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Since our first-ever U.S. Advertising forecast was published in 1950, we’ve been making headlines and sharing our unique perspective and outlooks on the marketplace. Here you’ll find our latest headlines, press releases and thought leadership.

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“Real Talk with MAGNA Global, Media Trials”: The Brand Safety Effect

October 24, 2018 // Thought Leadership

In the premiere episode of this sister series, the Media Trials team shares top findings from their most recent report, The Brand Safety Effect, created in partnership with Cheq.

CONSUMERS VIEW NON-BRAND SAFE ADS AS AN INTENTIONAL ENDORSEMENT BY THE BRAND, ACCORDING TO NEW STUDY BY CHEQ, MAGNA AND IPG MEDIA LAB

October 24, 2018 // Press Releases

The Study, Conducted in Collaboration with BMW and a Leading Online Entertainment Platform Is the First to Measure and Quantify the Precise Impact of a Negative Ad Placement

NEW YORK – October 24, 2018 – In the wake of a number of recent brand safety issues in the digital advertising marketplace, autonomous brand safety company CHEQ, together with IPG Mediabrands, BMW and a leading online entertainment platform, today announced the results of an in-depth media trial study – “The Brand Safety Effect” – that examined how ads that appear near negative content result in a 2.8x reduction in consumers’ intent to associate with these brands. The study was initiated by CHEQ and conducted with MAGNA, the intelligence, investment and innovation unit within IPG Mediabrands, and IPG Media Lab, the media futures and advisory arm of IPG Mediabrands.

More than 2,000 consumers were surveyed on their reactions to ads that appeared alongside three different types of “negative” content: generally unsafe content (i.e., a school shooting); brand-averse content (i.e., an airline ad next to an article about an airline forcibly removing a passenger); vertical-averse content (i.e., a soda ad in front of content about diabetes).

Chief among the insights was that many consumers view brand unsafe ad placements as an intentional endorsement of the negative content.

“It seems manipulative,” suggested one respondent. “I’d prefer a company that doesn’t use that kind of technique.”

Another respondent added, “It’s disturbing that they are generating revenue through disaster.”

One respondent even went as far as saying that it “Looks like they’re exploiting shock value.”

We also found that when consumers assume every ad placement is intentional, it makes them 2.8x less willing to associate with a brand when its ads are displayed in unsafe environments.  In addition, two-thirds of consumers who indicated high purchase intent for a specific brand were less likely to buy that brand after being exposed to an ad from the same company appearing alongside unsafe content. The open-ended feedback in the study shows more of the same.

“Our joint research with CHEQ shows that most consumers believe there are no mistakes in advertising, meaning that if an ad runs next to violent and/or offensive content, for example, they assume the brand deliberately placed it there and is in some way endorsing the content,” said Joshua Lowcock, global brand safety officer at UM Worldwide, part of IPG Mediabrands. “Brands need to be aware that blindly following a customer or chasing media price efficiency can have devastating effects on the long-term health of their brands.”

The individual feedback in the study was particularly revealing – with many respondents expressing points of view that make it clear they believe negative ad placement is intentional.

“First-generation ad-verification solutions have focused primarily on reporting brand-safety violations after they have occurred, rather than preventing them in real-time,” said Guy Tytunovich, CHEQ’s CEO and Founder. “This means that advertisers are still, repeatedly on display alongside potentially damaging content. For this reason, we launched this study, with the intent of gauging the effect of this negative exposure on the brand’s image. The findings clearly show just how compromised brands are, and how years of reputation building can go down the drain with just a few negative ad placements.”

The study goes into detail on a number of additional negative consumer perceptions of companies when their ads show up in an unsafe, negative, and/or brand/vertical averse environment.

Additional key findings include:

  • The Brand Doesn’t Care About Me: Consumers are 4.5x more likely to feel the brand doesn’t care about them
  • The Brand Is Out of Touch: Consumers are 3x more likely to feel that the brand isn’t “in the know”
  • The Brand is Undesirable: Consumers’ brand quality perception drops 7x
  • The Brand Should be Avoided: Consumers are 50% less likely to recommend the brand

The Brand Safety Effect,” conducted with CHEQ, is the latest in MAGNA and IPG Media Labs’ media trial series. Recently, the companies explored: 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 360Effect” 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 CHEQ

CHEQ is a global cybersecurity company and a pioneer of Autonomous Brand Safety, protecting the digital ad spend for the world’s leading brands. With offices in Tokyo, New York and Tel Aviv, the company’s mission is to help sustain the digital ecosystem by protecting advertisers from the risks of online advertising and helping them regain confidence in the space. At a time where the world’s largest advertisers are excluding premium news and UGC publishers from their media plans, CHEQ aims to enable advertisers to resume buying in environments they deem risky, while eliminating the need of bill deductions, loss of media scale, and tiring, report-based optimizations. CHEQ is a Battery Ventures portfolio company and an alumnus of “The Bridge Builders”, Coca-Cola’s, Mercedes’ and Turner’s commercialization program. For more information, please visit http://www.cheq.ai.

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

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.

 

 

 

 

Consumers Think Unsafe Ad Placements Are Intentional, Study Finds

October 24, 2018 // In the News
Media Trials

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

October 24, 2018 // Media Trials
Press Releases

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

 

“Real Talk with MAGNA Global”: Programmatic Report

October 22, 2018 // Thought Leadership

Luke Stillman, SVP of Digital Intelligence and author of the biannual Programmatic Report, answers questions on key findings in Episode 7 of Real Talk.

Real Talk with MAGNA Global from MAGNA on Vimeo.