News You Can Use

Is the Future of TV Programmatic?

• Posted: September 28, 2015

The panel discussion, “Is the Future of TV Programmatic?” was a highlight at comScore’s first industry summit on the future of audiences and advertising.  Josh Chasin, writing for the comScore Insights blog, discussed the working definition developed by the panel, “Programmatic is simply about automation.”  However, the panelists also felt that “one of the principal implications of this automation is the opportunity to introduce data assets into the transaction process in a more efficient way than ever before.”

Chasin points out that the panelists were all strongly positive on programmatic growth in TV advertising transaction; however, they also unanimously believe that the upfronts will continue in the near future.  As long as the demand for TV advertising inventory exceeds the available supply, there will be an upfront market in order to secure access to that inventory.

However, this TV inventory (or “video inventory” is the term preferred by the panelists) will increasingly be transacted programmatically.  In addition, the scatter market is expected to develop in a similar manner to the RTB, the exchange-based market in the digital space.  Programmatic platforms will enable scatter deals to get done closer to real time.

The panelists agreed that TV is going programmatic, which will benefit both buyers and sellers.

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Mobile to Overtake Newspapers

• Posted: September 28, 2015

According to the latest Advertising Expenditure Forecasts from ZenithOptimedia, in 2016 mobile internet advertising will become the world’s third-largest advertising medium, behind television and desktop internet and ahead of newspapers.

The media agency’s forecasts show that next year mobile will account for 12.4% of global adspend while newspapers will take 11.9%. In terms of actual value, mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn.

Mobile advertising is the driving force behind the growth of the entire advertising market, ZenithOptimedia stated, as it will contribute 83% of all new ad dollars between 2014 and 2017. And as mobile continues its inexorable rise, so print continues to decline across most of the world. ZenithOptimedia predicts that newspaper adspend will shrink by an average of 4.9% a year through to 2017, while magazine advertising will shrink by 3.2% a year. Their combined share of global adspend will fall from 19.6% this year to 16.7% by 2017.

In that year, internet advertising is expected to account for 34% of global adspend, slightly behind television’s 35.9% and is likely to gain the top spot in 2018 on current trends. Total adspend is forecast to grow 4% this year to reach US$554bn before accelerating to 5% in 2016, thanks to the four-yearly boost supplied by the summer Olympics and US presidential election.

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Neuroscience in Marketing: Fact and Fiction

• Posted: September 28, 2015

 

Heather Andrew, UK CEO of Neuro-Insight, a consumer neuro research specialist firm, discusses the fact and fiction around the neuroscience techniques which enable advertisers to understand what consumers think about their campaigns.  By using these techniques to assess brain activity, subconscious, emotional responses of consumers can be revealed.  These responses are often difficult to measure via traditional research.

Among the Facts:                                                             

-Neuroscience adds value on top of traditional research methods: measuring the brain activities of audiences provides clarity on issues that people might not be conscious of or find difficult to articulate.  Neuroscience helps to identify emotional responses and to identify what is stored in memory on a second-by-second basis as audiences engage with content.

-Measurement of memory is crucial to assessing ad effectiveness: successful memory encoding has a strong correlation with decision-making and purchase behavior, and is the most important metric on which neuroscience can report.  Emotional response is also crucial, but high memory encoding levels are important to great advertising.

Among the Fictions:

-Neuroscience can read minds.  Fact: neuroscientists use technology to identify which parts of the brain are active as consumers interact with different types of content. Analysis of this information provides insights about the impact of the content.

-Measurement and analysis will stifle creativity. Fact: neuroscience often highlights the effectiveness of highly creative ads that can be undervalued by other methodologies.

-You only need a small sample when using neuroscience. Fact: samples of approximately 50 people are generally viewed as a minimum cell size.

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83% of Technology and Business Stakeholders Capture IoT Data, 8% Make the Most of It

• Posted: September 28, 2015

The intersection of the Internet of Things (IoT) and big data has great business impact potential. This article by Chuck Martin, writing for Media Post, presents findings from the study “IoT Meets Big Data and Analytics.”  This study, conducted by Dimensional Research for ParStream, sought to understand the stakeholder experiences and challenges related to IoT. The study presents the results of an online survey of 200 business people with professional responsibility for IoT projects.

Among the findings:

-While 83% of these stakeholder collect data, only 8% are making the most of it by fully capturing and analyzing it in a timely fashion.

-77% view data collection and analysis as important in their IoT projects.

-44% believe there is too much data to analyze effectively.

-36% feel that it is difficult to capture useful data.

-34% of the respondents either don’t store or don’t analyze any IoT data.

If the challenges involved in IoT projects could be resolved:

-76% of respondents would collect and store more data.

-70% believe they would make improved business decisions if they were able to capture and store data faster and more cost effectively.

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Mobile Phone Video Viewers Spending Most of Their Time With Short-Form Content

• Posted: September 28, 2015

According to Ooyala’s Global Video Index’s Q2 2015 study, online video viewers using mobile phones spent two-thirds of their viewing time in Q2 with content less than 10 minutes in length.

According to the report’s executive summary, mobile phones and PCs are equally popular (at 32% each) for short-form videos of 1-3 minutes in length.  However, when it comes to content over 10 minutes in length, tablets (57%) and connected TVs (53%) were the top choice of views, followed by desktop (40%) and mobile phones (33%).

The report further analyzed content over 30 minutes in length: connected TVs were the top choice (52%), followed by tablets (36%), mobile phones (23%), and PCs (22%).

In Q2 2015, mobile video plays exceeded 44%, and by the end of 2015, Ooyala expects mobile to account for more than 50% of all global video plays.

 

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22% of Cable Customers Also Subscribe to OTT Services

• Posted: September 21, 2015

According to a new study by Millward Brown Digital, 22% of cable subscribers also subscribe to an over-the-top service.  Although some cable subscribers do cut the cord when they become OTT subscribers, other cable customers want both types of content, and therefore, maintain both subscriptions.

Jon Lafayette, writing for Broadcasting & Cable, presents additional findings from this Millward Brown Digital report:

-Netflix is the largest OTT provider.

-HBO, which introduced HBO Now earlier this year, is currently experiencing the fastest growth.

-Amazon Instant Video is also growing faster than Netflix.

-Hulu has been growing more slowly over the last few quarters, but has recently introduced an ad-free tier.

-Millennials represent the majority of HBO and Netflix subscribers.

-35% of cable login subscribers are millennials.

-25% of cable subscribers are baby boomers.

According to Millward Brown Digital, content plays an important role in the consumer subscription decision.  According to this study, “It’s important to note these insights do not declare the death of cable TV.  Rather, they highlight the importance of content to a cable provider’s overall strategy and the importance of targeting that content to different generations.”

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6 Observations From a New Survey on the State of Big Data Analytics

• Posted: September 21, 2015

A new survey of 316 executives from large global companies provides a current view of the state of big data analytics implementations.  The survey was conducted by Forbes Insights and sponsored by Teradata in partnership with McKinsey.  

Gil Press, writing for Forbes, presents highlights from this survey:

-”The hype gone, big data is alive and doing well.”

About two-thirds of respondents report that big data and analytics initiatives have had a significant and measurable impact on the revenues of their organizations.

-”The right organizational culture is key to big data success.”

51% of executives surveyed reported that adapting and refining a data-driven strategy is the single biggest cultural barrier.

-”Big data is top of mind when the CEO loves data.”

Organizations led by CEOs who personally focus on big data initiatives view big data as the single most important way to gain competitive advantage.

-”Going from the right attitude to the right action is a long big data journey.”

48% of executives surveyed consider making fact-based business decisions based on data as a key strategic challenge.

-”There’s gold in them thar brontobyte data mountains.”

Big data is driving opportunities for innovation in three key key areas: creating new business models (54%), discovering new product offers (52%), and monetizing data to external companies (40%).

-”Big data miners still very much wanted.”

Hiring talent with the right set of skills and experiences is challenging.

 

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YouTube Will Allow Third-Party Verification of Ad Viewability

• Posted: September 21, 2015

YouTube will begin allowing third-party measurement tools for viewability verification by the end of 2015.  This represents a change from its long-standing policy of using only its Active View Measurement tool for ad viewability.  David Kirkpatrick, writing for Marketing Dive, reports that The Financial Times cited Unilever and Kellogg’s as the brands that pressured YouTube to make this policy change for independent verification options.

According to a study done by Google:

-Active View reported 91% of YouTube ads.

-54% viewability across all of its video ad networks.

Kirkpatrick also provides a quote given to The Financial Times by Google about the change in their policy, “We’re committed to meeting all of our clients’ measurement needs” and “are taking our clients’ feedback into account as we continue to roll out new solutions.”

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Traditional Out-of-Home Media Continues Growth

• Posted: September 21, 2015

Out-of-Home (OOH) advertising revenue rose 3.8% in the second quarter of 2015 compared to the previous year, accounting for $2.25 billion, based on figures released by the Outdoor Advertising Association of America (OAAA).

In contrast to the OOH advertising revenue growth, statistics from Kantar Media reveal that total ad spending in the United States was down almost 7% for the quarter, and OOH and local radio are the only traditional media with significant growth.

In this Research Brief From the Center for Media Research, Jack Loechner provides a ranking of top OOH advertisers, based on their spending, as released by the OAAA.  This ranking includes:

-McDonald’s

-Apple

-Metro PCS

-Warner Bros Pictures

-Geico

The article includes this quote by Stephen Freitas, OAAA Chief Marketing Officer, “…the most significant trend in advertising today is the shift to digital… this hasn’t impacted OOH the way it has other traditional media, because OOH complements… digital marketing… especially mobile… the fastest growing of all digital platforms… ”

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Data is the Next Big Thing in Content Marketing

• Posted: September 21, 2015

Alexandra Samuel, writing for the Harvard Business Review analyzes data journalism, which the author views as an important trend.  Data journalism draws on the growing availability of data sets and data analysis tools to uncover and tell stories.  Big data offers marketers the opportunity to develop data-driven stories involving new insights, to tell stories in a compelling manner, and to have the stories disseminated via social media.

However, Samuel points out that data visualizations driven by original data are rare.  While infographics are frequently used by corporations and marketers, these infographics do not focus on original data-driven content.

Benefits of offering data as a content marketing resource include:

-Increased traffic: data visualizations and reports are likely to be shared on social media.

-Value: by offering unique information and actionable insights, the company’s content will provide value.

-Authority: by offering a report or infographic with new information or key trends, the company’s expertise is highlighted.

-Learning: by releasing some of the corporation’s data in a form that readers can use to create their own charts or analyses, new insights may be revealed.

-Transparency: by offering information on the patterns revealed by consumer data, brands can help consumers feel more comfortable with the use of their personal data.

Samuel feels that some companies have successfully used their own data to drive original stories, such as OKCupid, General Electric, Kickstarter, and Jawbone.  However, the potential of data-driven marketing is not being fully utilized by most companies.

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