Tag

Video Marketing

Browsing

While CTV Advertising is expected to reach US $21 billion in 2021 according to BMO Capital Markets, the media buying community continues to face challenges in measurement. That is why ANA and Innovid partnered with 20 leading advertisers to introduce new research and tools to address CTV measurement challenges.

Innovid, and independent ad delivery and measurement platform for connected TV, today announced the findings of a first-of-its-kind report called Decoding CTV Measurement: An In-depth Look at Reach, Frequency and ROI that dispels major myths about one of the fastest-growing channels in digital advertising. Created in response to rising demands for streaming, the report was conducted in partnership with the Association of National Advertisers (ANA) and 20 leading advertisers, with the goal to deep-dive into CTV and unlock new KPIs, benchmarks, and best practices for marketers making the move to CTV.

CTV Measurement: Key findings from the report include:

  • The depth of unique reach has yet to be unearthed: Across our study, the average campaign reached only 13% of the available U.S. CTV households.
  • Detach duplication from the fragmentation dilemma: Our study revealed an average publisher duplication rate of 32%.
  • The surprising truth about CTV’s frequency problem? It’s highly exaggerated: The average frequency was just 4.6 across all campaigns.
  • The impact of CTV spend can be traced far and wide: The average eCPM of the campaigns in the study was $23, which sits in between the average CPM for U.S. primetime TV ads for broadcast and cable ($36 and $19, respectively).
Bill Duggan, Group EVP at ANA

“Measurement is one of the biggest challenges facing marketers these days,” said Bill Duggan, Group EVP at ANA. “The standardization of CTV advertising measurement is still in its earlier stages, and this study found that we’ve only uncovered the tip of the iceberg of what is possible in CTV. We’re excited to partner with Innovid to provide these granular insights and benchmarks that set a new standard for the future of CTV advertising.”

This study found that we’ve only uncovered the tip of the iceberg of what is possible in CTV.

The solution behind this study, Innovid Insights, the company’s flagship measurement product, is now widely available in the US market, empowering advertisers to understand their unique reach, frequency, and more.

“There’s a misconception that there’s not enough reach in CTV, however our study saw we’ve just scratched the surface of the potential reach for this channel,” said Jessica Hogue, General Manager of Measurement and Analytics, Innovid. “To date, it’s been challenging for marketers to effectively optimize CTV campaigns due to a complex ecosystem of disparate device and app options per household. With Innovid Insights, marketers have a leg up on maximizing the potential of CTV with unbiased, real-time visibility into 40+ metrics. As Innovid Insights continues to evolve, we plan to expand the solution to incorporate all devices and media types, as well as demographic data to enable one unified view of cross-channel measurement.”

CTV measurement

Innovid Insights has four unique benefits for marketers:

  • Census-Level Measurement: Innovid’s expansive footprint enables census level measurement of the CTV universe with insights on over 75MM U.S. CTV households enabling marketers to gain maximum visibility into the most important CTV measurement metrics.
  • Independent Source of Truth: As a leading independent, MRC accredited, omni-channel ad server built for TV, Innovid’s measurement solutions are media-type and buy-type (direct vs programmatic) agnostic, enabling trustworthy third-party analysis.
  • Real-Time Analysis (In-flight) and Future Planning: Innovid’s pixel-less solutions provide always-on analysis enabling marketers to execute in-flight optimizations. Innovid Insights also powers data-backed campaign planning initiatives to strategically optimize future campaigns. Marketers can execute optimizations based on reach (total/unique), frequency (low, medium, and high), publisher-level overlap, as well as by costs (cost per total and/or cost per unique reach).
  • Seamless Measurement and Delivery: Innovid takes a contemporary approach providing MRC accredited impression delivery married with granular measurement solutions to drive in-flight and future planning CTV optimizations.

“Innovid Insights allowed us a new and interesting view into how our CTV investments work together,” said Phil Hruska, Media Department Head, American Honda Motor Co., Inc. “Innovid gave us the ability to leverage a single platform to gain a streamlined view of our campaigns. We appreciate their agnostic perspective and we are excited to see them continue their unique measurement of the video ecosystem.”

CTV measurement

 

 

 

 

CTV measurementTo download Decoding CTV Measurement: An In-depth Look at Reach, Frequency and ROI and learn more about how marketers can benefit from Innovid Insights, visit here.

 

Audience engagement rules in the digital age. Due to the rapid growth of video consumption, video engagement plays a crucial role for digital publishers. Video player features and implementation are key factors. Here we look at how two digital media properties increased their audience engagement metrics through video.

This Thought Leadership article is presented by Digo Hispanic Media.

Audience Engagement
Augusto Romano, CEO of Digo Hispanic Media

The Digo Video Player is offered to Digo Hispanic Media partner publishers in order to help them increase video impressions and to monetize them better. The Digo Video Player has multiple customizable features such as: Player Ratio, Player Settings, Floating Player and Floating Position. “We provide several formats such as the  Fixed Player and in-Read Player but our most successful format is the “In-Slider”, says Augusto Romano, CEO of Digo Hispanic Media. “We call it this way because it combines features from the in-stream and video slider formats. This allows us to monetize the content with pre-rolls CPMs, which are premium placements and are 50 to 100% higher than video slider CPMs. When it comes to customizing ads you can choose among different settings. For example, you can choose an ad to be pre, mid or post roll; you can select a frequency cap, time between ads, among others; and for the ad to be  skippable or not,” Romano adds.

The In-Slider combines features from the in-stream and video slider formats and allows to monetize the content with pre-roll CPMs, which are priced 50% to 100% higher than video slider CPMs.

Audience Engagement Increases Through Video Player Introduction

Digo’s Video Player was integrated in two digital publications  El Vocero and El Colombiano. How do executives at these two publications describe the level of engagement and/or time spent of their audience as a result of the implementation of the video player? “Once we integrated the video player we have noticed not only a better response from visitors, but also an interesting increase in time spent on our page. The use of video news along with the advertising is a powerful tool to increase traffic and engagement, ” says Salvador Hasbún, President of El Vocero.
“Since we implemented the video player strategy, the average time on screen increased to almost one minute for the Hispanic audience in the U.S. The engagement with our pages has increased gradually and enhanced page views per session. We believe in the power of video and its monetization, because it can engage the user in a shorter way than reading the content increasing the consumption of content on our site,” Laura Katerine Valdés, Digital Leader at El Colombiano, notes.

The use of video news along with the advertising is a powerful tool to increase traffic and engagement.

The Digo Hispanic media team works with publishers in order to better fulfill advertisers KPI’s. CEO Augusto Romano explains two initiatives in this regard.  One is the “Digo: Better KPIs” initiative, where “our operations team collaborates with the publisher through an assessment that identifies opportunities in viewability, load times, ad-formats and guides them in the implementation of the solution approaches.” The other initiative is the “Digo: Play it More” initiative, which identifies opportunities to create more and better video inventory. “Here we work along two axes, player position, and content strategy, achieving excellent results,” Romano adds.

Since we implemented the video player strategy, the average time on screen increased to almost  one minute for the Hispanic audience in the U.S. 

Audience Engagement: For Video Advertisers to Take into Account

Salvador Hasbún
Salvador Hasbún, President of El Vocero

“Advertisers should take into account that by nature visitors will try as much as possible to avoid advertising, therefore video ads must be short, attractive and with a powerful message grabbing the attention from the first couple of seconds,” Salvador Hasbún, President of El Vocero notes. “Advertisers should consider that video is a good way to increase the engagement in websites, because the content can be consumed in a shorter time, providing the user the option to see more videos and read more articles,” El Colombiano’s Valdés notes. 

To improve audience engagement, publishers and advertisers should continue improving the user experience and engagement, particularly around video content when it comes to connect with the Hispanic consumer. El Vocero’s Hasbún notes that “the most important factor is to keep supporting sites that are really relevant to the US Hispanic population. Hispanics are tied to their roots and content relevant to them generates an immediate bond.”

“We think that Hispanics will always be connected with what is happening in their countries, and that they are constantly looking for relevant and trustworthy content about it. We have the commitment to continue informing our Hispanic audience,” asserts El Colombiano’s Valdés.

Advertiser Demand for Safe Editorial Environments

“We are spearheading an initiative to present advertisers and agencies in the U.S. the benefits of each property we represent to make sure they understand the weight and value that each contributes to the communities they serve,” says Romano. “Although there are several solution approaches and initiatives in order to solve the uncertainties of the cookieless future, there is a large amount of advertisers who demand safe editorial environments and contexts. Publishers must be prepared to meet this challenge so that  advertisers benefit from opportunities ahead.”

there is a large amount of advertisers who demand safe editorial environments and contexts. Publishers must be prepared to meet this challenge so that  advertisers benefit from opportunities ahead.

 

As CTV advertising is clearly on the rise  there is still a lot of confusion in the brand marketing and media buying community about what CTV really means and what its key features are. What are its advantages? Is it interactive? How do you buy it? 6 key questions and their answer according to executives from Mastercard, Innovid and Portada’s editorial team.

1. What is CTV Advertising?

Connected TV advertising (CTV) is advertising placed on any TV that can be connected to the internet. These TVs, also called Smart TVs, either directly access the Internet or do it via devices like Roku, Amazon Fire, or Google Chrome. The key for the definition of CTV is the large TV screen, which allows advertisers to engage audiences in a linear TV-like environment, a one-to-many relationship enabled by co-viewing and higher engagement due to the large screen,  compared to other types of digital advertising that tends to be based on a one-on-one relationship between content and user.

What is CTV Advertising
Jose Vicente Luque, Head of Media & Agency Relations Latin America & the Caribbean, Mastercard tells Portada.

Advertisers are taking notice: “CTV allowed us to reach audiences with a high technology adoption rate, interest and consumption time compared to other media we used in our campaign,” Jose Vicente Luque, Head of Media & Agency Relations Latin America & the Caribbean, Mastercard tells Portada. Another advantage, Luque says, is that it is a less saturated channel and, therefore, brands will have a better exposure.

CTV allowed us to reach audiences with a high technology adoption rate, interest and consumption time compared to other media we used.

And What CTV Advertising is Not

CTV advertising is not OTT Advertising. OTT (Over the top) advertising is a more inclusive term which includes CTV advertising and advertising over laptops, desktops, smartphones, ipads and other non TV-screen devices.  In other words, CTV advertising is a subset of the larger OTT advertising sector.

DOWNLOAD: White Paper on CTV Opportunities in Latin America (presented by Entravision Interactive in Spanish)

2. Is CTV Advertising Interactive?….

Let’s say it depends.  CTV by and large does not yet allow for bidirectional interactivity between consumers and advertisers (although check out question 3 for a new initiative that makes it really bidirectional). Brands can, however, use a myriad of data triggers and provide customized ads – by making a reference to the closest retail store, provide messaging according to the weather were the audience is based etc. – in order to make the ad experience much less standard than it usually is on linear TV. For instance Kellogg’s Pringles Super Bowl 2019 campaign greeted consumers with a “Hey Chicago” or “Hey New York,” depending on the user’s location. 

….with help from other media (multichannel marketing).

A way to make CTV advertising bidirectional is to have consumers use another media in addition to Smart TV.  In fact in the above referenced Pringles Super Bowl campaign the ad featured an overlay promoting a QR code which, once scanned with a mobile phone, directed viewers to an e-commerce site.  According to Verizon Media, a whopping 71% of CTV viewers use their mobile devices to look up related content while watching TV, providing advertisers the ideal setup to make meaningful connections with audiences.

71% of CTV viewers use their mobile devices to look up related content while watching TV.

Other options include to use omnichannel marketing based on the users response to the CTV ad. For instance, a national lawn care company, recently ran a four-week, nationwide CTV campaign originally designed to build upper sales funnel awareness. By adding the ability to know who watched the OTT/CTV ad to completion and then serve them retargeted ads on their other digital devices, they were able to generate over 20,000 visits to the client’s site. This ultimately was attributed down the funnel to US $2.1 million in sales, and with offline conversion attribution, they were able to deliver an astounding 3,000 : 1 return on investment.

3. What needs to happen so that CTV is really interactive?

Stephanie Geno
Stephanie Geno, CMO, Innovid

For CTV to be really interactive, or bidirectional, a SDK (software development kit or a collection of software development tools in one installable package) needs to be embedded on hardware solutions (e.g. Roku devices) as well as in dozens of publishers, Stephanie Geno, Chief Marketing Officer, at Innovid tells Portada.
Geno adds that “a really interactive industry first execution piloted on the Apple TV App of the above cited Pringles 2019 Super Bowl ad featured an interactive overlay that allowed viewers to swipe through an engagement carousel featuring various flavor stacking combinations. The carousel played in ad only.” (Viewers who watched the game through other apps/providers were served standard pre-roll ads.)

To make CTV 100% interactive Innovid, DSP The Trade Desk and SSP Magnite came together and looked at all places where interactive SDK’s are present in the U.S. The three companies partnered to create a unified marketplace to power advanced creative buying programmatically across the connected TV ecosystem.
Innovid’s proprietary software development kit (SDK) powers personalized and interactive experiences in CTV through direct integrations across over 50 publisher apps. The SDK is central to Innovid’s offering, enabling brands to take advantage of a 360 approach to connecting with consumers across channels.

DOWNLOAD: White Paper on CTV Opportunities in Latin America (presented by Entravision Interactive in Spanish)

4. How CTV Can Earn Additional Time with the Target Customer

What else is CTV Advertising? Innovid’s Geno also notes that real interactive CTV allows advertisers the opportunity to earn additional time with their target customer. In its global omni-channel benchmark report Innovid analyzed over 200 billion display and advertising impressions served on its platform during 2020. A key result is that while compared to standard video pre-roll advanced creative video formats overall generated an average of 34 additional seconds earned, interactive CTV generated an additional 63 seconds earned.

Compared to standard video pre-roll interactive CTV generated an additional 63 seconds earned with the consumer.

5. Why On-Demand TV is better suited than Live TV for the user Experience with CTV Advertising

On demand TV, as opposed to live TV, is particularly well suited to extend the interactive CTV experience. According to Innovid’s Geno, this typically happens by having an interactive overlay popping up out of the pre-roll video through which the  consumer is taken out of the ad and taken into a 1:1 experience. For Live TV, like the Super Bowl, continuing the interaction on the Smart TV would have disrupted the experience as users likely would have wanted to continue to watch the football game. That is why, for live TV, it is better for the user experience to extend the interaction through an additional media vehicle,  like the mobile phone, instead of over the Smart TV.

6. How do you buy CTV?

What is CTV Advertising’s purchase process? Historically, CTV has been mostly bought through the upfront process. And then activated programmatically.  However, over the last six months growth in CTV Advertising has been spurred by programmatic real time bidding (RTB). CPMs (Cost per thousands) for CTV advertising will tend to be between 2 and 3 times higher than traditional linear TV ads, but overall budgets will be significantly lower as CTV allows advertisers to move away from a blanket approach to much more customized media buy and, thereby, eliminate waste.

CPMs for CTV advertising are between 2 and 3 times higher than traditional linear TV ads, but the needed CTV campaign budget will be substantially lower.

 

 

 

Hemisphere Media Group announced that it has acquired the remaining 75% stake of Pantaya, a leading U.S. Hispanic Subscription Video-on-Demand Service from its joint venture partner, global content leader, Lionsgate for US $124 million in cash. As a result of the transaction, Hemisphere now owns 100% of Pantaya, up from its previous 25% minority stake.

Pantaya 100% acquired by Hemishpere Media Group
Alan Sokol, CEO, Hemisphere Media Group

Launched in August of 2017, Pantaya, which features over 400 movies and series,  is a player in the Spanish-language subscription video services market.  According to the press release, user demand has rapidly increased, and Pantaya now boasts approximately 900,000 paying subscribers, clearly demonstrating that U.S.-based Hispanics/Latinos enjoy – and want – culturally relevant, targeted streaming content. Hemisphere estimates that Pantaya’s subscriber base will grow to 2.5 to 3.0 million by the end of 2025.

Hemisphere estimates that the Pantaya subscriber base will grow to 2.5-3.0 million by the end of 2025.  
Paul Presburger
Paul Presburger, CEO, Pantaya

“In a very short period of time, Pantaya has become the destination for U.S. Hispanics seeking premium Spanish-language movies and series,” said Hemisphere Chief Executive Officer Alan Sokol. “Pantaya offers access to blockbuster movies, original, exclusive series and other premium, world-class content unavailable anywhere else. Pantaya’s success to date affirms the tremendous appetite of our audience for our unique content offering. Hemisphere plans to increase investment in content, expanding the output of series and movies, with the goal of accelerating subscriber growth and becoming a ‘must have’ entertainment option for the large and growing U.S. Hispanic audience.”

Pantaya Chief Executive Officer Paul Presburger, added, “As a result of our focus on exclusive premium content, our knowledge of the Hispanic consumer, and the breadth of our offering, Pantaya is now the industry’s leading streaming service for Spanish-speaking and bilingual consumers. Pantaya’s accessible price point, user-friendly interface and wide selection of the best Spanish-language content has led to significant growth. In the past year alone, Pantaya has increased its subscription base by 40 percent, and we believe we have significant runway for additional expansion ahead.” Pantaya, Lionsgate, STARZPLAY (the international premium subscription service of STARZ) will create a strategic content relationship that encompasses Spanish-language motion picture and television co-productions along with Pantaya’s continued licensing of Spanish-language content from Lionsgate’s 17,000-title film and television library.

In addition, of the 39 million unacculturated/bicultural adults 18+ in the U.S., 34 million are already accessing at least one streaming service, 27 million seek out shows and movies about Hispanic characters and stories, and 17 million are willing to pay for access to movies and series.

Pantaya: Subscription Based vs. Ad Based

Pantaya’s business model is based on subscriptions versus other U.S. Spanish-language video content services that are based on AVOD (Advertising based Video on Demand) like Univision’s Prende TV which was launched last week.  AVOD are accessed freely by consumers without having to pay a subscription. Univision recently bolstered its position in the Hispanic AVOD space by acquiring  AVOD service VIX, formerly known as Batanga, which offers content to millions of US Hispanics and consumers throughout Latin America.
Earlier in 2021, Univision announced plans to launch PrendeTV, designed to be the only ad-supported video streaming service created exclusively for US Hispanics, featuring free, premium, 100 per cent Spanish-language programming. (Check out this article regarding monetization of Hispanic AVOD services, including Hulu, Vida Primo and Pongalo (later acquired by VIX and now part of Univision).

Triple Lift, Receives Majority Investment from Vista Equity Partners

Native programmatic advertising platform TripleLift has been acquired by Vista Equity Partners, the private equity firm founded by Robert F. Smith.  The terms of the transaction were not disclosed but it has been reported that the transaction values TripleLift at US $1.4B.  The agreement marks one of the largest transactions in the advertising technology. sector. For TripleLift, merging with Vista allows for the firm to maintain strategy and culture, accelerate the business, and provide financial clarity for its shareholders. With 5 years of 70%+ growth, Vista is acquiring TripleLift’s growth opportunities across international and video markets, as being #1 in Native Advertising and top 3 in programmatic video. “We have developed into a leader in the advertising technology space and are excited about our next chapter,” said Eric Berry, Co-Founder and CEO of TripleLift.
Founded in 2012, TripleLift is driving the next generation of programmatic advertising by inventing new ad formats and building two-sided marketplaces that deliver monetization to publishers around the world. The company rose to prominence as the leader in Native programmatic advertising, expanded its offerings to display and video, and is now commercializing breakthrough products in Connected TV. TripleLift works with over 80% of the comScore 100 publishers, 100% of the Top 20 Demand Side Platforms (DSPs) and 100% of the AdAge Top 100 advertisers. Last year, TripleLift handled over 40 trillion ad transactions across desktop, mobile and connected television.

ID5 Raises US $6 million in Series A Funding

ID5, an independent identity solution provider, announced a “series A” funding round of $6 million. Alliance Entreprendre and Progress Ventures join existing lead investor 360 Capital Partners to support ID5 in growing its privacy-first identification service for the benefit of the whole digital advertising ecosystem. ID5 will use the funds to expand its operations globally, focusing on the US market. The company will invest in its technology infrastructure, further develop its products and grow its team. Since its launch in 2017, ID5 has been working towards the creation of an efficient identification infrastructure that supports media owners and respects users’ privacy choices. The technology has been adopted by hundreds of publishers and ad tech platforms globally, enabling ID5 to boost its global reach to over 600 million consumers daily and increase the value of its Universal ID service. According to Kristina Prokop, CEO and Co-founder at Eyeota “Rebuilding user identification with a privacy-first approach is a necessary step for the digital advertising ecosystem. As a partner of ID5, we are supportive of their efforts to lead the change for the industry.” “Closing this round now, in the wake of recent announcements by Google and Apple, is a strong signal sent to the market that there are alternatives to the Walled Gardens” says Mathieu Roche, co-founder and CEO of ID5. “We have seen tremendous adoption of Universal ID, our cookie-less identification service, by publishers and ad tech platforms. The backing of leading US and European investors gives us further means to achieve our ambition to become the global ID infrastructure powering digital advertising.“

Extreme Reach (ER), an asset management solution company for TV and video advertising, released the findings of its Q3 2020 Benchmarks Report, which includes ad performance data for impressions served from its AdBridge™ platform to CTV, desktop, and mobile devices for July through September 2020.

Key findings from the report include:

    • CTV leads in the share of impressions by device: At 39%, the share of impressions served to CTV continues to lead other devices. ER sees a wide range of preferred devices across its client base with some clients devoting as much as 72% of their impressions to CTV, while others focus largely on desktop and mobile. Because ER is the ad server of record for so many Direct-to-Consumer brands that optimize in real-time to measurable behaviors, the data includes a wide variety of strategies for CTV. The aggregate share of impressions across all ER clients served to CTV remained nearly flat from Q2 to Q3.
At 39%, the share of impressions served to CTV continues to lead other devices.
  • 30-second ads remain the preferred ad length for advertisers: Data from the report indicates that 30-second ads accounted for 81% of ad impressions served by Extreme Reach in Q3 2020, compared to 79% in Q2 and 66% in Q3 2019. This marks an all-time high and the continuation of a trend that began in Q2 2018, when 30-second ads first overtook 15-second spots in ER’s quarterly report.
  • Desktop benefits as WFH continues due to COVID-19: In Q3, desktop accounted for 21% of ad impressions, a 40% YOY increase. As remote environments for work and study remain the norm, ER sees more impressions going to desktop to achieve brand goals as consumer behavior adapts to the new digital and virtual environment. Video advertising completion rates (VCR) for ads on desktop remained steady at 70%, though lower than rates seen for mobile app and CTV (where skipping ads is generally not an option).
    The COVID-19 induced Work from Home environment has benefited desktop, which accounted for 21% of all ad impressions. 
  • Media aggregators hit a new high: Similar to the growth seen in Q2 2020, media aggregators surged to 47% in Q3, an increase from 35% in Q2 and just 20% in Q3 2019. While premium publishers still lead in share of impressions served, at 53%, this is the lowest percentage reported for premium publishers since Extreme Reach’s first report in Q1 2017.

    Video Advertising: Native DTC Brands Favor Mobile and Desktop

Video Advertising“2020 continues to bring challenges to marketers and each quarter our data reflects shifts in strategy to account for the current circumstances,” said Mary Vestewig, Senior Director, Video Advertising Account Management at Extreme Reach. “We see many digital native DTC brands focused on attribution and favoring ads on mobile and desktop over CTV. Others, looking to grow brand awareness, invest far more heavily in CTV. What’s clear is that no single media mix suits every client and I believe that remains a constant even as many factors in digital advertising evolve and change.”

We see many digital native DTC brands focused on attribution and favoring ads on mobile and desktop over CTV. Others, looking to grow brand awareness, invest far more heavily in CTV.  

Extreme Reach’s Q3 2020 Video Advertising Benchmark Report is based on the aggregate performance metrics from AdBridge™, which tracks campaigns for a diverse set of brands across multiple categories.

Connected TV Advertising Investment is growing at triple digit figures in 2020. Yet, the level of investment is nowhere near the CTV audience number, which is already larger than that of Pay-TV. Media buyers at Starcom USA and GroupM tell Portada that better reporting and more sophisticated measurement options are key to further growth.

David Queamante, SVP, Client Business Partner, UM

“The shifts in media properties were in some ways, driven by the audience’s shifts in consumption. More streaming options were considered, and more eCommerce partners were rotated in, ” David Queamante, SVP, Client Business Partner, UM and responsible for developing and implementing the national media strategy for Quicken Loans, tells Portada.

CTV Advertising Investment is Skyrocketing…

  • Roku, which is turning into something like the “cable box” of streaming TV, last week announced that Roku’s Platform business – which includes advertising and content distribution revenue – saw its strongest quarter in the segment’s history, with revenue leaping 78% YOY to US $319 million. Roku attributed the record numbers to strong growth in advertising as brands embraced connected TV advertising platforms, and the number of first-time advertisers more than doubled in Q3.
  • Demand side platform The Trade Desk reported in its Q3 earnings that programmatic CTV ad investment on its platform grew by 100% YoY, substantially helping overall revenues to increase from US $164 million to US $216 million in the third quarter of this year.
  • Magnite a sell-side ad platform that encompasses Rubicon Project and Telaria, announced last week that CTV ad revenue was up 51% year over year to US $11.1 million.
  • Regarding ad impressions, according to the latest report from omni channel advertising platform Innovid, CTV ad impressions grew 55% year-over-year from 2019 for the third quarter.

… but in 2021 CTV Advertising Investment will still only amount to 15% of Total TV Advertising …

Darcy Bowe
Darcy Bowe, SVP, Media Director at Starcom USA

“We analyze audience trends and are seeing that audiences continue to move to CTV platforms. This trend has been occurring steadily for the past few years, but has increased exponentially with the pandemic as people stay home more and seek out new content,” says Darcy Bowe, SVP, Media Director at Starcom USA in Chicago. “With increased CTV viewership, and the continued decrease of linear viewership, it is important that we evolve our media plans to follow people where they are watching content – and in turn, where they are more likely to see our clients’ ads,” Bowe adds.

CTV household penetration is lies at 80% and  Pay-TV’s at 62%.

In fact, in 2020 the number of CTV households has become substantially larger than the number of PTV households. US. CTV household penetration is currently approximately 80% , while pay-TV (cable and satellite) penetration lies at 62%. Of course, this has led to a surge in CTV advertising investment, because ad dollars chase eyeballs. Still, even taking into account the current high growth rate, EMarketer estimates CTV ad spending will reach US $10.81 billion in the US in 2021 – up 56% from two years earlier, and representing around 15% of total US TV ad spending. This makes little sense when you consider that U.S. consumers watch more CTV than PTV.

Despite the high growth rate, CTV ad spending is expected to only represent 15% of total U.S. TV ad spending in 2021.  

… and Media Buyers Ask for Improved Reporting and Measurement

One of the reasons CTV advertising investment is not growing at an even higher rate is that the inventory is fragmented, making it difficult to measure and plan. Ad fraud and frequency capping are other serious concerns. Advertisers often do not get the same level of reporting in their CTV campaigns compared with linear TV as CTV reporting often centers around ad-impressions. “When you do a TV buy, you know the pod position you’re in, you know the time your commercial ran, you know the show, you know the content of the show, which episode number it is. We need that same level of detail that we’re accustomed to,” Jessica Brown, director of digital investment at WPP’s GroupM, recently told Beet.TV.

Starcom’s Bowe adds that  “more sophisticated measurement options are key – and that will allow us to measure viewership and frequency across screens more easily. It’s important to understand when a person sees our ads across Linear TV and CTV, let alone across all screens. However, we are already starting to see the impact of co-view measurement in our media plans as we’re able to understand the total number of impressions CTV campaigns are delivering vs. relying on the number of ads served as a proxy for impressions.”

We are starting to see the impact of co-view measurement in our media plans as we’re able to understand the total number of impressions CTV campaigns are delivering vs. relying on the number of ads served as a proxy for impressions.  

 

Teads, The Global Media Platform, unveiled a suite of updates including the expansion of its robust performance offering along with new social products and measurement solutions. The announcements were made during the inaugural ‘Teads Partner Day’, a global virtual event that brought together more than 1,000 brand marketers, agency partners and trade journalists.

Among the main innovations the company announced is ‘Teads Conversions’, a new performance programmatic solution geared towards helping brands deliver on-site conversions such as leads, add to cart, registrations and sales. This solution allows clients to access Teads’ high quality traffic and premium publisher inventory while optimizing towards lower-funnel outcomes via the leading DSPs in the marketplace. The solution is also available in closed beta via Teads’ self-serve buying interface.

As advertisers move further down the funnel, one common concern is that they have to sacrifice quality and brand safety to get lower funnel conversions.

As advertisers move further down the funnel, one common concern is that they have to sacrifice quality and brand safety to get lower funnel conversions. As a ‘curated internet,’ Teads is a single access point to the world’s best publishers, offering quality scale, brand-safety and outcome transparency not available within the ‘walled gardens’ of social platforms, or across the low-quality inventory on the open web.

conversions performanceThe Teads performance offering is based on the following five ‘Quality Performance’ pillars:

  1. Real ROI Objectively Measured: Teads welcomes 3rd party measurement solutions.
  2. Quality Media Environments: Teads Performance Solutions leverages the quality editorial placements available on the Teads platform, comprised of many of the world’s top publishers.
  3. Ads That are Actually Seen: Teads delivers high viewability through ad formats that don’t load if they aren’t viewable
  4. Optimized Creative Made for Quality Inventory: Teads has developed a suite of creative templates highly optimized to deliver against a variety of performance KPIs.
  5. Powerful AI to Find Brand Customers: Teads performance solutions are powered by its AI engine, which learns which users are most likely to generate a qualified visit.

Teads Conversions is the latest addition to Teads’ Performance offering. Complementing the mid-funnel traffic acquisition and incremental visitor solutions available to brand advertisers who are looking to deliver maximum ROI on their digital ad spend.

At L’Oréal we want to be able to offer a perfect choice of brands for all types of consumer needs and desires and for all beauty dreams all around the world. To achieve this, we need to be present in the most relevant channels and at the right moments. For the last three years, since we started working with Teads, we have been able to deliver strong results in both our awareness and performance campaigns and inform our marketing decisions based on relevant insights and a diverse range of studies provided by their team. I really appreciate the value of having a partner to achieve our goals.” – Kim Dirckx, CMO/CDO at L’Oréal LATAM

We need to be present in the most relevant channels and at the right moments.

Teads is also launching ‘inRead Stories’ and ‘inRead Social B2B’ in their inRead Social suite. These solutions seamlessly extend the reach of social media ads into high quality publisher environments in the curated web. The Stories format is a highly visible vertical ad experience running between paragraphs in editorial content. inRead Social B2B, a solution targeting corporate and professional decision makers which make up 27% of Teads’ audience globally.

We’re also focused on allowing brands to seamlessly enrich their options outside of the walled gardens.

conversions performance
Bertrand Quesada, CEO & Co-Founder at Teads.

“Teads has doubled down on innovation in 2020 to support the accelerated performance and e-commerce efforts of brands and agencies. We’re also focused on allowing brands to seamlessly enrich their options outside of the walled gardens. Both of these strategies have been paying off for our clients with tangible results in both savings and performance.” – Bertrand Quesada, CEO & Co-Founder at Teads.

Additional announcements:

In addition to the updates to the performance and social suites, Teads announced further innovations to the platform during its Partner Day:

  • Enhanced contextual targeting solutions: Allowing smart, future proof, targeting strategies for brands as we move towards a cookieless world. Benefiting a privacy concerned user, without negatively impacting media plans targeting specific audiences. This is achieved by semantic analysis across a range of contextual segments, leveraging the in-article environments where Teads operates.
  • Brand Pulse: Teads’ proprietary campaign measurement tool is now available within Teads Ad Manager, Teads’ self-serve platform. Allowing brands to seamlessly measure campaign success and brand uplift themselves.

Automotive has been hit less hard than many retail sectors during the pandemic. Car makers have been innovating both in their relationship with dealerships as in the way they reach out to end consumers. To get a better understanding of  the state of automotive marketing, Portada interviewed Pamela Arteaga, Global Marketing Manager Cadillac. Her take on brand-dealer relationships, customer outreach through non-physical channels, her Hispanic heritage, sales attribution models…and more.


The communication between car makers and dealers lies at the heart of automotive marketing. According to Arteaga, the connection between car dealerships and Cadillac has been tight throughout the pandemic. “We started to hear about the pandemic situation in China early on and we developed  some best practices from China and we started tailoring material and using guidelines from our Asian and Chinese teams. These guidelines include the cleaning of cars. The use use of apps so that they don’t  have to go to dealerships, pick up processes and other actions to connect with customers through non-physical channels.”

Automotive Marketing: Learning from China

Arteaga mentions “that  one of the learnings from China was that through a joint effort of brand and dealerships they were doing events via social media like Facebook live and Instagram events.  People went online to watch a review of the car, to learn about technologies etc. ”

In March 2020, just before most lockdowns were instituted, the automaker made its Cadillac Live service available in all 50 states across the United States. Those efforts have included launching online video sessions with brand representatives to explore cars, a service that saw a 50% increase in visitors once the pandemic started, WARC reported. Cadillac Live allows for the reservation of a time for a live agent to tell the prospective buyer about the details of the car. Information of the customer is taken and a test drive and information is shared with the dealer.

Online video sessions to explore cars saw a 50% increase in visitors once the pandemic started.  

Arteaga specializes in brand strategy and is responsible for bringing brand and marketing consistency to Cadillac’s 9 international markets, including China, Canada, Middle East region, Mexico, Russia, Korea, Japan, Europe and Israel.  Out of her work in Mexico she also derives insights that are useful for the multicultural market in the U.S. where she supports U.S. multicultural marketing which is led by Alexis Kerr, Head of Multicultural Marketing, Multicultural Strategy, Content and Execution at Cadillac.

Born in Toluca, Estado de Mexico, Mexico. Arteaga is a proud Mexican woman and mother to a 5-year old

Automotive Marketing

living in Detroit. She graduated from Tecnológico de Estudios Superiores de Monterrey with a bachelor’s degree in Communication Science in 2003 and an MBA in 2014 from the same institution. Automotive marketing became her passion early on as she worked for General Motors Mexico for over a decade where she helped grow Buick, GMC and Cadillac as the Marketing manager and relocated to Michigan in January 2019 to take on her current role.
According to Arteaga, to have a Hispanic-Latin American background can substantially help a brand marketer: “It provides more tools to be thoughtful and holistic about tactics. It also helps tailor messaging and strategy and to see things differently. We want to build a community We have been working for the last couple of years to bringing a face to our advertising but also to the people working on it in-house and in our agencies.. So that the customer feels we are on the same page and have a unique point of view that is tailored to them. ” “When it comes to Hispanic in the U.S., we want to make sure to be authentic and are not necessarily ROI driven.”

A Hispanic background provides more tools to be thoughtful and holistic about tactics and strategy.  

Portada Live Latin AmericaJOIN US AT PORTADA LIVE LATIN AMERICA, NOV. 19, 2020

Cadillac’s Pamela Arteaga will be one of the many leading brand marketing executives to speak at Portada Live Latin America. To find out about Portada’s new virtual knowledge-sharing and networking solutions at PortadaLive Latin America involving a myriad of brand decision makers, please contact Sales Director David Karp at David@portada-online.com.

Automotive Marketing: Unique Local Markets and Move to Digital

Asked about what changes she has seen in the markets she oversees over the last 6 months, Arteaga emphasizes that each market is unique  and has its own nuance. “There are differences between Asia and  America in terms of how consumers react to digital tools. Canada and U.S. have the Cadillac live online platform while China is planning to implement it.” Mexico has it for Chevrolet, and Cadillac is exploring to have it for Cadillac (Live) as well.

Arteaga adds that when it comes to the media mix there has been an overall move to digital -including retargeting, social, search and influencers – both in the U.S. and Mexico. “This is a trend that already surfaced before the pandemic, particularly when targeting the luxury consumer.”

Cadillac’s Multitouchpoint and Media Investment Optimization Tool

Sales attribution models also please an important role in automotive marketing. Cadillac uses a high propensity targeting tool that provides details on how likely prospects are to buy a Cadillac. ” We use both a multitouch and media Investment optimization tool,” Arteaga says.  “Our M1 High propensity tool, allows to talk to customers from an audience perspective and follow them via offline and online media. These tools are advanced analytics or machine learning programs that look longitudinal over time examining across dozens of categories of variables and hundreds of individual independent variables.  Dependent variables can be rotated, but most of the time it is sales.   Outputs are ROI by media type, ROI by media type by model, ROI by Marketing activation (e.g. auto shows), Marketing budget needed to hit sales objectives, etc.  These models are 85%+ accurate proven by back testing and a technique using an in sample and out of sample error testing.

Our M1 High propensity tool, allows to talk to a customer from an audience perspective and follow them via offline and online media.

Arteaga notes that the marketing pioneer John Wanamaker (1838-1922) once famously said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”. “In the 21st Century, advanced analytics and machine learning can tell us with a high degree of accuracy the effectiveness of marketing by media and channel,” she concludes.

 

 

Vevo, Magna and IPG recently released the study “An Anatomy of a Video Experience”. The report’s main finding is that co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity. Going forward for brands, the role of Connected TV Advertising will be crucial. To gain more insights into 2021 and CTV viewing trends Portada talked to Laura Vanison, Director of Consumer & Artist Insights, at Vevo as well as with Bryon Schafer, SVP Research at Vevo.

The  recently published study covers the period of September and October 2019 and highlights that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White) shared a love of co-viewing on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV. The study also found that longer viewing periods result from content that people find culturally relevant, specifically sports and music. We asked Vanison and Schafer whether COVID-19 has accelerated or curbed the trends described in the report?

Laura Vanison
Laura Vanison, Director Consumer Insights, Vevo

According to Vanison, “COVID-19 induced stay-at-home has accelerated and compounded trends that were already clearly visible in 2019. There has been a big shift towards streaming particularly in the living room. Vevo CTV viewership has increased by 40% in the US since the start of the year (Jan-Aug 2019 vs Jan- Aug 2020) as the overall broadcast and TV industries have been pivoting to streaming.”

COVID-19 and stay at home have accelerated and compounded trends that were already clearly visible in 2019. There has been a big shift towards streaming particularly in the living room.  

Co-Viewing Propels Connected TV Advertising

“The already six months long Covid-19 pandemic has made a habit of the co-viewing experience. Due to COVID-19 and the growth of CTV, co-viewing has become an almost forced habit”, Vanison asserts. “It usually takes a month for a particular experience to become a habit, but it’s been longer now. This is going to change things in the long term”, Schafer adds.

Co-viewing’s definition per Nielsen refers to members of the same household watching television at the same time — but not necessarily in the same room.  Linear TV has always involved co-viewing, but now with the rapid growth of CTV this is also the case for digital media. “Until recently digital media created mostly a one-on-one relationship between content and the user. But CTV has created a new multidimensional and community driven dynamic for digital media. A capacity it traditionally lacked,” Schafer asserts.

Until recently digital media created mostly a one-on-one relationship between content and the user. But CTV has created a new multidimensional and community driven dynamic for digital media. A capacity it traditionally lacked.

Connected TV Advertising: Advice for Brand Marketers

Bryon Shafer
Bryon Shafer, SVP Research, Vevo

According to Vanison “The shared experience of co-viewing provides advertisers a myriad of opportunities for conversation as viewers are in the midst of engaging with each other. Co-viewing provides an increased receptivity to advertising because the moment is intended by the viewer.”

Asked about what they would recommend a  brand when it comes to reach multicultural audiences via video, Vanison and Schafer stress that depending on the brand’s objective recommendations will vary. However, most recommendations will be device based. For instance, co-viewing will tend to be higher on CTV than on mobile. “The way a brand marketer wants the user to connect with her/his content dictates the device he will choose for the advertising message”, Schafer notes.

Co-viewing provides an increased receptivity to advertising because the moment is intended by viewers.  

An understanding by the advertiser of the different devices is crucial. For instance, mobile messaging will have a shorter length  than CTV advertising. “Schafer, stresses the importance of communicating with the right message, nuance and time.

According to the Video Advertising Bureau, there are 820 million OTT devices in the United States and 30% of those devices are smartphones, followed by smart television (15%). All OTT devices are connected advertising enabled.  OTT devices also include Chromecast, Roku, 

Content programmers are already taking the lead adapting their programming to the new Connected TV Advertising environment. An analysis of programming reveals that major networks are shaping their programming with a substantial focus on their Video on demand subscription services. For instance, Warner Media tends to dedicate more resources to content programming for HBO MAX  than to its open broadcast networks,  in a similar way NBC  has a major focus on Peacock and Disney on Disney Plus.

E-Sports Environments Are Increasingly Used for Music

Vanison and Schafer note that, overall, music content has been a great beneficiary of the absence of live sports as well as of the fact that the amount of new scripted originals and reality TV has substantially diminished during the current pandemic. In addition, music is a genre with broad cultural relevance.

E-sports and online video game platforms have a very strong community element and the stay at home phase of COVID-19 has increased their popularity. Musicians have been using platforms that are typically being used for e-sports to connect with fans during the pandemic: Rapper, singer and songwriter Travis Scott performed on a virtual concert in April  using the video game Fortnite. The concert was broadcast on Twitch and other platforms. Epic, the developer of Fortnite, said that 12.3 million people had tuned in for the premiere. After five shows, the number reached up to 27.7 million unique viewers, with 45.8 million views, suggesting plenty of people saw multiple shows.

Video engagement is a major factor for successful advertising. A Vevo-Magna-IPG study finds co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity.

Music video platform Vevo has partnered with MAGNA and IPG Media Lab, to reveal significant findings around the nuances of multicultural audiences’ video viewing behavior.

“The Anatomy of a Video Experience: A Multicultural Study” explores how audiences consume content across multiple devices and their motivations around viewing habits. Understanding these subtleties is key for brands looking for great video engagement and reach receptive audiences and better inform their planning efforts.

Viewer BehaviorThe study found that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White), shared a love of co-viewing (watching video with someone other than yourself) on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV.

Longer viewing periods result from content that people find culturally relevant, specifically sports and music. On average, 37% of highly culturally relevant content viewing sessions last for one hour or more. When it comes to ad receptivity in particular, viewing music content on OTT devices is key, with over 60% of each group responding that they would be receptive to ads.

On average, 37% of highly culturally relevant content viewing sessions last for one hour or more.

Portada LiveJOIN US AT PORTADA LIVE, OCT. 14, 2020

To find out about Portada’s new virtual networking solutions at PortadaLive 2020 involving a myriad of brand decision makers, please contact Sales Director David Karp at David@portada-online.com.

“Partnering with MAGNA and IPG Media Lab once again for this study is really valuable for our business” says Bryon Schafer, SVP of Research, Vevo, “With recent findings showing that 79% of Vevo’s CTV content is being co-viewed, it’s important for us to understand the nuances of audience behaviors in order to pass on these insights with our clients and partners. No screen is seeing a greater surge in Vevo viewership than the television, which has seen an increase of over 20% since March of this year with 61M viewers exclusively engaging on connected TV screens. Modeling user behavior against our content and go-to-market strategies keep us in tune with our global audiences. We’ve really enjoyed finding out exactly what makes viewers tune in – and stay tuned in to the content they watch.”

Video Engagement: Audience demographics

While co-viewing on OTT devices spans across all surveyed viewer behavior groups, each demographic has vast differences around why, when and how they watch content on various devices. Some of these findings include:

  • Asian audiences:
    • Older audiences are more likely to seek out informative videos for task-based viewing sessions across all devices.
    • Younger Asian audiences are more likely to watch binge-friendly genres, like music, resulting in longer viewing periods of over an hour across all devices.
  • Black/African American audiences:
    • As a whole, Black/African American audiences watch binge-worthy content for longer periods of time. However, unlike younger Asian audiences, younger Black/African American viewers tend to watch content in shorter spurts of less than 30 minutes, likely driven by higher levels of mobile usage.
    • Black/African American viewers are the most likely audience to seek out music and sports content.
    • OTT is the leading device to resonate with Black/African American viewers at their most engaged with 63% of audiences being receptive to ads on this device.
  • Hispanic/Latino audiences:
    • English-dominant and bilingual Hispanic/Latino viewers tend to have longer watch time. While Spanish-dominant audiences watch for mid-length sessions of 30-59 minutes.
    • 33% of total Hispanic/Latino viewing sessions last longer than one hour.
    • 60% of Hispanic/Latino viewers watching music on OTT are receptive to ads.

Viewer Behavior“Culture is a pervasive and essential part of every consumption and is being driven by people of color,” says Oscar Allain, VP of Cross-Cultural Strategy & Research at UM. “These consumers are critical to the growth of businesses across all sectors. Not only are they influential in driving their own cultures, but they are also shaping mainstream culture.”

These consumers are critical to the growth of businesses across all sectors.

“Our Cultural Dimensions study reinforced the idea that social media platforms have helped propagate and influence the conversation on culture.  So the merging of our datasets with IPG Media Lab’s and MAGNA’s helps to bring new multicultural insights into how we think about creating smarter strategies for data analysis, planning, creative and more,” says Deidre Smalls-Landau, U.S. Chief Marketing Officer and Global Head of Culture for UM.

Global Media platform Teads recently launched  an  online content series centered around the many ways online creativity in the ad industry is evolving and has been accelerated by COVID-19.  Portada interviewed Jonathan Lewis, Global Head of Studio at Teads, to learn about the latest innovations in digital transformation and its implications for cross-divisional team work (e.g. creative and media) and organizational processes.

Jonathan Lewis on Digital Transformation
Jonathan Lewis, Global Head of Studio, Teads

Lewis, Global Head of Studio, Teads, is an expert who has been tasked with pressure-testing legacy creative processes and accelerate digital transformation within advertising. He notes that Latin America is the best playground for early adoption of initiatives including cross divisional team work and content testing. He claims that “there is without question a greater appetite for innovation and to a degree risk in Latin America.”

Digital Transformation and Cross Division Collaboration

Asked where he sees digital transformation within advertising going in regards to cross-division collaboration in the creative process, Lewis notes that “you certainly hear more about the convergence of creative and media teams, both within client and agency shops and In the main I think this is driven by client needs. At Teads our teams work collaboratively across the spectrum of the platform and the approach we have promoted with regard to our relationships with clients during the creative process is a reflection of this. For the last 2 years we have worked a cross-division, collaborative initiative that combines client
stakeholders, their creative and media agencies with our own creative Studio, data and media insights teams to deliver a specific campaign orchestration together in one (now remote) session. This working session, called L’Atelier is a powerful validation of the value of cross division learning and understanding.
This has been especially so during the current pandemic, where Covid-19 has acted as a reset button in the lives of many and faced, as we are, with an unfamiliar world our habits and needs and desires at any given moment are pretty fluid. So, the cross-collaboration across media, insights and creative functions is essential to ensuring we deliver sensitive creative experiences and give people what they need during this time. Ensuring tonality is on point and cut through to such collaborative approaches can achieve, learning and understanding from each division.”

Faced with an unfamiliar world our habits and needs and desires at any given moment are pretty fluid.

Appropriate Tonality: The Examples of KFC and LVMH

Lewis also stresses the need for the use of appropriate tonality in these challenging times. Digital Transformation also means establishing processes and cross-divisional teams for efficient tonality feedback loops. “Simply put, when we talk of tonality we are referring to what you say, how you say, when and where you say it (the context in which the ad appears is also an important consideration with regard to appropriate tonality) and maybe whether you should be saying it at all. Things can quickly become ‘tone deaf’ to the environment in which we find ourselves. In early stages of lockdown that would include content that had people celebrating, partying, holidaying or simply referring to things that we couldn’t do any longer.” As examples Lewis cites  KFC were unfortunately caught here with the outdoor campaign promoting (finger licking) good chicken.
Appropriate tonality would include messages that are showing support and action to help in the
crises. A good example here would be LVMH who very quickly pivoted to produce hand
sanitizer. “Of course there is a thin line between genuine help and being perceived as trying to
capitalize on a bad situation. So, referring back to the first question, the close collaboration
across teams provides a more stable and reliable way to test the temperature, assess tone and
adjust in a smart and agile way.”

The close collaboration across teams provides a more stable and reliable way to test the temperature, assess tone and adjust in a smart and agile way.

Digital Transformation: Best-In-Class Content Testing…

There are a number of ways a brand can test their content, Lewis argues. “One lifted from the world of TV, of which they should be familiar, is content pre-testing. Assuming your TVC will play out in the same way on a digital device is not advisable. So being able to pre-test that content for a mobile platform and using real time emotional tracking (via a panel and accessing the users web camera) to gage, frame by frame, how users, exposed to such a creative are reacting on an emotional level, is an excellent barometer for understanding how it is likely to perform. At what point during the creative are users happy? When are they surprised? When are they disgusted and how can we use that data to inform how we deliver this TVC as a digital piece fit
for mobile.

Tonality Pre-Testing

Lewis  also advocates for a ‘tonality pre- test: “During COVID via a survey to 300 respondents we are measuring aided brand awareness, reaction to creative (relevance, sensitivity to context) and impact on perception of the brand, ” he notes.

We are also advocating a ‘tonality pre- test during COVID via a survey to 300 respondents where we are measuring aided brand awareness.

Digital Transformation: Evidence based Approach Feeds Back into the Creative Process

Evidence generated from pre-test emotional studies can be a key driver for refashioning digital creatives by using  the positive peaks in emotion to accentuate the creative, Alternatively an evidence based creative process in order to drive actions could involve the use of campaign performance data, live in near-real-time, to identify what’s working, to design tests (AB), to validate a hypothesis and to iterate. Lewis asserts that “for this, you need something akin to a remote war room with your clients to initiate a more or less constant feedback loop. This of course can be a lot of work and time consuming, you will need agile and fast working teams with the ability to understand and redesign creative output, but the payoff is that it could provide the key to a deeper understanding of what resonates with people exposed to your creative on a mobile
device.

  You need something akin to a remote war room with your clients to initiate a more or less constant feedback loop.

Check out:

Marketing Technology 101: Everything You Need to Know

8 Ways AI is transforming Marketing Today

 

 

 

 

 

 

 

 

Teads, The Global Media Platform, is launching an online content series centered around the many ways online creativity in the ad industry is evolving. Through workshops, insights, fireside chats and case studies, Teads and participants will discuss new creative trends and showcase best practices. Through these activities, happening across the globe, Teads also aims to shed light on the challenges and opportunities faced by the ad industry in the current world context.

Current world crises have brought to light certain dynamics that will be key themes in the content series:

  • The need for further agility and cross-division collaboration in the creative process
  • Landing the appropriate tonality in disruptive times & testing content effectively
  • Access to real-time data and insights to constantly inform and iterate on creative executions
  • The effectiveness of evidence-based approaches to creative development

To illustrate some of the ways in which these new dynamics are being addressed, Teads will also conduct virtual Ateliers with brands and industry reporters. These collaborative, co-creation sessions break down media, marketing and creative silos to make impactful ads for mobile environments.

The COVID pandemic has pressure-tested legacy creative processes and accelerated digital transformation within advertising. We believe some of the forced adaptation will outlast the crisis and hope to explore these themes with our partners during the Month of creativity.- Jonathan Lewis, Global Head of Teads Studio

As part of the Month of Creativity, Teads is also launching its first ever Teads Consumer Health Mobile Creative Awards. The awards recognize the efforts CHC brands are making to optimize their brand messages through mobile publisher environments.  The judges will be looking for creative excellence and effective use of digital functionalities in communicating an CHC brand’s essence, positioning and key sales messages to the target audience(s).

The U.S. government has given tax payers until July 15 to file and pay 2019 income taxes. Major Tax Marketing efforts therefore have been extended for 90 days. We asked John Sandoval, Senior Brand and Latino Marketing Manager at  TurboTax owner Intuit, (and a Portada Council System member) about how he has adapted TurboTax marketing to the new social distancing environment.

Sandoval tells Portada that TurboTax’s biggest priority is maintaining taxpayers informed on how the current landscape can impact their filing situation. “Government economic incentives like the recently passed stimulus also has had an impact on millions of Americans, who may not have all the information available to fully understand how they could benefit or what it means to them.”

John Sandoval, Senior Brand and Latino Marketing Manager at  Intuit
John Sandoval, Senior Brand and Latino Marketing Manager,  Intuit

TurboTax was recently featured in Google-Youtube ads leaderboard as one of the 12 most-watched ads that encouraged consumers to stay at home. These brands adapted their message to help flatten the curve and fight the spread of COVID-19 across the U.S. The 12 ads on the platform’s list have generated more than 32 million views.  The English-language ads were created by Wieden & Kennedy and media was planned and bought by both Camelot and Wieden and Kennedy.

Latest Tax-Marketing Initiative: Stay Home PSA Ads

Sandoval feels proud of this communication initiative and particularly about the fact that it was aired and communicated in Spanish supporting Turbo Tax multicultural marketing initiatives (see ad below).

Sandoval adds that wile he has “seen some great companies run ads addressing the current situation on English-language TV, many of them have not complemented their efforts in Spanish-language TV.” “Our efforts speak to our commitment to the Latino consumer segment. In addition, we have a robust content strategy that provides in-language relevant information to all Spanish speaking customers, so they are up to date with all recent tax changes.” “Knowing that our consumers are doing so many things for the first time at home due to the current environment, we wanted to empower the community that “doing taxes” could be one of them.”

New Approach to Day-To-Day Tax Marketing

Sandoval tells Portada that his approach to day-to-day marketing has changed over the last few months. “What we have learned during the current health crisis is that consumers expect brands to tap into their humanitarian side and give back to consumers in this unprecedented time. It has been very uplifting to see companies like Zoom donating video communication services to schools so that children can continue learning; or Gap pivoting its resources so that their factories can focus on producing surgical masks as opposed to clothes; or Anheuser-Busch making hand sanitizer alongside their beer.”

What we have learned during the current health crisis is that consumers expect brands to tap into their humanitarian side.

Messaging in Times of Social Distancing…

“Our messaging has always been connected to offering the ability to file at your convenience, while leveraging the expertise of our credentialed bilingual CPA’s and Enrolled Agents to file with confidence. During social distancing, this message has become more relevant than ever before. Many consumers will have to file their own taxes this year for the first time ever, and others will still need the support and guidance of tax experts, ” Sandoval asserts.

It has been very uplifting to see companies like Zoom donating video communication services to schools; or Gap pivoting its resources so that their factories can focus on producing surgical masks as opposed to clothes; or Anheuser-Busch making hand sanitizer alongside their beer.

with Changing Patterns in Media Consumption.

“Media consumption is also shifting given the change in consumers’ daily routines, cancellation of live events, and greater need than ever before to stay connected to one another”, Sandoval claims.At Intuit, we are constantly evaluating the different channels we use to communicate with consumers. Having real-time data allows us to be nimble and adjust our strategy and message to ensure we are being a valuable partner and a resource to all Americans, while being sensitive to the current situation we are all living. For example, with many Americans turning to linear TV news more frequently and for longer duration to stay abreast of the constant changing environment we’ve made sure our properties flex to meet our customers where they are.

With many Americans turning to linear TV news more frequently and for longer duration to stay abreast of the constant changing environment we’ve made sure our properties flex to meet our customers where they are.

Feature Image: Photo by Serpstat from Pexels

COVID-19 is already having a huge impact on marketing, advertising and media.  How are advertisers reacting to COVID-19? How will different media types ad revenues be impacted by the coronavirus health crisis? Portada got insights from brand and media agencies of the Portada Council System in order to gain some clarity. The answers to 7 crucial questions.

1. How are advertisers reacting to COVID-19?

“In this period, we know that consumers focus on basic needs and expect brands to supply and deliver them reliably. Consumers don’t want brands to stop advertising, but it must not be exploitative or insensitive,” Joseph Kiwanuka, Senior Manager, Cross-Cultural Connections, at UM tells Portada.  A CPG brand marketer in the Portada network says that since the start of the coronavirus crisis, “marketing practices have remained consistent, one insight consistently being practiced is empathy. Messaging reinforces reassurance and value,” he adds.

2. How are brand marketers adjusting marketing expenditures?

Some corporations are freezing or postponing their plans  (e.g. Turbotax as the tax deadline has been postponed to July 15). UM’s Kiwanuka notes that,some of our clients are being tasked with pausing media campaigns and/or turning back media dollars to their corporations to help alleviate the impact to sales. Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go. We are taking things a day at a time.”

Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go.

3. How are different ad-categories being impacted?

The impact on business and marketing activity will vary across industries, depending on how much demand How are Advertisers Reacting to COVID-19?and investment will be delayed as opposed to destroyed during this crisis. MAGNA, a centralized IPG Mediabrands resource that develops intelligence,  expects the impact to be severe for the travel, restaurant, and the theatrical movie industry, significant for retail (check out Macy’s announcement to furlough 130,000 employees), finance and automotive, moderate for packaged food, drinks, personal care, insurance and pharma, and potentially positive for e-commerce and home entertainment. While the overall impact of the coronavirus on advertising will undoubtedly be negative (more details below), some sectors are actually starting to profit from the increased demand of families for home entertainment.  “We are in a unique position during this crisis since we are the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner and even revising some original copy to align with current events,” a brand marketer in the online education sector tells Portada.

We’re in a unique position during this crisis since we’re the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner.

4. Advertiser COVID-19 Reaction

MAGNA released its revised March 2020 Ad Forecast last Friday and expects all-media full year ad sales to decrease by -2.8% this year as the spending cut from most industry verticals will be mitigated by the incremental political spend ($4.9 billion, up +26% vs 2016), and a V-shaped rebound in the second half (Magna). It remains to be seen if this forecast is realistic, as there is a significant downside risk (see question 7 below).

5. Which media types will be particularly hard hit?

How are Advertisers Reacting to COVID-19?Linear ad sales will suffer the most.  MAGNA released its revised March 2020 Ad Forecast last Friday and it expects media suppliers’ total linear (National and Local TV, Radio, Print and OOH) ad sales to decline by -12% (-20% in the first half, -2.5% in the second half). The decline forecasted by MAGNA would be larger were it not for the political advertising revenues (2020 elections) to be obtained by linear TV, radio and print outlets later this year. Media vendors’ linear ad sales will shrink by -12% (incl. political) this year compared to approx. -4% per year in recent years. The decrease in advertising sales will reach -13% for national TV, -12% for OOH, -25% for print and -14% for radio. The outlook will be slightly more positive for broadcasters and publishers when including digital ad sales. Local TV’s non-political ad sales will also decline massively but political spending (almost US $5 billion, +26% vs 2016) will stabilize full year revenues (+1%).
The sharp decline in ad dollars is not necessarily a reflection of lower linear media usage in the last few weeks. In fact, the opposite is true: for instance in the multicultural space, Spanish-language news viewing increased as much as 50 percent last week among Hispanic adults 18-34 compared to the week prior and 123 percent versus last year. Hispanics over the age of 50 are already heavy news consumers, but their viewing has increased as well (29 and 46 percent, respectively). In addition, for the week of 3/16 -3/22 linear TV usage had as much as 182 percent increase among Asian American teens, compared to the same day the prior week.

The other major loser is experiential marketing as mass gatherings are out of the picture in the next few months. One brand marketer interviewed by Portada who wanted to remain anonymous told us that  “investment is mantained in all channels except experiential.”

Investment is mantained in all channels except experiential.

6. Digital Advertising: More Resilient

How are Advertisers Reacting to COVID-19?At this stage, the total market decline anticipated (-3% or -$6.2bn vs 2019) remains less severe than the decline experienced in 2008-2009 (-20% or -$33bn vs 2007), mostly because of the weight and resilience of digital advertising today. Magna expects digital advertising to be more resilient at +4% (-2% in the first half, +10% in the second half). Digital media ad sales will grow by +4% this year and re-accelerate to +7% next year. Search will slow down to +4.5% growth while social and digital video (including Connected TV) will continue to grow by high-single digits. 

It has to be said that at least in the short term digital advertising, see above  -2% in the first half of 2020,  will be negatively impacted. Third party revenue generating platforms have begun altering their payment processes. Altice-owned Teads and ad tech company GumGum Inc have sought changes to their payment arrangements with publishers, with Teads invoking force majeure on contractual arrangements and GumGum proposing extended payment terms.

Search will slow down to +4.5% while social and digital video (including Connected TV) will continue to grow by high-single digits.

7. Is the advertising forecast realistic? “V” vs “U” shaped recovery

According to Magna, “at this stage, both the macro-economic outlook and the corresponding advertising forecast present a high degree of uncertainty and significant downside risk for 2020. The key question is how long the social distancing imposed demand shutdown will be. The U.S. economy has never been through a period like this in modern economic times. Right now, governments are substantially repressing economic demand through social distancing rules.

Right now, governments are substantially repressing economic demand through social distancing rules. The key question is how long the social distancing imposed demand shutdown will be.

While in Europe substantial efforts are being made to make sure  that companies don’t go bust and employees don’t lose their jobs, that is not true for the U.S. despite the recently signed U.S. 2 trillion fiscal plan. This will become even more of an issue should the shutdown be expanded beyond April 30. Should the social shutdown be expanded to the late spring and summer, the economic and advertising recovery will be U shaped rather than V shaped. Therefore, the 2020 decline in advertising will be larger than the one in the Magna forecast.

Once the virus  is under control the economy needs to be available to hit the ground running and that means that most employees need to remain employed to keep processes and know-how at their companies.
Another caveat poised by analysts is about the quality of the data regarding economic activity (and advertising demand). Most economic data is based on surveys. Are consumers and businesses going to be filling out surveys in this environment? Will data be reflecting accurate information or meaningless noise?

 

YouTube is the leading platform for esports videos on demand (VOD), according to 2019 data provided by Stream Hatchet. Meanwhile, Facebook is the number one go-to platform for users consuming mobile streaming. This monthly esports data column provides a quick update of the most important esports consumption behavior, particularly as is relates to streaming.

For prior esports updates, click here.

The most relevant findings of Stream Hatchet‘s 2019 Game Streaming Report

  • In terms of VOD, YouTube has shown to be the most relevant platform. “As the ‘streaming wars’ heat up, they have the opportunity to be the one-stop-shop for all video gaming content,” the study states.
  • Facebook seems to also have found a strong footing in the esports streaming market. The social media platform has taken over the mobile streaming audience while leaving the fight over the same viewers on PC to Twitch, YouTube and Mixer.
  • Still, Twitch continues to be the platform that gets the highest amount of hours watched. The Amazon owned streaming platform has a share of more than 70% of the total Western streaming market.
YouTube VOD
Photo via Stream Hatchet.

Top Games

      • For a long time now, Fortnite has been the most dominant game for streamers in the market. This game seems to have created a very loyal following audience similar to popular titles like CS:GO and League of Legends.
      • Not to far from there, League of Legends has managed to maintain a consistent viewership throughout the year in terms of casual, league and tournament viewership. This continues to show that this title has incredible longevity and tailwinds behind it.
        2019 was a very successful year for the game with record-setting World Championship in terms of viewership. And with interest in the game increasing with Riot Games’ announcement of the release of new games related to the League of Legends universe on the game’s tenth anniversary,” stated Yoshio Osaki, President / CEO at IDGConsulting.
      • Both games have found their strengths and manage to keep exploiting them. League of Legends consistently puts on high-quality tournaments and competitions that keep the game popular in the community while Fortnite has created a game that allows streamers to be content creators which adds a viral element to the game.

 

Teads, The Global Media Platform, unveils inRead Social, a new product enabling advertisers to extend social media campaigns to Teads’ platform, which has more than 500 reputable publishers in Latin America. inRead Social is designed to be a powerful complement to the brand’s social media activations.

By leveraging inRead Social as an extension to existing social media campaigns, brands can now benefit from Teads’ significant deduplicated reach versus social platforms. This format also makes it possible for professionally-produced web content to get funding that until now had only been used for social media.

InRead Social
Eric Tourtel, SVP of Teads Latin America.

In this regard, Eric Tourtel, SVP of Teads Latin America, noted, “Teads was created to connect brands and publishers with the purpose of developing a sustainable media ecosystem. Today, Teads has partnered with 93% of the 200 leading Comscore publishers in Latin America, this benefits publishers, brand,s and consumers, since it helps fund quality journalism in a world where digitalization has forced the media to face a profound transformation in an industry where monetization has been and continues to be a great challenge.”

It helps fund quality journalism in a world where digitalization has forced the media to face a profound transformation in an industry where monetization has been and continues to be a great challenge

Teads provides 21.2 million incremental unique users beyond Facebook and 91.2 million incremental unique users beyond Instagram in Latin America. In the first 100 days of launch, Teads ran more than 100 video campaigns with this product from leading brands across the globe. On average, Teads in-view time for inRead social campaigns was 7.6 seconds (as verified by MOAT) and delivered approximately 5x higher attention than Facebook or Instagram while driving superior results like reduced Cost per Completed View (up to 25x observed in some instances).

Greater Connexions

The quality of the attention is higher in premium environments than in social networks. One of the reasons Teads outperforms social platforms is because users scroll too fast in social feeds as opposed to premium publisher environments where they are actively engaged with the content being consumed. Due to the strong in-view times compared to social feeds, Teads also guarantees higher video completion rates (VCR).  In one study, for a global sportswear brand, Teads inRead Social format outperformed social VCR benchmarks by 16 percent. Teads inRead social is also cost-efficient, as it can now outperform cost-per-completed view (CPCV) and cost-per-click (CPC) by more than 3x on average.

We often test new formats to reach our audiences.

inRead Social
Elisabetta Corazza, Head of Digital at Danone.

Elisabetta Corazza, Head of Digital at Danone said:  “Innovation is a core value for all of Danone’s products and digital advertising strategies so we often test new formats to reach our audiences.  We leveraged Teads inRead social in campaigns for Actimel and HiPro, and saw great success. The product allowed us to reach new audiences faster and extend our digital media strategy by complementing what we already do on social platforms. It really surprised me how seamless it was to extend and expand the user base with a few clicks while maintaining the quality of our creative. Our results achieved more than 66 percent CTR above benchmarks for Actimel’s campaign and over 137 percent for Hipro’s campaign.”

A New Alternative

“Social giants like Facebook and Instagram make it easy for advertisers to spend the lion’s share of budgets on campaigns within their platform because their vast data sets and global reach are an attractive offering. It’s time for brands to have a new alternative in the marketplace where they can reach net new audiences while achieving better in-view time and greater cost efficiency. We’re incredibly excited to bring inRead Social to Latin America so that advertisers can reap the benefits of reaching highly engaged users in premium and brand safe publisher environments,” added Tourtel.

It’s time for brands to have a new alternative in the marketplace where they can reach net new audiences while achieving better in-view time and greater cost efficiency.

Esteban Renaud
Esteban Renaud, Head of Cadreon for Latin America.

Esteban Renaud, Head of Cadreon for Latin America, added: “Through our programmatic product ‘Social Creative Extension,’ inRead Social has allowed us to extend the reach of social media ads; getting to audiences of higher value, maximizing performance as well as improving in-view time and campaign reach in a brand safe environment”

The format is already available through Managed Service and Teads Ad Manager, the exclusive Teads platform for purchasing inventory, a one-stop-shop for monitoring campaigns.

Short term it will likely have an impact and it may also  accelerate trends that are already under way. How will the coronavirus impact marketing? Four things to take into account.

1. Short term: Uncertainty and Risk Aversion…

The coronavirus may soon be contained and ultimately not have a major impact on economic activity levels, similarly to the 2003 SARS outbreak and the 2014-2016 Ebola outbreak. In the short term, however, things are likely going to get worse before they stabilize. That’s because virus outbreaks, by definition, initially have a very high growth rate of positive cases.  Uncertainty rules.  “I think the reason we were not specific was just because I think at the moment, it’s really just unknowable,WPP CEO Mark Read, said during the company’s earnings call last Thursday February 27, when asked about the business impact of coronavirus on WPP’s China business. “It’s more unknowable today than probably it was Friday, if we had this meeting Friday of last week, we may [have] given you a different answer then we give you today.” As COVID 19 cases grow outside of China, the uncertainty is also increasing in the rest of the World, including the rest of Asia, North America and Europe (the main marketing hubs).
Not surprisingly, all major agency holding stocks have taken hits along with the broader market last week. With WPP’s shares falling 15%; IPG is down 5%; Omnicom is down nearly 4%; Dentsu Aegis fell 2.5%; and Publicis Groupe down 5.6%. In the real economy,  global tourism and retail have been hit particularly hard, as Chinese tourists provide a major source of income for many markets.

2. Coronavirus Impact on Marketing: More emphasis on Virtual – Digital Marketing

In the short term companies are starting to restrict travel and encouraging remote work (e.g. Amazon told its employees to avoid all non essential travel for now including within the U.S.) Facebook, on its part,  last week cancelled a global marketing conference in San Francisco’s Moscone Center. Activations and sponsorships at live events may be impacted negatively as marketing, including event marketing will become more virtual. This is not good news in a year where analysts were expecting to see an uptick in media investments from marketers eager to capitalize on events like the 2020 Tokyo Olympics.

The virus may also accelerate a trend that was happening anyway. Executive meetings and virtual events over hangouts will increase. For an example check out Portada’s Council System of brand marketers, which conducts 12 brand decision maker virtual workshops a year.

3. Driver for E-Commerce…

In parts of China, major retailers like Starbucks, Uniqlo, Nike and Apple have temporarily shuttered their stores, while small and medium-size retailers are being hit particularly hard as foot traffic dwindles. This may happen in the U.S. in areas that have been particularly negatively affected by the outbreak. Reduced in-store activity will be a driver for increased e-commerce activity and e-commerce marketing. The big caveat here is if the outbreak creates serious supply chain issues (at producers, shipping and overall logistics e.g. Apple and Microsoft warning of supply chain problems last week), therefore limiting the amount of goods that can be purchased by online buyers.

…particularly Online Grocery…

Housebound consumers in China are turning to online groceries for their daily food supply. According to French retailer Carrefour, vegetable deliveries increased by 600% year over year during the Lunar New Year period. Chinese online retailer JD.com reported that its online grocery sales grew 215% year over year to 15,000 tons during a 10-day period between late January and early February. Concerns about food delivery due to possible food contamination have spurred recent innovation in contactless pickup and delivery services by companies such as McDonald’s and Starbucks. McDonald’s has implemented contactless pickup and delivery of Big Macs, fries and other menu items across China as the outbreak has unfolded. Customers order remotely – on mobile phones or by computers in store – and employees seal the meals in bags and put them in a special spot for pickup without human contact, McDonald’s says on its website.

4. Coronavirus Impact on Marketing: Boost to At-Home Entertainment, Video Streaming and Gaming

If employees are forced to stay at home more, it will also impact how consumers spend their leisure time as they may have to avoid public gathering spaces, like movie theatres, concerts and gyms, leaving more time for them to binge on home entertainment and video services. Advertising revenues of companies that heavily bet on video content and advertising ,e.g. Roku, Youtube, Netflix and others should benefit from a public that’s stuck at home.

Mitú, a mlti-channel YouTube network targeting the LatinX consumer has been sold to Latido Networks. How much did Latido pay after investors poured more than US $50 million into Mitú over the last 8 years? What is the rational for the acquisition? And what does the transaction say about the growing LatinX advertising market?

1. To whom was Mitú sold to?

The company that has bought Mitú is a relative newcomer to the media sector: Latido Networks is  a multiplatform media company that creates content for LatinX millennial and Gen Z viewers, it owns the Latin music-focused YouTube multi-channel network VidaPrimo, and recently acquired a minority stake in the double digits in podcast company reVolver Podcasts. GoDigital Media Group — Latido’s parent in audio also owns the indie label Cinq Music, digital rights management company AdShare, and digital supply chain company ContentBridge. After the acquisition, Mitú will coexist alongside Latido Networks — the company’s media division that comprises a 24-hour connected TV channel called Latido Music.

2. What is the price of the transaction?

Sources at Latido did not want to disclose the price of the acquisition. However, its a safe bet to say that this has been a fire sale that provides Mitú a lifeline of sorts. Mitú has had difficulties finding profitability over the last years, in fact there are reports that it had been failing to pay YouTubers that were part of its multi-channel network their earnings as far back as last August and September, although creators now tell that payments have restarted in recent weeks. Multi-channel networks were very hot from the early years to the mid years of the last decade (e.g. Warner Media’s acquisition of Otter TV for US $ 1 billion and Verizon acquiring Awesomeness TV in 2016 for US$ 650 million). However, these companies were able to scale at a rate Mitú has not been able to.

3. What is the rationale for Mitú’s sale?

“It’s very much a “zipper” concept, meaning they provide much of what our other brands (most specifically Latido) were seeking to build, and we have the infrastructure and media impressions that will help Mitú get even more out of its brand reach”, a source at Latido Media tells Portada. Mitú has an engaged audience in the U.S., in English, a strong sales and sales support team. Latido has a Spanish-speaking audience that skews towards Latin America, (not U.S.), wide media distribution particularly in connected TV and global content production. Un-deduplicated audience numbers are 16 million U.S. monthly for Mitú, while Latido and Vida Primo YouTube network have more than 25 million in the U.S.

4. How much money did investors put to work in Mitu since 2012?

More than US $50 million. The high growth rate of the online video (advertising) market has been luring investors for the last decade. also in the multicultural space. In 2012, MItú got funding from a group of investors led by the Chernin Group.Then in November 2018, the company got an additional US$ 10 million in new funding led by San Francisco-based LEAP Global Partners along with participation from prior investors including Upfront Ventures. Previously, Mitú had raised $42 million from investors including Upfront, Comcast, WPP, Verizon Ventures, AMC Networks, Chernin Group and Awesomeness (now owned by Viacom).

5. How large is the LatinX Digital Advertising Market?

“Media companies simply cannot be relevant going forward without a strong foundation in the United States LatinX community,” Jason Peterson, the CEO of GoDigital Media Group — Latido’s parent company — said in the press release which announced the acquisition. Portada estimates,  that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019. Approximately 80% of that amount is sold by Google and Facebook, leaving approximately  US $210 million for the other players. The changing profile of the identity of U.S. Hispanics is reflected in the evolving structure of advertising expenditures (check out our recent Insights Report-How brands engage U.S. Hispanics: New segmentation approaches),  digital advertising in English-language media targeting Hispanics is growing at a high rate,  while advertising in Spanish-language media is decreasing at a higher rate than overall advertising targeting Hispanics.

We talked to Eric Tourtel, SVP of Teads Latam about the story behind the recently-announced strategic partnership with Precision, the programmatic division of Publicis Media.  We also discussed the key buzzwords and trends of the near future, and why Teads is ready to tackle them head-on with a revolutionary new tool. 

Last year, Teads closed a deal with Oracle Moat that allows buyers to select any custom billing point of viewability and transact on any viewability requirement. Portada also announced the new partnership with Precision, the programmatic area of Publicis Media, in Latam. Teads is the fast-growing platform that invented outsream video marketing. Now, they are changing the game again on their way lower into the funnel. To find out more, we caught up with Eric Tourtel, SVP of Teads Latam. Here’s all you need to know about the special nature of this partnership. Plus, learn how the company gets the ball rolling when it comes to data and AI.

 

The Importance of Having Allies: The Teads + Precision Partnership

Teads works with all the agencies. However, the partnership with Publicis’ programmatic area is unusual because it has a more significant qualitative component. “We’re going deeper, sharing more information. We have enormous amounts of first-party data and a very strong insights team,” said Eric Tourtel to introduce Portada to the story. As he explained, Teads started at the top of the funnel with good branding results after the launch of the innovative InRead video ad format. then moved to engagement and consideration, but the company has just recently started to focus more on performance.

Not only do we see who the users are, but we also see what they’re reading.

Now, Teads is able to fully audit the consumer journey. In Latam, the company has grown so much that it now reaches 90% of Mexican internet users, for example (source). “We find them within our network from 15 to 20 times per month. Imagine the gargantuan proportions of information we get,” shared Tourtel. “Not only do we see who the users are, but we also see what they’re reading. More than noting which URLs they’re visiting, we’re paying attention to the content they look for in those websites.” Consequently, sharing such information with Publicis will make for a very strategic partnership. According to Tourtel, most of the other partnerships are about price, volume, and discount.

 

Sharing the Teads Potential

“What makes this partnership special,” remarked Tourtel, “is the openness with which Teads will share its platform which most agencies aren’t aware of.” Thus, he had to organize intensive training in Miami with the directors of Precision offices all over Latin America. “We had to make sure they understood our platform’s potential,” told Eric. “We’ll have at least one training session per quarter in order to hear their feedback and adapt to their needs. This doesn’t happen at any other Demand-Side Platform.”

As Tourtel mentioned during our conversation, Teads might not be a very complex company but it is a very complete provider. It used to focus solely on video, but it has now evolved lower into the funnel to offer performance solutions. “Teads’ platform is different from DSPs in that it’s exclusively designed exclusively for Teads’ transactions,” informed Tourtel. “It’s all connected at a data level, as well as at a reach level. We are full-stack: an ad-server, SSP, exchange, buying interface…” In short, partnering up with Teads sounds like a very good idea.

We’ve grown together, that’s why collaboration flows more easily than with other players.

The other special aspect of the partnership was the story behind it. There’s a bond with Publicis that goes way back. “We have a lot of history together,” shared Eric. “I started Teads Latam six years ago and the first agency that took a leap of faith and talked big numbers with their clients for us was Starcom Miami. We’ve grown together, that’s why collaboration flows more easily than with other players,” added Tourtel.

 

Guaranteeing Viewability is no Longer Impossible

The main problem video marketers face is that nobody wants to watch video ads. They’re invasive, annoying, and get in the way between consumers and content. This is a real problem for Facebook and YouTube, but Teads got rid of the invasion factor. And so innovation played an important part in Teads’ process of coming up with a new format that was entirely different from a pre-roll.

The result was outstream video advertising, and it revolutionized video marketing. More consumers are now voluntarily watching ads. “We invented the InRead format,” said Tourtel. “It started with a video between two paragraphs. It’s not covering any content, so it’s not an intrusion, you can skip it if you don’t want to watch.”

Marc Pritchard, CEO of P&G has recently declared that his company’s ads have an average exposure time of 1.6 seconds on Facebook, compared to 13 seconds on Teads,” pointed out Tourtel. ”That’s because we display ads exclusively in profesional articles. We’re not relying on people who scroll down their feed quickly to see if something grabs their interest.”

 

How Teads Does It

We’re not relying on people who scroll down their feed quickly to see if something grabs their interest.

If you have the right format and you display it in the right place, it has to work. However, if you add to that an artificial intelligence that gathers precise data and continually learns how to classify it, that’s a winning combo. “Five years ago we built a team that created our AI,” told Tourtel. “We gave it one single question. ‘Knowing what we know about this user, what are the chances that this impression will turn into a full view?’.

In fact, technology at this point is a must. “When we started we did all of this manually, but as we grew into the third biggest digital company in Latin America this became impossible, so we created our AI.” Every time there’s a full view, Teads’ AI team looked at their whole file and then looked for similar profiles. Then, the AI gets better after each completion and is able to predict conversions more accurately. 

 

Brand Safety Can Also Be Guaranteed

Teads is proud to say that, apart from offering very high viewability rates, the company has never faced any brand safety-related issues. Teads uses Grapeshot, a well-known software that scans pages to avoid placing ads next to unwanted content that could harm the brand. “But we know Grapeshot isn’t perfect, so we added our own technology on top of that,” told Tourtel. “Our AI helps us read and classify articles. We also avoid breaking news pages because that’s where they show the horrible stuff.” Furthermore, Teads’ ads only appear on reputable publishing media, where journalists submit articles to an editorial manager for approval before they’re released. “It’s not like we’re a social network with 400 hundred people posting every minute,” he added.

Facebook owns social. Google owns search. LinkedIn owns professional relations. We intend to own media and press.

Nonetheless, explained Tourtel, the tricky part is knowing where to stop, as the definition of brand safety is a very subjective matter. “Brand safety means something different to each brand,” he mentioned. “Sometimes a brand will choose not to appear near the word death, let’s say. So you block any instances where the Word death appears, even if it’s something positive that doesn’t harm the brand at all. Imagine a story about an airplane accident with zero deaths, that’s very good news, but you have blocked the word death and thus you have reduced your reach and increased the cost.”

 

What’s Next for Teads?

Where is the company going and how will it use this potential? “Last year, we decided to regroup a bit,” answered Tourtel. “We were diversifying too much, so we went back to our core: media and newspapers. “Facebook owns social. Google owns search. LinkedIn owns professional relations. We intend to own media and press.”

While Teads has relied on acquisitions in the past, it’s now focusing more on building a strong platform that places them closer to the bottom line. “We own all our inventory and all our data,” explained Tourtel. “This gives us enormous freedom and a great ability to adapt because we’re not depending on any other companies with other priorities that could slow us down.”

AI and Reach on Target

The buzzwords going around are AI and data. Analysts and researchers are preparing for how the future of the industry is resting on those two vast words. Therefore, Teads has a new deal in the works with Nielsen that will allow them to take their innovative offering a step further. “Right now, when you sell the segment of 18-42 year-old women, you’re charging for 30-50% of reach on target,” he explained. “Everybody strives for 100%, but that’s like the holy grail. But soon we’ll be able to charge only for those 18 to 42 year-old women Nielsen confirms we’ve impacted on.”

This product will solve most of the problems we’re facing in digital every day.

Just like the InRead format solved viewability issues, Teads’ will boost performance via look-alike modeling, machine learning and massive amounts of first-party data. “We noticed that CTRs of O.01% are normal in the market while our CTRs range from 1% to 3%. We said, ‘We should sell clicks!’ and we came up with this product that will solve most of the problems we’re facing in digital every day.”

 

See a Trend? Own It

The trends are clear: according to Eric Tourtel, clients want transparency, brand safety, and social responsibility. “Brands are pressuring social media to take responsibility for the content they show, to avoid fake news and hate speech,” he pointed out. “We already have these priorities under control. Now, data will help us offer a more precise product. You’ll no longer buy what you don’t need and you won’t lose anything.” This way, the company will offer a full-funnel view of users’ purchase journeys.

 

What: We spoke to Seraj Bharwani, Chief Strategy Officer at AcuityAds, about the results of the consumer attention study conducted by AcuityAds and Portada, titled “Consumer Attention: the New Currency”.
Why it matters: Video is one of the leading advertising formats, to the extent that 99% of marketers use it as part of their marketing initiatives. However, video exposure doesn’t guarantee attention. In this exclusive interview, Bharwani talks about how to improve attention rates and thus achieve increased performance and effectiveness.

We are living in an era in which it seems everyone has a fast-forward button. Our attention is more fragmented than ever, and everywhere we look there is an ad looking for us to engage. Video is one of the main formats brand marketers use to seek the consumer’s attention online, but how can they make sure viewers are paying attention? According to a survey conducted by AcuityAds and Portada, 99% of marketers use videos as part of their digital marketing strategy, but only 12% of participants said their videos get the consumers’ attention.

The survey was answered by 160 Latin American brand marketers, as well as media buyers & planners from different agencies, in July-August 2018. The main takeaways of the survey were:

  • Shorter videos may increase attention, but they don’t necessarily increase campaign performance.
  • Viewability does not guarantee attention.
  • Looking for both attention and engagement at the same time does not work.
  • Media execution should be a priority.

We conducted an interview with Seraj Bharwani, Chief Strategy Officer at AcuityAds, in order to know more about the difficulties of getting the consumer’s full attention through video and the best ways to improve attention rates.

Portada: How has the video format evolved in the past 5 years?

Seraj Bharwani: Pre-roll and mid-roll video ads (with 15 and 30 seconds in duration) were widely available digital ad formats until 2013. Most advertisers found it convenient to repurpose their existing :30 TV spots into pre-roll creative for digital execution. With the emergence of broad-reach video and social platforms like YouTube and Facebook, and cross-device content syndication especially mobile, it became progressively clear that :30 was too limiting for the diversity of use cases on devices and screens for on-the-go, multi-tasking, and concurrent-viewing audiences.

Over the past 5 years we have seen the emergence of promoted video in video galleries (user-selected), skip-stream (option to skip), choice-roll (option to choose one of several ad choices), out-stream (auto-play in-article), native, in-feed (social) and other formats. These formats deliver on a variety of different advertiser objectives.

 

Portada: What are your predictions for the leading elements and formats in 2019?

S.B.: After years of delivering repetitive ad interruptions, both publishers and advertisers are recognizing that viewer irritation, if not curtailed, will eventually destroy ad-supported media in favor of ad-free programming.

In 2019, we will experience a resurgence of user-controlled video advertising that gives viewers the choice to select an ad (user-initiated viewing) and/or skip the ads that are not relevant. YouTube’s TrueView and AcuityAds’ SkipStream® and selected outstream/native video ad formats are good examples of user-friendly ad experiences that give users the option to skip or scroll. AcuityAds’ tracking data shows that viewers who opt-in to view an ad generally watch it through to completion.

 

Publishers and advertisers are recognizing that viewer irritation, if not curtailed, will eventually destroy ad-supported media.

 

Portada: Per the survey results, what’s the difference between attention and engagement? Once you improve attention, what’s the best way to start looking for engagement?

S.B.: Attention and engagement are two distinct consumer behaviors. Attention is defined as time spent watching a video ad and is usually measured by tracking percent of viewers watching the ad through to completion. On the other hand, engagement is a measure of specific consumer actions (in-stream or post-view) including clicks, likes, shares, comments, rewinds, and related behaviors. Optimizing for attention and engagement at the same time is a zero-sum game— if you optimize for Attention, it will degrade Engagement and vice versa.

Multiple studies including our own research in partnership with Nielsen and Millward Brown have shown a high correlation between attention and brand equity (i.e. lift in brand awareness, favorability, and consideration). By contrast, high engagement usually translates into greater organic reach through consumer conversation and sharing, and more transactions if the video ads (or the video player) are overlaid with merchandising and shopping features.

 

Portada: What’s the essence of a successful video advertising campaign? What should clients or providers do to make more effective videos?

S.B.: A video campaign that enhances brand equity and also delivers on short-term sales/transactions would be considered highly successful. Achieving both objectives is generally difficult and requires a combination of great creative assets, custom-branded video player & user experience, high-quality contextual placement, audience propensity scoring & precision targeting, and advanced decision science to optimize in real-time.

 

Portada: According to the survey results, half the decision-makers would pay 20% more for a 100% viewing rate. How does AcuityAds guarantee improved viewability and attention rate?

S.B.: A priori consumer propensity to engage with specific content, ads, or brands is a prerequisite to capturing and retaining viewer attention. AcuityAds uses proprietary consumer interest (from social data), intent (from site-search data), and viewing (from in-player data) with its advanced decision science algorithms to establish user propensity to watch before serving an ad.

The company also has the ability to optimize performance by benchmarking for consumer attention against a database of over 500+ million video ads tracked since 2007. The measurement platform brings proprietary True Reach® (capturing both paid and earned viewership) & Share of Attention® (a brands share of voice & attention relative to competition), metrics unique to the advertising industry.

Portada: According to the study, shorter videos may increase attention, but not necessarily effectiveness. What’s your interpretation of this?

S.B.: Both short and long-form video ads have their rightful role depending on the goals and objectives of a given digital advertising program. Using a sample of over 180 video ad campaigns (over the past couple of years), we have demonstrable evidence that 30-second and longer, story-telling ads deliver far greater brand awareness, favorability and purchase intent than shorter format ads, under 15-sec in duration.

Having said that, if a brand is well-established in a market with substantial equity (85%+ awareness), it can use shorter format ads to keep the brand top-of-mind and achieve high brand recall.

 

 Video ads are like a Swiss-Army knife that can be used to address multiple brand objectives.

 

Portada: Can you provide an example of a successful campaign that you’ve worked on?

S.B.: Wrigley’s Extra gum (Sarah & Juan) campaign that was launched a few years ago using a 2-minute video ad (with subsequent short format ad releases) is a great example of a strategic and well-executed campaign that enhanced brand equity for the Extra brand and also delivered sustained lift in sales and market share for the brand in a hotly contested chewing gum/candy industry in the US.

 

Portada: What are the basic mistakes to avoid?

S.B.: Video ads are like a Swiss-Army knife that can be used to address multiple brand objectives. Advertisers therefore have the tendency to pack a bunch of objectives/KPIs concurrently into a single campaign which is a big mistake. Having a clear focus on the most critical KPI at a time is essential to achieving success with digital video advertising.

To download the full report in Spanish, please click here.

Get our e-letters packed with news and intelligence!