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We are looking at Nielsen’s social content ratings of the week of January 28 to February 3 in order to get a good sense of which social platforms are the best tool for viewers to engage with their favorite programming.

 

This week, the Super Bowl got everyone talking on Social Media, or that seems to be the case if we look at Nielsen’s Social Ratings from January 28 to February 3. As we saw in the previous analysis of Nielsen’s rankings, Instagram is the clear winner of TV-programming-related social media; just as the last time, more than half (59%) of the interactions and engagements with the top 30 TV specials or talents were posted on Instagram, while Twitter received 22 million and Facebook was last with 3.1 million. Overall, this period of time saw an increase of about 22 million posts on social media, mostly due to the Super Bowl. Here we extract a few insights from Nielsen’s data in order to get a good sense of which broadcasters and programs generate more engagement, and will try to find out whether there is a relationship between topics and social media.

 

WEEKLY TOP TEN SERIES AND SPECIALS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1CBS

NFL Honors

2/02/19

2,958982,501359
2USA Network

WWE SmackDown!

1/29/19

2,3351411,783411
3USA Network

WWE Monday Night RAW

1/28/19

2,1761211,681374
4ABC

Grey’s Anatomy

1/31/19

1,350541,19997
5NBC

America’s Got Talent

1/28/19

1,278206846226
6The CW

Riverdale

1/30/19

9933775215
7NBC

Brooklyn Nine-Nine

1/31/19

66111443206
8NBC

The Titan Games

1/31/19

644961124
9Univision

Mira quien baila All Stars

2/03/19

630505764
10The CW

Supernatural

1/31/19

46534120311
[Source: Nielsen]

 

Key Insights

  • Out of the total of interactions on the top ten spots, 21.7% (13.4 million posts) were related to a TV episode or special.
  • Facebook had 727,000 interactions, almost 300,000 more than the week of January 14-20.
  • Twitter, received 2.2 million interactions with TV episodes or specials.
  • However, none of those two could match Instagram, which got 10.5 million posts, about 78% of the top 10 posts in this category.
  • Instagram won by a landslide on almost all the events, except for Supernatural, which got more interactions on Twitter.
  • Interestingly, one of the shows in the top 10 was Mira quien baila All Stars, a Latino-oriented TV program.

 

WEEKLY TOP TEN SPORTS EVENTS

RANKNETWORK / PROGRAM / DATEINTERACTIONS
(000)
FacebookInstagramTwitter
1CBS*, ESPN Deportes
New England Patriots vs. Los Angeles Rams Super Bowl LIII
2/03/19
32,2881,79112,97817,520
2ABC
Los Angeles Lakers at Golden State Warriors
NBA Basketball
2/02/19
2,924972,388439
3TNT
Philadelphia 76ers at Golden State Warriors
NBA Basketball
1/31/19
1,720591,433228
4ABC
Oklahoma City Thunder at Boston Celtics
NBA Basketball
2/03/19
1,632401,405186
5NBA TV
Golden State Warriors at Indiana Pacers
NBA Basketball
1/28/19
1,539661,277196
6ESPN
Boston Celtics at New York Knicks

NBA Basketball
2/01/19

1,425511,142232
7TNT
Philadelphia 76ers at Los Angeles Lakers
NBA Basketball
1/29/19
1,401261,079296
8ESPN
Houston Rockets at Denver Nuggets
NBA Basketball
2/01/19
1,226421,033151
9TNT
Milwaukee Bucks at Toronto Raptors
NBA Basketball
1/31/19
70837504167
10ESPN
St. John’s at Duke
College Basketball
2/02/19
5552143698
[Source: Nielsen]

Key Insights

  • Over 45.4 million interactions, or 73% of the total of the three top ten rankings provided by Nielsen related to TV episodes or special events, were about sports.
  • From these, 2.2 million (4.8%) interactions were posted on Facebook.
  • Twitter received 19.5 million related to sports events, or (42%).
  • About 51%(23.6 million) posts were made on Instagram, making it the winning platform in the sports category, though not by far.
  • The LIII Super Bowl took the first spot, receiving 70% of the interactions with the top 10 sports and 52% of all the top interactions and engagements overall.
  • The remaining 30of posts were related to basketball events; spots 2 to 9 were NBA matches, and spot 10 was a College Basketball match.
  • Instagram was the top platform for NBA fans, but Twitter is still the winner for NFL.

 

WEEKLY TOP TEN TV TALENT

RANKNETWORK / TALENT / PROGRAMENGAGEMENTS
(000)
FacebookInstagramTwitter
1NBC
Terry Crews
America’s Got Talent
62724498105
2NBC
Dwayne Johnson
The Titan Games
589657013
3Univision
Angelique Boyer
Amar a muerte
395133820.2
4Univision
Sebastian Yatra
Mira quien baila All Stars
22352171
5CBS*, ESPN Deportes
Maroon 5
Super Bowl LIII
212960116
6NBC
Ellen DeGeneres
Ellen’s Game of Games
188415529
7Syfy
Lana Condor
Deadly Class
17201648
8The CW
Danielle Panabaker
The Flash
153313218
9ABC
Caterina Scorsone Grey’s Anatomy
10301003
10NBC
Howie Mandel America’s Got Talent
101171866
[Source: Nielsen]

Key Insights

  • According to Nielsen’s data, 2.7 million viewers engaged with the top ten posts sent directly from social media accounts owned or affiliated with TV programming.
  • For the top 10 spots, Facebook received 168,000 engagements, Twitter got 359,000, and Instagram came out on top with 2.2 million.
  • The relationship between top series and top TV talents is rather close, especially in the case of America’s Got Talent’s Terry Crews. Even though Ellen’s Game of Games is on the 10th spot of the former list, she was the second most popular TV talent of the week.
  • Two Latino stars are present in this ranking: Angelique Boyer and Sebastian Yatra.

 

What: A summary of the most relevant consumer insight research in the US, US Hispanic, and Latin American markets.
Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.

 

  • According to Packaged Facts in the report The Financial Services Market: African Americans and Hispanics, as of 2018, some 70% of U.S. adult consumers say they don’t like the idea of being in debt—a response rate has held relatively steady since 2009, even as consumers have gradually added debt to their balance sheets. African American consumers are 28% less likely than the average U.S. consumer to feel financially secure, but at the same time, they are 16% less likely than average to view the idea of being in debt negatively. Likewise, Hispanic consumers are 15% less likely than the average U.S. consumer to feel financially secure, and they are also more likely than average to say they are no good at saving money.

 

  • US organic sales surpassed US $21 billion in sales in the 52-week period ended Nov. 24, 2018, which was up nearly 9% from the previous 52-week period, according to Nielsen Homescan household projected data. Millennials spent 14% more on organic products compared to the previous 52-week period, and Hispanic consumers spent over 13% more.

 

  • More and more Mexicans are willing to try online grocery shopping, as demonstrated by recent Comscore data. 4.5 million users buy on Walmart, followed by Soriana (1.1 million) and Superama (992,000 users). Bearing in mind that Mexico’s total population reaches over 65 million users, the market of online grocery shopping has great potential in this country.

 

  • The latest findings from MRI’s Cord Evolution research show that Americans watch TV or video in groups almost half (48%) of their total viewing time. Over half (58%) of co-viewing time is spent watching with a “significant other,” while children account for 19%; adult family members, 16%; and friends, 9%. Preferred genres for watching with others change depending on who else is in the room; while Movies come in first or second in all four co-viewing situations, and Comedy TV Shows consistently place in the top three, Sports score highest when friends are the co-viewers.

 

  • According to a report by Pew Research Center, the views of Gen Z – those ages 13 to 21 in 2018 – mirror those of Millennials. Only about three-in-ten Gen Zers and Millennials (30% and 29%, respectively) approve of the way Donald Trump is handling his job as president. This compares with 38% of Gen Xers, 43% of Boomers and 54% of Silents. Similarly, while majorities in Gen Z and the Millennial generation say government should do more to solve problems, rather than that government is doing too many things better left to businesses and individuals, Gen Xers and Boomers are more evenly divided on this issue. For their part, most Silents would like to see a less activist government.

 

What: The 2017 season saw Formula 1 register an increase in audience figures across both TV and digital platforms compared to the previous year. Brazil was the 2nd strongest market with a 13.4% audience growth.
Why it matters: Brazil is still the biggest TV market with more than 76 million viewers.

The 2017 season saw Formula 1 register an increase in audience figures across both TV and digital platforms compared to the previous year, with F1 the fastest growing sport brand on social media platforms.

The TV cumulative audience – i.e. the aggregate of the average audience of all the F1 programs broadcast across the year – in the top 20 markets* (based on ranking of TV audience) stood at 1.4 billion, which represents an increase of 6.2% compared to 2016.

The top four markets – Germany, Brazil, Italy and the UK, ranked by absolute figures – all registered positive growth. The strongest was Italy (+19.1%), followed by Brazil (+13.4%), the UK (+3.9%) and Germany (+0.9%). Other significant increases were registered in China (+42.2%), Switzerland (+14.3%) and Denmark (+14.1%).

Cumulative viewing (live and non-live) of races remained at around 603 million, with a 1% increase in the live audience and improvements in cumulative viewing for both free practice and qualifying sessions.

During 2017, 352.3 million unique viewers tuned their TV set into F1 programming at least once – the first time since 2010 that there was not a decrease in this specific number. In the main markets there was an increase of 2.4%, with Mexico (+22.6%), Italy (+16.7%) and the USA (+13%) leading the field in terms of improvement. Brazil is still the biggest TV market with more than 76 million viewers, despite a slight decrease (-1.8%) compared to 2016.

The number of users of Formula 1’s social media platforms also grew significantly during 2017, with a total of 11.9 million followers on Facebook, Twitter, Instagram and YouTube.

The improvement compared to 2016 was up to 54.9%, which made Formula 1 2017’s fastest growing sport brand on social media, as shown in the table below:

On Facebook, the minutes of video viewed were up over 1,600% compared to 2016, reaching more than 390 million, thanks mainly to the qualifying and race highlights, the most seen content, especially for the races held in the Far East.

On Twitter too, video content was the best performing, with over 64 million views, up 165% year on year. And Instagram followers almost doubled during 2017 (+93%), reaching 3.8 million.

Brazil is still the biggest TV market with more than 76 million viewers, despite a slight decrease (-1.8%) compared to 2016.
 

Unique users of Formula 1’s official website and app reached a total of over 124 million, with an increase of 7.5% compared to 2016. Formula1.com users grew by almost the same percentage, while users of the app grew by 1.7%, but the number of sessions was up by 37.7%.

The top performing three races in terms of number of unique users on both platforms were China (+35.6%), Singapore (+26.7%) and the USA (+19.8%).

“We are encouraged by the growth in audience numbers across linear and digital platforms during the 2017 season,” commented Sean Bratches, Managing Director, Commercial Operations at Formula 1.“Central to our efforts last season was to improve the fan experience across our platforms and it is encouraging to see the engagement that fans around the world have with Formula 1 media. Our work continues as Formula 1 fans will see material changes in 2018 with respect to both incumbent experiences and the creation of new ones. It is a good time to be a Formula 1 fan.”

*Top 20 markets, in alphabetical order: Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Poland, Romania, Russia, Spain, Switzerland, UK and USA.

Source: Formula 1

What: Both broadcast networks and non-linear outlets face challenges with brand awareness among young adult audiences, according to ANATOMY’s 2017 “The Young and The Brandless” report.
Why it matters:  Young millennials who watch primarily on TV sets are, on average, better than desktop and mobile viewers at connecting broadcast program brands to network brands.

ANATOMY has released the results of its 2017 The Young and The Brandless” report, which provides an in-depth look at the media consumption, content discovery habits and network brand recognition capabilities of young (18-26) adults.

Building awareness of the network brand behind programming is extremely important to both broadcast and OTT networks because strong brands are leveraged as a curatorial tool by viewers, which in turn, helps build awareness of new programs and facilitates critical program discovery. However, networks are finding this to be an increasing challenge.

The report indicates that young millennials who watch primarily on TV sets are, on average, better than desktop and mobile viewers at connecting broadcast program brands to network brands. The cause for concern for broadcast networks is, however, that 50% of young millennials watch exclusively on desktop or mobile devices.

Furthermore, linear viewership is declining year over year, while desktop and mobile viewing is growing year over year. In order to future proof a network brand, it is critical for networks to improve their promotion in non-linear digital spaces.

At the same time, while the survey shows that young millennials who watch primarily on desktop and mobile platforms are, on average, better than TV viewers at connecting OTT program brands to their related network brands – with the notable exception of Netflix – the overall brand awareness of these OTT networks lags behind that of the broadcast networks. Without the benefit of broadcast TV, OTT services have less room for error in their non-linear digital promotion efforts. Without a secure level of brand relevance among young viewers, outlets such as Amazon and Hulu are going to find it challenging to achieve their ambitions.

linear viewership is declining year over year, while desktop and mobile viewing is growing year over year

Key millennial viewership trends

  • The most common way for young millennials to consume television content (71%) is OTT platforms with one in two watching entertainment exclusively on desktop or mobile devices.

 

  • 58% of young millennials learn of new programming directly through friends and family or on social media. Young millennials are less likely to recall advertising as a consequential factor in discovering new TV programs.

 

  • In an aided brand recognition survey, Netflix yielded the highest brand awareness scores in comparison to other OTT platforms and broadcast networks. 65% of young millennials matched Netflix programs to the Netflix brand, while in contrast only 31% of young millennials matched ABC, CBS, and NBC programs to their respective brands. Amazon programs were only linked with Amazon 20% of the time and Hulu came in at just 15%.

 

  • Brand awareness scores are positively correlated with screen touchpoint rankings. ANATOMY analyzed broadcast and OTT network brands across six dimensions (on-air promotion, web, mobile, SEO, Facebook, and digital ads) in order to rank each brand’s performance. Netflix yielded the highest screen touchpoint ranking and brand awareness score.

 

  • Facebook engagement is strongly correlated with higher brand awareness scores. A data mining analysis assessed Facebook activity among broadcast networks and OTT platforms. Higher Facebook engagement on branded posts strongly correlated with higher brand awareness scores.

 

  • The 12 – 3pm ET timeframe generates 236% more engagements on Facebook than other publishing windows. Meaning, on average, posts published during this window generated twice as much engagement than posts published at other times of day.

 

  • A SEO analysis found that piracy results are as common as network results when trying to find TV online through a search query. In ANATOMY’s assessment, 43% of links on first search engine results pages (SERP) were network-based links, while 42% of links were piracy-based links. Search engines are a key pathway to pirate TV content, especially for young millennials. To beat piracy, TV networks must master the first SERP for popular show-related search queries.

“Our study looked at young millennial consumption, discovery and brand recall habits and the impact those behaviors have on a network’s brand whether it be traditional TV or OTT. What is interesting is that while networks consistently indicate that the viewer is at the center of their thinking, they don’t seem to actually analyze how users truly behave,” said Gabriella Mirabelli, CEO, ANATOMY. “We have learned that on-air promotion is still the most effective means of building brand awareness between a broadcast network’s programming and their brand. As for OTT – outside of Netflix – there is also work to be done as their promotional efforts need to be more precise in order to be effective.”

Featured image credit: Optician Training

What: Follow the weekend’s ratings through the live sports top 25 ranking! Here is a quick look at what people watched over the past weekend.

Which sport drew the biggest audience?

With close to 4 million viewers, NASCAR Cup Racing, which took place in Martinsville,VA, and was broadcast through Fox Sports 1, was the most watched sports event during the weekend.

What broadcaster drew the biggest audience?

Out of the almost 16 million people on our top 25 who watched sports events last weekend, 7.5 million tuned into ESPN. This broadcaster was the most watched during the weekend although Fox Sports 1 did broadcast the most watched event.

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What else is relevant?

The Tennis ATP Masters 1000’s final, held in Miami between Rodger Federer and Rafel Nadal positioned on number 7 of our ranking. The match had almost 500,000 viewers, due to the known rivalry between both tennis players.

ProgramEpisodeNetworkStartEndTotal Viewers (000)Viewers Age 18-49 (000)Day of the game
1NASCAR M.E. CUP RACING LMARTINSVILLEFOX SPORTS 12:00 p.m.6:14 p.m.3.963984Sun
2WMNS NCAA BKBL CHAMP LMISSISSIPPI STATE/SOUTH CAROLINAESPN6:11 p.m.8:17 p.m.3.8271.046Sun
3MLB OPENING DAY LNEW YORK YANKEES/TAMPA BAYESPN1:00 p.m.4:34 p.m.1.302579Sun
4MLB OPENING DAY LSAN FRANCISCO/ARIZONAESPN24:00 p.m.7:35 p.m.1.019469Sun
5PREMIER LEAGUE LMANCHESTER CITY/ARSENALNBC SPORTS NETWORK10:57 a.m.1:00 p.m.631311Sun
6NASCAR M.E. CUP FIN PRA LMARTINSVILLEFOX SPORTS 11:30 p.m.2:30 p.m.558124Sat
7TENNIS: ATP TOUR MASTER LMIAMI OPENESPN21:00 p.m.3:30 p.m.495139Sun
8PREMIER LEAGUE LCRYSTAL PALACE/CHELSEANBC SPORTS NETWORK9:57 a.m.12:02 p.m.448230Sat
9LALIGA SANTANDER MRQ-LGRANADA VS. BARCELONABEIN SPORT ESPANOL2:35 p.m.4:47 p.m.393206Sun
10NHL REGULAR SEASON LPHILLY/NY RANGERSNBC SPORTS NETWORK7:32 p.m.10:11 p.m.362145Sun
11NBA REGULAR SEASON LHOUSTON/PHOENIXNBA-TV9:10 p.m.11:26 p.m.305130Sun
12PREMIER LEAGUE LSAN FRANCISCO/ARIZONANBC SPORTS NETWORK7:22 a.m.9:28 a.m.287137Sat
13MAJOR LEAGUE SOCCER LPORTLAND/ NEW ENGLANDESPN29:00 p.m.11:06 p.m.266125Sun
14PREMIER LEAGUE LMIDDLESBROUGH/SWANSEANBC SPORTS NETWORK8:24 a.m.10:31 a.m.256100Sun
15COLL SOFTBALL REG SSN LAUBURN/GEORGIAESPN7:00 p.m.9:53 p.m.250112Sat
16LALIGA SANTANDER MRQ-LREAL MADRID VS. ALAVESBEIN SPORT ESPANOL10:05 a.m.12:15 p.m.246145Sun
17NBA REGULAR SEASON LDENVER/MIAMINBA-TV6:00 p.m.9:10 p.m.23395Sun
18LIGA MX LJAGUARES / UNAMUNIVISION DEPORTES6:37 p.m.8:57 p.m.226123Sat
19COLLEGE BASEBALL LTEXAS A&M/LSUESPN23:30 p.m.6:13 p.m.17139Sat
20PREMIER LEAGUE LWEST BROM/MANCEHSTER UNITEDCNBC10:00 a.m.12:04 p.m.151113Sat
21LALIGA SANTANDER MRQ-LGRANADA VS. BARCELONABEIN SPORT2:35 p.m.4:50 p.m.11878Sun
22HIGH SCHOOL BASKETBALL LHAMILTON HEIGHTS (TN)/MIAMI COUNTRY DAYESPN210:00 a.m.11:30 a.m.9741Sat
23COLL SOFTBALL REG SSN LKENTUCKY/OLE MISSESPNU4:11 p.m.6:13 p.m.9330Sat
24COLLEGE LACROSSE LSYRACUSE/NOTRE DAMEESPNU12:00 p.m.2:11 p.m.9045Sat
25LALIGA SANTANDER-LVALENCIA VS. DEPORTIVOBEIN SPORT ESPANOL12:20 p.m.2:30 p.m.8954Sun

 

Source: SportsTVRatings.com (“All data ©Nielsen, provided by a variety of TV network sources and not directly from Nielsen”)

 

What: Simulmedia and LiveRamp™, an Acxiom® company, have closed an strategic partnership enabling marketers to activate their first-party or CRM data on national TV.
Why it matters: TV advertisers who activate with first-party data can gain valuable insights to improve all their advertising and consumers receive more relevant, engaging content from advertisers.

ANA-Portada-bien (1)Simulmedia and LiveRamp™ announced a strategic partnership enabling marketers to activate their first-party or CRM data on national TV. TV advertisers who activate with first-party data can make their media dollars go further and gain valuable insights to improve all their advertising. And as a result, consumers receive more relevant, engaging content from advertisers.

Simulmedia’s Performance TV platform is powered by second-by-second device viewing data from millions of U.S. households. Its campaigns combine data-driven targeting with patented, predictive algorithms to deliver cost-efficient reach at national scale, and provide brands with actionable insights they can use to benchmark performance and optimize future campaigns.

LiveRamp’s IdentityLink™ solution allows marketers to create an omnichannel view of the consumer, resolving first-, second-, and third-party data to a privacy-complaint identifier that can then be activated in the Simulmedia platform as part of people-based marketing initiatives.

“Our partnership with LiveRamp is a major step in making first-party data automatically actionable for TV targeting and measurement,” said Dave Morgan, founder and CEO of Simulmedia. “This partnership empowers marketers to use their granular customer data to create highly targetable segments. We’ve measured a doubling of conversion lift from TV ads when marketers use target audiences created from CRM data.”

“People-based marketing with TV is rapidly transforming, and this partnership helps advertisers target and measure highly tailored audiences at the individual level,” said Travis May, LiveRamp president and general manager. “We’re pleased that an innovative company like Simulmedia can leverage LiveRamp IdentityLink to help advertisers activate their first-party data on TV and measure significant lift.”

Brands interested in activating their first-party data on TV should visit simulmedia.com/liveramp.

What: The North American SVOD sector is by far the most mature in the world, with 81.81 million SVOD subscribers by end-2015. The number is expected to reach 109.59 million by 2021.
Why it matters: Advertising on OTT sites (AVOD) will become the main OTT revenue source in 2018. Advertising on OTT sites will generate revenues of US$10.98 billion in 2021.

OTT TV and video revenues in Canada and the US will reach US$24.39 billion in 2021; up from US$2.67 billion in 2010 and US$15.39 billion in 2015, according to the North America OTT TV & Video Forecasts report.

The North American SVOD sector is by far the most mature in the world, with 81.81 million SVOD subscribers [for movie and TV services only – excluding sports, for example] by end-2015. The SVOD total is forecast to climb to 109.59 million by 2021.

OTT-TV-and-video-revenues-by-country

Simon Murray, report author and Principal Analyst at Digital TV Research, said: “It is important to stress that these figures are gross – some homes take more than one SVOD platform – especially in the US. We do not believe that 86% of US TV households or even 97% of US fixed broadband households will be SVOD subscribers by 2021. From the 101 million US total in 2021, we forecast that 25 million will be secondary SVOD subscriptions. Therefore, the average US SVOD user will pay for 1.33 subscriptions. Putting it another way, there will be 76 million US primary SVOD users by 2021.”

He continued: “We have included half of the Amazon Prime fee as an SVOD subscription to homes that we estimate take Amazon Video (about 70%), even though homes are not directly paying for Amazon Video.”

The North American SVOD sector is by far the most mature in the world

Canadian and US SVOD revenues will soar from US$0.58 billion in 2010 to US$6.26 billion in 2015 and onto US$9.16 billion in 2021.

Online rentals will continue to suffer as SVOD grows. OTT TV and video rental revenues climbed from US$708 million in 2010 to US$2,022 million in 2014. However, revenues will fall from then on – to US$1,744 million in 2021 as SVOD is seen as a more attractive substitute to rentals.

Download-to-own (also known as electronic sell-through or EST) buying will not be as badly affected by SVOD as rentals. DTO revenues are forecast to be US$2,505 million in 2021, up from US$279 million in 2010 and US$1,493 million in 2015.

Advertising on OTT sites (AVOD) will become the main OTT revenue source in 2018 as the SVOD sector matures. Advertising on OTT sites generated revenues of US$5.65 billion in 2015; quintuple the US$1.11 billion in 2010. Rapid growth will continue; reaching a total of US$10.98 billion in 2021.

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Entertainment and media spending will hit US$720 billion by 2020, up from US$603 billion in 2015, while internet advertising will overtake broadcast advertising in the U.S. for the first time, according to the finding from PwC’s annual Global Entertainment and Media Outlook report, the company’s five-year economic forecast for media and entertainment industry revenue and ad spending.

livestream-ondemand

The US to remain the leading internet advertising market in the world

Internet advertising will advance double-digits over the next five years(2016-2020) and will remain a hotspot for media industry growth and business model shifts,  according to the US entertainment and media outlook. In 2015, internet advertising generated revenues of US$59.6 billion and that number is projected to rise to US$93.5 billion by 2020 (9.4 percent CAGR).

internet-ad-1

US internet advertising revenue will continue to surge forward, with mobile seeing the most rapid growth–all forms of mobile advertising will continue to grow in the coming years.

One key driver is the shift in search from laptops to mobiles, with mobile paid search internet advertising having seen tremendous recent growth. Also of note is video internet advertising revenue, which is among the fastest-growing sub-components of the US Internet advertising market.

The biggest advertising gains are expected in mobile advertising, which was responsible for 34.7 percent of total internet ad revenue in 2015 at US$20.7 billion and is projected to rise to 49.4 percent by 2020.

EMC-Stay-Mobile_V3

Mobile video internet ad revenue will increase from US$3.5 billion in 2015 to US$13.3 billion in 2020 (a 30.3 percent CAGR).

However, while internet advertising continues to grow at an increased rate, there are some headwinds brewing, triggered by challenges such as transparency, ad fraud, and privacy.

In today’s media landscape, can anyone be a “media company?”

EMC-Outlook-US-web-TV-and-Video-OTT_new_normalAccording to the US entertainment and media outlook, the next five years will hold major changes for how people watch TV and video.

As consumer wants and expectations continue to change, so too does the TV and video industry. Today’s and tomorrow’s definition of what it means to be a “media company” will continue to evolve, as companies — not just entertainment and media companies — invest in content and direct customer media relationships.

EMC-Outlook-US-web-TV-and-Video-Operators_fight_for_eyeballsWe will continue to see a rapid increase in new entrants and competitors in the space as subscriber-based businesses continue to consolidate. Operators are also attempting to target cord-cutters and cord-nevers by marketing their OTT streaming and download services–two areas that will represent tremendous growth potential for this industry’s foreseeable future.

U.S. TV advertising revenue is forecasted to increase from US$69.9 billion to US$81.7 billion in 2020, at a compound annual growth rate (CAGR) of 3.2 percent.

US video gaming hits the next level—what’s driving the growth?

video-games-2According to the US entertainment and media outlook: 2016-2020, the video games industry thrives over the next five years. Total Video Games revenue is epected to grow by 3.6% up to US$20.3 billion in 2020.

The shift to digital is well under way in the US video games sector, but physical persists–the industry as a whole will see solid growth over the next five years. Video games advertising revenue will continue to grow over the forecast period, more so than in other markets given the mature nature of both gaming and advertising the US.

Virtual reality marks another exciting area of growth in this space, with US companies at the forefront of driving the VR platforms, developing camera technology, and building compelling content. Competitive gaming–known as eSports–is also an area of particular interest and growth, and one that will continue to grow in prominence as local awareness grows here in the US. eSports has the potential to drive significant direct and indirect revenue over the forecast period.

 

What: VideoAmp, a screen optimization platform for the TV and video ecosystem, has raised a US$15M Series A funding round led by RTL Group.
Why it matters: This investment brings VideoAmp’s total funding to US$17.2M and will help the company rapidly accelerate development and drive adoption of its unique Optimization platform. German RTL Group is also the owner of MPN StyleHaul as well as a majority investor in video ad-trade platform SpotXchange.

Santa Monica, Calif.-based startup VideoAmp, a screen optimization platform for the TV and video ecosystem, has announced a US$15M Series A funding round led by RTL Group, the European entertainment network. This investment brings VideoAmp’s total funding to US$17.2M and will help the company rapidly accelerate development and drive adoption of its unique platform.

The new financing will help VideoAmp invest in  product development and to staff up in engineering, sales and client services. The startup expects to have about 60 people by the second quarter of 2016.VideoAmp had raised US$2.2 million in seed financing prior to the new round and had expanded its team, to 43 poeple in less than two years.

VideoAmp’s technology bridges the data divide between TV, digital, and OTT platforms. This enables the seamless planning, packaging and optimization of cross-screen audiences for the benefit of both advertisers and media owners. The company deploys machine-learning algorithms against cross-screen data within its platform to find precise audiences across all video screens, including linear TV. The technology is delivered via a suite of flexible APIs (application programming interfaces) that allows for customers and partners to build their own custom solutions on top.

“Video consumption has changed dramatically. People are constantly shifting between different apps and devices – now advertising can do the same with even more precision,” said Ross McCray, co-founder and CEO, VideoAmp. “VideoAmp is technology for the cross-screen world. We enable advertisers and content owners to transact across all screens seamlessly by enabling data for both buyers and sellers.”

“VideoAmp fits perfectly into RTL Group’s digital strategy as it is complementary to our current ad tech businesses SpotX and Clypd,” said Rhys Noelke, senior vice president strategy, RTL Group, who will also join the VideoAmp board of directors. “VideoAmp’s solutions will enable SpotX publishers to identify, target and optimize the same audience across multiple devices. The transaction with VideoAmp positions RTL Group as the first European broadcaster to invest in the increasingly important field of cross-field expertise. With this move into the digital space with VideoAmp, RTL Group strengthens the advertising technology arm of the recently created RTL Digital Hub.”

“The market has signified an urgent need to unify messaging and drive efficiency in brand advertising. This funding validates that it’s a global trend,” added Jay Prasad, chief business officer, VideoAmp.

Additional participation in the Series A funding for VideoAmp includes previous investors Anthem Venture Partners, Simon Equity Partners, Third Wave Capital, Wavemaker Partners, ZenShin Capital, and additional new investment from Startup Capital Ventures.

RTL Group’s investment in VideoAmp follows its acquisition of a majority stake in Denver-based video supply-side platform SpotXchange. as well as in YouTube multichannel video network StyleHaul and BroadbandTV and a US$19.4 million investment in programmatic TV tool Clypd.

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Content distribution is key for the monetization ambitions of Multichannel Networks (MCN’s). Opera TV just closed deals with Pan Latin MCN Fav Network and Brazilian NWB to make their content accessible to viewers on its destination for connected TVs.

Juliana Psaros, Senior Manager, Content Acquisition, TV & Devices Latin America at Opera TV tells Portada that Opera is now distributing five channels from the FAV network.  “By the end of the year, we will be adding more of their channels on our platform. Through our app creation tool, Opera TV Snap, any content provider can integrate their videos and create their own channel on connected TVs in a few minutes and at no cost. FAV! Network, like many other networks we are partnering with,  integrate their channels directly from their Dailymotion account.”

Opera_TVAccording to Psaros, MCNs in the United States have been launching their OTT content on the biggest screen in the living room, and MCNs in the U.S. Hispanic market and Latin America are no exception. “FAV! is doing a great job on the internet environment, working with great LatAm talents and expanding their presence on the web and we are now pleased to bring them into millions of living rooms.”
Opera also just closed a deal with NWB Network Brasil and is starting to distribute their channel Desimpedidos, which has more than 1 million subscribers and is a funny show about football. Says Psaros, “We are partnering with Rede Snack and currently distributing six channels from them. The LatAm webTvs FWTV and WANZ (WeAreNotZombies) is currently distributed worldwide on Opera TV. We have direct deals with channel’s owners such as Manual do Mundo (a Brazilian sensation), Marinando (cooking channel – hosted by the Brazilian actress Marina Person) and Petiscos (beauty-channel, hosted by Julia Petit).”

Opera TV attempts to offer content providers an easy and affordable way to get their videos onto millions of connected TVs worldwide.

Opera’s main Goal

Opera TV’s – which is part of the same company as Opera Media Works (which bought Hunt Mobile two years ago), main goal is to offer to content providers in Latin America and the U.S. Hispanic market, an easy and affordable way to get their videos onto millions of connected TVs worldwide. “From major broadcasters to small production companies and distributors, VOD services, MCNs and publishers, we want to bring great Latin American content to audiences on the biggest screen in the home. In addition to partnerships with local MCNs, we are also distributing brand channels such as Coca-Cola FM; several channels from broadcasters through our partnerships with Telesur and TV Cultura; VOD service such as local SVOD providers Qubit TV and Netmovies; Free VOD services such as CinemArgentino and Filmes Que Voam, “Psaros concludes.
Opera TV’s main assets are:

 Opera TV Store – An HTML5-based storefront of exciting web apps optimized for TV. Opera TV Store apps run from the cloud and suits any screen size or resolution.

Opera TV Snap – An industry-first, end-to-end solution that allows content publishers to create and submit a Smart TV app into the Opera TV Store quickly and easily, for free.

Opera Devices SDK – An extensible TV platform that enables OEMs to build HTML5 and CE-HTML rendering, together with adaptive streaming and HbbTV capabilities, into their devices.

Content distribution is key for the monetization ambitions of Multichannel Networks (MCN’s). Opera TV just closed deals with Pan Latin MCN Fav Network and Brazilian NWB to make their content accessible to viewers on its destination for connected TVs.

Juliana Psaros, Senior Manager, Content Acquisition, TV & Devices Latin America at Opera TV tells Portada that Opera is now distributing five channels from the FAV network.  “By the end of the year, we will be adding more of their channels on our platform. Through our app creation tool, Opera TV Snap, any content provider can integrate their videos and create their own channel on connected TVs in a few minutes and at no cost. FAV! Network, like many other networks we are partnering with,  integrate their channels directly from their Dailymotion account.”

Opera_TVAccording to Psaros, MCNs in the United States have been launching their OTT content on the biggest screen in the living room, and MCNs in the U.S. Hispanic market and Latin America are no exception. “FAV! is doing a great job on the internet environment, working with great LatAm talents and expanding their presence on the web and we are now pleased to bring them into millions of living rooms.”
Opera also just closed a deal with NWB Network Brasil and is starting to distribute their channel Desimpedidos, which has more than 1 million subscribers and is a funny show about football. Says Psaros, “We are partnering with Rede Snack and currently distributing six channels from them. The LatAm webTvs FWTV and WANZ (WeAreNotZombies) is currently distributed worldwide on Opera TV. We have direct deals with channel’s owners such as Manual do Mundo (a Brazilian sensation), Marinando (cooking channel – hosted by the Brazilian actress Marina Person) and Petiscos (beauty-channel, hosted by Julia Petit).”

Opera TV attempts to offer content providers an easy and affordable way to get their videos onto millions of connected TVs worldwide.

Opera’s main Goal

Opera TV’s – which is part of the same company as Opera Media Works (which bought Hunt Mobile two years ago), main goal is to offer to content providers in Latin America and the U.S. Hispanic market, an easy and affordable way to get their videos onto millions of connected TVs worldwide. “From major broadcasters to small production companies and distributors, VOD services, MCNs and publishers, we want to bring great Latin American content to audiences on the biggest screen in the home. In addition to partnerships with local MCNs, we are also distributing brand channels such as Coca-Cola FM; several channels from broadcasters through our partnerships with Telesur and TV Cultura; VOD service such as local SVOD providers Qubit TV and Netmovies; Free VOD services such as CinemArgentino and Filmes Que Voam, “Psaros concludes.
Opera TV’s main assets are:

 Opera TV Store – An HTML5-based storefront of exciting web apps optimized for TV. Opera TV Store apps run from the cloud and suits any screen size or resolution.

Opera TV Snap – An industry-first, end-to-end solution that allows content publishers to create and submit a Smart TV app into the Opera TV Store quickly and easily, for free.

Opera Devices SDK – An extensible TV platform that enables OEMs to build HTML5 and CE-HTML rendering, together with adaptive streaming and HbbTV capabilities, into their devices.

 

 

What: Digital ad spending increased by 16% in the U.S., up US$3 billion, with about US$1 billion in “organic” growth from October 2014 through June 2015 (compared to the October 2013-June 2014 period). According to the report by Standard Media Index,  US$1.1 billion of national TV ad dollars, in addition to US$400 million in local TV and syndication spending; US $350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket  from October 2014 to June 2015.
Why it matters: The report, which is based on actual advertising expenditure data,  highlights how much digital advertising, particularly online video and social advertising, is growing at the expense of, traditional media. However, it has to be cautioned that the Winter Olympics and the 2014 Soccer World Cup took place in the comparison period. Both events are very TV centric for advertisers, therefore making TV’s loss to digital larger than it would have been had these major events not taken place.

Between October 2014 and June 2015, Digital ad spending increased by 16% in the U.S., while it continues to gain market share from traditional media, according to new data from Standard Media Index (SMI) . The report is based on actual advertising expenditure figures SMI gets from media buying agencies and includes Hispanic Media.

Digital ad spending, from October through June, was up US$3 billion, with about US$1 billion in “organic” growth, comparing to that same period a year ago. That organic growth means it wasn’t at the expense of any other media segment’s budget.
According to SMI, which tracks 80% of national U.S. agency spending, the rest of digital’s growth is being powered ad dollars’ flow away from traditional media, mainly TV.

US$1.1 billion of national TV ad dollars, in addition to US$400 million in local TV and syndication spending; US $350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket from October 2014 to June 2015.

1

Digital Media’s Rapid growth

According to the report, around US$1.1 billion of national TV ad dollars,  US$400 million in local TV and syndication spending, us$350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket from October 2014 to June 2015, compared with the year-earlier period.

In spite of this, television still accounts for the majority of marketers’ ad spending. According to SMI, from October through June, advertisers spent:

  • US$25.5 billion on national TV
  • us$6.4 billion on local and syndicated TV

While on digital they spent US$22 billion over those nine months.  Digital platforms offer more sophisticated and cost-efficient ways to target audiences. Still, were there better metrics to measure marketers return on investment, advertisers would invest even more  even more in digital ads, some observers claim.

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What: Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean in a deal that values Mediaocean at about US$720 million.
Why it matters: The investment, which helps the company to continue development of products that address the convergence of digital video and TV, doesn’t hinder Mediaocean’s interoperability with other major video buying systems, including TubeMogul and Adap.tv.

Tz-ar2xE_400x400Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean. The deal values Mediaocean at about US$720 million, the company confirmed. Mediaocean was the result of the 2011 merger of Mediabank and Donovan Data Systems, a deal valued at US$1.5 billion.

The investment will help the company to continue development of products that address the convergence of digital video and TV. Mediaocean’s products are designed to accelerate the agency workflow and planning process. In 2013, it launched a Connect Partner program, a marketplace where agencies are charged on the percentage of spend they put through the platform.

Mediaocean is also investing in Spectra, a “broadcast exchange” of sorts for TV buyers, and recently extended that offering to include digital video via its partnership with Videology. Working with Videology doesn’t hinder Mediaocean’s interoperability with other major video buying systems, including TubeMogul and Adap.tv, according to the company.

“Four years ago we created Mediaocean with the goal of providing the industry with an open platform to easily integrate campaigns across all traditional and digital media,” said Michael Donovan, chairman of Mediaocean, in a statement. “When Vista approached us, we were impressed by its strategic vision.”Donovan said Vista is more like an “enterprise software holding company than a classic private equity firm with nearly 200 employees – most of whom are operators, not finance professionals.”

Buyers ,actually, expect more convergence on the back end. “They don’t want to just partner with one, they want to partner with several to see which is most effective for their needs,” Jim Tricarico, CRO of broadcast and multichannel video programming distributor  partner Cadent Network, said.Tricarico noted, for example, that MAGNA Global uses TubeMogul while WPP/Mindshare use Videology, which underscores the importance of supporting multiple video/TV planning instances. This is what Mediaocean is building toward.

if you can get the financial outcome of an IPO without the burden of managing a public company, what’s better than that?

descargaAccording to Bill Wise, CEO of Mediaocean, so far, Mediabank had raised a total of US$50 million over a course of their tenure before merging with Donovan.

“if you can get the financial outcome of an IPO without the burden of managing a public company, what’s better than that?, ” said Wise.

Mediaocean will first help with media convergence, specially  TV and video to one marketplace design, similar to what the company did with digital radio with Pandora and Spotify. Secondly, with geographical expansion. As Digital is inherently global, it’s much easier to expand geographically, and the copany is already implementing in both France and Germany, UK and scoping out Asia-Pacific for 2016.Third is diversifying our product, one being connection to the sell side of the market and then extending into planning. On the partnerships, the ones who really stuck out are the ones who represent supply: Pandora, Spotify, AdStruc, Videology, all the companies who aggregate supply and want to plug into Mediaocean’s demand.

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What: Insight, information and consultancy group Kantar has acquired the majority interest and control of Latin America’s leading media measurement business, IBOPE Media for an undisclosed amount of money. IBOPE Media’s senior management and company structure will remain unchanged.
Why it matters: The deal marks a new era for both companies and reflects Kantar’s belief that the Latin American market presents major growth opportunities. Kantar and IBOPE have been competitors in the LatAm market research space, specially in media measurement, for many years. The deal combines the largest companies in the Latin American space.  The deal cements Kantar Media’s position as a market leader in Television Audience Measurement in 48 countries.

Tl7BRWNG_400x400Kantar, the data investment management arm of WPP and one of the world’s largest insight, information and consultancy groups, has acquired the majority interest and control of Latin America’ media measurement business, IBOPE Media.

The acquisition further strengthens Kantar Media’s significant global footprint and expertise in all aspects of media measurement and evaluation and will enable Kantar to better link media and purchase data throughout the region.

IBOPE Media’s senior management and company structure will remain unchanged. CEO Orlando Lopes will continue to run the company, joining the Kantar Media board and reporting to Kantar Media Chairman and CEO Andy Brown.

The deal marks a new era for both companies and reflects Kantar’s belief that the Latin American market presents major growth opportunities.

Andy Brown commented: “Kantar Media and IBOPE Media have worked in partnership for 17 years. Given the opportunities we see in the region, the time was right to increase ownership and to accelerate the sharing of technologies and offers with the Kantar Media business. We’re excited to welcome Orlando and the exceptional team at IBOPE Media to Kantar Media and look forward to driving continued innovation and growth as we develop our combined offer.”

Orlando Lopes, CEO of Ibope Media
Orlando Lopes, CEO of Ibope Media

Orlando Lopes added: “I am looking forward to the next stage in IBOPE Media’s evolution and excited about the investment that Kantar Media will bring. Our company will not only keep its business strong within the markets in which it operates but it will also benefit from investment and new expertise enabling us to offer fresh and exciting products to our clients”.

In the past 18 months, Kantar Media has added expertise, extended global reach and new measurement capabilities through the acquisition of companies including Data Republic, Precise, the audio watermarking unit of Civolution as well as its recently-announced asset swap and investment in US TV and video measurement specialist Rentrak.

What: WPP’s wholly-owned companies, GroupM, and Kantar Media have partnered with measurement company Rentrak to deliver new services in television measurement and consumer insights to clients in the United States.
Why it matters: WPP will add Kantar Media’s US television measurement business into Rentrak in exchange for US $98 million of Rentrak common stock.In return, Rentrak gets Kantar Media’s TV measurement business in the US.

descarga (3)WPP‘s wholly-owned companies, GroupM, the global media investment management company and Kantar Media, its media research and analytics business, have partnered with Rentrak, the US-based film and television measurement company. The partnerships are designed to deliver new services in television measurement and consumer insights to clients in the United States.

Under the terms of the agreement, WPP will add Kantar Media’s US television measurement business into Rentrak in exchange for US $98 million of Rentrak common stock. WPP will also purchase shares directly from the company for US $56 million in cash giving WPP a final ownership stake of 16.7% of Rentrak.

Through the terms of the deal, WPP’s various companies, like media agency GroupM, will now have access to Rentrak’s local-and-national TV viewing data and measurement to combine with Kantar’s digital media and purchase data.The transaction, when closed, will include Kantar Media’s customer contracts and customer relationships involved in U.S. television measurement, creating the benefits of clarity and simplicity for clients in the U.S. TV ratings marketplace with a single and passive TV measurement ratings service. This transaction gives Rentrak and Kantar better scale to rapidly innovate their products and services in the United States. No Kantar Media TV measurement or global development capabilities outside of the United States are affected by this transaction.

Under the agreement, Rentrak will also integrate its national and local TV measurement with a number of Kantar’s U.S.-based services that focus on digital media, advertising expenditure and purchase data. The integration will provide advertisers, agencies, TV networks, multichannel video program distributors (MVPDs) and local television stations throughout the U.S. with even more powerful tools to understand consumers’ purchasing habits and the ability to link TV viewing habits with purchase and other behavior in the United States.

“Irwin Gottlieb and Rino Scanzoni of GroupM are right on target about how this kind of scaled viewing and purchase behavior data for targeting and measurement is critical for the future of TV ad business as audience fragmentation continues to accelerate,” said Dave Morgan, founder and CEO of venture-funded TV ad targeting company Simulmedia.

The transaction, which is subject to customary regulatory approvals, is anticipated to be completed by the end of calendar 2014.Goldman, Sachs & Co. served as financial advisor to Rentrak.No Kantar TV measurement or global development capabilities outside of the US are affected by the transaction. 

Financial implications

The deal will help position audience-based TV buying as a complement to content-based or program-specific buys. An important step, as dollars begin to move between programmatic video and linear television.These agreements continue WPP’s strategy of developing its services in important markets and sectors and strengthening its capabilities in digital and data investment management businesses.

These agreements continue WPP’s strategy of developing its services in important markets  and strengthening its capabilities in digital and data investment management businesses

WPP’s digital revenues surpassed US $6 billion last year, and accounted for approximately 35% of the holding group’s total revenues of US $17.3 billion. The group projected as much as a 10% increase to 40-45% for digital as a percent of total revenue within the next five years.WPP has steadily invested in tech from outside companies. Last month, the company deprived itself of digital media platform Open AdStream from Xaxis, selling the tech to AppNexus for US$25 million. This move, in turn, gave WPP a roughly 15% stake in the ad tech company’s US$1 billion-plus business.

However, it seems that GroupM’s partnership with Nielsen, a Rentrak competitor, could be affected by this acquisition.

From a financial standpoint, the deal gives Rentrak an incremental revenue boost of US $7 million to US $9 million annually, according to PiperJaffray analysts in a research note. Rentrak expects the agreement to produce multiple long-term revenue streams resulting directly from the acquisition of Kantar’s TV service, as well as from anticipated future joint marketing agreements with Kantar and the company’s expanded relationship with, and endorsement from, GroupM.

 

 

What: The mobile marketing and digital solutions InternetQ is acquiring UPmobile, a Mexican mobile marketing, television and radio content provider for an undisclosed sum.
Why it matters: With this acquisition, InternetQ’s second in Latin America, the company will increase its’ presence in the region.

descarga imagesInternetQ, a provider of mobile marketing and digital solutions for mobile network operators and brands,has reached an agreement to acquire Mexican mobile marketing, television and radio content provider UpMobile.

This acquisition strengthens InternetQ’s presence  in Latin America as it had already acquired Interacel Holdings LLCin January. It will give InternetQ opportunities to further distribute its performance-based advertising and streaming music services.

UpMobile provides interactive solutions for radio stations, as well as mobile solutions to media organizations and the public sector in Mexico, a market of over 100 million mobile connections and 33 million smart phone users currently. An eMarketer research shows the number of smart phone users will most likely increase by 18-20% per year by 2017.

“We are delighted to announce the acquisition of UpMobile, which accelerates our ability to deployInternetQ’s services in the evolving Mexican market and further strengthens our growth in Latin America,” said Panagiotis Dimitropoulos, chief executive officer and founder of InternetQ.

No financial details of the acquisition were provided.

Apple and Comcast are rumored to be cutting a deal that would send a mix of live TV and on-demand video through an Apple set-top box. That’s just the latest in a series of partnerships or acquisitions that could someday let advertisers buy, traffic and analyze online video and TV content together. A look at how agencies and digital vendores are preparing for the TV-Video Convergence.

Nielsen is partnering with Videology to use data to help TV advertisers target young audiences that are watching more digital channels. Comcast bought FreeWheel. And Adap.tv, owned by AOL, launched a programmatic TV buying platform, which it says lets advertisers use data to buy the same audiences online and on TV.

This is clearly the path we’re heading down: to make video buying more seamless, efficient, and data-driven
MarlaSkiko, SMG Multicultural
MarlaSkiko, SMG Multicultural

“This is clearly the path we’re heading down: to make video buying more seamless, efficient, and data-driven. It’s all video buying. We want to use data to inform buying video wherever we’re buying it,” says Marla Skiko, EVP and director of digital innovation for SMG Multicultural.

How close are we to true convergence of the buying process? Not all that close: These deals are about helping TV content owners target ads in the digital world. There is technology and business challenges to work through for brands, agencies, content creators and vendors alike before digital and TV will become apples and apples.

Could DSPs buy TV spots?

SMG, part of the Publicis Group, has access to sister agency VivaKi’s Audience on Demand platform. Skiko says, “They are running hard against trying to buy TV on the platform. It started with display and then folded in social.” She thinks that eventually, anything that can be bought programmatically will be –including TV.

She says that tools like comScore validated Campaign Essentials and Nielsen Campaign Rating already let advertisers talk about online video and TV in the same way, albeit through the TV focus. When placing a GRP focus on digital video, she says, “If you want to buy Hispanic 18 to 49, let’s look at what you actually got of that demographic that you were trying to reach. All of it is still bought on the CPM basis, its’ the nature of talking about the reach and frequency dynamic.”

One of the common criticisms of Nielsen’s and comScore’s audience tools, she adds is, “It’s awesome in the verification but not in the planning phase.” DSPs still need to use their own data together with third-party sources to plan campaigns.

Some agencies — including SMG Multicultural — already are converging their TV and digital video teams for planning and buying.

Business roadblocks

Mark Dominiak, PACO
Mark Dominiak, PACO

Some agencies — including SMG Multicultural — already are converging their TV and digital video teams for planning and buying. Sometimes, this is easier for smaller agencies. Says Mark Dominiak, media strategist PACO, a multicultural agency that handles digital, TV and social media, “At our agency, it’s small enough to where we don’t have the luxury of a department. We have a small group of people who serve all the media goals of the agency. When you have people who are working on all facets, it works to your advantage. There’s no siloing.”

Analytics — the lack of common metrics between broadcast and digital channels — could be the biggest barrier to converged buying. Says Jeremy Helfand, vice president of video monetization at Adobe, “What is the common currency I can transact across all channels? A lot of our customers are using Adobe Analytics to understand the, digital audience but ultimately market needs to go to a true cross-platform currency to allow dollars to flow freely across wherever the audiences are. The consumers are not different between the TV screen and the screen in their hands, so how can we truly monetize that experience across those various channels in an easier way?”

Adobe recently introduced a major upgrade to Adobe Marketing Cloud that converges six products, including Adobe Analytics. Adobe Primetime, the sell-side platform that lets broadcasters package TV content for digital distribution, can take advantage of customer data in the analytics product to target advertising delivered with video content via Primetime. But there’s no way within the product suite to combine this with GRP data from Nielsen. Ashley Still, director of product management for Primetime, says companies could “try” to do this internally.

An agency like us, we almost never talk about how many rating points you are delivering. It’s about, how well does the buy you manufactured serve your marketing objective?

It might behoove agencies to focus less on trying to match gross rating points to CPMs, anyway. Says Dominiak, “An agency like us, we almost never talk about how many rating points you are delivering. It’s about, how well does the buy you manufactured serve your marketing objective? GRPs and impressions are an output you look at but are not critical to deciding if this is a good plan.”

Beyond the data plays of Adobe, Comcast and others lies a deeper question for Hispanic marketers, Skiko says. “Our ideal goal would be to rely on first-party data as much as possible.” That could be derived from a tracked visit to a Spanish-language website, search in Spanish or from a data partner. However, she says, “We need more at scale. Creating pools of first-party data is helpful to enable some of these platforms. When Nielsen or AOL makes an announcement, one of the first questions we want to ask is, ‘Have you thought about how to enable this for multicultural audiences?”

In other words, while the convergence of TV and digital ads is a blip on the horizon, Hispanic marketers have an even longer journey to get there.

No pricing convergence

Photo: James CridlandEven if the metrics and analytics problems get worked out, no one sees the prices of video ads and TV spots converging. But that does not mean that online video will be cheaper than broadcast. Already, we’re seeing some high-value online video reaping higher rates than TV scatter ads — although it’s hard to compare due to the different pricing and metrics.

Increasingly, broadcasters are selling digital as part of their upfronts. For example, NBC offered a huge digital component for the Sochi Olympics, with a website and three different apps that offered a mix of live streaming of TV, video clips, news and custom content.

According to Julie De Traglia, SVP, digital and broadcast marketing research for NBCUniversal, Sochi Olympics broadcast and video ads were sold as a package, and this will be increasingly the case for premium content that’s delivered across channels. “Advertisers buy multiplatform,” she says.

This kind of packaging, to some extent, obviates the need for convergence of TV and video within DSPs and analytics programs — especially while the demand for premium video outstrips the supply, especially in the Hispanic market. Adds Skiko, “Some video may be on parity with television, depends on how the deal is made. And there shouldn’t be a distinction. We have video buyers and we are about to enter another video upfront. You won’t talk about the TV Upfronts anymore.”