TV networks are using a new strategy to sell ads more like Google and Facebook

The big question: Can the member companies of OpenAP cooperate enough to compete with Google and Facebook?

Quote from Sara Fischer – Media Reporter @ Axios:
“During a panel I moderated last week at AT&T’s advertising conference, some of the country’s biggest buyers noted that sellers do these things to make it easier for them to sell ads, but these fragmented alliances don’t always make ads easier to buy.”

Pro tip: Sign up for Sara’s must-read newsletter here!

Key details for OpenAP:
1) Announced in 2018
2) Owned by Fox, NBCUniversal, Viacom, and Univision
3) Includes inventory from 20 cable networks and 3 broadcast networks
4) Buy-side marketplace launched October 1st

Share of advertisers who expect to increase spend by media type in the next 12 months according to FreeWheel:
1) Advanced TV – 78%
2) Digital Video – 65%
3) Mobile – 50%
4) Digital Display – 43%
5) Local TV – 14%
6) National TV – 8%

Video: OpenAP Grows Up: Next Step Is To Become A Marketplace, New CEO Levy Says

What happens next: TV Buyers are being rebranded as video investment teams, and digital buyers are going to school on TV metrics.

The future: The term “digital buyer” and “TV buyer” will go away, and there will be “video buyers.” Everyone cannot be great at everything so some buyers will be stronger in TV or digital, but the future is cross screen.

Who wins: The winners will be whichever side learns the other side’s piece first and effectively integrates it into a holistic video offering.

Flashback: OpenAP and NCC Media partner to expand advanced advertising on TV

Reminder: It is early in the game for advanced/addressable advertising.

National TV ad spend share by targeting type according to eMarketer:
1) Age/Gender – 95%
2) Advanced TV/Audience – ≈ 3%
3) Addressable – 2%

Adoption for addressable TV:

1) Fully using – 15%
2) Experimenting or not using – 85%

Adoption for advanced TV:
1) Fully using – 17%
2) Experimenting or not using – 83%

More #1: How to move addressable TV from a buzzword to an industry staple

More #2: Major Cable Companies Compile More Granular Data to Fuel Targeted Ads

More #3: Audience Planning Ate Media Planning

‘A sea change’: Local TV ad market races to automation ahead of next year’s election

The big question: Is local TV ready to go programmatic in time for the 2020 election?

Why this matters: Video ad share for Local TV (broadcast and cable) is expected to drop to 72% in 2020 down from 81% in 2018.  Easier buying = More buyers = Higher prices.

Presidential cycle political video ad spending according to Advertising Analytics/Cross Screen Media (% growth):
1) 
2016 – $2.2B
2) 
2020P – $5.9B (↑ 170%)

Share by platform in 2020P (vs. 2018):
1) Local Broadcast TV – 55% (↓ 9%)
2) Digital Video – 27% (↑ 8%)
3) Local Cable TV – 17% (↑ 1%)

The growth rate between 2018 and 2020:
1) 
Digital Video – ↑ 116%
2) Local Cable TV – ↑ 55%
3) 
Local Broadcast TV – ↑ 29%

Do you want to sell more political ads in 2020?  If yes, then download our FREE 10-page report and let’s get started!

Video: Political Ad Race

Worth the time: Bruce Mehlman recently published a 34-slide deck on the state of politics going into 2020.

Podcast: Using Connected TV to Connect with Young Voters

More #1: The political video ad boom is growing by billions

More #2: The 2020 Elections Will Set (Another) Ad Spending Record

More #3: OTT Advertising Will Be A Clear Winner In The 2020 Elections

Capital One Arena, British bookmaker team up as D.C. moves forward with legal sports gambling 

The big news: Ted Leonsis has struck a deal that will see his company (Monumental Sports & Entertainment) partner with William Hill to install a sportsbook at the Capital One Arena.

Flashback: From ESPN to Monumental Sports Network: what does the future of sports broadcasting look like?

Major institutions run out of Washington, DC in order of importance:
1) 
State of the Screens
2) United States government The first sportsbook in a major U.S. sporting venue
3) United States government

Thought bubble: Getting dropped off in the sportsbook during the Zamboni run will cost Mr. Screens less money compared to Mrs. Screens, Lil Screens and new Baby Screens taking him to the team shop 😂

Video: Caps owner Ted Leonsis on future of sports gambling, betting

More #1: Q&A With Zach Leonsis: Inside the Deal That’s Bringing a Sportsbook to Capital One Arena

More #2: A Conversation with “Billion Dollar Fantasy” Author Albert Chen

Little Movement Atop New Nielsen DMA Ranks 

U.S. Television households, according to Nielsen (YoY growth):
1) 2018-19 – 110.2M
2) 2019-20 – 107.0M (↓ 3%)

Top 5 markets by total growth:
1) Indianapolis – ↑ 54K
2) Tucson (Sierra Vista) – ↑ 29K
3) Salt Lake City – ↑ 17K
4) Wilkes Barre-Scranton-Hztn – ↑ 16K
5) Phoenix (Prescott) – ↑ 15K

Top 5 markets by growth rate:
1) 
Tucson (Sierra Vista) – ↑ 7%
2) 
Indianapolis – ↑ 5%
3) 
Savannah – ↑ 4%
4) 
Youngstown – ↑ 3%
5) 
Wilkes Barre-Scranton-Hztn – ↑ 3%

Bottom 5 markets by total growth:
1) 
New York – ↓ 276K
2) 
Los Angeles – ↓ 131K
3) 
Washington, DC (Hagrstwn) – ↓ 131K
4) 
Houston – ↓ 93K
5) 
Seattle-Tacoma – ↓ 90K

Bottom 5 markets by total growth:
1) 
Juneau – ↓ 18%
2) 
Flint-Saginaw-Bay City – ↓ 16%
3) 
Fairbanks – ↓ 15%
4) 
Toledo – ↓ 13%
5) 
El Paso (Las Cruces) – ↓ 13%

More #1: Little Movement Atop New Nielsen DMA Ranks

More #2: The number of people in the average U.S. household is going up for the first time in over 160 years

Extreme Reach: 2019-Q2 Video Benchmarks

Share of impressions by length in 2019-Q2 according to Extreme Reach:
1) 30s  – 64%
2) 
15s  – 33%
3) 
60s – 2%
4) 
6s  – 1%

Share of impressions for 6s:
1) 2017-Q1 – 0.04%
2) 
2017-Q2 – 2%
3) 
2017-Q3 – 3%
4) 
2017-Q4 – 5%
5) 
2018-Q1 – 3%
6) 
2018-Q2 – 1%
7) 
2018-Q3 – 2%
8) 2018-Q4 – 1%
9) 2019-Q1 – <1%
10) 2019-Q1 – 1%

Share of impressions by device (share change):
1) 
Connected TV – 50% (↑ 12%)
2) Mobile – 25% (↓ 5%)
3) Desktop  - 16% (↓ 7%)
4) Tablet  – 6% (↓ 3%)
5) Other  – 3% (↑ 3%)

Completion rate by device:
1) 
Connected TV – 95%
2) 
Tablet  – 87%
3) 
Desktop  –  83%
4) 
Mobile  – 81%

Average view time by length:
1) 30s  – 26s (87%)
2) 15s  – 13s (87%)

More #1: CTV generates twice as many video ad impressions as mobile, study say

More #2: CTV Achieves Critical Mass, Surpasses 50% Of Video Ads ‘Served’

Instagram’s Content Factories Are Huge—And That’s a Problem for Facebook

Influencer spend on Instagram according to Instascreener (QoQ growth):
1) 
2018-1Q – $163M
2) 
2018-2Q – $171M (↑ 5%)
3) 2018-3Q – $174M (↑ 2%)
4) 2018-4Q – $235M (↑ 35%)
5) 2019-1Q – $265M (↑ 13%)

Key details for Instagram:
1) 
Instagram accounts for $0.54 out of every $1.00 of new advertising revenue for Facebook.

2) Some estimate that Instagram would be worth $200B as a standalone company!

Flashback: With IGTV, Instagram is betting that people want longer vertical videos

Instagram user growth by year:
1) 
2010 – 1M
2) 
2011 – 10M (↑ 900%)
3) 2012 – 50M (↑ 400%)
4) 2013 – 150M (↑ 200%)
5) 2014 – 300M (↑ 100%)
6) 2015 – 400M (↑ 33%)
7) 2016 – 600M (↑ 50%)
8) 2017 – 800M (↑ 33%)
9) 2018 – 1B (↑ 25%)

More #1: ‘It’s found money’: YouTube stars look for ways to expand to Facebook

More #2: The Sky Is Fake on Instagram

More #3: Where Everyone’s an Influence

Comcast’s Trojan Horse for Pay-TV

The Big News: Comcast is waiving the $5/month fee for it’s Xfinity Flex streaming box for existing broadband-only subscribers.

Why this matters: This allows Comcast to own the “last mile” of the video relationship with broadband-only customers.  This is a game that they have been forfeiting to Roku and Amazon, until now.

Interesting: Comcast’s Giveaway Is Exactly What Steve Jobs Feared

How they will make money (beyond broadband):
1)
 Referral fees for streaming service sign-ups
2) Reselling a share of the ad inventory

Share of streaming video time, according to Samsung:
1) Ad-free (SVOD) – 60%
2) Ad-supported (AVOD) – 40%

Flashback: Comcast Debuts ‘Xfinity Instant TV’ Skinny Bundle for Broadband-Only Users

More #1: Targeted TV Advertising Is Taking Off 

More #2: Is Comcast Competing With Roku?

More #3: Who’s who in advanced TV? How Netflix, Hulu, Roku, NBCU and others are shaping how we watch

Video: The Future of TV is Ad-Funded

‘Game of Thrones’, HBO Top Total Emmy Wins

HBO won 34 Emmys with Game of Thrones topping all shows with 12.

Emmy awards by network, according to Variety:
1) 
HBO – 34
2) 
Netflix – 27
3) 
Amazon – 15
4) 
National Geographic – 8
5) 
NBC – 7

Emmy awards by show:
1) Game of Thrones – 12
2) 
Chernobyl – 10
3) 
The Marvelous Mrs. Maisel – 8
4) 
Free Solo – 7
5) 
Fleabag – 6

Emmy awards for Netflix by year:
1) 
2013 – 3
2) 
2014 – 7
3) 
2015 – 2
4) 
2016 – 9
5) 
2017 – 20
6) 
2018 – 23
7) 
2019 – 27

Emmy awards viewers by year, according to The Economist (% change):
1) 
2009 – 13.5M
2) 
2019 – 7.0M (↓ 48%)

Flashback: Emmys: HBO, ‘Game of Thrones’ Dominate Nominations

More #1: HBO fends off streamers at Emmys while other TV networks struggle

More #2: Emmys: Big 4 Broadcasters Post Lowest Combined Wins Ever

More #3: The 2019 Emmy Awards were a huge win for cord cutters and another loss for basic cable

FreeWheel: Q2-2019 Video Monetization Report

Key findings, according to FreeWheel:
1) 
Audience targeted video advertising grew 82% YoY
2) Completion rates for premium video range from 85% to 100%

Ad view growth:
1) 
Video views – ↑ 13%
2) 
Video ad views (all) – ↑ 27%
3) 
Video ad views (audience targeted) – ↑ 82%

Share by format:
1) Full episodes (>5m) - 55%
2) Live – 38%
3) Clips (<5m) – 7%

YoY growth by format:
1) Live – ↑ 44%
2) Full episodes (>5m) – ↑ 19%
3) Clips (<5m) – ↑ 9%

Share by device:
1) 
CTV/OTT – 55%
2) 
Mobile – 17%
3) 
STB VOD – 14%
4) 
Desktop – 14%

YoY growth by device:
1) 
CTV/OTT – ↑ 48%
2) 
Mobile – ↑ 3%
3) STB VOD – ↓ 3%
4) 
Desktop – ↓ 2%

Average video ad pod length (QoQ change):
1) 
2019-Q1 – 96s
2) 
2019-Q2 – 109s (↑ 14%)