Snackable content opportunities, Gonzalo del Fa’s 2020 goal of making multicultural something organic across agencies/clients and more intelligence about what is going on in marketing and media right now. And Portada’s take on it.
Brands looking for Snackable Content Opportunities in 2020 (TikTok and Quibi)
We recently published a piece on the main opportunities and challenges for 2020 according to members of of the Portada Council System. These opps and challenges include Marketing in a world with a smaller Facebook, Advertising in a divisive political environment and Cross-screen measurement. Here another opportunity as seen by a senior brand marketing executive interviewed by Portada: “With our attention spans becoming shorter and shorter, I think the biggest marketing opportunities that I would like to explore in 2020 are TikTok and Quibi. I think snackable content is the direction that we are moving in, be it 60 seconds or 7-10 minutes. I hope to explore branded content partnerships & product placements on these two platforms in the near future and will be challenged to figure out what success looks like on these platforms.”
An Organic Integration of Multicultural into Brand Marketing Decision Making
“My main goal for 2020 is to make of multicultural something organic across all agencies and clients”, Gonzalo del Fa, president of GroupM Multicultural tells Portada. Del Fa, and his New Majority Ready™ Coalition, hit the topic on the spot. Multicultural marketing should lie at the very heart of Corporate America because the population of the U.S. is predominantly multicultural. This fact should also be reflected in how multicultural marketing opportunities are incorporated into brand marketing decision making. To “make multicultural something organic” means to make decision makers at corporate marketing departments and agency media buying units aware of the opportunity and integrate its discussion organically into brand marketing decision making. (Multicultural) marketing will only work when data analysts and marketing executives with budget decision making power work together in the same business unit (for an example check out Pepsi).
Amazon’s Expanding Ad Sales Team
The more consumers use Amazon’s platform, the more advertisers are willing to place ads on Amazon Advertising’s network. The “other revenue” line in Amazon’s P&L amounted to almost US $3.6 billion and grew by 45% in the third quarter of 2019. The majority of that revenue are advertising revenues. Not surprisingly Amazon is beefing up its ad sales teams. Also in multicultural; Fabio Brunelli was just appointed as Head of Multicultural Ad Sales U.S. for Amazon.
With most broadcast companies loosing linear TV advertising revenues in the order of 10%-20% annually, no wonder that Comcast’s NBC is betting heavily (a US $2 billion investment spread over 2020 and 2021) on its streaming platform Peacock. Contrary to many of its competitors in the crowded streaming service market, Peacock is mostly an advertising revenue bet. Matt Strauss, Chairman Peacock and NBC Universal, says that measurables for the new streaming service are driven in three ways: Active accounts (accounts streaming each month); Engagement (hours watched per account); and ARPU (Average Revenue per User). NBC expects to have between 30 to 35 million subscribers by 2024. By 2024, NBCU expects to break even with an ARPU of $6-7 (mostly advertising revenue based), revenue of US $2.5 billion per year. Comparatively, Hulu generates $10 per sub on advertising today, Strauss notes.
Sorrell’s Non-Traditional Marketing Bet S4 Capital Now Includes Circus Marketing
S4 Capital, the Martin Sorrell backed holding company recently acquired Mexico City-based digital content agency Circus Marketing. Circus will continue to have a presence in the U.S. through its Santa Monica, Los Angeles office, a Circus executive tells Portada. S4 Capital is merging Circus into MediaMonks, the Dutch digital production company which also has a strong presence in Latin America. The common thread of all S4 Capital acquisitions is that “none are traditional marketing entities, rather, they’re very digital at their core, whether that be related to production, creative, marketing, programmatic or data,” Jay Pattisall, a principal analyst at Forrester, told AdExchanger.