TV

Key Takeaways

• The rapidly changing landscape: 70% of U.S households have at least one connected TV; Roku and Amazon are still among the top OEMs; 94% of viewing on linear is still live or same day.
• Growth is due to the increase in streaming especially FAST which are having double digit growth. But how will the landscape unfold as, and if, the economy downturns. TUBI expects one in three streamers to reduce their channels.
• There has been a rapid decline in pay subscriptions over the last 5 years from 66% to 43% with a concomitant rise in cord cutters. Cord-nevers have leveled off at 13% having risen to 20% in 2020.
• COVID caused a rapid bump in viewing of TV and video, it retreated during 2021. But now we are seeing a renewed growth in the total amount of television and video. While there is a slow erosion, linear is still alive and well.
• One important story is the growth overall of exposure to video through different channels such as gaming and social. But it is content as well as mobile availability that is driving growth. Nearly 50% of linear content consumed is news, sports and movies. However, movies have lost a 5% share over the last 5 years, no doubt the loss coming from the growth of SVOD.
• Sports occupies a unique place in content. It accounts for more than half of all social media posts, and sports fans index at 124 for pay tv subscriptions.

Key Takeaways

• As most viewers watch on several platforms, providers need a complete view of all platforms to optimize content promotion. Obtaining accurate measures of viewers’ use of all platforms, however, is not an easy task and requires measurement innovation.
• NBCU partnered with VideoAmp to converge linear TV, digital and offline datasets through commingled identity graph to provide a view of the consumer across platforms. This approach allows NBCU to measure performance of all promotion tactics and determine which best drive conversions.
• The analysis of these data is helping NBCU to improve the impact of promotions. The data show how important it is to promote content on both linear and digital platforms and determine, for example, the right mix of promos on linear and digital platforms.

Key Takeaways

• Developing a Lookalike Model (LAM) to expand Spanish-language audiences, corrected for the underrepresentation of this consumer target.
• Expanding an audience with LAM identifies individuals who look and act just like a given target audience. These look-alike models are used to build larger audiences from smaller segments in order to create reach for marketers and advertisers and enable them to transact on an expanded audience.
• Use of LAM can overcome the challenges of misidentification, waste and scale. LAM plus the household graph achieves significant increases in overall audience scale.

Key Takeaways

• As SVOD has become mainstream, subscriber growth does not come from non-streamers anymore, but largely from churn between services. This makes churn an important issue that requires careful analysis to inform providers’ strategy.
• Churn is not simply a reflection of the quality of the service. The analyses show that there are viewer segments with different predispositions to churn. As a result, it is important to look at the churn rates among each segment to get a full understanding of consumer sentiment.
• Not all churn is negative. Some churn, driven by engaged viewers, is indicative of a healthy service. Subscribers with higher churn rates are likely among the most important to the content subscription platforms, as they are deeply involved in the content and are most active on social about that content.
• To manage churn and resubscription, we need to recognize the different motivations of viewer segments. This is important for the health of a streaming business.

Key Takeaways

• Even moderate category primes can push through effects, despite modest impact, in both linear and CTV. Category priming in streaming with limited ads impacted middle and lower funnel metrics, with 31% of viewers noticing a connection between the ad and the program.
• Although viewers agreed that low intensity “unsuitable” content was most acceptable for advertisers, there were no adverse effects as intensity levels increased—all levels were deemed suitable for advertisers, with no significant differences in brand recall or purchase intent.
• More research is required to understand what is unsuitable for brands. The current guidelines are based on what is thought to be unsuitable—not social science.