U.S. ad market to stabilize due to growth in political ads – report

By Sheila Dang. Published by Reuters on 16 Sept. 2020.

Sept 16 (Reuters) – The U.S. advertising market will begin to stabilize in the second half of this year as political ad spending piles up in an election year, and brands continue to pour money into digital advertising, according to a forecast on Wednesday from media research firm MAGNA Global, a unit of Interpublic Group of Companies.

Advertising spending, which often follows the health of the economy, plummeted beginning in March when the coronavirus pandemic hit the United States, and many businesses were forced to shut their stores.

Ad spending in the second half of this year is expected to decline 2% compared to the same period in 2019, after declining 7.2% in the first half of 2020.

That will mean a decline of 4.6% for the full year 2020 to $213 billion, which MAGNA said is in line with its previous forecasts.

Political ad spending is expected to reach a new all-time high this year at $5.1 billion, as fundraising and ad spending during the first half of the year was stronger than expected, MAGNA said.

“It’s surprising because we thought it would slow down due to COVID. But before March, so much money had been raised already,” said Vincent Letang, executive vice president of global market intelligence at MAGNA.

About two-thirds of political ad dollars will be spent on local TV, but digital ad platforms will be the second-biggest winner, earning $1 billion.

Digital ad platforms, which include Alphabet’s Google and Facebook, were “remarkably resilient” during the second quarter, when pandemic lockdowns were at their peak, Letang said, and the sector managed to grow 5.7% in the first half of this year.

That was partly due to a massive increase in consumption of digital media as people stayed home, and small businesses that jumped into digital marketing to keep their businesses alive, he added.

The total U.S. ad market is expected to rebound next year and post 4% growth, according to MAGNA.

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Video Ads and Brand Experiences Work Better Together in Streaming

By Mónica Marie Zorilla. Published by Adweek on 10 September 2020.

Giveaways and recommendations help drive brand awareness

While live events and sports remain uncertain, brands can step in to aid content discovery on streaming platforms. Magna, IPGLab, Roku

Connected TV usage among consumers has been sky-high through the Covid-19 pandemic, but many viewers are still struggling to find what to stream. That dilemma can become a brand marketer’s goldmine if they prioritize brand experiences that encourage content discovery, according to new research.

The study, from Magna and IPG Media Lab and commissioned by Roku, found that video advertising and brand experiences that offer free streaming choices, like promo codes and free movies, together generate four times greater purchase intent than video advertising alone.

Purchase intent can be particularly valuable for marketers who are considering leveraging brand experiences that aid in TV streaming content discovery—especially as sponsorships for live events and sports remain limited, said Dan Robbins, vp of ad marketing and partner solutions at Roku.

“A key question for CMOs and marketers is how to go big with the $12 billion spent on TV sports advertising,” Robbins told Adweek. “Brands can differentiate themselves by stepping in to aid content discovery and drive value as streaming surges.”



The study, over two phases in late 2019 and May 2020, relied on 2,300 respondents who were asked about brand experiences (and how they compare to other ads), how consumers felt about ads that helped them with content discovery while browsing streaming apps, and what advertisers could do to make brand experiences more effective.

A major challenge for many viewers was content discovery: 54% of those surveyed had no idea what to stream.

Nearly one-third of consumers surveyed said brand experiences that offer value—like free programming—are more fun than traditional ads, and one-quarter said those brand experiences don’t feel like a typical ad. However, only 6% said brand experiences were less intrusive than most ads.

Among respondents who had interacted with brand experiences, 48% said they were more appreciative of brands that serve experiences, and 33% are more likely to consider buying the advertised products. Streamers with more frequency on branded experiences reported higher purchase intent (75%) and brand favorability (87%)—which researchers said indicates that consumer satisfaction with brand experiences drive positive opinions and build brand equity.



The study also found that both video advertising and brand experiences have an immediate impact on awareness, noticeability and memorability. However, both types of ads are persuasive in different ways: Video ads more often led to improved opinions on brands, while brand experiences were more likely to trigger purchase intent and favorability.

Relevancy, though, remained key. Nearly two-thirds of respondents surveyed in May were more likely to take advantage of a brand experience when the offer was relevant, whereas only 23% were likely to take advantage if the offer was not relevant. The study found that 50% of respondents would rather take advantage of a brand experience that was relevant but only offered recommendations on what to watch, compared to 30% of respondents who would rather take advantage of a brand experience that was irrelevant but offered premium content for a bargain price.



“In the end, relevance is king,” said Kara Manatt, svp and group director of intelligence solutions at Magna. “We found that it was more critical for a brand to deliver a content offer that consumers deemed relevant than to deliver a deeper discount offer that the consumer found irrelevant.”

Relevancy also affected consumers’ favorability of brands. Consumers were 31% more likely to think a brand cares more about its customers when the offer was relevant to them (compared to 18% when the offer was not relevant), and consumers are 30% more likely to find a brand more engaging if the offer is relevant (compared to 22% when it was not).

“Based on previous studies, we know that consumers tend to respond more favorably to personalized ads that cater to their interests,” said Chad Stoller, evp and managing partner of IPG Media Lab and global chief innovation officer at UM. “Offering up curated brand experiences alongside content discovery is a huge opportunity for brands looking to reach new audiences and convert them to longtime customers.”

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NEW YORK – September 10, 2020 – A new study released today by MAGNA, Roku, Inc. (NASDAQ: ROKU) and IPG Media Lab, “Valuing the Value Exchange,” demonstrates how marketers can use brand experiences that aide TV streaming content discovery while sponsorships for live events and sports are limited. The study reveals video ads and brand experiences together generate 4X greater purchase intent than video advertising alone.

The study investigated how consumers feel about brand experiences on TV streaming that support content discovery, and how advertisers can assess and measure impact. Brand experiences are ads that offer free experiences to streamers, such as promo codes to free movies, ungated TV shows/movies, and more.

“The most important benefit of brand experiences is being able to give something back to individuals by offering them real utility and the study found this to be mutually beneficial for both consumers and brands,” said Kara Manatt, SVP, Group Director, Intelligence Solutions, MAGNA. “In the end, relevance is king. We found that it was more critical for a brand to deliver a content offer that consumers deemed relevant than to deliver a deeper discount offer that the consumer found irrelevant. We also found that diversifying ad types and serving both video and brand experience ads contributed to significant branding impact.”

Of note, the study found brand experiences felt less intrusive than most video ads, provided greater differentiation from traditional advertising, and seemed more fun. Key findings include:

  • Offer Relevance Is More Important Than Offer Value: 60% of those surveyed in May 2020 were more likely to take advantage of a brand experience when the offer was relevant, and more relevant offers also served as a catalyst for driving more positive brand opinions.
  • Brand Experiences Build Brand Equity: 61% of streamers who reported interacting with a brand experience were more likely to notice the ad; 48% were more appreciative of brands who served the brand experiences; 33% were more likely to consider buying the advertised product.
  • Video Ads and Brand Experiences Are Better Together: The results of the study indicate video ads communicate brand attributes leading to improved opinions, while brand experiences offer utility and free content, and ultimately, trigger purchases. The impact was amplified by an additional 4X when both ad types worked together.
  • Branded Experience Frequency Delivers Purchase Intent and Positive Perceptions Quickly: Streamers with more frequency on branded experiences reported higher purchase intent (75%) and brand favorability (87%).

“Based on previous studies, we know that consumers tend to respond more favorably to personalized ads that cater to their interests. Offering up curated brand experiences alongside content discovery is a huge opportunity for brands looking to reach new audiences and convert them to longtime customers. I strongly feel we’ll see major growth of brands incorporating relevant brand experiences in their media campaigns, particularly in the streaming space as it offers a unique and customizable advertising experience” said Chad Stoller, EVP, Managing Partner, IPG Media Lab, and Global Chief Innovation Officer, UM.

“The growth in TV streaming has become a CMO-level priority,” said Dan Robbins, VP of Ad Marketing & Partners Solutions, Roku. “Marketers can go beyond the video ad to engage with streamers and use branded experiences to drive more brand affinity, purchase consideration and intent. Media plans that miss this opportunity only give brands one piece of the puzzle.”


The study was conducted by IPG Media Labs and commissioned by Roku in two survey phases reaching over 2,300+ respondents total. The first conducted in Q4 2019 to measure the impact of brand experiences in the wild from brands like Energizer and a major CPG brand, and the second in May 2020 to dive deep into consumer perceptions of brand experiences and their impact on brand opinion.

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About Roku, Inc.

Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. RokuTV™ models and Roku streaming players are available in select countries around the world through direct retail sales and licensing arrangements with TV brands and service operators. Roku audio products are available in the U.S. through direct retail sales. Roku is headquartered in San Jose, Calif. U.S.A.

Roku is a registered trademark of Roku, Inc. in the U.S. and in other countries. Trade names, trademarks and service marks of other companies appearing in this press release are the property of their respective holders.



MAGNA is the centralized IPG Mediabrands resource that provides strategic investment and media intelligence for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.

MAGNA harnesses the aggregate power of all IPG media investments to develop go-to-market strategies, designing unique partnerships to drive maximum value for our clients. MAGNA has set the industry standard for more than 60 years by predicting the future of media value. We publish more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.

MAGNA infuses the organization with knowledge that empowers better decision-making. We are a team of experts across five key competencies who support IPG cross-functional teams through: Partnership, Enablement, Accountability and Connectivity. Follow us on Twitter @MAGNAGLOBAL.


About IPG Media Lab

Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.


# # #


Media Contact:

Zinnia Gill

IPG Mediabrands

Director, Global Corporate Communications

(646) 965-4271

[email protected]




Los consumidores prefieren a las marcas que son culturalmente relevantes: Twitter, Magna e IPG Media Lab

Descarga el estudio / Download the report

Que las marcas se involucren con la cultura, es casi tan importante como lograr una percepción positiva. 

México, 9 de Septiembre, 2020 – “El Impacto Cultural: lo que significa para las marcas en la actualidad”, el nuevo estudio publicado por Twitter, MAGNA e IPG Media Lab, analiza la visión de los consumidores sobre la participación de las marcas en la cultura.

Inspirado en el aumento de marcas que buscan conectar con lo que está pasando en el mundo real, así como tener influencia en las conversaciones de sus audiencias, el estudio plantea dos preguntas importantes: ¿Para las marcas, qué significa ser culturalmente relevante? ¿Qué piensan los consumidores sobre las marcas que se involucran en temáticas culturalmente relevantes?.

Los aspectos más relevantes del estudio son:

  • Para el 92% de las personas en Twitter, la definición de cultura va más allá de conceptos tradicionales. Para ellas, los eventos, tendencias sociales y la cultura popular son temas de gran importancia en los que las marcas pueden participar.
  • Ser culturalmente relevante es casi tan importante como tener una percepción positiva de marca. Para las personas, la participación cultural de una marca representa el 25% de la decisión de compra.
  • Las marcas con mayor relevancia cultural tuvieron mayor preferencia entre los usuarios de Twitter y la población en general.
  • 3 de cada 5 consumidores piensan que es importante que las marcas se involucren en temas y movimientos sociales, mientras que 4 de cada 5 consideran importante que las marcas participen en eventos y tendencias culturales.
  • Los consumidores más entusiasmados con la participación de las marcas en la cultura son jóvenes, de entre 18 y 35 años, y los más apasionados e informados son los usuarios de Twitter.
  • “Retribuir” es un elemento clave para que las marcas se vuelvan más relevantes culturalmente. Los usuarios de Twitter fueron más receptivos con las marcas que se enfocaron en tres pilares:
    • Filantropía: el 67% de los usuarios fue más receptivo con las marcas que apoyaron causas sociales, 50% con las que apoyaron a la comunidad y 40% con las que realizaron donaciones caritativas.
    • Conocimiento de los clientes: el 60% de los usuarios prefirió marcas que fueron transparentes, 58% a las que promovieron la inclusión y 52% a los que priorizaron sus necesidades como clientes.
    • Actualidad: el 58% de los usuarios mostró afinidad con marcas que patrocinaron eventos culturales y 52% lo hizo con marcas que estuvieron al día con las tendencias.


“Las marcas más relevantes para los consumidores mexicanos son aquellas que logran alinearse con los factores culturales de las personas, promueven tendencias positivas y apoyan movimientos sociales”, afirmó Karla Natareno, Head of Magna para Latinoamérica. “Estos hallazgos nos permiten trabajar estratégicamente con nuestros partners y clientes para crear conexiones reales con sus audiencias”.


Por su parte, Juan Francisco Diez, CEO de Mediabrands México comentó: “En un mundo lleno de una gran oferta de productos y servicios, los consumidores preferirán siempre a las marcas que son culturalmente relevantes. Nuestra misión en Mediabrands es ayudar a las marcas  a encontrar estos puntos de convergencia cultural que les permita conectar de mejor forma con sus consumidores, generando resultados tangibles para sus negocios”. 


Para este estudio, se preguntó a los consumidores sobre sus opiniones en torno a la participación de las marcas en la cultura. También se realizó una encuesta para identificar los factores más importantes que los consumidores consideran al momento de tomar una decisión de compra. Los participantes fueron seleccionados al azar para calificar las percepciones hacia las marcas de 5 industrias, incluyendo su relevancia cultural.


Acerca de Twitter

Twitter es lo que está pasando en el mundo y de lo que la gente está hablando ahora mismo. Desde noticias de última hora y entretenimiento hasta deportes, política e intereses cotidianos, mostrándote cada lado de la historia. Únete a la conversación abierta. Ve los eventos de transmisión en vivo. Está disponible en más de 40 idiomas en todo el mundo, se puede acceder al servicio a través de twitter.com, Twitter Lite (mobile.twitter.com), dispositivos móviles y SMS. Para obtener más información, visita about.twitter.com, sigue @TwitterLatAm y @TwitterMexico y descarga las aplicaciones de Twitter y Periscope en twitter.com/download y periscope.tv.


Acerca de MAGNA

MAGNA es el recurso centralizado de IPG Mediabrands que desarrolla estrategias de inteligencia, inversión e innovación para equipos de agencias y clientes. Utilizamos nuestros conocimientos, previsiones y relaciones estratégicas para ofrecer a los clientes una ventaja competitiva en el mercado.


MAGNA aprovecha el poder agregado de todas las inversiones en medios de IPG para crear influencia en el mercado, negociar precios preferidos y asegurar un inventario premium con el fin de generar el máximo valor para nuestros clientes. Los equipos de inversión e innovación de MAGNA diseñan estrategias de inversión de comercialización en todos los canales, incluida la televisión lineal, impresa, digital y programática en nombre de los clientes de IPG. El equipo se centra en el uso de oportunidades emergentes de medios, así como en soluciones basadas en datos y tecnología para impulsar el rendimiento óptimo del cliente y los resultados comerciales.


MAGNA Intelligence ha establecido el estándar de la industria durante más de 60 años al predecir el futuro del valor de los medios. El equipo de MAGNA Intelligence produce más de 40 informes anuales sobre las tendencias de la audiencia, el gasto en medios y la demanda del mercado, así como la eficacia de los anuncios.


Acerca de IPG Media Lab

Como parte de la red Interpublic, IPG Media Lab identifica e investiga innovaciones y tendencias que cambiarán el panorama de los medios y cómo las marcas interactúan con sus audiencias. Desde 2006, el laboratorio ha trabajado con nuestros clientes y socios de la industria que pueden ayudarlos a adaptarse mejor al cambio disruptivo. Su experiencia, recursos y servicios de consultoría también ayudan a informar los aprendizajes, estrategias y resultados comerciales de todas las agencias de Interpublic. Para obtener más información, visita https://www.ipglab.com/ o sigue a @ipglab.                                     


Consumers prefer brands that are culturally relevant: Twitter, Magna and IPG Media Lab

For brands, being involved in culture is almost as important as achieving positive brand perception.

México, September 9, 2020 – “The Impact of Culture: what it means for brands today”, the new study published by Twitter, MAGNA and IPG Media Lab, analyses the vision of consumers about brand involvement in culture.
Inspired by the rise of brands looking to connect with what’s happening in the real world and that have influence in their audiences’ conversations, the study poses two important questions: for brands, what does it mean to be culturally relevant? And what do consumers think about brands that get involved in culturally relevant topics?
The most relevant aspects of the study are:
● For 92% of people on Twitter, their definition of culture goes beyond traditional concepts. For them events, social trends, and popular culture are deeply important topics that brands can be involved in.
● Being culturally relevant is almost as important as having positive brand perception. A brand’s cultural participation represents 25% of the purchase decision for people.
● When brands were bucketed by cultural relevance, those with high cultural relevance were more likely to be preferred by both Twitter users and the general population.
● 3 out of 5 consumers think that it is important that brands get involved in topics and social movements, while 4 out of 5 consider it important that brands participate in trends and cultural events.
● The consumers most excited by brands participating in culture are young, between 18 and 35 years old, and those that use Twitter are the most passionate and informed.
● “Giving back” is a key element for brands that become more culturally relevant. Twitter users were the most receptive to brands that focused on three areas:
○ Philanthropy: 67% of users were more receptive to brands that support social causes, 50% to those that support the community and 40% to those that donate to charities.
○ Knowledge of your Customer: 60% of users preferred brands that were transparent, 58% those that promoted inclusivity and 52% those that prioritized their needs as customers.
○ Staying up-to-date: 58% of users showed affinity towards brands that sponsored cultural events and 52% towards brands that were up-to-date with trends.

“The most relevant brands for Mexican consumers are those that are able to align themselves with people’s cultural factors, promote positive trends and support social movements,” said Karla Natareno, Head of Magna for Latin América. “These discoveries allow us to work strategically with our clients and partners to create real connections with their audiences.”

Juan Francisco Diez, CEO of Mediabrands México commented: “In a world filled with a wide offer of products and services, consumers will always prefer brands that are culturally relevant. Our mission in Mediabrands, is to help brands find these points of cultural convergence that allow them to better connect with consumers, generating tangible results for their businesses.”

For this study, consumers were asked to give their opinions regarding the participation of brands in their culture. A survey was also carried out to identify the most important factors that consumers consider when they are making a purchase decision. The participants were selected randomly and asked to rate their perceptions of brands in 5 industries, including their cultural relevance.

About Twitter
Twitter is what is happening in the world and what people are talking about right now. From breaking news and entertainment to sports, politics and daily interests, showing every side of the story. Join the open conversation. Watch events being transmitted live. Available in over 40 languages around the world, service can be accessed via twitter.com, Twitter Lite (mobile.twitter.com), mobile devices and SMS. For more information, visit about.twitter.com, follow @TwitterLatAm and @TwitterMexico and download the Twitter and Periscope applications at twitter.com/download and periscope.tv.

MAGNA is a centralized resource of IPG Mediabrands which develops intelligence, investment and innovation strategies for teams of agencies and customers. We use our knowledge, foresight and strategic relationships to offer our clients a competitive edge in the market.

MAGNA takes advantage of the power given to every investment in IPG media in order to create influence in the market, negotiate better prices and ensure a premium inventory with the goal of generating maximum value for our clients. The investment and innovation teams at MAGNA design investment and commercialization strategies in all channels, including television, print, digital and programmatic in the name of IPG clients. The team focuses on the use of emerging media opportunities, as well as solutions based on data and technology to drive optimal client performance and commercial results.

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future value of media.The MAGNA Intelligence team produces more than 40 annual reports regarding audience trends, spending in media and market demand, as well as efficacy of advertisements.

About IPG Media Lab
As part of the Interpublic network, IPG Media Lab identifies and researches innovations and trends that will change the panorama of media and how brands will interact with their audiences. Since 2006, the laboratory has worked with our clients and industry partners to help them to better adapt to disruptive change. Their experience, resources and consulting services also help inform training, strategies and commercial results for all the agencies of Interpublic. For more information, visit https://www.ipglab.com/ or follow @ipglab.