In the age of digital media and hyper-targeted ads, many investors think television advertising is on its way out. However, analysts believe that the TV advertising market could rise in the next few years. Credit Suisse media analyst Omar Sheikh points to new technology that will allow advertisers to more narrowly target relevant consumers beyond Nielson data. Read more about it here.
Every quarter, Nielsen releases a “total audience” report that provides an overview of the television industry. The latest report showed promising numbers for traditional television, in regards to weekly viewing hours. “When it comes to watching video, total adults spent 86% of their viewing time with traditional television in the fourth quarter of 2016, compared to about 14% for all other screens combined.”
While the use of smartphones and tablets has increased alternate screen viewing by two hours from the previous quarter, television remains stable. The report indicates also indicates promising numbers from Millennial audiences, “among adults under 25, TV is still the dominant screen.” To learn more, read the MediaPost article here.
A new study from DRMetrix examined the size of the direct response television industry and revealed it to be much larger than previously thought. After monitoring over 100 national cable networks, researchers found an average of 6.49 minutes of DR spots air every hour. “Joseph Gray, DRMetrix’s founder projects estimates for network cable direct response valuation are three to four times greater than what leading television research companies have reported based on differing philosophies of what constitutes “direct response” versus “brand”- the lines of which have been blurred over the years.”
DRMetrix research shows, among other findings:
Short-form product (call to order) = $315,559,760
Lead generation (unique 800 or web/promo code tracking) = $1,214,017,067
Brand/DR (Using vanity 800#’s) = 2,093,214,169
Brand/DR (straight web, SMS, and/or mobile app response) = $2,813,172,646
TOTAL = $6,435,963,642
To learn more, read the Response Magazine article here.
In an effort to appeal to customers through audience optimization, Nielsen has launched an artificial intelligence layer to their marketing cloud. This development will help advertisers target audiences in real-time. “Nielsen AI aggregates device-linked audience data across multiple platforms, including email, social, mobile, and programmatic, while automatically optimizing audience segmentation for more targeted marketing content.”
With the ability to evaluate campaign performance and make adjustments as needed, this technology will help improve overall ROI. “The company’s marketing applications include a data Management Platform (DMP) and tools for campaign attribution, media analysis and real-time engagement metrics.”
To learn more, read the MediaPost article here.
YouTube has recently revealed plans to expand their content with YouTube TV, a live streaming service. Distinct from YouTube Red, which is an ad-free, exclusive content version of the video site, YouTube TV is a cable-TV replacement service. The company has partnered with a number of broadcast networks including ABC, NBC, CBS, Fox and others. “We decided to create an offering that would give them all of these can’t-miss live moments,” said YouTube Chief Business Officer Robert Kynel.
By offering live broadcast feeds, advertisers will have even more possibilities to reach target audiences online. To learn more, read the TechCrunch article here.
Last year, advertisers spent over 15 billion dollars on social media campaigns. However, there have been concerns regarding the metrics of some ad measurements. This has led to new measures from these websites, trying to guarantee reliability with their investors. One such method involves metrics backed up by third-party sources. According to Media Life magazine, “Snapchat recently signed with Oracle Data Cloud that will target people based on their offline buys and also allow advertisers to see if their ads are resulting in real-world purchases.”
The advertising budget for social media websites is expected to double by 2021. As a result, these sites are working hard to ensure reliable metrics. To learn more, read the Media Life article here.
With the start of this new year, Nielsen initiated the agency evaluation period of their long anticipated Total Content Ratings system. This system will consolidate all traditional, digital, and other TV/video viewing under one measurement. However, at the request of their television network clients, Nielsen has altered the way data will be shared during this assessment. “Instead of allowing its media clients to analyze TCR data online as of January 1, it will provide offline reports.” It is important to note that this was not a result of any methodological issues but rather, “client readiness and their need to further evaluate data.”
An important element of Nielsen’s new evaluation process relies on TV networks to implement the new “Software Development Kits” on their digital platforms to make total viewer measurement viable. More reports will be produced as more clients come online: “This will allow media clients to customize the data they wish to share, whether it be to focus on particular platforms, programs, or demographics,” noted Nielsen.
With plans to have the TCR system ready for use by this year’s upfront advertising market, the “Total Content Ratings is on schedule to syndicate data on March 1st.” To learn more, read the MediaPost article here.
The outcome of this year’s presidential election surprised many people because the expectations predicted anything but the actual results. In an article from Media Post, this recent political upset can be attributed to the differences between attitudinal and behavioral marketing analysis. “Studies and tools have focused almost exclusively on using attitude or “intent” to justify investment or success. The problem is that these studies and tools can be wrong. Intent to purchase is not a purchase, and one doesn’t always correlate with the other.”
However, television media measurement is making significant changes as companies strive to develop behavioral analysis tools. Instead of relying on survey questions or making assumptions about a target audience, advanced TV data sets have the potential to analyze customers based on actual viewing behavior. “The strategy of focusing on behavior vs. intent will reveal far greater insights and accuracy than ever before.”
To learn more, read the Media Post article here.
Last week, more than 40 million people tuned in Wednesday night to watch the Chicago Cubs defeat the Cleveland Indians for their first World Series title in 108 years, making it the most watched World Series game in 25 years. Fox Sports was the other victor this season as ratings propelled the network into first place within the coveted 18-49 demographic. “The World Series has been an advertising windfall for Fox Sports, which charged more than $500,000 per Game 7 spot, according to sources.”
In addition to companies like Apple, Google, Ford, etc. who can afford to run ads at over $16,000 per second, the presidential candidates also continued their national ad-spending with multiple spots throughout the game. “Last year’s World Series, which went just five games, took in $240 million in ad revenue, according to Kantar Media.” With the income from advertisements during two additional games, the Chicago Cubs aren’t the only ones celebrating this year.
To learn more, read the AdWeek article here.
The proposed merger of AT&T with Time Warner has the potential to change a great deal regarding the way media gets consumed. Although the two companies have plans to become a nationwide wireless competitor with Comcast, the country’s largest cable provider, the goal of this vertical integration is about providing consumers with more options. Time Warner CEO Jeff Bewkes, “has long promoted ‘TV Everywhere’ an idea that people should be able to pay once for a cable bundle and then watch anywhere, anytime, on any device.” In addition, this acquisition will provide AT&T with, “HBO, CNN, Warner Bros. and Time Warner’s other assets” necessary to compete with Comcast.
This merger will also improve the way advertisers target audiences across various media platforms. Bewkes was a guest on CNN and offered this regarding the advertising changes may result, “The sharing of data between AT&T and Time Warner can result in ‘more effective advertising’ and therefore people are going to see that more of the cost of content can be borne by advertising, and the experience of television can be better.”
To learn more, read the CNN Money article here.