The Future of National TV, Addressables, Content Creation — Part 1 BY BILL HARVEY IN TERMS OF ROI DECEMBER 09, 2015

This is Part 1 of a series of blog posts predicting the next three years and the further wrenching changes to which we can truly look forward.

The past few weeks have seen a predictable turnaround in the press perception of the future of television. TiVo Research has been reporting that TV outsells and lifts ratings more than digital for years, as has Dave Morgan, CEO of Simulmedia. It was only a matter of time before the press and Wall Street would catch up with these facts. And in the past few weeks, Symphony Advanced Media has begun publishing its VideoPulse service, counting the many viewers missed by Nielsen and agreeing pretty well on the ones both companies measure. This has proven the widely suspected fact that despite the apparent collapse of TV audience in Nielsen data, nothing could be farther from the truth. SMI CCO James Fennessy’s recent blog showed that TV ad sales could not be healthier in their present strong rebound, built upon the factual ability of TV advertising to cause sales beyond any other paid media advertising force on Earth. And the true leaders like Dave Poltrack at CBS and Howard Shimmel at Turner continue to bang away at proving TV ROI.

The return to sanity as regards TV skies falling does not mean that the future for TV is going to be as lush as in the past. There is a horde of competition coming from everywhere, including people in technology companies rolling in dough. Money is a valuable thing to have when one is trying to lure the relatively few proven still-hot talents in the creative community of the world. There is going to be a move to become more of a content creator than a distributor, as the price war among distributors continues mercilessly.

TV will get a boost when it fully monetizes addressable commercials, which will have the effect of more than a 30% increase in the total amount of the top line heading into television. This is both because they will attract small business as well as big, and because the math works that way. The table below shows that the seller more than doubled his money from the sale of one spot using optimized addressable commercials, despite lowering the CPM against the true target audience to all of the advertisers. (I am happy to take anyone through the table by phone.) These independent articles also agree with the idea of a significantly increased pie as a result of addressables: Scientific Atlanta and Sanford Bernstein. The Scientific Atlanta forecast is $15B per year incremental to MVPDs. Next Century Media’s forecast was $22B.

What has held addressables back since they were first introduced by Next Century Media in the early 90s is confusion. Many people today still think that when you buy addressable TV commercials you pay a premium. Frankly, if you walk in the door that way you will probably wind up paying a premium. As the inventor (I first wrote about them publicly in 1979 before introducing them commercially in 1990), I have always seen addressables as a win/win for the seller and buyer: just look again at the table above. The seller has increased spot sales +135% (more than doubling) while the buyer has on average received a 30% discount on CPM against their brand’s heavy category purchasers.

In 1996 John Hendricks and I co-founded the Addressable Advertising Coalition, which was endorsed by Bob Wehling, the CMO of P&G and Phil Guarascio, the Vice President of Advertising at General Motors, and was joined by all of the top 20 agencies, many other advertisers, networks, MVPDs, set top box manufacturers, 4As, ARF, ANA, CTAM, et al. Today the most centrally placed member of the AAC is Lyle Schwartz at GroupM. GroupM’s Chairman Irwin Gotlieb and Modi head Mike Bologna, and Publicis’ Senior Vice President Innovation Tracey Scheppach, are three of the leading teachers and two of the biggest buyers of addressable commercials today. They will only buy addressable commercials at a discount — not a premium on the CPM against the real target to which the addressable buy is constrained. This was an AAC dictum Lyle, Bob DeSena, Fred Sattler and many others helped us write in 1996. It has taken so long for addressables to roll out to ~43% of US TV Homes we had almost all forgotten why we were doing them in the first place.

Source: The Future of National TV, Addressables, Content Creation — Part 1 | MediaVillage


Mashable Shop will feature the publisher’s own merchandise, like branded sunglasses and a hacky sack. Credit: Courtesy Mashable

Publishers continue to experiment with e-Shops.  Sponsored by Visa, this one is an interesting play in a highly competitive market.

Mashable Shop Is a Native Ad That’s Also an Online Store. Visa Will Sponsor Shop to Promote Visa Checkout

By Tim Peterson. Published on November 25, 2015.

Digital publishers are looking for all kinds of alternatives to the traditional banner ad. They’ve typically looked at new ways of fusing editorial and advertising — sponsored articles, branded videos, etc. — but Mashable has come up with a way to add e-commerce to the mix.

On Cyber Monday Mashable will open Mashable Shop on its site. And in a native advertising spin on e-commerce, the new e-commerce section of Mashable.com will be sponsored by Visa and incorporate the company’s Visa Checkout payment service.

Mashable Shop will be in business through 2016 and feature products from some brands that Visa considers partners as well as a few tech products from crowdfunding site Kickstarter. It will also feature Mashable-branded clothes and accessories created by Mashable’s creative arm, Collective, which also runs its Snapchat Discover channel, in an effort to promote Mashable’s own brand. In addition to the revenue from Visa’s sponsorship, Mashable will only be making money from sales of its own goods, which will include Mashable-branded hoodies, sunglasses and a hacky sack. Revenue from Visa partners’ products and the Kickstarter products will go entirely to their respective creators, according to Mashable CMO Stacy Martinet.

“For us this is more of a brand play than a revenue play,” Ms. Martinet said. She added, “We are not looking at this as an e-commerce play.”

However, it is an advertising play. Visa already runs ads on Mashable, including a sponsored content series to promote its PayPal-like digital payment service Visa Checkout. But interspersing interviews with NFL stars with clips of Visa Checkout isn’t the same as actually getting people to use the service that lets people buy products online without having to fill out a bunch of forms each time they do. That’s where Mashable Shop comes in.

As part of the sponsorship deal, people buying products through Mashable Shop will only be able to make the purchases using Visa Checkout, which can connect to a person’s MasterCard, American Express or Discover credit or debit card. That way Visa can offer something new to the 8.5 million people who already use Visa Checkout as well as attract more of those people, whose characteristics — tech-savvy, millennial early adopters — overlap with Mashable’s audience, according to Sam Shrauger, Visa senior VP-digital solutions.

“It’s an evolution of the marketing, advertising and commerce capabilities coming together. That’s exciting because I think it’s a good leading indicator of what you’ll see a lot of folks in the space do,” said Mr. Shrauger, who wasn’t sure how much Visa is spending on the campaign. A Mashable spokesman declined to comment on the amount of money changing hands.

Source: Mashable Shop Is a Native Ad That’s Also an Online Store | Digital – Advertising Age

An appropriate response to ISIS recruitment propaganda.  The battle needs to be fought on all fronts that endanger the free world.

Students, Madison Avenue Enlisted in Messaging Fight Against ISISCombating Extremism With Social Media and Other Marketing TacticsBy Kate Kaye. Published on November 16, 2015. Reprints ReprintsCadets visit BuzzFeed for tips on reaching Western ‘fence-sitters.’ Credit: Courtesy BuzzFeedAD AGE REPORTSSponsored White PaperThe Marketer’s Guide to User-Generated ContentCrowdtap’s new report defines UGC as it exists today and explains why the rise of consumer-generated media is one of the biggest trends in marketing right now.Learn more Sixteen West Point cadets in their dress grays sat in a BuzzFeed conference room in New York on Nov. 3, a giant version of the site’s “wtf” button stenciled on a wall in the distance. As they soaked up the frenetic energy, they hoped a little of the pop-culture media giant’s viral pixie dust might drift their way.The U.S. Military Academy at West Point is among 45 schools worldwide whose students are developing programs to battle extremism, but not with fighter jets or ground troops. It’s a war of ideas in which participants use the same social media and other marketing tactics that have been harnessed aggressively as recruitment armaments for the Islamic State.

Source: Students, Madison Avenue Enlisted in Messaging Against ISIS | News – Advertising Age

The evolution of TV and the future of video advertising

TOM HERMAN OCTOBER 27, 2015 7:00 PMTAGS: Image Credit: Ryan Merritt

The rise of digital has completely transformed the media industry. Video, which was once exclusive to TV, has become multi-platform, multi-device content. The term “watching TV” will apply to watching an NBC show via Netflix on a tablet, just the same as watching a movie on HBO Now via Apple TV. Content will become device agnostic, your TV will essentially be a larger version of the phone in your pocket, and the CBS Channel will be replaced by the CBS App on any device.

This shift away from traditional TV and the growth in cord cutting has never been more evident than in 2015. Consumer adoption of streaming video services continues to surge as 42.5 percent of subscribers said they reduced their cable or satellite TV service, and 8.2 percent of subscribers  cut their cable or satellite service completely. Meanwhile, OTT streaming services continue to grow, as Netflix reaches over 69 million subscribers and Dish, Comcast, CBS, HBO, and Sony all launch their own OTT products. 2015 has been a turning point, and in the next four to five years, the majority of video consumption will be done over IP.

So what does this mean for advertising? As TV evolves, so does the video advertising industry. Digital ad spending in the US is projected to surpass television ad spending in 2016. The TV advertising industry has long resisted change because money was flowing and they had enough business power to maintain the status quo. Now, despite 50 plus years of maintaining video dominance, TV has had to adapt to the growing digital landscape as TV ads become a smaller and smaller slice of the advertising pie chart.

Programmatic video technologies – which have been used by the digital video industry – will disrupt the way traditional TV ads are bought and sold, and this change will occur at a breathtaking pace. Dynamic Ad Insertion (DAI) for desktop video, mobile video, and linear TV will converge on digital standards and digital measurements and currencies. Despite issues such as fraud, viewability, and ad blocking, programmatic advertising allows a level of targeting and efficiency previously unavailable. Advertisers no longer need to buy the entire audience of, say, the Walking Dead if they want to target male millennials — they can use programmatic advertising to target specifically those who are in the right gender, age and income brackets, leaving the rest of the Walking Dead audience to be sold to an advertiser looking for the female audience. This will ultimately increase yield.Programmatic digital video is expected to reach $2.9 billion in 2015 and to grow to $7.43 billion by 2017. As digital advertising continues to eat away at the world of linear TV advertising, we’ll see a continued acceleration of the over $70 billion of TV ad revenue shift. While this shift may today feel like a small trickle, once the new definition of TV reigns, the flood gates will open for ad dollars. What was a slow transition will become a massive, quick transformation. This rapid shift will fuel a change felt by all aspects of the business, from execution to measurement to creative development (say goodbye to the 30-second spot). With the new definition of television, one integrated marketplace will arise, making execution much more seamless. In turn, this will provide a range of benefits, from measurements based on cohesive data to easy comparisons and integrated creative development.

Traditional TV as we now know it will no longer exist in just a few short years. As the industry, and the technology that supports it, mature, business will eventually settle into a new norm. The world of linear TV and digital will merge and birth a whole new marketplace. Changing video consumption habits have already unveiled an evolved definition of television, and this will dominate the new marketplace, informing how every player conducts its business.

Source: The evolution of TV and the future of video advertising | VentureBeat | Marketing | by Tom Herman

Vice CEO Shane Smith: We’re going to change the way TV makes money Seb Joseph, The Drum Oct. 26, 2015, 4:33 AM

Media cofounder and chief executive Shane Smith.See AlsoYahoo’s $42 million write-down of its original video series shows it’s still struggling to work out what it’s good atA day in the life of The Body Coach — the British Instagram star inspiring thousands of people to ‘get lean’Report: Spend on TV advertising took a tumble this yearNative ads on TV are coming, according to Vice Media’s cofounder and chief executive Shane Smith, who said its latest foray into TV will disrupt the way the channel is monetised.“Everyone wants to be disruptor or a conduit of disruption until you actually disrupt something and then everybody hates you,” said Smith. And the media house is braced for what could be tepid enthusiasm from broadcasters to its upcoming TV channels,especially once they realise how they will be monetised.Smith, who was speaking at Vice’s IAB Digital Upfront tonight (23 October), sold the proposition in as “native TV”. Details were thin on the ground as to what exactly it means but he did tease that it would translate its native content successes online to television. “We were the first people to do native advertising and we’re going to move that over to TV,” he continued. “We’re going to change the way TV is monetised.”Vice has emerged as one of the poster boys of the content marketing era, with brands like Unilever and Verizon striking deals in order to understand how to make native advertising scale. Interestingly, there isn’t a lot of media spend behind the sponsored content on Vice, the publisher has said, because it treats its communities like the media buy.

Source: Vice Media 2015 Upfronts – Business Insider

What’s actually working in digital advertising? 8 publishers on how they’re bringing in money Executives from The New York Times, Slate, The Atlantic, Wired, Mashable, The Seattle Times, Vox Media, and Newsweek say native advertising continues to be a success. But many are still trying to find the right approach to mobile ads.

By JUSTIN ELLIS @JustinNXT Oct. 19, 2015, 11:48 a.m. 231 105

Many publishers’ digital revenues have been on an upward swing in recent years — but it’s not enough to fill the gaps left by print. According to eMarketer, global digital ad spending in 2015 is expected to reach $170.17 billion. Global mobile ad spending globally should hit $69 billion this year. That sounds like good news. But there are plenty of caveats for publishers: In 2014, Google, Facebook, AOL, Microsoft, and Yahoo accounted for 61 percent of total digital ad revenue in the U.S., according to Pew’s annual State of the Media report. R

The next version of Safari will let users block ads on iPhones and iPads June 10, 2015 And this year, publishers are confronted by new obstacles: The rise of ad blocking on mobile and the specter of fraud brought on by bot traffic. With the rise of automated ad sales, some media companies are trying to build their own custom ad tech. Factor in platforms like Apple, Facebook, and Snapchat hosting news — and offering to sell ads, minus their own cut — and it can feel as if publishers are trying to thread an increasingly smaller needle. I asked several publishers what’s working for them in digital advertising in this uncertain environment. What types of formats are performing well? How is that a change from recent history? Do they have any plans to counteract ad blockers? Now that many companies are creating branded/sponsored/native offerings, the hunt for America’s Next Top Advertising Model has moved to formats like video, podcasts, and newsletters. For many, mobile remains an elusive goal — and, as Mary Meeker’s annual slide deck shows, a tantalizing opportunity. I spoke with executives from Slate, The New York Times, Vox Media, The Atlantic, Mashable, The Seattle Times, Newsweek, and Wired. Their thoughts on digital advertising are below, slightly edited for length and clarity.

Source: What’s actually working in digital advertising? 8 publishers on how they’re bringing in money » Nieman Journalism Lab

Evan Ratliff, near his offices in Brooklyn, runs The Atavist Magazine, which last month shut off its app and decided to publish only on the web. Credit Benjamin Norman for The New York Times

Publishers Straddle the Apple-Google, App-Web Divide By KATIE BENNER and CONOR DOUGHERTY OCT. 18, 2015

Apple wants mobile devices to be filled with apps. Google supports a world where people browse the web for most things. Now websites are increasingly caught in the middle of those competing visions. Consider The Atavist Magazine, an online publication run by Evan Ratliff. To attract the broadest audience possible, Mr. Ratliff said he felt pressure to do everything twice: once for the web and once for the magazine’s app. But maintaining a website and getting readers for it while also building an audience of iPhone users with an app took time — too much time, Mr. Ratliff said. So last month, The Atavist shut down its app and decided to publish only on the web. “Getting someone to download an app is way harder than targeting them and sending them stories through social media,” said Mr. Ratliff, co-founder of the magazine. The decision was difficult because The Atavist’s app had a following, and it is “hard to give up any audience once you have it,” he said. But in the end, the app’s limitations were too great, he said.

Source: Publishers Straddle the Apple-Google, App-Web Divide – The New York Times