of Shoppers Choose Stores for Their Private Brands

 

COMMENTARY

Research Finds 55% Of Shoppers Choose Stores for Their Private Brands

Walmart recently introduced a higher-end private label brand 

For years, the popularity of private-label brands served as a measure of economic health. People stocked up on store brands when pinched, relaxing into national brands when they felt flush again.

But the explosion of retailer’s tiered offers, often including premium private labels, has changed that dynamic. The Food Industry Association’s annual consumer analysis finds that while value and price are still the primary reasons for buying a store brand, named by 71% of food shoppers, they increasingly cite benefits like health, quality and taste, and convenient meal solutions. And 55% of shoppers say the private-label selection informs their store preference.

“Private brands are no longer just about offering a cost-effective alternative,” writes Steve Markenson, vice president of research and insights for the Arlington, Virginia-based industry association. “They are about delivering quality, creating new experiences, and highlighting unique values that resonate deeply with today's consumers. In turn, retailers have recognized their portfolio as a strategic differentiator and an extension of their brand narrative to shoppers.”


Paper products, dairy, frozen foods and packaged breads are the most popular store-brand items.

That perception of quality – along with a long period of sustained inflation – is changing behavior, with 55% reporting they increased their purchase of these products over the past year and 46% saying they intend to increase their private-label purchases in the coming year. Only 28% have bought more manufacturer brands.

Notably, 51% of the sample are likely to consider private brands, even if overall grocery prices decrease. The analysis, supported by Circana, says that it indicates loyalty based on quality rather than price. It found that people use words like "good," "great," "quality," and "better" when describing their store brand selections.

The vast majority – 94% – purchase store brands at least occasionally, with 45% saying they are as good or better than national brands and 54% saying they are good enough.

Those perceptions increased sharply from last year when food prices dominated national headlines. For example, 42% of those in the current research say they buy store brands for their quality, up from 30% last year and 33% for taste, up from 26%.

As a result, dollar sales of store brands for the year ending March 24 rose 4.5% versus 3% for national brands, Circana reports. And store-brand dollar share climbed to 20.8%, while unit share reached a new high of 25.7%

However, some categories saw much more significant gains, such as a 33% jump in dollar sales of frozen potato products, a 20% increase in salty snacks, and a 19% rise in yogurt.

The Untapped Opportunity for Men's Personal Care Services

 

The Untapped Opportunity for Men's Personal Care Services

Chances are you probably didn't buy the dad or the recent college grad in your life a spa trip – but they might have enjoyed the facial more than the grill brush or Best Buy certificate you went with.

Changing definitions of masculinity are impacting men’s personal care routines. And Unilever and Bath & Body Works’ profitable business results prove the commercial viability of male-focused products as growth drivers.

Despite this prominent uptick in male-focused marketing from CPG brands and retailers, we’re not seeing a comparable rise in male-focused marketing in the personal care services category. Broadly, the personal care services category includes facials, eyebrow shaping, manicures/pedicures, waxing, hair coloring and injectables like Botox.

The results of our research on men’s use of personal care services ran counter to our initial hypothesis that a small but mighty percentage of the general male population engages with personal care services and uses them frequently.  Instead, we found:

  • 70% of all men ages 18-50 engaged in at least one personal care service in the past two years. This equates to a large, addressable audience -- over 50 million men!
  • The average number of services reported is 3.2, meaning men aren’t just getting the occasional manicure or pedicure.
  • Women are key influencers, starting with initial awareness and providing guidance throughout the shopping process.


As in most categories, differences exist among this large audience’s behavior -- from heavy users who engaged with 4+ services in the last 24 months, to occasional users who engaged with 1-3 services in the last 24 months.

These segments differ by demographic and media consumption patterns, but more consequentially, differences emerge in their motivations for using these services.

Here are a few opportunities for marketers to act:

Messaging to occasional users should emphasize emotional benefits. Occasional users say “enhancing appearance” and “improving skin” are important motivations. However, occasional users are more motivated by the emotional benefits, such as “treating myself,” “confidence boost” and “relaxation," as compared to the heavy user segment.

 Drive more foot traffic into locations by prompting trial with messaging that reflects these emotional drivers.

Enlist women to drive growth with men. While wives and girlfriends are the greatest sources of service awareness, the combined female influence is even more impressive when we also consider female friends and family. Over 45% of all men surveyed referenced a female awareness source. Females also cracked the top-three educational resources, cited by 24% of men overall.  

Target a wider group of women with referral rewards in various types of relationships, whether romantic partners, siblings or parents.

Subscriptions generate steady engagement. Thirty percentof heavy users, who would be open to purchasing a recurring subscription membership, are currently without one. Men regard not having to pay “per-service” or getting a product discount as key motivators for engaging with a subscription or membership. And they cited as an emotional benefit the desire “to feel part of a members-only, private club.” 

Make sure there is a clear, compelling financial value proposition for joining your subscription or membership program.

By employing any or all of these strategies, personal services brands have the opportunity to take advantage of an untapped market and unlock new revenue sources in 2024 and beyond.

FTC Says 'Reason to Believe' TikTok Violates Children's Privacy Law






FTC Says 'Reason to Believe' TikTok Violates Children's Privacy Law

The Federal Trade Commission said Tuesday that it has “reason to believe” that TikTok is violating or “about to violate” the federal children's privacy law and the FTC Act, and has referred a case against the company to the Department of Justice.

“Although the Commission does not typically make public the fact that it has referred a complaint, we have determined that doing so here is in the public interest,” the agency stated.

Chair Lina Khan added in a post on X that the FTC “will continue to use all its tools to enforce the law without fear or favor and protect the American public from corporate lawbreaking.”

The FTC hasn't yet publicly revealed specifics of the alleged violations.


In 2019, the company agreed to pay $5.7 million to settle an FTC complaint alleging violations of the federal Children's Online Privacy Protection Act, which prohibits web companies from knowingly collecting personal information form children under 13, without parental consent. The following year, advocacy groups including Fairplay and the Center for Digital Democracy accused TikTok of continuing to violate the children's privacy law.

The FTC said Tuesday that its referral to the Justice Department stems from a compliance review of the 2019 settlement -- as well as an investigation into additional violations of the children's privacy law and the FTC Act.

A TikTok spokesperson said the company “strongly” disagrees with the FTC's allegations, adding that many “relate to past events and practices that are factually inaccurate or have been addressed.”

"We've been working with the FTC for more than a year to address its concerns,” the spokesperson said. “We're disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution.”

He added that TikTok offers “an age-appropriate experience with stringent safeguards,” removes suspected underage users, and implemented “safety features such as default screen time limits, family pairing, and privacy by default for minors under 16."

The FTC's referral to the Justice Department comes as TikTok is suing to block a new law that will ban the app nationwide unless it's sold by China-based parent company ByteDance.

Lawmakers who supported that bill expressed concerns that the Chinese government would be able to obtain data from TikTok about Americans, and that Chinese Communist Party would use the app to spread propaganda. Some lawmakers also suggested that information received through classified briefings justified the ban.

TikTok argues that the law violates the company's free speech rights, as well as the rights of its users, and that Congress passed the measure based on speculative concerns.

Can Ad-Supported Streamers Still See Growth as Consumers Want Even Less Ads?

 

Can Ad-Supported Streamers Still See Growth as Consumers Want Even Less Ads?

There is seemingly no end to efforts when it comes to blocking TV-video advertising, as ad blockers keep looking to gain new ground. 

But premium TV-video platforms keep fighting back. And even then, how much do consumers care -- especially with those popular premium streaming platforms?

One ad-blocking technology, SponsorBlock, says Google’s YouTube will now integrate video ads into its content before it gets to your device (mobile, desktop, smart TV, for example). 

This is different from most deliveries of TV-video ads, which come to your device separately -- and where a personal ad blocker can stop that transmission.


In addition, Google, according to one report, says that if an ad blocker is installed the total YouTube viewing will be “suboptimal" -- and that ad blockers “violate” YouTube’s terms of service.

This is happening amid a steady increase in more consumer adoption of subscription video on platforms with “limited” advertiser options. 

By limited, we mean anywhere from four to six minutes an hour of advertising -- all of which is much less than legacy, linear TV advertising on networks, which can run, on cable channels, up to 16 minutes in non-content advertising, promotion, and other messaging time per hour.

Looking at the broader overview of ad-supported TV-video platforms, do consumers feel to an extent that they are getting good enough deals with streamers in terms of lower ad messaging platforms? Does that extend to hybrid professional publisher content/semi-professional user-generated content generator platforms, like YouTube?

At the moment, it seems that those partly ad-supported/part subscription plans are working.

So how essential are ad blockers to the modern streaming video industry?

Analysts have mused as the streaming market has matured more changes will be coming -- including slowly increasing subscription fees. 

But that may not be the only change in monetization. Expectations are hard-pressed, still money-losing streamers might slip in a few more messaging units onto their ad-supported options.

A mature streaming market may then be a misnomer.

The real slowdown will come when the least expensive streaming options not only raise subscription fees but add more commercial messaging.

Tuesday, June 11, 2024

Sales Leaders Must Harness the Power of AI While Keeping the Human Touch

 

Sales Leaders Must Harness the Power of AI While Keeping the Human Touch

As generative AI continues to disrupt the sales landscape, leaders are seeking ways to empower their sellers with the right content and tools to optimize AI capabilities in support of a wider revenue strategy. Despite the buzz, the salesperson role isn’t fading – it’s the human in the loop that improves AI accuracy and outputs, and ultimately, buyer understanding.

From the Gartner CSO & Sales Leader Conference, held last month in Las Vegas, Adnan Zijadic, director analyst in the Gartner Sales Practice, discusses how a balanced sales playbook is essential for striking a synergy between the irreplaceable human element and the precision of AI.

Q: How is the role of the salesperson evolving?

Zijadic: We are at a precipice of AI disruption in sales. While sellers are ready to embrace data-driven insights, leaders must prioritize equipping sellers with playbooks for effective selling that build that human connection through contextual understanding. Incorporating AI technology as a teammate will lead to sales playbooks that are more balanced while encouraging organizations to achieve competitive advantage.

Today’s buying journey is multidimensional and highly complex, yet a great sales rep can leverage a combination of signals as well as their own intuition to capture dynamic buying behaviors and make sense of complicated buying processes. What’s more, buyers still value that human connection and are more likely to find value affirmation from a sales rep than from a digital interaction.

Q: How can leaders make AI their right-hand in sales strategies and successfully enable their sellers?

Zijadic: If harnessed correctly, AI can become a sales leader’s powerhouse, adding depth to customer interactions and bringing exceptional data processing, pattern analysis and insights to the table. There are three key AI technologies that leaders can tap into for a more effective guided selling process:

AI intent data delivers deeper insights, faster, not only predicting customer intent but engaging with precision timing and relevance. This allows leaders to leverage AI and analyze what customers and prospects are consuming on the web.

Conversation intelligence identifies patterns and preferences, and it can customize the sales experience in real-time. By capturing non-linear data, AI in the conversation creates adaptability and can inform a sales playbook and pipeline management process.

Knowledge graphs (or graphs in general) are a powerful behind-the-scenes tool that can connect the dots for sellers, transforming data into strategy. They enhance sales effectiveness and streamline the sales process, ensuring that teams are engaging with the most promising leads and opportunities but more importantly, making them more effective in engaging in a contextual way.

Q: How can sales leaders balance the role of AI and the human touch?

Zijadic: While AI can provide a goldmine of insights and automate certain tasks, it supercharges the sales playbook rather than replaces it – the human element is still key. In fact, a Gartner survey of 412 senior marketing and sales leaders from November through December 2023 found that organizations that blend digital and real-time interactions are 1.9x more likely to exceed expected revenue growth, and AI is no exception.

Don't Get Left Behind: CTV Strategies Every Local Advertiser Needs

 Could the following research of Connected TV be a better use of a local-direct clients advertising investment? Philip Jay LeNoble, Ph.D.

SPONSOR CONTENT FROM PREMION

Don't Get Left Behind: CTV Strategies Every Local Advertiser Needs

    Author: Ed Ziskind

    At the Upfronts, the power of streaming was on full display as major media companies showcased their content slates and emphasized their data and tech capabilities. In parallel, a rebundling trend emerged, with several streaming services unveiling new bundle offerings. These developments underscore the pivotal role of ad-supported CTV in shaping the future of streaming.

    Consumers have firmly embraced streaming for its convenience, choice, and control, solidifying CTV as the fastest-growing advertising segment — with the IAB forecasting it to grow 32% faster than total media overall this year.

    However, major media companies are prioritizing their streaming resources to serve big national advertisers, leaving local advertisers with smaller budgets at risk of being left behind.  And with the average home using around seven streaming apps and over 25% of households utilizing ten or more, it’s clear that viewers are spread across multiple platforms. For local advertisers, this means that placing ads on just one or two platforms won't deliver the necessary reach or scale.

    With viewers consuming content across multiple screens and platforms, including the proliferation of FAST channels, how should local advertisers navigate an increasingly fragmented landscape — and what does effective CTV buying look like for them?

    Embracing Local Opportunities with CTV

    Local advertisers can now tap into sophisticated audience targeting and advanced measurement capabilities that were previously reserved for national and big brand advertisers. Additionally, they have access to premium CTV inventory, enabling local advertisers to compete on a more level playing field with national brands. However, this is only possible if they partner with trusted local experts. Could your TV station be a great opportunity to help local-direct clients use CTV?

    If so, here are Three key considerations for local advertisers:

    Brand safety should not be a trade-off: Local advertisers must ensure that their brand aligns with brand-safe content. There's a misconception that advertisers with smaller budgets are not guaranteed access to brand-safe inventory. However, premium CTV inventory is now democratized and available to marketers of all budgets. Thus, local advertisers should work with a partner that can aggregate and curate brand-safe premium inventory across multiple trusted platforms and providers. Additionally, they should ensure their ad dollars are spent effectively, reaching real viewers—and not wasted on bots.

    Access to Precision Targeting and Personalization: Local advertisers expect the same level of sophisticated targeting capabilities as national advertisers. Even with budget constraints, smaller local advertisers want to ensure their ad dollars are spent effectively in reaching local audiences at scale. They can now target audiences in more precise ways — be it reaching in-market shoppers, applying persona-based targeting, or creating custom audiences.

    Additionally, advertisers are seeking increased localization and personalization, achievable through dynamic creative in CTV ads. These features provide an engaging and relevant ad experience, such as embedding a scannable QR code. Such advanced functionalities are increasingly within reach for local advertisers across all budget ranges.

    Driving Full-funnel Measurement: For local advertisers, the priority lies in ensuring the effectiveness of their ad spend and driving tangible outcomes. They're seeking closed-loop attribution to drive sales conversions, and these tools are now readily available locally. Advertisers can tap into comprehensive, industry-specific measurement capabilities, including tracking reach extension, brand lift, website visits, and correlating CTV viewership with in-store and online sales. Local advertisers can harness a suite of new solutions to gain deeper insights into the ROI of campaign impressions and accurately measure outcomes across the customer journey.

    Local advertisers require a trusted and cost-effective CTV advertising partner capable of executing campaigns at the household level, tracking conversions, and minimizing wasted impressions. 


    Daytime is Prime Time for Audio Platforms: Study

     The following research may provide a must have for local-direct clients to maximize their more affordable media marketing reach! Philip Jay LeNoble, Ph.D. 

    Daytime is Prime Time for Audio Platforms: Study

    Digital audio-based streaming platforms -- and other traditional audio platforms -- continue to see benefits when it comes to being a companion media platform for consumers daytime real-time/real-life shopping.

     
    According to a new survey, among those who shopped in person, 80% did that during the hours of 8 a.m and 5 p.m. During the same time period, 73% listened to audio of some sort.
     
    Research here comes from big audio platform, SiriusXM Media working with Publicis Media and Edison Research on a nationally representative online diary study of over 2,200 Americans ages 18 to 54.
     
    The study also notes that of those shopping online, 77% did that between 8 a.m. and 5 p.m., where 70% listened to some audio during that same time window. 
     
    The research says around 66% of 18-54-year-olds make a variety of purchases in a given day -- food, restaurants, household products or groceries, beauty or health products, pet products, or fashion items. 
     
    Around 30% make unplanned or spontaneous shopping or buying decisions in a day. Additionally about half run errands in a day -- 40% grocery shopping, 30% getting gas.
     
    Says the authors of the study, “Revisiting the idea of primetime, if we focus in on comparing TV and video to audio consumption, we find that throughout the day -- especially in that key daytime window when consumers are most likely to be away from home, shopping, dining out, and more -- audio listening is higher than TV and video viewing.” 

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    Top Linear TV Season Shows 8% Slip -- Transparency Working Well?

    COMMENTARY

    Top Linear TV Season Shows 8% Slip -- Transparency Working Well?

    Live, linear TV networks still see benefits for continued top viewing prime-time programming genres. Is this top-line, upper-funnel, viewership data still enough to sway advertisers to any degree?

    The just completed 2023-2024 TV season was pretty much what you always expect: top shows came from the NFL and there were many crime/procedurals/drama hour-long shows. Lower results from comedies and unscripted TV content.

    Eight of the top 15 overall most-viewed shows were crime-oriented/procedural entertainment shows: CBS’ “Tracker,” “NCIS,” “FBI,” “Blue Bloods” and “The Equalizer;” NBC’s “Chicago Fire,” Chicago Med” and “Chicago PD.”

    System 21 rated top sales training curriculum in U.S. by sales and general management for carer minded professionals!


    Best viewed overall: NBC’s “Sunday Night Football.” NFL programming took the top three spots and 14th position with “Monday Night Football.”

    Two of the 15 were comedies -- both on CBS: “Young Sheldon” and “Ghosts.” There was one news magazine show among the top ranking programs: CBS’ “60 Minutes.”

    Viewership at the top 15 viewed non-sports entertainment or news shows overall were down 5% to 8.4 million versus a year ago, according to Nielsen's measure of live program viewing plus seven days of time-shifted viewing.

    These results seem somewhat better than the overall double-digital viewing declines (10% to 15%) reported elsewhere when it comes to overall TV network programming for all prime time and all dayparts.

    For TV executives, proponents of traditional linear TV programming, this would seem to offer some solace as linear TV continues to have viability not only from engagement among TV viewers (who are no doubt ever-older), but more importantly as a promotional tool for these TV shows when they move to the streaming platform space.

    Top TV shows still have decent benefits then for major TV brands but no longer in dominant ways. 

    At the same time -- somewhat head-scratching in analysis -- the bottom 15 entertainment shows of the top 100 on TV (broadcast and cable) averaged 2.6 million viewers this 2023-2024 TV season versus 2.3 million the season before -- an 18% gain year over year.

    Maybe all this is why we need to analyze deeper new-style viewing metrics that Netflix or other streamers see on their servers -- and why some of Netflix's thousands of TV shows get some renewals while others do not.

    We don’t always get to see those more granular engagement metrics observed by programming executives at those streaming services. 

    More planting of walled gardens to come as the mature business gets more competitive? Transparency continues to be an issue in the new premium streaming business.

    Thursday, June 6, 2024

    A Call: Principal Media Case Studies

    Is there another way for businesses to buy media when inventory is tight?  Philip Jay LLeNoble, Ph.D.

    COMMENTARY

    A Call: Principal Media Case Studies

    The Association of National Advertisers (ANA) recently released a study (“The Acceleration of Principal Media") revealing that when it comes to buying media, ad agencies are increasingly acting as principals rather than agents. That means they actually acquire the media — therefore becoming the owner, or “principal,” of that media — and resell the media to their clients.

    The study is intended to increase awareness and help educate marketers — the background, benefits, challenges, and guidelines — so they can make an informed decision about the role of principal media for them.  It features four case studies highlighting how marketers have leveraged principal media. We welcome additional case studies. Those in the paper are from companies in these industries – financial services, alcoholic beverages, CPG, and pharma. 

    • A financial services company: “Principal media can have a beneficial role in the overall mix to get high efficiencies on commodity media, especially when faced with unexpected savings requirements. We’ve successfully used it, mainly with linear TV, to help achieve marketing’s contribution to enterprise-wide efficiency goals, as well as to maintain optimal weight in response to ad hoc budget reductions. It’s a relatively turnkey lever for savings of 10 to 15 percent on pockets of standardized, ‘spots and dots,’ non-biddable media. You just need to do your homework and have the appropriate controls in place. That includes an agency contract stipulating it’s used only on an opt-in, case-by-case basis with prior written approval every time by a designated executive, as well as full post-buy deliverables. Principal media has perfectly valid applications for advertisers that manage it tightly, and I know several client-side media stewards that wouldn’t want it removed as one of the arrows in their quiver.”
    • A marketer of alcoholic beverages: This company uses some television in its media plan, acquired via the traditional upfront. But it is not a major TV buyer. Given the need to support a new product, more television was required. The scatter market was tight at the time, so that inventory would carry a CPM premium. The agency suggested principal media as a solution.
    • A CPG: The product portfolio for Company X is heavily dependent on a commodity whose price has increased significantly in the past two years. Price increases for the company’s core product have already been implemented, but margins continue to be squeezed. Company X is cutting back on overall advertising spending and is now using principal media for the first time in recent memory, given the cost savings. The agency guaranteed cost savings of approximately 15 percent. Company X is viewing this situation opportunistically. If principal media is able to meet the performance KPIs of its traditional, agent-based media buys, it could become a bigger part of the company’s overall spending going forward.
    • A pharmaceutical company: This company uses principal media specifically for a division that has been challenged with declining sales and therefore also declining marketing budgets. Those declining budgets have meant that no funds are available for much-needed research support that could help optimize media investments. This company turned to principal media as a solution. The use of principal media has resulted in cost savings of approximately 15 percent, which has been reinvested in research focused on media effectiveness and marketing mix modeling. About 10 percent of the budget has been placed via principal media. For all principal media deals, the client requires that the agency provide a detailed cost/benefit analysis to support the recommendation, which includes an option without principal media. The marketer maintains that the principal media must be auditable for quality/performance and placement — including IVT, viewability, brand safety, and adherence to inclusion/exclusion lists. The client understands that costs cannot be audited but insists that quality/performance and placement are indeed auditable. Overall, principal media has been a good solution, given this company’s situation.

    DirecTV Advertising Starts 'Guaranteed Incremental Reach'

     Besides linear TV advertising being the top reach and targeting media for addressable commercials, is there competition aboard to challenge linear TV advertising?  Philip Jay LeNoble, Ph.D.


    DirecTV Advertising Starts 'Guaranteed Incremental Reach'

    DirecTV Advertising -- a major proponent of addressable TV advertising -- now says it is offering “guaranteed incremental reach.”
     
    A key concern of big brand advertisers continues to be finding more reach for media campaigns -- much of this due to declining reach of legacy linear TV platforms and networks.
     
    DirecTV’s Addressable Reach-Frequency Optimization (RFO) technology combines the company’s proprietary data, viewership insights and addressable technology for advertisers to maximize reach, optimize frequency, and balance impression distribution against their TV campaigns.
     
    Additionally -- as with other TV-based media sellers -- DirecTV is adding clean room technology, which is currently integrated with Amazon Web Services Clean Rooms, InfoSum, LiveRamp and Snowflake and will be expanding to other providers. 
     
    Also, DirecTV Advertising says brands can now air “contextual” content deals without needing to rely on audience data by using inputs such as network, genre and rating. Advertisers can verify where their ads have run through multiple verification partners. Later this year DirectTV is offering series-level reporting through Publica by IAS.

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    Estimates from IPG Mediabrands’ Magna research/investment business say total TV addressable revenue will rise to $13.4 billion this year (from $10.9 billion a year ago). Set-top box addressable deals will grow 25% to $11.9 billion, with connected TV estimated to increase 8% to $1.5 billion.

    Additionally, Amy Leifer, chief advertising sales officer at DirecTV Advertising, says in a release: "As the market shifts and more content is being consumed on CTV devices, we’ve transformed our business to be more digital and streaming-centric."
     
    Earlier this year a survey by the company said one in three advertisers now considers addressable as a must-buy.