NEW STUDY BY MAGNA & GUMGUM REVEALS BRANDS CAN STAND OUT ON CONNECTED TV BY UTILIZING OVERLAY ADS TO CAPTURE AUDIENCE ATTENTION

Study finds overlay ads are four times more memorable than video ads and drive 72% more savings for advertisers

New York, NY – May 3, 2022 – MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, announced today a new study in partnership with GumGum, the leader in contextual intelligence technology, that dives deep into how brands can stand out on connected TV (CTV).
 
“Breaking Through: Moving Beyond the Commercial Break on CTV” finds that brands should consider leveraging overlay ads as an additional touchpoint when advertising on CTV. Overlay ads appear within the video content itself opposed to the typical ad experience where the ad is placed during a break in content. Overlay ads capture audience attention, making for memorable ad experiences with a lower fiscal and time investment.
 
The study finds that overlay ads are four times more memorable than video ads and drive 72% more savings for advertisers. A key recommendation of the study is that brands should continue innovating to new formats on CTV as concerns about video wear out and increasing ad frequency mount.
 
“Overlay ads offer an innovative solution for brands concerned about video ad wear-out and attention fatigue,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA. “Overlay ads are more memorable than video ads, they cost less, and take less production time to make.”
 
The study set out to test overlay ads on CTV to see how they stack up to traditional video ads since overlay ads offer more inventory, don’t disrupt playback and can be delivered in a contextually relevant environment. A key finding of the study is that the nature of overlay ads results in a more fruitful ad experience for those most attentive, and in-market for the product. Among those who recalled the brand and were in-market for the advertised product, over 41% found the ad interesting as well as over 41% felt the ad was context-appropriate.
 
Additional key findings of the study included:

  • Ad frequency fatigue is creeping up on CTV: 65% of people perceived an increase in the number of ads shown per show.
  • Higher frequency of CTV ads is especially apparent to younger generations: 71% of those in the 18-24 age range feel ad frequency on CTV isn’t going away any time soon.
  • CTV isn’t immune to ad attention challenges: 70% of those in the 18-54 age range report almost always avoiding video ads on CTV.
  • Overlay ads help people feel less bombarded by ads and have a lower production cost and time: Overlay ads allow for a perceived lower ad frequency, which people take notice of, and they are also more cost-effective and take less time to produce.
  • Overlay ads drive better brand perception: Overlay ads lead to +5% increase in brand favorability, +4% increase in purchase intent and +8% feel the brand is thoughtful.
  • Snipe overlay ads formats leads to more persuasion: Snipe overlay ads lead to +35% brand favorability, +22% search intent and +22% purchase intent.

 
“How we’ve been advertising to people simply just doesn’t work anymore. People have second screens, skip buttons, and are just conditioned to avoiding ads when possible,” said Phil Schraeder, CEO, GumGum. “Creating new ad formats, like an overlay ad, gives advertisers the opportunity to connect with people where they are at and in a way that doesn’t disrupt what they are there to do – enhancing the overall experience for them and boosting brand recall and favorability for advertisers.”
 
The study methodology included recruiting CTV viewers to watch a streaming TV show of their choice, followed by a final survey to measure the impact on traditional branding metrics and obtain feedback on ad frequency. Formats tested were video ads and overlay ads, specifically overlay ad – corner, overlay ad – snipe static, and overlay ad – snipe video.
 

The full study can be found here.

 
About GumGum
GumGum is a contextual-first global digital advertising platform that captures people’s attention, without the use of personal data. We believe that an advertising ecosystem based on understanding a consumer’s active frame of mind rather than behavior builds a more equitable and safer future for consumers, publishers and advertisers alike. Founded in 2008, GumGum is headquartered in Santa Monica, California and operates in 19 markets worldwide. For more information, please reach out to [email protected].
 
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 Media Contact:
Zinnia Gill
Mediabrands
Director, Global Corporate Communications
(646) 965-4271
[email protected]
 
GumGum Media Contact:
[email protected]

Why CTV ad fatigue is real — and why overlay ads may be a solution, study

By Michael Bürgi, Published by Digiday
 
Netflix’s recent capitulation to adding advertising to its revenue stream means yet more marketing that consumers will be exposed to.
 
That could pose a problem for all the connected TV providers that offer ads, according to a new study about to be released by IPG’s Magna unit in association with contextual intelligence platform GumGum, which is in the business of suggesting new ad solutions to digital platforms. However, the study suggests that ad-supported CTV providers roll out overlay ads, which they found to be less intrusive, more affordable and slightly more sticky.
 
For starters, overlay ads run literally as a small amount of signage appearing in the content, either in one corner or along the bottom of the screen — rather than interrupting programming with a traditionally rendered ad message. Though there’s widespread debate over exactly which company first employed overlays, they haven’t yet caught on broadly, given they’re not easily incorporated into the post-production process, according to GumGum CEO Phil Schraeder.
 
As for the study, which Digiday obtained ahead of its release today, Magna’s Media Trials unit recruited 807 respondents ages 18-54, who were then randomized into exposed and control groups who were asked to watch a 30-minute streaming show of their choice which included :15 and :30 video ads or :06 overlay ads. Advertisers in the test included Viacom, New Balance, Tracfone and the Mini car brand.
 
“CTV is the space that has the most potential, but so little is happening when it comes to ad format innovation,” said Kara Manatt, Magna’s Executive VP of Intelligence Solutions. “I think a lot of people in the industry, including our clients are concerned about obviously capturing and holding consumer attention. That topic never goes away, because it’s a consistent problem.”
 
Perhaps the most troubling finding for ad-supported CTV providers is the fatigue viewers feel about the amount of ads they’re seeing. A total of 65 percent registered an increase in the number they’re exposed to — 71 percent of respondents 18-24 noticed an uptick, higher than other demos. That younger age bracket also tries harder than older respondents to avoid ads all, or at least some, of the time.
 
The study also found that overlay ads don’t “feel” as invasive as regular spots. When four overlay ads were served to participants, they perceived an average 1.72 ads; whereas when they were served six video ads, they perceived an average 5.33 ads. Overlays also are generally perceived as less distracting — according to the study, only 17 percent agreed or strongly agreed they disrupted the viewing experience.
 
“How do we help brands see and test these alternatives that could really be more powerful, more effective, but also set the advertiser and their partners up for where the future is ultimately going,” said Schraeder.
 
Overlay ads, according to the study, offer even a slight bump (+5 percent) in brand favorability along with a 4 percent purchase intent bump. His suggestion to marketers: look for opportunities to place the overlays contextually in the content. (The study showed a sample overlay of a kitchen mixer when the content included a baking recipe.)
 
Schraeder added the research can also guide advertisers and agencies toward new solutions in even more nascent ad environments than red-hot CTV. “When we think about where this is all going, the next big [opportunities are] in gaming,” he said. “We’re looking at what the meta[verse] looks like, and all of these new emerging digital environments.”
 

Read the article at Digiday

March Madness 2022 TV Viewing Pacing Ahead of Last Year

By Brian Hughes
 
For the second year in a row, the NCAA Men’s Basketball Tournament has proven to be a highly unpredictable one, defying fans’ and experts’ opinions, and busting a lot of brackets across the country. Some of the biggest stories to emerge thus far include defending champions Baylor losing to number eight seed UNC in the second round and underdog Saint Peter’s University (a number 15 seed) beating both Kentucky and Murray State to advance to the Sweet 16.
 
In terms of broadcast and cable viewership, upsets and close games are always good for driving viewer interest, and thus far audience levels are pacing ahead of last year’s tournament among most key demos, with the exception of adults 18-34 (a trend that has been consistent across live sports telecasts). Among adults 50+, viewing has even been on par with the pre-COVID 2019 tournament, though it is the only demographic segment for which that is the case.
 
Looking at ratings by round, the First Four games were down compared to last year’s, likely due to the anticipation that had built up in 2021 after the tournament was cancelled in 2020. This year’s opener did still come in ahead of 2019, however. Moving on to the first round, audiences slipped compared to both 2019 and 2021, though for most demos, declines stayed within the single digit range. The second round bounced back strongly, seeing 20-30% percent increases across the board relative to last year but still falling short of 2019. It did have the advantage of all games once again airing over the weekend, whereas last year some second round broadcasts ran on Monday.
 
The Michigan State versus Duke game on Sunday March 20 was the most-watched of the tournament thus far, as fans pulled for legendary Duke coach Mike Krzyzewski to bring home the trophy in his final season before retirement. Coach K and the Blue Devils did ultimately advance to the Sweet 16. Michigan’s second round upset of the number two-seeded Tennessee Volunteers came in second, with a close contest between Creighton and Kansas rounding out the top three.

HOW IPG MEDIABRANDS IS LOOKING TO EXPAND ITS INVESTMENT IN DIVERSE-OWNED MEDIA IN THE UPFRONTS

By Jade Yan, Published by AdAge
 
IPG Mediabrands’ clients spending with Black-owned media properties nearly tripled since the company held its first equity upfront last year, it announced today.
 
The agency plans to host its second equity upfront in April to bring attention to Black-owned and other BIPOC media companies. Last year, the agency announced its commitment to invest at least 5% in Black-owned media across its clients by 2023.
 
The agency said that “we are on track to deliver our three-year goal and continue to create opportunities for our clients.” It has seen growth in all of its client categories.
 
While last year’s event exclusively focused on Black-owned media companies, 2022’s equity upfront will include Latinx, AAPI and LGBTQIA+ companies, IPG Mediabrands announced. Widening the net was partly a response to client needs, said Dani Benowitz, president at Magna U.S., but was also viewed as “the next natural extension” of increasing media spend diversity.
 
The first equity upfront came at a time when Black-owned media companies called upon brands to spend a minimum of 2% of their ad budgets on Black-owned media; at the time, less than 2% of total ad spend was going towards Black-owned media companies even though Black consumers make up 13% of the population, according to Nielsen Ad Intel.
 
WPP’s GroupM made a similar pledge a few days after IPG’s 2021 pledge for its clients to spend 2% on diverse and Black-owned media, with a shorter activation timeframe of 12 to 18 months. GroupM also created a fund to put dollars specifically towards Black and other BIPOC creators.
 
More broadly, IPG and other agencies ramped up diversity initiatives in 2020 during the uprisings and increased scrutiny of racial inequity following the May 2020 police killing of George Floyd. Those efforts included appointing DE&I leaders, altering hiring practices and creating employee resource groups and business resource groups, although concerns have been raised around members not getting compensated for their work in these groups. Other agencies increased mentorship opportunities for employees of color and created programs to make the talent pipeline more diverse.
 
Benowitz confirmed that the equity upfront will be a yearly event. The agency has also created an internal “equity portal” that provides a directory to the media companies it is working with.
 

Read the article in Ad Age.

MAGNA Hosts 2nd Annual Equity Upfront™ Focused on Deep Engagement and Collaboration with Diverse-Owned Media Companies in 2022 and Beyond

Launches Black consumer report highlighting the continued importance of Black-owned media in providing representative content to valuable Black audiences.

 
New York, NY, FEBRUARY 28, 2022 – MAGNA, the investment and intelligence company of IPG Mediabrands, today announced its second annual Equity Upfront™, taking place on April 5 – 7th, 2022. The theme for this year’s event is “Invest for Impact” and will be a hybrid experience, both virtual and in-person, focusing on highlighting the impact of diverse audiences on media consumption and their impact on brand loyalty. The Equity Upfront™, which aims to accelerate support of Black-owned media businesses, will also allow brands to schedule collaboration workshops with media owners to plan for upstream investments in critically important diverse audiences. This year’s Equity Upfront™ will also coincide with the launch of MAGNA’s latest research on Black consumers and will feature the release of MAGNA’s new equity portal, a media guide of diverse owners designed to further media investments.
 
Over the last year, through its monthly equity experiences and top-to-top equity workshops, MAGNA has now hosted forums with nearly 100 diverse-owned media partners and welcomed over 2,000 attendees. These dialogues have highlighted the strategic significance of diverse audiences, and the effective impact of brands speaking to these audiences in new ways, across dynamically diverse owned platforms. MAGNA’s latest report, Multicultural Audiences: The Black American Consumer, shows that representation and addressing stereotypes are important to making video content culturally relevant, among a host of other insights.
 
MAGNA’s overarching goal of the Equity Upfront™ is to redress gaps in how our industry engages with media businesses that are diversely owned. By enabling deep collaboration with diverse-owned media companies, this year’s Equity Upfront™ will create a critical pathway towards achieving Mediabrands’ previously announced commitment to invest an aggregate of 5% in Black-owned media by 2023. Confirmed media partners include Byron Allen’s Allen Media Group, Ebony Media, ReachTV, REVOLT, Group Black, Urban Edge Network, NuTime Media, Black Enterprise, and more.
 
“After last year’s inaugural Equity Upfront™, we pledged to invest a minimum of 5% in Black-owned media to reverse long-standing inequities in the advertising industry,” said Dani Benowitz, President, U.S., MAGNA. “We’re very happy to report that since then, MAGNA has added new bespoke partnerships that extend to innovative integrated marketing programs and content solutions. We remain committed to creating more breakthrough opportunities and using our audience insights and consultative reach to support diverse-owned media suppliers in impactful ways.”
 
The 2022 Equity Upfront will also include media partners from Hispanic, Asian American Pacific Islander and LGBTQIA+ communities in an effort to inspire a greater understanding of how these audiences are growing in economic and cultural influence. The hybrid experience will host media sessions that will showcase the opportunities around GenZ/Millennial focused outlets, across sports and influencer markets, as well as health and pharmaceuticals.
 
Benowitz added, “As part of our mission to understand the impact of diverse audiences on brand loyalty, for this year’s Equity Upfront™, we’re broadening our lineup by including Hispanic, Asian American and Pacific Islander, and LGBTQIA+ owned media companies.”
 
“We are thrilled to be working together with MAGNA and Mediabrands to bring bold and brilliant conversations about issues that matter most in Black communities, to brand marketers,” said Michele Ghee, Chief Executive Officer at EBONY & JET. “At EBONY, we are committed to telling stories – for us and by us – and those important life moments that matter and contribute to the American fabric. Our partnership with Mediabrands has shown that brands care about real impact in Black communities.”
 
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:
 
Rahel Rasu
Global Chief Communications Officer, Mediabrands
[email protected]