Thursday, August 11, 2022

2022 Political Advertising Estimated To Hit Record $9.7B, CTV At $1.4B

 

2022 Political Advertising Estimated To Hit Record $9.7B, CTV At $1.4B

Political advertising for the 2022 mid-term election cycle is now trending to hit a massive $9.67 billion -- the highest total ever for any political ad cycle, exceeding any Presidential election year, according to AdImpact.

For 2022, this would be 7% higher than the 2020 Presidential election year ($9.02 billion), and two-and-a-half times higher than the 2018 midterms ($3.96 billion), according to AdImpact.

Through July, the election cycle is outpacing the 2020 election cycle by $700 million, the TV advertising intelligence and data research firm says.

A previous July 2021 estimate by AdImpact projected that 2022 political advertising would land at $8.9 billion. The 2016 Presidential election year came in at $2.57 billion in political ad spend.

“Although 2022 is not a Presidential year, there are still many high-profile and competitive races fueling the historic levels of political ad spending that will carry through to November,” says the company.

This includes 38 Gubernatorial races for the 2021-2022 political election cycle, which AdImpact says is a significant increase from the last election cycle. Thirty-five Senate elections will be held in 2022.

Much of the spend will continue to be on broadcast TV. Kantar recently estimated local TV alone could hit $5.5 billion in 2022. But AdImpact says media alternatives are growing -- including connected TV, which it says is on pace to reach $1.4 billion this year.

AdImpact does real-time monitoring of linear television, local cable, and CTV at markets, zip code, and household levels, collecting more than 21 billion TV ad impressions daily, from more than 60,000 brands and advertisers. This includes all national broadcast networks, 1,100 local broadcasters.

3 Practical Ways To Market To Moms During a Recession

 

3 Practical Ways To Market To Moms During a Recession

Regardless of the term you use to describe today’s economy, we can all agree that as the household manger, moms are being challenged to stretch their family’s dollar.   A trip to the grocery store requires a new strategy -- only after finding the least expensive gas to put in their cars. And as children go back to school many moms are limiting their spending on the extras.  

As a brand competing for Mom’s limited dollars, it’s important to be more strategic in your marketing messages and deployment of marketing tactics.  Here’s a few ways to tweak your marketing strategy to earn more of her shrinking wallet.

Focus on the functionality of your products over one-time benefits. Moms will spend money on products that can provide multiple solutions for her family.   Don’t believe me?  Look at TikTok, where there are millions of views of #MomHacks demonstrating how to use yogurt jars as succulent planters or plasticware containers as toy organizers.  

Sure, your product development colleagues may not like to see the latest version of your product being used for a non-intended purpose. However, if moms find a useful and safe solution they value for your product, it’s a good thing.  Enlist these social #MomHackers to be creative with your product on social media -- and sit back and enjoy the viral and incremental sales.

Align products to present increased value to moms.  With online sales and social media, this process has gotten easier to execute. In a social media post, highlight associated products that create a lifestyle solution and provide online shopping links to each. 

For instance, an after-school swim practice post might include not only a featured snack item but also sunscreen, towel and detergent for the wash later.  Moms think in tasks, so sell her everything she’ll need to take her job to completion. When each brand features the product bundle on its social media,  it increases the reach of the individual post while putting your product in front of a new audience.

Combine your social influencer outreach with offline sampling.  I call this social sampling.   What most marketers forget is that moms who are influencers online also influence other moms offline as well.  Now more than ever, moms are open to changing brands or products.  Sending samples to your social media influencers to share with their friends is the perfect way to put product samples into the hands of potential customers. You not only get a social media post, but you gain the benefit of a peer-to-peer, hand-to-hand recommendation. 

Those brands that get in step with moms now will position themselves to win the hearts and wallets of moms now and well into the future.

TV Upfront Numbers: Believe In 'Commitments,' Revenue, Or Flexibility?

 

TV Upfront Numbers: Believe In 'Commitments,' Revenue, Or Flexibility?

TV upfront network proclamations have always been fuzzy.

But now TV network-based media companies' disclosures of big upfront “commitments” are more cloudy than ever.

The latest comes from Warner Bros. Discovery, which said some $6 billion in upfront deals in commitments were made at low- to-mid double-digit percentage cost-per-thousand viewer price gains versus a year ago.

This season, NBC was among the first to talk up $7 billion in upfront business at high single/low double digits. Then came other big companies -- Disney-ABC ($9 billion in total volume), Paramount Global (high single-digit CPM gains) and Fox Corp.(9% to 12% CPM hikes).

But this does not mean that all this business and revenues will stick.

Focus on the word “commitments.” As media buyers know, this can mean flexibility -- which is why some say that to an extent, the upfront market is a futures market.

Traditionally, upfront deals can mean that fourth-quarter upfront inventory commitments by advertisers are “firm” and the first quarter being 25% cancelable; and 50% cancelable for the second quarter and third quarters.

But those deal points have changed in today's just-in-time media-buying world. Marketers and agencies want ever more of that flexibility to adjust their ad spend -- and choice, something which digital media-first companies provide.

At the same time, TV networks now have their own big digital media inventory supplies -- in order to compete with the Rokus, YouTubes, and Amazons of the world.

While there seems to be a lot of choice for TV networks' streaming platforms, there can be limited inventory due to many limited advertising and subscription streaming models -- at least currently.

Think of the big picture. Traditional linear TV is around $65 billion to $70 billion in total advertising spend per year About $35 billion to $40 billion of that is national TV (upfront and scatter deals). Separate from all this, the connected TV industry -- of which streamers play a big part -- comes in at around $15 billion to $19 billion.

While linear TV viewing and ad spend continue to slip, we can easily see rising data overall for CTV. But not only that. There are Netflix and Disney+ ad options yet to come this year -- as well as growing broad-reach streaming video platforms like Tubi, Pluto TV, The Roku Channel, and others. (For its part, Roku claimed it had $1 billion in TV/streaming upfront commitments)

So, the question going forward is whether TV marketers will be able to increase their strategies to adjust their media buys amid seemingly more supply coming to the business. Or will high-demand CTV inventory make for more stringent deal points?


Monday, July 25, 2022

Audacy Study Reveals the Optimal Frequency to Engage Audio Users

 

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Commentary from MediaVillage

Audacy Study Reveals the Optimal Frequency to Engage Audio Users

Audacy Study Reveals the Optimal Frequency to Engage Audio Users
Charlene Weisler

Charlene Weisler

Publish date

July 25, 2022 (ET)

For channel

Audacy InSites

There is almost an art to measuring the optimal ad frequency in a campaign. And it's been stymied by some misperceptions over the years. That issue was front and center during a recent Audacy webinar that unveiled findings in a new study that debunked some commonly held beliefs.



According to the research, exposing audiences to audio messages consistently and frequently offers benefits to both the listener and the advertiser because it increases immersion -- a term that refers to attention plus emotional connection.

The study was conducted by Alter Agents in partnership with Audacy and Spark Foundry. Representatives of those two companies and Audacy took part in the webinar, which was moderated by Audacy CMO Paul Suchman. Panelists included Devora Rogers, Chief Innovation Officer, Alter Agents; Adam Weiler, Executive Vice President, Data, Technology, Analytics and Insights, Spark Foundry, and Idil Cakim, Senior Vice President, Research and Insights, Audacy.

Audio advertising improves brand equity, growth and sales essentially across the sales funnel, according to the report. "Ad engagement climbs with each audio exposure across industry categories, across platforms and across genres. Audio advertising works," Suchman declared. He noted that the report proves that audio seizes attention and encourages retention, offering brands engagement and impact that drives consumers to action.

But how much frequency is too much? What is the right balance for audio exposure? Weiler noted that "radio as a platform is fairly established as a traditional channel, but the audio landscape itself is growing and transforming." Advertisers now have to think more holistically around context, creative and channel while still being able to measure on more traditional metrics such as reach and frequency.

The challenge within the study was to ascertain the right amount of frequency without, as Cakim explained, "bombarding the participants with too high frequency." The decision was to go with up to 15 frequencies within the limits of the study and then measure variations.

Cakim said that she expected peaks because she knew that "audio was highly immersive." However, "the big surprise was how participants became increasingly immersed in a variety of audio messages at increasing frequencies," she revealed. "I was expecting a breaking point or drop off, but that didn't happen."

The study was configured using neuro methodology, measured by a smart watch rather than more intrusive traditional tools of neuro measurement such as gel caps and MRIs. In this way a more uninterrupted experience by the listener could be achieved.

Rogers explained that the smart watch captured the variable heart rate, which is tied to immersion and is a measure of emotional engagement and responsiveness. The study also included data that allows researchers to match neuro responses to stated responses from the participants, thus blending old and new methodologies together.

"We relied on second-by-second immersion data [biometric feedback from the audience] to measure creative resonance," Cakim explained. "And we coupled that with surveys that measure key brand effect questions on recall, familiarity, intention, etc."

It is well known that immersion levels are important because it is highly predictive of a consumer action, with an accuracy of greater than 80%. The study demonstrated that small differences in immersion can lead to significant changes in behavior. Audio, noted Cakim, "deeply holds attention."

The study's key takeaways included:

As frequency increases, so does immersion. The more you expose people to audio ads, the more they become attentive. And the content becomes more ingrained. This occurred across genres and across audiences. "Deeper and deeper immersion occurred with audio frequency," Cakim said. "Frequency, in and of itself, can be an important tool in helping to understand what an audio plan can do," Weiler added. "We saw increased engagement as frequency grows."

As immersion increases with exposure, so do positive brand opinions and brand equity. By 15 exposures, immersion and brand opinion reach a high point for advertisers. "The scale for immersion measurement is from one to 100," Cakim noted. "The higher the score, the more immersed you are in the content. We are seeing levels of 59, going past 60, while the average for the industry in advertising immersion is 53. This is a significant difference."

Immersion also drives consumer purchase consideration with immersion scores in the low 60s. "This helps us to understand that radio is very effective at moving people through the funnel and advancing potential targets on their purchase journey," Weiler said.

Creative matters. The most effective ads were those "that explained what was in it for the customer and held attention to the end," Cakim noted. Attention is easier to get at the beginning but hard to hold and sustain until the end of the message.

What can advertisers, especially those who may be new to audio, do with all of this information?

"Go big and bold, devise a total audio strategy, leveraging OTA [over-the-air] and digital platforms," Cakim said. "And don't be afraid to go to higher frequencies across the board to drive your message home and immerse your audiences in your brand."

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The opinions and points of view expressed in this content are exclusively the views of the author and/or subject(s) and do not necessarily represent the views of MediaVillage.com/MyersBizNet, Inc. management or associated writers.

How Marketers Can Help Achieve Real Business Results

 

COMMENTARY

How Marketers Can Help Achieve Real Business Results

Brands and agencies often use the terms “advertising” and “marketing” synonymously, resulting in confusion and a myopic view of the mechanisms that may be used to solve a brand’s business challenges. Business suffers then, because only a small portion of the customer’s journey and marketing funnel is being influenced (via advertising), versus an impact on results across the funnel, the customer experience, and the brand’s bottom line at the end.

While advertising is critical in delivering content to customers to drive awareness and consideration, change perceptions, or even drive action, it must be used in conjunction with other marketing techniques to fully impact a brand’s business and deliver a full-funnel solution.

For example, simply advertising a certain aspect of a brand’s value proposition without fully incorporating the same content across other owned and earned channels — as well as ensuring the value proposition is being delivered via customer journey research — could potentially result in a brand wasting its precious marketing budgets without achieving any real business results.

How Marketers Bring True Value

By understanding a customer’s individual needs and preferences, marketers can drive relevant, personalized content across the entire customer journey and convince customers to move from one point to the next and, eventually, take the final step of transacting with a brand. Marketers can develop content, offers, and calls to action by mapping the individual’s needs to business goals at each point of the customer journey.

Attracting the right audiences and providing relevant and personalized content through the journey is the true value that marketers bring. Here are some ways that marketers should be approaching and prioritizing these efforts:

1. Journey mapping: To drive impact and business results, marketers must start with understanding and documenting the customer’s (current and ideal) journey with the brand or product, breaking it down into phases and milestones, triggers and barriers (emotional and physical) at each phase, and defining business goals for each milestone. This helps marketers develop a blueprint that can be used to define and design the ideal user experience across touchpoints or channels to accomplish the goals for each phase or milestone in the journey and, in turn, help deliver bottom-line results for the business.

2. Customer segmentation and UX design: Brands must also invest in research and analytics that helps them understand the profiles (demographic, psychographic) of their customers as well as their needs and preferences across the various phases of the customer journey. These insights should then be used to group customers into segments and develop relevant experiences in order to attract, capture, and retain each segment and maximize the return of marketing investments.

3. Measurement and optimization: Definition of clear goals and continual measurement of efforts across the various parts of the customer journey are other integral and essential components of a successful marketing program. KPIs grounded in business goals help teams understand the effectiveness of marketing tactics so they can optimize spend, targeting, and experience to deliver a higher ROI.

TV Upfront Marketplace Posts 'Modest' Gains For 2022-23 -- 5.8% To $20.1B

 

TV Upfront Marketplace Posts 'Modest' Gains For 2022-23 -- 5.8% To $20.1B

TV upfront marketplace, including broadcast and cable TV networks, posted “modest” gains -- up 5.8% to $20.1 billion, according to estimates from Media Dynamics.

While broadcast and cable networks grew similarly in volume -- up 6.4% (to $9.9 billion) and 5.2% (to $10.2 billion), respectively -- broadcast  showed strength when it comes to prime-time 30-second commercials in terms of the cost-per-thousand (CPM) viewers.

Broadcast grew 9.6% to $47.14, while cable TV networks rose 6.6% to $23.30.

“[There was] a definite softness in cable sales relative to broadcast, as many buyers felt that they were better off diverting fairly large sums to streaming venues -- despite their higher CPMs -- as a hedge against future scatter market pricing for broadcast prime,” says Ed Papazian, president of Media Dynamics.

Overall, he adds, these gains "were well below last year's spectacular hikes due to buyer concerns about the looming threat of an economic recession."

A year ago, big broadcast TV networks in the upfront market for the 2021-2022 season took in an average 19% gain in prime-time broadcast CPMs, and 10% higher for cable TV networks, according to Media Dynamics.

This year is different. He says: “Linear TV sellers were willing to trade off smaller CPM increases for their linear TV platforms in exchange for increases—often at higher CPMs—for their streaming services.”

Shoppers Spent More in Q2, Possibly Due to Inflation

 

Shoppers Spent More in Q2, Possibly Due to Inflation

Supply-chain problems and fears about inflation are not preventing consumers from spending online.

Average order value increased by 19% in Q2 compared to Q1, according to an analysis by customer platform Klaviyo. 

Yet brands are offering 18% fewer discounts as they cope with increased prices for goods. 

Meanwhile, small businesses that sent “Back in Stock” emails saw a 9% increase in order value compared to the prior quarter.

Klaviyo defines “small” as firms with less than $5 million in revenue. 

The sheer number of orders increased in several categories, compared to Q1:

  • Apparel & accessories — 13%
  • Food and Beverage — 12%
  • Jewelry — 4% 

In contrast, health and beauty orders increased by only 2%, and the average order value by 1%. And consumers placed 5% fewer electronics orders. 

In addition, consumers placed only 2% more orders for home goods in Q2, with the average order value rising by 7%, probably due to inflation.

The average order value is up 24% in the U.S., compared to 9% in EMEA and 2% in APAC. 

“Despite the economic headwinds, consumer spending in certain categories continues to be consistent, particularly in categories like apparel and accessories as consumers start attending more events and returning to the office,” concludes Andrew Bialecki, CEO and co-founder of Klaviyo.  

Bialecki adds: “While consumers might pare back on buying higher priced goods like electronics, or price shop for more ‘essential’ goods, they’re still going to buy from the brands they love.”

Klaviyo examined results from over 300 million global shoppers across more than 80 countries and territories powered by the company’s platform.