HULU Aiming for 2017 Launch of Live Broadcast Channels

Posted by admin on August 24, 2016
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The streaming-video service, Hulu, is working hard to expand its business into live television. Hulu has been actively working for the last six months on this project, which includes, “cutting deals for local TV channels in markets across the U.S.” The main distinction between consumers who maintain cable subscriptions and those who’ve chosen to “cut the cord” is the opportunity to watch live sports and news. However, Tim Connolly, the senior VP at Hulu has made it a priority to offer this service, “Local TV provides the best content experience, so that’s what we want…to be able to watch the local game.”

Now that live-streaming video is a commonplace capability for internet networks, Hulu is ready to expand their personnel and create infrastructure for the service. Mike Hopkins, the CEO at Hulu had this to say, “We’re going to roll this out as soon as possible. Customers will have the option to buy Hulu’s live TV product as a standalone service, or bundled with the SVOD (streaming video on demand) service.” Nearly 80% of Hulu subscribers also have cable or satellite TV services but the push for adding live TV is clearly aimed at the remaining 20%.

By blending the on-demand and live platforms, Hulu is trying to offer all possibilities to their customers, which also results in more opportunities for advertisers. To learn more, read the Variety article here.

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After Strong Upfront, a Growing Optimism about TV

Posted by admin on August 10, 2016
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Digital platforms have been seen as the up and coming rival in advertising but ad fraud and viewability issues are sending buyers back to television. In a recent publication from MediaLife magazine, Bill Cromwell had this to say, “After a surprisingly strong upfront, new forecast predicts stronger spending this year on TV, a trend that may continue into next year if the current backlash against digital continues.”

Although ad fraud and viewability issues contribute to the movement away from digital advertising, the MediaLife article suggests there are other factors as well such as political and pharmaceutical spending. “The prediction for TV gains comes after a robust upfront that wrapped up much earlier than the past two years, thanks to greater demand from advertisers.”

To learn more, read the MediaLife article here.

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Lawmakers Question FTC About Ad Fraud

Posted by admin on July 19, 2016
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Two senators, Mark Warner (D-Virginia) and Charles Schumer (D-New York), have recently addressed the Federal Trade Commission in an attempt to regulate fake Web traffic, an issue that impacts not only advertisers but consumers as well. According to a study by the Association of National Advertisers, “online ad fraud will cost advertisers $7.2 billion globally this year”. Unfortunately, these losses will be offset by the consumer in the form of higher prices for goods and services.

In a letter to FTC Chairwoman, Edith Ramirez, the senators said, “Bots plague the digital advertising space by creating fake consumer traffic, artificially driving up the cost of advertising”. Despite the fraudulent nature of these bots, the senators also added that “many are advanced enough to analyze consumer web activity in order to re-target advertisements based on individual browsing preferences.”

It is important for both consumers and advertisers to be cautious of online ad fraud. Digital technologies have advanced quickly but reform will be necessary “to protect consumer data and mitigate fraud within the digital advertising industry”.

To learn more, read the MediaPost article here.

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TV Advertising Improves Apps’ Chances

Posted by admin on July 12, 2016
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A new study from the Video Advertising Bureau has recently found a direct correlation between television advertising and mobile app traffic.  Danielle DeLauro, senior vice president of strategic and sales insights for the VAB said, “TV is unparalleled in its ability to sell stuff…to be a major player in the category, you have to have a TV campaign”.

One aspect of the evaluation compared TV spending with traffic for 60 mobile apps and found “77% of those cases showed a direct correlation between television ad spending and app traffic”. Television ads were also found to boost the launch traffic for new mobile apps. “Games such as Blossom Blast and Mobile Strike each saw roughly a 2 million increase in unique visitors within a month of starting television advertising”.

Although the mobile platform was seen as a competitor in the advertising industry, television is still the best way to get the word out about a new product.

To learn more, read the MediaPost article here.

TV Is Still the Most Effective Advertising Medium

Posted by admin on July 05, 2016
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The television industry has changed quite a bit over the last few years but a new study from MarketShare concludes that TV is still the most effective method of advertisement. After analyzing all types of media outlets (TV, online display, paid search, print and radio) MarketShare stated, “TV has the highest efficiency at achieving key performance indicators like sales and new accounts.” The study also took budgetary differences into consideration and found, when analyzed at similar spending levels, “TV averaged four times the sales lift of digital”.

Isaac Weber, VP of strategy at MarketShare, had this to offer regarding the effectiveness of television advertising, “TV is the giant megaphone. When you want to get a message out, that’s still really the most powerful means to do it.”

To learn more, read the AdWeek article here.

Advertisers Have Seriously Underestimated TV’s ROI

Posted by admin on June 17, 2016
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A multi-year study, recently published by Accenture and ABC, examines the value of TV advertising and proves it to be growing stronger with the introduction of programmatic TV. The precise measurements of digital ad campaigns are now being introduced to programmatic television, making TV even more valuable than previously thought. According to the study, “participants reported about 18% of the ROI on digital channels is accounted for by TV, a conservative estimate that should be boosted by 10% on average.”

The past few years have shown budget trends shifting from television to digital and social media but this study examines why that may have been premature. With programmatic TV, advertisers will be able to track “everything from the network down to the daypart and audience data”, revealing the true value that exists within TV advertising.

To learn more, read the Digiday article here.

Most TV Networks Aren’t Dropping Ad Time

Posted by admin on June 13, 2016
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The most significant shift in entertainment over the past decade has been the introduction of ‘on-demand’ viewing platforms. Instead of watching broadcasts in real time, companies like Netflix and Hulu allow viewers to watch at their own convenience. As a result, there was speculation that networks would be reducing ad time to try and win back viewers.

However, when comparing the last quarter of 2015 to the first quarter of 2016, the numbers suggest otherwise. According to Sean Muller, CEO and founder of iSpot TV, “Overall, for the 31 biggest broadcast and cable outlets, seven networks dropped prime-time ad loads, seven more were flat, and 17 rose.” Those numbers certainly don’t reflect a downward trend.

To learn more, read the Venture Beat article here.

Programmatic TV: The multi-billion-dollar ad tech that’s transforming television

Posted by admin on June 13, 2016
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In terms of advertising, the differences between television and digital video are slowly becoming indistinguishable. Already a buying staple in digital media, programmatic TV offers “data and automation to precisely target specific consumer audiences”. With expectations to become a $17 billion dollar opportunity by 2019, there are some exciting advantages coming soon to the advertising industry.

So what does programmatic TV mean for advertisers? Advertisers have been limited to directing their campaigns based on age and demographic information but programmatic TV will also allow audiences to be targeted by geographic location, household income, etc.

“As television and digital video continue to converge, we move a little bit closer to video advertising’s holy grail: The ability to purchase premium inventory aimed at select audiences with a single media plan that covers television, mobile and desktop devices.”

To learn more, read the Recode article here.

Increased ‘Upfronts’ Spending Revives Confidence in TV Advertising

Posted by admin on April 29, 2016
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The consumer trend known as ‘cord-cutting’ has caused ad-sales to decline in the past but this year, the “upfronts” sales period shows strong potential for Broadcast and Cable networks. Despite the drop in total ad spending over the past few years, “media buyers and analysts suggest commitments could rise 3% – 5% in this year’s upfront market”. One reason for this resurgence involves the advertisers who decreased spending during the upfronts last year and ended up paying up to “20% premiums for commercial time later in the year”.

There have also been some concerns with digital advertising and the transition back to television could be one explanation for the increased TV ad-sales. Marketers have had issues with “fake web traffic generated by computerized ‘bots’ and the lack of consensus on how to judge when a digital ad is considered viewable”. Although live viewership has declined throughout the industry, “the greatest strength of television remains its ability to reach large numbers of people simultaneously”.

To learn more, read the Wall Street Journal article here.

Spoiler Alert: A Playbook for Marketing in the Era of Live Media

Posted by admin on March 30, 2016
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The shift in media consumption from live programming to on-demand/streaming platforms has given consumers more options and control than ever before. While the majority of viewers choose to watch regularly scheduled programs at their convenience, “marketers have made live media events such as the Super Bowl and Oscars nearly unrivaled opportunities to strike advertising gold”.

Within the past few years, GE has shifted its media strategy to focus on “live sporting events and award shows, as well as zeitgeist moments such as season premiers and finales”. With 92% of their advertising budget spent on live programming, GE has seen nothing but positive results. “Industrywide, live programming over-delivered primetime’s regularly scheduled programs by as much as 416% among 18-49-year-olds in 2015”.

Although some broadcasters haven’t modified their strategies to reflect new audience dynamics, networks like Fox have announced they will only recognize live viewership ratings for live events such as sports. “Overnight ratings aren’t the only metrics that matter and changing the conversation starts with abandoning legacy models of measuring”.

The previous methods of live audience measurement are outdated as the industry works toward the combination of digital and television platforms. Just as media buyers need to rethink their planning, networks also need to reconsider their programming and events that court live viewership. For Direct Response advertisers, this could mean more inventory in other programming at discounted rates.

To learn more, read the Ad Age article here.

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