IPG Mediabrands Expands Signature Media Responsibility Index, Finds Global Social Platforms Making Most Progress, and Benchmarks Broadcast & Cable, CTV/OTT, Digital Video and Display

Pre-eminent industry barometer transforms into an actionable tool for brands to evaluate responsibility of multiple media types across 150+ global partners  

NEW YORK (October 13, 2022) — IPG Mediabrands and its intelligence arm MAGNA, today unveiled the 4th issue of its signature Media Responsibility Index (MRI 4.0), an initiative that strives to raise industry awareness and standards around harm reduction for brands and consumers in advertising. MRI 4.0 has transformed from an analytical study of 10 social platforms into an actionable toolset, now assessing 150+ partners from a variety of formats across 15 countries and establishing four new ESG-aligned priorities for partner accountability.

The index allows for teams and clients to incorporate brand and consumer safety priorities into their investment decision-making for a variety of media types, from the largest global social platforms to local broadcast media outlets.

The original MRI, the first-of-its kind, was launched in August 2020, in response to concerns about social media platforms not taking steps to acknowledge, measure and reduce their contribution to online and real-world harms. In effect supersized, MRI 4.0’s evaluations now encompass 80% of Mediabrands’ global investments and allow for clients to identify and invest in the media outlets that support their values without compromising ROI.

MRI 4.0 assessed each outlet across four priorities of partner accountability—Safety, Inclusivity, Sustainability and Data Ethics—in alignment with industry-adopted ESG (Environmental, Social and Governance) frameworks so businesses can easily extend how they are measuring their impact in these spaces to include media. Previous versions of the MRI had ranked the platforms upon Mediabrands’ 10 Media Responsibility Principles, which are now consolidated within the four priorities.

More than 150 major partners were surveyed, expanding into the realms of Broadcast & Cable, Connected TV, Online Video, and Display. Across Broadcast & Cable, the traditional-first networks also span several subsidiary companies across Connected TV and Online Video properties; The findings illuminated that strict, longstanding federal regulations within Broadcast & Cable have had a trickle-down effect to their digital properties, in effect enhancing safety standards when compared to digital-first counterparts surveyed.

“We developed our first media responsibility index in 2020 to determine exact protocols of the major platforms, as people started questioning the impact of social media in their lives, from the prevalence of misinformation to hate speech and data-collection practices,” said Elijah Harris, EVP Global Digital Partnerships & Media Responsibility at MAGNA. “We have always believed in the need to bring the lens of media responsibility to a broader set of media types. Consumers digest content and opinions from an ever-increasing list of mediums. It only made sense that this rigor we’ve developed for social platforms would be translated for a more diversified mix of media partners. With each iteration, the MRI is becoming more robust and establishing itself as a mainstay in driving industry accountability and powering responsible advertising investment.”

Key highlights include:

  • Social media platforms showed continued improvement across the four priorities (averaging +3-point in overall performance). Partners attained a ~10% increase in Inclusivity, driven by increased focus on internal accountability and creator equity.
  • Safety is a standout priority for broadcast & cable, based in part on federal industry regulations forcing uniformity and 3rd party enforcement in safety standards – including children’s safety rules and advertising approvals.
  • Tech proficient digital-first CTV partners are driving higher Data Ethics performance than their traditional-first counterparts, in part due to their origins and operating in a more tech-oriented space, versus a TV-first space
  • In a mixed marketplace for Sustainability practices, online video platforms showed strength in their ad-business emissions measurement + setting net-zero goals.

Advertising environments remain under the microscope as brands pursue ESG commitments and consumers become more critical of where brands choose to advertise. A Mediabrands survey found that one-quarter of clients adjusted their media mix based on MRI findings, and 90% said they were interested in finding new methods to assess media value beyond price efficiency alone.

“The MRI is an important underpinning of our Media for Good positioning, putting responsibility at the heart of every media decision, as concern over the interplay and societal impact of advertising, media and misinformation increases,” said Eileen Kiernan, Global CEO of Mediabrands. “Our clients are increasingly pursuing ESG criteria within their own businesses and we are providing a resource to support these goals along with advocating for stronger, safer standards in media.”

Examples include Snap achieving a 6-point lift YoY, outperforming all platforms in its efforts to protect people and combat misinformation and disinformation due to their robust publisher diligence; TikTok continuing to raise the bar, gaining an 8-point lift on brand safety practices and 24-point lift in children’s wellbeing; and YouTube setting the benchmark for online video across all categories, most notably in Inclusivity for delivering 60% diversity in behind the camera casting for owned and diverse content, and Safety for their policy and enforcement tools to manage UGC.

“Looking back at the strides made by social-media platforms since 2020 not only validated the need for a media responsibility monitor, it motivated us to expand the lens of media responsibility to more media types and markets,” said Harris. “We are proud to be a part of the greater journey to make social media safer for all and excited about the opportunity to improve our industry for all.”

“The 4A’s has been proud to endorse the Media Responsibility Index as an important tool for advertisers to assess how the big social-media players are handling safety issues on their platforms,” said Marla Kaplowitz, President and CEO, 4A’s. “Expanding to include other media types and global markets is a welcome next step.”

To compile MRI 4.0, MAGNA surveyed 150+ global media partners on a dynamic assessment, customized by media type, covering the most pressing safety issues of the day facing consumers and brands and specific accomplishments made by these outlets to help alleviate them. Scores were analyzed based on the varying weights of each question, as well as nuance within the individual platform, against the four brand-safety priorities.

ABOUT MEDIABRANDS:

IPG Mediabrands is the media and marketing solutions division of Interpublic Group (NYSE: IPG). Mediabrands manages approximately $40 billion in marketing investment globally on behalf of its clients and provides strategic services and solutions across its award-winning, full-service agency networks UM and Initiative and through its innovative marketing specialist companies Reprise, MAGNA, Orion, Rapport, Healix, Mediabrands Content Studio and the IPG Media Lab. Mediabrands clients include many of the world’s most recognizable and iconic brands from a broad portfolio of industry sectors.  The company employs more than 13,000 marketing experts in more than 130 countries representing the full diversity of humanity. For more information, please visit our website: www.ipgmediabrands.com and be sure to follow us on LinkedIn, Twitter or Instagram.

ABOUT MAGNA:

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers. We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

 

PRESS CONTACT:

Isabelle Brenton

SVP, Global Corporate Communications, Mediabrands

[email protected]

MAGNA ADVERTISING FORECASTS (U.S. FALL UPDATE)

INNOVATION KEEPS THE AD MARKET MOVING

KEY FINDINGS
• In the wake of a historically strong 2021, U.S. media owner’s advertising revenues grew by +11% to $151 billion in the first half of 2022, based on financial reports.
• Media channel performance varied greatly in the first half with strong revenue growth in out-of-home (+30%), and robust growth in keyword formats (search, retail media) (+19%), contrasted against stagnation in social media (+3%).
• The weaker economic environment will cause several industry verticals to reduce ad spend in the second half, but stronger-than-expected political spending will mitigate the impact on revenues of media owners.
• Full-year media owner revenues will thus cross the $300bn market for the first time, to reach $323bn. That’s +9.8% above 2021 levels (+8.1% if we only consider non-cyclical ad spend and exclude political dollars).
• For 2023, the continued economic slowdown and the lack of major cyclical events led MAGNA to reduce its growth forecast to +4.8% from +5.8% in the previous report.
• MAGNA expects Entertainment (Movies, Streaming), Travel and Betting to grow advertising spending next year, possibly joined by Automotive as the car market finally stabilizes.
• Keyword search formats (+13%) and OOH (+8%) will continue to outperform, while long-form AVOD spending will be driven by the addition of ad-supported tiers from Disney+ and Netflix (+33%).

Vincent Létang, EVP Global Market Intelligence at MAGNA and author of the report, commented: “Following a strong first half, non-cyclical advertising spending is slowing down as several industries are facing an uncertain economic environment. There are several growth factors that will help stabilize media owner ad revenues in coming months, however. In the short-term (2H22) cyclical factors: Billions of ad dollars will be spent by political campaigns in TV, direct mail, and digital media. In the mid-term (2023) there will be multiple organic growth factors, driven by marketing technology innovation: Retail media networks bringing below-the-line marketing budgets into digital media, programmatic spending in digital audio and digital OOH formats, and the expansion of AVOD and CTV advertising with new ad-supported tiers from Disney+ and Netflix.”

FIRST HALF RECAP: A STRONG START FOR AD SPEND

Based on the analysis of media owner’s financial reports, MAGNA estimates that total net advertising sales grew by +11% year-over-year in the first half of 2022 to reach $151 billion. Ad sales grew by +14% year-over-year in the first quarter, and by +7% in the second quarter (+4% above first quarter).
OOH was the fastest growing ad format (+30% year-over-year). OOH media is driven by the recovery of consumer mobility since January and return of national and local advertisers following the deep COVID decline in 2020. MAGNA just published a detailed report on global OOH trends, looking at the growth of OOH ad sales in the U.S. and internationally. Cinema advertising grew by +430% in the first half, as both blockbusters and moviegoers finally returned en masse into theaters.
Other growth formats in 1H22 included Search (+19%), Digital Audio (audio streaming and podcasting, +19%), AVOD/CTV (Hulu, Peacock, etc. +18%) and short-form digital video formats (YouTube, Twitch, etc. +14%).
On the other hand, social media ad sales continued to slow down dramatically, from +38% in 2021 to +7.5% in the first quarter and -1% in the second quarter, to end the first half up by just +3% to $30 billion. Social media apps continue to suffer from the reduced access to user data in the iOS environment, which impacts the attractiveness and pricing power of social ad formats, while total social media usage has reached maturity.
Meanwhile, traditional linear ad sales slowed down in the first half. National television sales increased +2% to $20bn, partly thanks to incremental ad sales around Beijing Winter Olympics. Local TV sales rose +10% to $9bn in the first half, thanks to political spending, or +2% on an underlying basis.

SECOND HALF AND FULL YEAR 2022: CYCLICAL DOLLARS HELP MITIGATE THE IMPACT OF ECONOMIC SLOWDOWN

Economic uncertainty and rising inflation are affecting several industries and driving brands and local businesses to moderate their marketing expenses in the second half. CPG verticals (food, drinks, personal care, and household goods) are especially at risk as they are forced to increase product prices and face the possibility of consumers trading down in favor of cheaper brands. Restaurants and retail face a similar business challenge while some industries, like mortgage lenders, see their businesses suffer from the rise of interest rates.

As a result, MAGNA anticipates non-cyclical ad spend will slow down to +6.6% in the second half. This will be offset by the record influx of cyclical ad spend around the mid-term elections and the soccer World Cup in November. Based on unprecedently large fund-raising year-to-date, MAGNA expects political advertising spending to grow by +63% over the previous mid-term cycle (2018) and generate $7.3 billion in incremental advertising revenue for media owners, with 70% of it concentrated in the second half. Local television will attract almost two-thirds of that total, as political ad sales will account for 25% of total local TV ad revenue this year (and more for stations in “battleground” markets). Digital media formats will receive $1.3 billion from political campaigns, with sales up between +150% and +200% for search, digital video, and social formats.
With a strong first half and political advertising mitigating the slowdown in the second half, MAGNA expects full-year, all-media advertising revenues to surpass the $300bn mark for the first time and reach $323bn this year. That represents an increase of $29 billion over 2021 (+9.8%), with non-cyclical underlying growth at +8.1%.
On a full-year basis, cross-platform video will grow by +8% (linear television -3%, local TV +22%, AVOD +22%). Cross-platform audio (radio, audio streaming) will increase by +7%, OOH by +22% and cinema by +138%. Among “direct” media formats, search will grow by +17%, direct mail by +8% and social media by +4%.

2023: ORGANIC FACTORS KEEP THE AD MARKET GROWING

The lack of major cyclical events and the weakness of the economic outlook has led MAGNA to reduce its advertising forecast for 2023.
In terms of industry spending, MAGNA anticipates below-average growth for CPG verticals, Finance and Retail. On the other hand, Entertainment ad spend will grow from the continued recovery of moviegoing and re-ignited competition in the AVOD/SVOD industry. Travel will continue to recover, and Online Betting will develop further as more large states (Ohio for sure, possibly Texas, California and Florida) may legalize the activity at some point during the year. Finally, there’s hope that the Automotive vertical may start to recover in 2023 after two years of decline in car sales and advertising activity. Car sales have stabilized since August, mostly due to a comparison effect (they had started to fall a year before), and, as soon as the supply-chain conditions and production capacities improve, manufacturers and car dealers will compete again to meet the pent-up demand.
Nevertheless, MAGNA still expects total ad revenue to grow in 2023 (+4.8% vs. +5.8% in our prior forecast) thanks to organic drivers, many of them derived from innovation in media offering and media technology. Among these:
The rise of retail media networks. Retail media advertising will increase from $31 billion this year to $42 billion in 2023. The bulk of it comes from Amazon’s product search but all other large retailers are now developing advertising sales through keyword search or display ads on their apps and websites. Retail media is mostly fueled by consumer brands reallocating below-the-line, trade-marketing budgets from in-store towards digital retail networks, as a greater percentage of retail sales comes from e-commerce. Furthermore, retail-owned media networks are mostly immune from the privacy-based limitations on data usage and targeting, that display or social media owner’s face, because they can leverage their own first-party data.
The expansion of AVOD. The transition from linear to on-demand, CTV-based television has been going on for 10 years, and it has been mostly SVOD-centric until now. The imminent launch of cheaper, ad-supported tiers from both Netflix and Disney+ will expand the reach and ad inventory offered by AVOD. While the two new offerings may take ad budgets from other media properties (AVOD or linear TV) MAGNA believes these new offerings will “grow the pie” rather than cannibalize existing budgets or incumbent vendors like Hulu, Peacock, Paramount+ and “FAST” channels, which will continue to grow. As a result, the long-form AVOD/CTV segment will accelerate from +22% in 2022 to +33% in 2023, to reach $6.3 billion in total advertising sales.

Next MAGNA forecast (U.S. and Global): December 2022

U.S. NET ADVERTISING REVENUE: GROWTH FORECASTS

 

ABOUT THE RESEARCH
The MAGNA research is media centric. It monitors net media owners advertising revenues based on a bottom-up analysis of financial reports and data from media trade organizations; other ad market studies are based on tracking ad insertions or consolidating agency billings. The MAGNA approach provides the most accurate and comprehensive picture of the market as it captures total net media owners’ ad revenues coming from national consumer brands’ spending as well as small, local, “direct” advertisers. Forecasts are based on economic outlook and market shares dynamic. The full report contains more granular media breakdowns and forecasts to 2025, for 70 markets.

Next Global Forecast: December 2022 – Next U.S. Forecast: September 2022.

ABOUT MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/and follow us on LinkedIn and Twitter.
MAGNA has set the industry standard for more than 60 years by predicting the future of media value. We publish more than 40 reports per year on audience trends, media spend and market demand as well as ad effectiveness.

To access full reports and databases or to learn more about our market research services, contact [email protected].

 

 

The AR Brand Playbook for Marketers

By Aarti Bhaskaran and Prayushi Amin, Published on WARC 

Augmented Reality (AR) is much bigger than a buzzword. When it comes to brand building, it’s a must-have marketing tool every marketer should have in their arsenal. As more marketers look to adopt AR, they need to know how to use it, when to use it and, in an advertising context, how it performs against more traditional formats.

To help marketers understand how to use AR, Snap Inc. collaborated with the Media Trials team from MAGNA Global Inc. to execute new research on the true capabilities of AR ads (Lenses), as well as the power of AR ads in the consumer purchase journey.

The findings culminated in a comprehensive guide on how and why to use AR to grow your brand on Snapchat.

AR offers more than pre-roll

The research revealed that AR ads performed as well as pre-roll video ads in driving significant uplifts in key brand KPIs like awareness and ad recall and also resulted in positive lifts in purchase intent.

Additionally, consumers found AR ads to be significantly more informative and more useful than traditional pre-roll ads, and said AR ads made them feel closer to the brand and excited about the brand.

AR gets results at each phase of the purchase journey

AR ads capture the attention of broad audiences who are early in their purchase journey, with a +7% increase in Aided Ad Recall among this group of consumers. And AR can help brands nudge consumers who are in the consideration phase by making the brand seem more up-to-date and differentiated.

Meanwhile, for those who are ready to make the purchase, AR ads have a full-funnel impact, including driving critical KPIs like bringing the brand top-of-mind and increasing brand favorability. AR also has the potential to influence active searches for the brand, helping to seal the deal on final brand choice.

Read the Full Study

 

Read the Article in WARC

Why the Convergence of Content and Commerce Is Critical for Brands

By Andrew Cole, Published by Adweek

Since its humble beginnings, online retail has evolved in myriad ways to streamline experiences for consumers—and its momentum is undeniable, with a 76% increase in total U.S. online retail sales over the last four years according to eMarketer. Content has been key in this progression as it feeds into online retail by initiating the desire to purchase.

For most of this time, the gap between content and commerce remained largely unaddressed. Typically, when consumers learned about a new product while watching TV there was no direct link or immediate call to action driving purchase, leaving the consumer on their own to find the product online or in store.

But this path to purchase is evolving to the point where brands have the capability to connect online retail with other cultural formats, like TV shows and movies, to more seamlessly merge content and commerce.

One prime example of connecting content and commerce is the rise of brand-funded entertainment. Notable instances of this successful union include Disney’s The Mighty Ducks and the establishment of the Anaheim Ducks NHL expansion team, as well as the popular LEGO film franchise and the reality TV show LEGO Masters, which weave the fabric of the brand into the storytelling.

To explore the growing convergence of content and commerce, MAGNA Global, Inc. and Amazon Ads partnered on a recent study, “The Converging World of Content + Commerce” that examined how these concepts deliver value for brands relative to traditional means, such as standard TV ads.

The findings from this study reveal the impact these formats have on the consumer experience in a world where the boundaries of brand, content and commerce continue to blur. Here are some of the key findings.

Consumers care more about content quality than brand participation
The study found that consumers do not differentiate if TV shows are created by a brand—what keeps them watching is the content itself. When asked why they chose to watch brand-funded entertainment, 59% of respondents said they found the show “fun to watch.”

Other top reasons why respondents chose to watch brand-funded entertainment were because they “enjoyed the content” (45%) and “learned something new” (34%).

Few members of the surveyed audience were deterred by the fact that a brand created the show; interestingly, brand involvement in content creation elevated esteem for both the brand (66%) and show (67%) from the respondents’ perspective.

Viewers accept brand-funded entertainment more than traditional commercials
The participants in the study preferred brand-funded entertainment over the traditional TV ad format, with a higher index among those who primarily stream video content (+10%) in comparison to traditional pay TV viewers.

Given the positive response to brand-funded entertainment, this is a prime opportunity for brands to weave themselves into culture, inspire motivation and drive purchase intent among their audience.

The study also shows that younger audiences in particular—like adult Gen Z and millennials—react positively to brand-funded entertainment. This positive reaction, in turn, fuels momentum for intent and purchase signals.

Evolving the standard path to purchase is an area of opportunity for brands
The existing path to purchase, especially from products seen on TV shows to online or offline purchase, can cause friction for the consumer. Over half of the consumers surveyed in the study said they felt frustration when trying to purchase a product seen in a TV show (52%).

Frustration was especially felt among younger generations, such as adult Gen Z (+13% higher than the baseline survey population) and millennials (+7% higher than the baseline survey population).

Expediting the path to purchase is an opportunity for brands across all industries and price points. Among survey respondents, 34% desired to purchase low-cost products (food, home cleaning supplies, etc.) immediately. The desire to purchase immediately for mid-cost products (clothing, games, etc.) was similar at 29%. And the study shows that even with products at a higher price tag (cars, insurance, etc.), audiences still want to have the ability to research the product or service immediately (33%).

Forward-thinking brands looking to optimize the consumer shopping experience should reimagine how they can dovetail their content and commerce experiences in a way that not only delights consumers, but battles the long-held belief among marketers that these categories must be treated as mutually exclusive.

Brand-funded entertainment inspires commerce moments
Audiences are often inspired to purchase what they see featured on TV shows when the content sparks their interest.

While watching TV shows, 63% of respondents reported wanting to purchase a product they saw either every single time or sometimes. This urge was most felt by younger generations, such as adult Gen Z and millennials, with Gen Z leading the way (+20% when compared to the respondent average).

Often, the desire to purchase products from TV content leads to actual purchases. Overall, 54% of respondents said that they had purchased products they saw on TV shows. Generation-wise, millennials tend to be most prone to purchasing (+9%), followed by adult Gen Z. Even though the existing path to purchase from TV ads can at times be cumbersome, the study shows that consumers still find ways to get what they need albeit with friction.

Moving forward in the converging worlds of content and commerce
Although there is high interest in purchasing products seen on TV shows, the current trajectory on the path to purchase includes more friction than is necessary given today’s emerging tech capabilities. In turn, this friction can lead to frustrated consumers and a leaking pipeline for brands.

Forward-thinking brands should take note of these pain points and begin to think about how they can innovate in a way that would solve for this—particularly among younger adult generations—which would have both short- and long-term positive implications for the brand and consumer.

It’s time to merge the content and commerce experiences for viewers in a way that makes their purchase journey smoother and more intuitive and, perhaps more importantly, in a format that entertains and delights them.

Read the Full Study

 

Read the Article in Adweek