Magna Study: Digital Video Reaches Non-TV Viewers

by JON LAFAYETTE. Published by BROADCASTING & CABLE on 25 Jan. 2019.

A new study by two units of giant media buyer IPG Mediabrands takes a closer look at the growing number of consumers who watch little or no traditional linear TV and finds that many of them are older and more affluent than previously thought.

The report, from Magna and IPG Media Lab, is entitled “Reaching the ‘Un-Reachable.’” It states that the need to connect with these consumers is more urgent than previously thought, and that a key way is through, non-linear forms of video.

“Linear TV may be declining but video consumption is as strong as ever,” said David Cohen, president, North America, of Mediabrands’ Magna unit. “There are no ‘unreachables’…rather there are device-agnostic streamers with deep pockets who watch just as much video as linear TV viewers and are receptive to relevant, targeted video ads. This segment is growing and it’s crucial for marketers to gain traction with them.”

Magna has been relatively aggressive about moving its clients marketing dollars from traditional TV to online video platforms including YouTube.

Kara Manatt, senior VP, intelligence solutions & strategy for Magna Global, says the new study validates the decision to shift dollars to digital video.

“Advertisers with “older targets and higher income targets are having to reconsider and start thinking about people who are shifting away from linear TV more than they used to,” Manatt said. “Understanding that the shift is happening among a broader audiences is a big part of the study, and certainly will change the way we look at buying.”

What can linear TV networks do to stanch the flow of marketing dollars to online video?

“I think they’re doing things to adapt to the changes,” said Manatt. “I think they’re doing things to adapt to the changes. Premium ad pods. Less ad loads. These are things that they’re doing to help compensate for the shift among viewers.”

Technology has reshaped the way people watch TV.

“The reason we wanted to do this study is because there were a whole bunch of assumptions about people who are not watching linear TV or just watching a little bit of linear TV that was probably based in some truth a long time ago, but because things are changing so quickly, people have just held on to some of those assumptions and they’re no longer true,” Manatt said.

One of the report’s key findings is that viewers no longer differentiate between traditional linear networks and online video. For the most part, consumer consider almost any form of video to be television. Even with short-form video, 71% of those surveyed believed that was television.

While that’s how video is increasingly consumed, it’s not the way it is bought and sold, so Mediabrands had to come up with a definition, so it called shows on broadcast and cable linear and everything else non-linear.

With that definition, the study segmented consumers into non-linear viewers (15%), light linear viewers (29%), moderate linear viewers (28%) and heavy linear viewers (28%).

Mediabrands says the study shatters the myth that those shifting away from linear TV are mostly the young, without purchasing power.

The study found that half of light linear TV viewers and 40% of non-linear TV viewers are generation X (age 38 to 53) or older. The light linear viewers had the highest proportion of households with incomes of $100,000 or more.

According to the study, consumers weren’t leaving traditional pay-TV just because of the cost. Some of those cutting the cord had very high incomes, making it unlikely that the price tag alone was the reason for the decision.

Even in the Mediabrands study, price showed up as a top reason for ditching linear TV. But Manatt added that “when consumers give you more personal feedback, it’s not just expense being the issue. It’s expense for what you get. It’s really a value exchange.”

The study also looked at why consumer were turning the Netflix and YouTube.

Netflix was seen as a good value and its subscribers said it has shows it can’t get elsewhere. Only 11% cited the lack of commercials as the reason why they watched Netflix.

Consumers said they liked YouTube because “there’s always something new” on the platform and “I know I’ll find the video I’m looking for.”

Another key finding was that non-linear TV viewers, light linear TV viewer and moderate linear TV viewers all spend roughly the same number of hours per week with media. Heavy linear TV viewers consumed upwards of 50% more media than the other groups. When it comes to video, those who don’t watch linear TV, watch just as much as those who do watch linear TV–they’re just watching more digital video.

“There’s no such thing as a non-video viewer,” was one of the report’s conclusions. On top of that, the report found that “it’s clear that digital video is persuasive for all types of viewers.”

According to the survey those who don’t watch linear TV like ads that tell a good story, ads that don’t interfere with their TV experience, short ads and entertaining ads.

Mediabrands found that those shorter ads are effective with non-linear TV viewers.

“The so-called ‘unreachable” can be reached through digital video. We know they are still watching video–it’s just streamed,” the report concludes.

“While digital video can be effective for all TV segments, those opting out of linear TV have unique ad preference, such as shorter ads,” the report said.”Advertisers should be sensitive to these preferences and continue to learn about motivations behind media usage shifts as they continue.”

Read the full article here

Consumers Think Unsafe Ad Placements Are Intentional, Study Finds

By . Published by ADWEEK on October 24, 2018.

The study’s intent was to measure the quantifiable effects brand safety incidents have on consumer sentiment.

Consumers are nearly three times less willing to associate with a brand that advertises alongside unsavory, inappropriate or offensive video content—and they tend to assume that ad placements alongside such video content are intentional, according to a new study that aimed to quantify the impact of brand safety incidents on consumer sentiment.

IPG Mediabrands’ research arm IPG Media Lab and cyber security brand safety company CHEQ conducted the study, which found that even content that clashed with the brand or its vertical could cause consumers to think less of the brand’s reputation, quality and trustworthiness. Consumers were seven times less likely to consider the brand to be high-quality, slightly less likely to recommend a brand and more than four times less likely to feel like the brand cared about them after viewing the brand’s video ads before inappropriate video content.

It’s no secret that brand safety incidents—in which advertisers’ ad content appears alongside unsavory, inappropriate or offensive content—are on the rise. Every few months, new reports reveal major brands have had their video advertisements run on everything from fake health information to extremist content.

The study’s intent was to measure the quantifiable effects brand safety incidents have on consumer sentiment so executives can understand the cost of a brand safety incident at their company, said Guy Tytunovich, founder and CEO of CHEQ.

Joshua Lowcock, the chief digital officer and global brand safety officer at UM, said the study underscores that the risk of brand safety incidents extend beyond bad press and business squabbles.

“Consumers care, and when they see ads running against inappropriate content, they see these as deliberate choices,” Lowcock said. “It actually damages brand perception, even if [consumers] were favorable to a brand.”

The study relied on a nationally representative online panel of more than 2,300 computer and smartphone users, half of whom were shown pre-roll video advertisements for BMW and Hulu before viewing different types of video content on desktop and mobile environments. That content ranged from videos considered by most brands to be safe, like a clip from a talk show, to unsafe content, like a video about a school shooting. Consumers were also shown ads alongside brand-averse content, like a BMW ad that played before a video about a car accident involving a BMW vehicle, and vertical-averse content, like an ad for Hulu that played before a video that discussed the dangers of binge-watching television.

Tytunovich said most of the survey respondents provided written responses after viewing the content indicating that they were disturbed and upset that advertisers had generated revenue from inappropriate content. Some respondents said they believed advertisers were endorsing the offending content.

Tytunovich said he was surprised by the emotional responses from the consumers, but said that the results underscored the seriousness with which brand leaders should take brand safety issues. CHEQ, it should be said, stands to benefit from survey results like this, as it provides brand safety tools to brands.

Daniel Avital, CHEQ’s chief strategy officer, said the results highlight the importance of the values a brand espouses.

“We choose one brand over another because one projects the values that we agree with,” Avital said. “If you think a brand is endorsing something you don’t agree with—a racist article, an article about sexual assault, a political view you don’t like—if you don’t connect with that, then you don’t connect with their values.”

Lowcock said it’s not just advertisers who should care about the consequences of brand safety. Publishers have a responsibility to make sure that some types of content aren’t monetized at all, he stressed.

“We’re staunch and firm advocates for quality journalism,” Lowcock said. “My point is that publishers need to make decisions about what they consider for monetization, and that not all content should be eligible for monetization. Every time there is a brand safety incident, it’s bad for the industry and it’s bad for publishers.”

Read the full article here

SPONSORED LENSES SPUR MORE ATTENTION AND ENGAGEMENT THAN PAID ADS EVEN WHEN SHARED, ACCORDING TO NEW STUDY

Study Used Neuroscience to Measure Consumer’s Unconscious Response to Brands

LOS ANGELES – October 24, 2018 – Sponsored Lenses (AR) are more effective than traditional pre-roll ads, according to “The Power of Camera Advertising,” a study by Snapchat in partnership with MAGNA, the intelligence, investment and innovation unit within IPG Mediabrands, and IPG Media Lab, the media futures and advisory arm of IPG Mediabrands.

The study compared the emotional and cognitive responses participants had to Snapchat Sponsored Lenses and to :15 pre-roll video ads using mobile eye-tracking, Galvanic Skin Response (GSR), heart rate (PPG) and brain pulses from Electroencephalography (EEG).  They found that Sponsored Lenses generated more engagement (heart rate and excitement levels were both significantly higher in response to Sponsored Lenses) and increased retention (unaided brand recall resulting from Sponsored Lenses was nearly 4X higher than from skippable pre-roll ads).

“Augmented reality allows marketers to bridge the physical divide between them and their customers, which is why it drives higher engagement and spurs more emotion than pre-roll ads,” said Carolina Arguelles, AR Product Strategy Lead at Snapchat.

Interestingly, even those who received Sponsored Lenses from friends are 40% more focused on the brand or product than they are with skippable pre-roll ads and exhibit higher retention as well.  Sponsored Lenses engender more positive emotional experiences amongst this group as well.

Brands have quickly found innovative ways of employing the technology in innovative ways. Mike Frank, SVP, Creative Director at Deutsch, said, Volkswagen’s 2018 World Cup campaign was all about giving American soccer fans a new country bandwagon to jump on since the US team didn’t qualify for the tournament. In addition to the TV spots, we used Snapchat to create country-specific lenses that went live during the most watched games of the tournament. And with the evolving platform, we were able to create an immersive experience for our fans by leveraging their audio triggers and multi-lens functionality, which allowed us to teach fans how to cheer in the language of their adopted team.”

“Measuring Sponsored Lenses was a challenge because they are an ad format unlike any other – they leverage the consumers’ camera and allow for particularly high levels of interaction,” says Kara Manatt, SVP, Intelligence, Solutions & Strategy, MAGNA Global.  “We expected that consumers would enjoy Sponsored Lenses more than traditional ads, but to get a deeper understanding than ever before of consumers’ unconscious responses, we activated the latest measurement technology to compare their effectiveness.”

“The Power of Camera Advertising,” is the latest in MAGNA and IPG Media Labs’ media trial series. Recently, the companies explored the tangible impact of brand (un)safety in “The Brand Safety Effect”; harnessing the power of content creators with Twitter; the power of content targeting with Zefr; best practices for mobile ads in its “Battle of the Mobile Ad Formats” study;  360 video ads in its “The 360 Effect” report; the use of haptic technology in mobile video ads in its “Ads You Can Feel: The New Mobile Ad Experience” study and the impact of viewability on performance based campaigns in its “Pulling Back the Curtain: Viewability + Direct Response” report.

Read the full report here

 

About MAGNA

MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies 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 create leverage in the market, negotiate preferred pricing and secure premium inventory to drive maximum value for our clients. The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all channels including linear television, print, digital and programmatic on behalf of IPG clients. The team focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions to drive optimal client performance and business results.

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.

 

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:

Scott Berwitz

IPG Mediabrands

SVP, Global Corporate Communications

(347)448-0566

Scott.berwitz@mbww.com

 

Under the Hood of Over-the-Top Measurement

Despite big budgets and high viewership on TV, measurement of brand KPIs is still evolving.  The challenge with existing brand lift methods is that they often rely on opportunity-to-see (OTS), which is a survey based method for determining the likelihood that someone saw a particular ad, with no evidence that they actually saw it.  To push the industry forward on measurement, the media trials team partnered with Roku to use their ACR (automatic content recognition) to identify the exact programs and ads viewers have used and when they viewed them.

The new study “Under the Hood of Over-the-Top Measurement,” revealed video ads on the OTT platform are 1.6X more effective per exposure at driving purchase intent than ads on broadcast and cable television.

Other key findings:

  • OTT Makes Brands Look Innovative:  Moving impressions to OTT from linear TV provides a 19 percent increase per exposure in perception that brand is innovative
  • OTT Helps Convey the Brand’s Story: OTT offers a 32 percent increase per exposure in perception that brand has a unique story to tell
  • Better Together: The greatest impact on overall brand favorability came from the combination of linear TV and OTT
  • OTT Ads Require Less Exposure Than Linear TV: To drive comparable brand lift, advertisers need 10 linear TV exposures, 7 OTT exposures, or 6.5 exposures on OTT and linear TV together
Click here for the full report

The Total Market Fallacy

The Hispanic audience is currently underserved by media and advertising; when polled, 61% of Hispanics say Total Market Ads fail to resonate with them.  In search of solutions, MAGNA, IPG Media Lab, and NBCUniversal collaborated to investigate the impact of cultural specificity on Hispanic audiences.  We tested both Total Market Ads, intended for a broad audience, and CultureFirst Ads, tailored to a cultural identity, to find that CultureFirst Ads establish an emotional connection and increase conversions.

With 74% of Hispanics reporting that culture impacts who they are today (as opposed to only 42% of non-Hispanics), culture is integral to the Hispanic identity and elicits a strong emotional response.  Culturally specific and accurate cues in advertising deliver a positive brand perception, which in turn influences purchase intent and inspires brand loyalty.

CultureFirst advertising is now a proven way to access an audience often neglected by Total Market campaigns.

READ THE FULL REPORT