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OPINION: RETHINKING THE VIDEO AD BUSINESS ONE (APPLES-TO-APPLES) IMPRESSION AT A TIME

February 7, 2019 // In the News
Thought Leadership

By DAVID COHEN.  Published by ADAGE on 6 February 2019.

When the concept of viewable vs. non-viewable impressions was introduced into the digital marketplace, I remember thinking “the industry really doesn’t need this friction right now.”

Many in the business were hoping to put the genie back in the bottle, but technology had matured to the point where we could now determine if an ad was called, served, and viewed. And if it wasn’t, there was no value to an advertiser and obviously we shouldn’t be paying for ads that were never seen. This then led to an assumption that publishers will increase prices (of the viewable impressions) to ensure the viability of their business.

The truth was, nothing was really changing—the industry had been operating under a false premise and advertisers had been subsidizing non-viewable impressions for years. Today, the way we measure and buy digital video ad impressions is based on viewable, bot and fraud-free impressions bought against a particular target audience.

TV is a different story. And as we continue to see consumers seamlessly move with content across screens and devices, the ways we measure ad impressions across digital and linear environments must get more closely aligned.

TV currency, commonly known as C3 or C7, are an average of all commercial minutes during a telecast that is watched both live and with three (or seven) days of DVR playback. It is not an actual ad impression as we have in digital. Up until now, the industry has been accepting this as a surrogate for ad delivery, in lieu of other viable options. We now have the ability to get a step closer.

By getting us down to the precise minute in which an ad aired, ECM3 and ECM7—exact commercial minute ratings in the three and seven days after a show airs—is (thankfully) moving us closer to the individual ad level. In fact, if we were running a 60-second ad, we could be getting an actual delivered commercial rating, though the reality is that most ads are 15-seconds and 30-seconds. So, while it wouldn’t be perfect, it would certainly be much closer than an average of all ads in a 30 or 60 minute show (not to mention a three-hour sports telecast!).

Like viewability, the natural question that arises is how exact minute ratings compare to C3 or C7 on a typical client schedule (and who will pay for any shortfall)? Naturally, this varies by demographic and type of content, but we have done some analysis on it. While on a numerical basis it is quite small, the percentage difference can be 20 percent or larger. In all cases, we have seen the more precise ECM ratings were lower than the average commercial ratings. As an industry, this should not deter us, as it is the right thing for us to do. We have the ability now to post on exact commercial minutes and we should lock arms together. Parity is parity, and it requires an apples-to-apples comparison of delivery across channels.

There are some who believe the industry will never move to a currency that reduces the available commercial rating points. Some believe that reducing the commercial load is more important to the longevity of the business than creating a more uniform currency cross-channel. Still others believe that we will skip exact commercial minute ratings (and impressions) entirely and move to a more business results and attribution currency. I think the answer is yes, yes, yes. We should move to exact commercial ratings, reduce the commercial load, and yes, we should start to evaluate performance-based measurement as ultimately that is what our advertising investment is trying to drive. This is not an “either/or” proposition…it’s an “and.”

It is worth noting that while smart in concept, the challenges with performance attribution make it difficult to execute at scale. I am bullish on the long-term viability of buying based on business outcomes, but we still lack the tools to measure this universally and consistently. Not to mention the obstacles we encounter when attempting to connect brand storytelling with a conversion or sale, long conversion cycles, disparate creative and a myriad of variables outside of the media and marketing remit.

We now have the opportunity to, and no longer the excuse not to, bring TV measurement one step closer to the standard set by other video and brand stewards. It is incumbent upon us to do it. Is it a panacea or the answer to all our challenges? No—but it is certainly a step forward to create a more standardized way of counting video impressions across screens. And in my opinion, as an industry we should do it.

Read the Full Article Here

The Sentiment Driven Consumer Journey

January 31, 2019 // Press Releases

Optimizing Ad Journeys Based On Consumer Sentiment Could Save Millions Finds New Study From ViralGains, MAGNA and IPG Media Lab

Over half of all ad impressions could be wasted with traditional video retargeting; Optimizing journeys based on sentiment doubles brand trust and likelihood to take action

NEW YORK, NY – January 31, 2019 – According to a new study, obtaining and responding to consumer sentiment is crucial to optimizing the consumer ad journey, saving otherwise wasted video ad dollars and positively impacting brand affinity metrics. The Sentiment Driven Consumer Journey, research conducted by MAGNA, IPG Media Lab and ViralGains, the industry’s only video ad journey platform, takes a deep dive on the brand impact generated by intelligent video advertising.

The study tested two video ad journeys among 6,000 consumers in the third quarter of 2018. One group of consumers received a series of video ads optimized based on sentiment – specifically each viewer’s level of interest in the first video ad – gathered via a poll served immediately after the advertisement. The second group received a series of videos that were served based on exposure only.

Key findings from the report include:

  • On average, 59% of ad impressions were wasted with standard video retargeting
  • Consumers on a sentiment-driven journey were more likely to take action – 7x more likely to search for the brand and 2x more likely to visit the brand’s website
  • Sentiment-driven journeys:
    • Result in a better overall ad experience as 85% of consumers agreed the ads were interesting, 76% agreed the ads were relevant and 66% agreed the ads were informative
    • Improve brand perception – serving a corporate responsibility ad to viewers with low brand interest increased brand trust by 2.2x and brand favorability by 4x
  • Suppressing ads to audiences that have indicated they are not interested in your brand and reallocating impressions to those who have shown interest can deliver an average of $59k in savings for a $100k campaign

“Marketers know that a great story is a relevant story, and the best marketers understand that they must use consumer sentiment to create customized and relevant consumer journeys; otherwise they risk not improving brand or product purchase intent or worse—increasing negative sentiment about their brand,” said Tod Loofbourrow, Chairman and CEO, ViralGains. “Engage consumers in a dialogue about their preferences, and listen to the feedback that signals sentiment and purchase intent—when you optimize individual journeys at scale using first-party data and science, everyone wins.”

“Brands that listen to the consumer and create a customized experience rather than blanket everyone with the same ad sequencing stand to benefit in almost every conceivable way,” said Kara Manatt, MAGNA. “Customizing the consumer ad journey is a key element to smart advertising, as it allows advertisers to tell a cohesive story across ad exposures, as opposed to an inefficient ‘hit and miss’ approach. It not only leads to greater impact on brand KPIs, it also makes for a more positive ad experience for consumers.”

Read the full report

 

About ViralGains
ViralGains is a digital video ad journey platform that enables marketers to engage targeted audiences with relevant brand stories in the contexts they most favor. Using the platform to engage in two-way conversations, brands and agencies discover exactly what people want — and how they feel — and leverage those insights to build unique, full-funnel ad journeys that can generate increased awareness, motivate intent, and drive purchasing decisions. ViralGains is headquartered in Boston, with regional offices in New York, Los Angeles, Chicago, San Francisco, Atlanta and Detroit. For more information, please contact us at www.viralgains.com.

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 Contacts:
Scott Berwitz
IPG Mediabrands
SVP, Global Corporate Communications
(347) 448-0566
Scott.berwitz@mbww.com

Brook Terran
Blast PR for ViralGains
(805) 570-3309
brook@blastpr.com

 

“Real talk with magna global”: The state of out of home

January 30, 2019 // Thought Leadership

Luke Stillman (SVP, Digital Intellgience) and Brian Rappaport (Group Director at Rapport Worldwide) discuss the latest Out of Home Report.

A NEW MARKET RESEARCH BY MAGNA AND RAPPORT: OUT-OF-HOME OUTPERFORMS

January 30, 2019 // Press Releases

Contact: scott.berwitz@mbww.com (Press), Vincent.letang@magnaglobal.com

TOP STORIES

  • While other traditional media sectors are struggling to reach consumers in this digital age, out-of-home (OOH) advertising is leveraging technology to innovate, remain relevant and attract new advertisers. As a result, OOH is the only traditional format that has experienced consistent growth in global advertising sales in the last ten years.
  • This is one of the main findings from the brand new report by MAGNA and RAPPORT on global OOH media, published in January 2019. The 60-page report looks at the state and trends of OOH in 70 countries (total OOH spend, by segment, digital vs static), including in-depth analyses and insights for the top 20 markets (US, UK, China, India etc.).

Michael Cooper, Global CEO, Rapport, said: “There has never been a more exciting time in the OOH (out-of-home) industry. The industry has exploited all the benefits of evolving digital technologies, but retain a unique geographical footprint in a way that no other medium can. Spotify, Amazon, Apple, Netflix, Hulu and all the tech companies you are excited about, have dramatically increased their spending in OOH advertising, across almost every world market in 2018, with very good reason”.

Vincent Letang, EVP, Global Market Intelligence at MAGNA, said: “OOH is the last advertising format that consumers can’t skip or block, and still reaching the young urban active. Combined with huge progress in campaign management, audience measurement and attribution, this explains why OOH advertising has grown steadily in the last ten years and will continue to grow, by 3% per year globally, in the next five years.”

TEN KEY FINDINGS

  1. OOH is the only traditional media segment to experience consistent advertising revenue growth. Global OOH advertising revenues grew in each of the last nine years (2010-2018), with an average growth of +4.1% per year over the period, to reach $31 billion in 2018. Meanwhile, traditional non-digital media as a whole (television, print, radio, OOH) experienced stagnating advertising revenue (+0.4% over the period, and -1.5% in the last four years).
  2. As a result, the share of OOH, out of total traditional media sales, grew from 7% in 2010 to 10% in 2018. Considering all media sales (traditional and digital) the share of OOH has remained stable at 6% while the share of television decreased from 41% to 33% over the period and the share of print collapsed from 28% to 10%.
  3. OOH outperforms other traditional media formats for multiple reasons: (i) Audience Holds. Consumers are increasingly mobile and OOH does not suffer from the erosion of reach and audience that affects editorial media, or the brand safety issues that affect digital media. (ii) Technology Helps. Digital innovation drives OOH performance and attractiveness in many ways: high-yield digital billboards colonizing classic sites and new urban niches, to better audience measurement and the use of data to optimize cross-media campaigns in real time.
  4. These are the reasons why MAGNA expects OOH advertising revenues to outperform again in the next five years (2019-2023) with a global growth of +2.8% per year, compared to a decline of -1.7% for total traditional media advertising.
  5. Retail is the largest contributor to OOH advertising revenues in most markets. Other large and over-indexing client verticals include Entertainment (pay TV, movie releases), Quick-Service Restaurants, Travel, and Beverages. In the last two years, internet and technology giants significantly increased advertising budgets in traditional branding media, which propelled some of the global brands (Google, Amazon, Facebook, Apple, and Netflix), or other local eCommerce or social media giants into the top ten OOH spenders in many markets. The growing use of OOH campaigns by digital media giants is both a testimony to the efficiency of OOH and a factor of future growth, as marketing spend in the sector is bound to grow further.
  6. OOH inventory is stable in the main traditional OOH segments, globally, but roadside billboards are slowly declining due to regulatory pressure and media owners’ strategies, while other segments (transit, street furniture, malls) are adding volumes. Meanwhile, place-based digital OOH inventory (small inexpensive screens in niche indoor environments) is exploding, but struggling to find a business model in some markets.
  7. Digital OOH units generated almost six billion dollars in 2018 globally i.e. 18% of global OOH ad sales, three times the share in 2010 (6%). DOOH sales have been growing by 16% per year in the last five years. Following significant investment from media owners in the last few years, there are now more than 300,000 digital ad units in the world, compared to just 160,000 four years ago.
  8. Some markets are well ahead of the average 18% for DOOH share of revenue: 2018 was the year when two markets (UK and Australia) generated 50% of total OOH sales from digital units. The US is close to global average (17% share for DOOH) but some markets are lower (e.g. Italy and France) due to regulatory obstacles and/or industry fragmentation. MAGNA predicts the share of DOOH to grow to 28% globally by 2023 following an average growth rate of +12% of advertising sales between 2019 and 2023.
  9. Finally, the MAGNA-RAPPORT study observes that the OOH industry is undergoing consolidation. The top three OOH advertising vendors control an average 63% of total OOH ad sales in the top 20 markets at the end of 2018, but concentration (share of top three) jumped to around 90% in two key markets (UK and Australia).
  10. Further consolidation must be expected as all traditional media industries consolidate in an attempt to match the scale of internet giants. Besides, the OOH industry is seeking scale to finance further digitization and leverage data to improve ROI, and outsiders from the traditional OOH industry – from other media and technology – are now interested in OOH assets too. The relatively fragmented US market (share of top three 57%) is a likely candidate for the next wave of consolidation.

 

Contact MAGNA to access the full report (60 pages) and detailed advertising revenue estimates (70 countries, 20 years historicals, 5 years forecasts).

 

OOH ADVERTISING REVENUE FORECASTS
AVERAGE ANNUAL GROWTH (SOURCE MAGNA)

ABOUT THE AUTHORS

The report was produced by MAGNA Intelligence, the market research unit of IPG Mediabrands, in partnership with RAPPORT, the OOH specialist agency of IPG Mediabrands, and the contributions of Mediabrands experts in 70 countries. The research was supervised by Vincent Letang, EVP Global Market Intelligence at MAGNA, in partnership with Paul Sambrook, Global Marketing Director at Rapport.

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 design 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.

To access full reports and databases or to learn more about our subscription-based research services, contact forecasting@magnaglobal.com.

ABOUT RAPPORT

Rapport is the global out-of-home (OOH) media buying and planning agency of IPG Mediabrands. Best known for the strength of its relationships – its “rewarding connections” – Rapport is a collaborative and forward-thinking agency that delivers valuable results for both clients and partners. As OOH becomes more engaging, interactive and data-driven, Rapport can seamlessly navigate through the ever-evolving media landscape. Learn more: http://rapportww.com.

Magna Study: Digital Video Reaches Non-TV Viewers

January 25, 2019 // In the News
Media Trials

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