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.
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.
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.
According to a new report from eMarketer, television remains the number one media platform for adults in the United States. The study compared time spent on various devices used to consume media and the preference for TV far exceeded any of the digital categories. The report stated, “While digital video is on the upswing, the sum of mobile viewing and desktop/laptop viewing will be less than one-fourth of the amount of time spent on linear TV this year.”
The study also showed an interesting trend regarding the increased usage of mobile platforms. In 2012, the use of smartphones and tablets increased 218% as they started to become more common appliances. However, currently, “The increase will barely make double digits (10%) before falling below that level to 8.5% in 2017.” So the novelty of digital media appears to be waning and this report from eMarketer confirms the lasting relevance of television.
To learn more, read the Direct Response Magazine article here.
Recent advancements in digital technology have made it possible for viewers to consume their entertainment of choice on a scale like never before. But as the number of screens per person increases, the way people interact with their devices has also changed. As a result, Nielsen Consumer Neuro is working with the Council for Research Excellence to improve the methods in which media consumption gets measured.
The challenge, however, lies in the technological distractions we’ve become accustomed to. According to Carl Marci, chief neuroscientist at Nielsen, “it’s not a black-and-white situation, and in some cases things that might seem like a distraction—including co-viewing and even second screens—can enhance engagement with the way people watch TV.” One study in particular, conducted by the CRE, implemented “a variety of biometric measurement techniques to understand people’s conscious and unconscious interaction with media.”
Although media technology continues to advance exponentially, Nielsen is dedicated to improving their system of measurement and providing accurate results for the advertising industry.
To learn more, read the MediaPost article here.
July was a significant month for the advertising industry with a 3.2% increase in national TV ad dollars, bringing the total to $2.46 billion. The market survey was conducted by Standard Media Index and was based on data from 70% of national media agency billings. Cable networks showed the strongest results with growth of 5.6%, with broadcast networks up 1%. “Cable news networks benefited from higher ratings as a result of strong interest in the presidential election race.”
Live sports continued to benefit broadcast networks; NBC saw a ratings increase as a result of pre-Olympic programming and CBS attracted viewers by airing a major golf tournament. Last year, upfront deals were set in a weak marketplace and saw a 3% decline but SMI says total U.S. ad spending regained that 3% this July.
This increase in TV ad spending means advertisers have confidence in the platform’s ability to deliver results, a great reason to get a DRTV media campaign started.
To learn more, read the MediaPost article here.