While the main goal of Hulu’s NewFront this morning was of course to excite advertisers to open their checkbooks, the event also marked the unofficial kickoff of the company’s ambitious repositioning from a catchup SVOD hub to an all-encompassing, next-generation, personalized TV service including live linear TV feeds.
At its NewFront, Hulu’s CEO Mike Hopkins confirmed what had been strategically leaked to the WSJ in an article reported Sunday night - that the company intends to launch a skinny bundle of linear broadcast and cable TV networks to augment its on-demand programming, for monthly fee of approximately $40.
New IAB research indicates that ad spending on original online video is up 114% in the past 2 years. The 360 advertiser and agency executive respondents said that their average original online video ad spending has increased from $2.1 million in 2014 to $4.5 million in 2016. Telecom is the vertical with the highest average spending in 2016 ($6.7 million), followed by Health and Beauty ($6.4 million).
The research revealed that more than a third of advertisers’ online video budgets and 38% of their original video budgets will be allocated at the NewFronts, underscoring why online and established companies continue to invest in their presentations. 8 in 10 respondents (including both TV buyers and digital buyers) said that they increased their original online budgets due to NewFronts attendance.
Late last week Videology shared Q1 ’16 data from its platform, showing the continued convergence between TV and online video advertising. Videology found that 11% of video campaigns run through its platform used TV data segments to help target online video campaigns. As in the past, the most-used segment was current TV ad schedules, followed by sports viewers and competitors’ TV schedules.
The use of TV audience data has been on an upswing over the past year plus according to Videology. In Q4 ’15, Videology reported that video campaigns using TV audience data had increased by 114% year-over-year. No doubt this was off a very small base as the whole concept of using TV viewing data is still relatively early stage.
A reminder that early bird discounted registration is available for the 6th annual VideoNuze Online Video Advertising Summit on Tuesday, June 14th in NYC. All early bird registrants will be entered to win a 55-inch TCL 4K Roku TV, generously provided by Roku.
Our overarching theme this year will be the ongoing convergence between TV and online video advertising. So far, over 25 executives are on board to speak at the Ad Summit, from industry leaders like A+E Networks, American Express, Conde Nast, IAB, Initiative, Mindshare, NBCU, Newsy, Turner, The Washington Post, The Weather Company, Whistle Sports, Zenith Optimedia and many others.
I’m thrilled that Marc Debevoise, EVP/GM, CBS Digital Media at CBS Interactive will be our morning keynote guest. I will be interviewing Marc about CBS’s digital strategy, including initiatives like CBS All Access, CBSN its live-streaming news channel, Super Bowl streaming, monetization strategies, mobile distribution along with larger industry trends.
The packed program will feature 13 sessions focused on the convergence of TV and video advertising from both a strategic and operational perspective, mobile video, how TV networks are succeeding in the digital era, multi-platform campaigns and connected TVs, the critical role of data, the NewFronts/Upfronts, succeeding in the platform economy and lots more.
The Ad Summit will again be a must-attend day of learning and networking with industry leaders from brands, agencies, content providers, technology companies and others in the ecosystem. Last year's Ad Summit drew over 450 attendees and featured 50+ speakers.
There are 15 industry-leading companies on board so far as sponsors, including Title Partner Videology, Premier Partners Altitude Digital, DashBid, Extreme Reach, Verizon Digital Media Services and VertaMedia, Headline Partners Alphonso, Beachfront Media, Cedato, FreeWheel, Genesis Media, JW Player, Operative and Placemedia and Branding Partner Roku. As always, I’m extremely grateful for our partners’ generous support!
Learn more and register now!
Outstream video ad units - video ads that appear within content as readers scroll through - have taken the market by storm since their release in 2013. An increasing number of vendors provide this technology for publishers, to insert video ads into non-video carrying pages.
It’s no secret that video represents one of the highest yielding advertising opportunities for publishers, but also one of the most resource intensive to create. Publishers have invested significantly to develop the content required to provide video at scale. The Wall Street Journal, for example, employed a 40-person video team tasked with creating 40 videos per day, while CNN is pushing video views over page views as a measure of success.
The FreeWheel Council for Premium Video, an advocacy group of 30 programmers, operators and digital publishers, has released its first white paper, spelling out the case for premium video’s quality difference, explaining two specific impediments to its future growth and making recommendations for unlocking premium video’s full value.
From a quality perspective, the paper notes that in addition to premium video delivering valuable audiences at scale in a transparent context, it also delivers higher viewability vs. all video, according to a study FreeWheel conducted with Moat. That study found that the two-second video in view rate for premium video from a FreeWheel set of publishers was 76.8% (vs. 62.7% for all Moat video) and the five-second in view rate was 72% for FreeWheel’s set (vs. 57% for all video).
Integral Ad Science will provide its video viewability targeting segments to AudienceScience for inclusion in the company’s Helios Advertising Enterprise Advertising Software, the companies announced today. AudienceScience clients will be able to build campaigns that include specific video viewability levels based on Integral Ad Science’s data.
Online video advertising is booming but the vast majority of what we all see are still repurposed TV ads. That has created a huge new problem of monitoring and complying with the ads’ commercial usage rights. Non-compliance can result in significant fines from unions such as SAG-AFTRA, ACTRA and others that represent talent who appear in ads.
To address this growing problem, video ad tech provider Extreme Reach launched TRUST Tags (Talent and Rights Usage Safety Tracking) last August. Extreme Reach’s CEO John Roland told me in a recent briefing that over 180 agencies and advertisers are now using the TRUST tag, which is free, and that the company has just launched its first ad campaign to raise awareness for TRUST.
Topics: Extreme Reach
TV programmers like Viacom and AMC are in the same position that print companies like The New York Times and Conde Nast were ten years ago. As consumers moved to reading content online, the legacy publishing companies figured they could replicate their business on a new channel. No one could believe that a tech company with no real content could compete for brand advertising budgets. We all know how that played out.
Now, consumers are cutting the cord and moving to digital channels to watch TV. There is more to lose on both the buy and sell side during this time around. TV advertising is considered by advertisers to be the holy grail of inventory, and they don’t want to lose it any more than the TV companies do. However, the siren song of audiences at scale and with technical ease could change their minds.
Early bird discounted registration is now open for the 6th annual VideoNuze Online Video Advertising Summit on Tuesday, June 14th in NYC. This year’s Ad Summit moves to a new location, the beautiful Westin New York at Times Square.
The unifying theme of this year’s Ad Summit is the ongoing convergence between online video and TV advertising. We’ll be exploring this and other critical industry topics through a mix of keynotes, fireside chats, panel discussions and research presentations. Detailed program info will be posted soon.
Over the past 5 years the Ad Summit has become a premier day of learning and networking with industry leaders from content providers, advertisers, agencies, technology companies and others in the ecosystem. Last year's Ad Summit was our biggest yet, with over 450 attendees and 55 executive speakers. Given everything going on in the industry, I’m confident this year’s Ad Summit will once again be a must-attend event.
I'm thrilled to have 8 fantastic companies on board as initial sponsors, including Title Partner Videology, Premier Partners Altitude Digital, DashBid, Extreme Reach and Verizon Digital Media Services, Headline Partners FreeWheel and JW Player, and Branding Partner VertaMedia. I’m honored they've decided to be a part of the Ad Summit. I’ll have other sponsors to share soon.
Adobe and comScore have announced a major new partnership this morning for improved cross-screen measurement, a thorny issue for all content providers and advertisers in an increasingly fragmented viewing landscape.
As part of the deal, comScore is integrating into its Cross Media, Audience and Advertising product suites, Adobe’s Certified Metrics, which is standardized digital census data powered by Adobe Analytics. Adobe Certified Metrics will supplement comScore’s existing cross-platform audience data and recently acquired census TV data via Rentrak. The key benefit is improved insight into viewing on connected and mobile devices.
Twitter has released research finding that ads in TV shows that generate strong emotional reactions on Twitter are more likely to be recalled. Twitter conducted the research with Starcom and social TV analytics provider Canvs, which measured the emotional response to the TV shows based on an analysis of viewers’ tweets.
Every ad that runs on a site serves different goals. The advertiser’s goal is to generate sales; the publisher’s goal is to generate revenue. But most often overlooked is the goal of the user.
The assumption, unfortunately, is that most every time you run an ad, you’re going to bother the user. There are rare exceptions to this - occasions in which you’ve delivered the right ad to the right person at the right time, the user engages and ultimately clicks through. But that happens only six out of every 10000 times the ad is served – and that’s a generous estimate.
The convergence of video and TV advertising is everywhere these days. The latest evidence is a new tool that OpenSlate unveiled last week that gives ad buyers the ability to screen YouTube inventory based on custom criteria and then see how it translates into TV-equivalent reach and demographics.
OpenSlate’s CEO Mike Henry demo’d the new YouTube GRP Planning Tool for me last week, illustrating how buyers can enter target audience information to build an “unwired TV network,” then enter a budget and see how this equates to Total Rating Points and GRPs for a YouTube campaign.
In a sign of how extensively connected and mobile devices have proliferated, video ads viewed on them have surpassed video ads viewed via browsers on desktops and laptops for the first time, as measured by FreeWheel in its new Q4 ’15 Video Monetization Report.
As seen in the graphic below, while desktops/laptops accounted for 40% of video ads views (up .1% vs. Q4 ’14), video ads viewed on connected TV devices accounted for 22% (up 76% YOY), with smartphones accounting for another 19% (up 92% YOY) and tablets at 9% (up 40% YOY). Combined, these devices account for 50% of ad views. FreeWheel also reported 10% of of ad views occurring on pay-TV operators’ set-top box VOD.
TV ad budgets are being diverted to many different types of digital spending these days, so it’s no surprise to see TV networks and their partners re-asserting the value of TV advertising, especially as the all-important upfronts approach.
The latest evidence is a new study from TiVo Research, consulting firm 84.51 (part of The Kroger Co.), A+E Networks and Turner, which found that for every dollar decrease in TV ad spending, the reduction in sales was $3. The study looked at 15 consumer packaged goods brands which had reduced TV ad spending somewhere between 29% and 75%. The study then measured their sales performance for one or two quarters in the 2013-2014 period.
AT&T has partnered with video ad tech provider Videology to enable advertisers to buy ads on linear TV across over 130 different cable TV networks in 26 million DirecTV and U-Verse homes. At Videology’s Full Frontal Video event in NYC this morning, I did an on-stage interview with Jason Brown, VP, National Advertising Sales for AT&T AdWorks about the new initiative and how it will be implemented.
Here’s a surprise: a survey of over 100 agencies, advertisers and publishers, conducted by Forrester Research and commissioned by Videology, found that respondents believe time spent with both linear TV and pay-TV will increase over the next 3 years.
As the graphic below shows, 49% of respondents see a significant or moderate increase over the next 3 years in watching TV at the time it is broadcast, up from just 27% when surveyed in 2013. 23% believe viewing time will remain the same (vs. 21% in ’13) and 28% think it will significantly or moderately decrease (vs. 52% in ’13).
Demand-side video ad platform TubeMogul reported record Q4 2015 and full year 2015 financial results yesterday, once again beating its own forecasts, as investments in programmatic TV (PTV) and cross-screen planning paid off.
For 2015, total ad spending through TubeMogul was $414.2 million, up 63% vs. 2014 (above the most recent forecast of $406-$408 million), revenue was $180.7 million, up 58% vs. 2014 (above the forecast of $173-$175 million), gross profit was $122.5 million, up 53% vs. 2014 (above the forecast of $117-$119 million) and adjusted EBITDA was $3.4 million, up 31% vs. 2014 (above the forecast of a loss of $1-$3 million).
Extreme Reach has operated under the radar for many years, but this Boston-area company has become a powerhouse in the delivery of both TV and video advertising. Now it’s poised for a much higher profile, following the recent hiring of industry veteran Melinda McLaughlin as Chief Marketing Officer, who most recently had the same role at Tremor Video. Melinda’s an old friend and I recently discussed her move, plus what’s ahead for Extreme Reach and the industry. Following is the transcript.
Topics: Extreme Reach