State of the Screens #31


Welcome to the thirty-first edition of State of the Screens.

1. NBC: Inconsistent Measurement (And Bad Ads) Are Holding The Industry Back

Is the current ad model sustainable? This is the question that industry leaders recently wrestled with.

Quote from Linda Yaccarino — Chairman of Advertising @ NBCUniversal.
“NBC is committing to making television smarter, … That means improving the consumer experience, weaning ourselves off of a single currency metric, becoming more focused on meeting real business objectives. Who knows, [maybe] even reducing [our] commercial load across [the] board.”

The challenges:
1) Consumers dislike intrusive/irrelevant ads
2) Marketers are frustrated with measurement that is not based on ROI

Quote from Bob Rupczynski — CVP, Global Advertising @ McDonald’s.
“There are occasions where we’re willing to pay more for a message targeted to a consumer’s needs, … We will never walk away from building the McDonald’s brand, but the more targeted and efficient we can get, the more we can drive an outcome for a specific subset of a segment.”

More. Pivot from Video

Quote from M.G. Siegler — General Partner @ Google Ventures. 
“But again, it’s hard to see how all of that translates to the Netflix era of television, let alone online. Because I don’t believe it does. In our ever-more-busy lives, we simply don’t have time to sit through minutes of content in hours of time to accommodate advertising. Yes, traditionally the advertising has paid for that content (and as such, our time), but the world is changing. Advertisers might be able to buy our “live” time, but our “non-live” time is increasingly not for sale. There’s simply too much else to do. “

More. How Cable Companies Learned to Love Netflix (or Hulu) and Chill

2. The Surprising Impact of Buying Attention Vs. Audiences

Last week we wrote about second-by-second viewership analysis using ACR data. This week we are going to look at second-by-second analysis for attention using eye-trackingsoftware.

How does eye-tracking measurement work? TVision installs sensors on panelists’ TVs, tracking eye movements of multiple people in a room.

Engagement by age group:
1) All ages: 100
2) 65+: 114
3) < 18: 90

Engagement by gender:
1) Male: 101
2) Female: 99


Below is an example of a Yoplait Go-Gurt ad.


Below is an example of the best time to reach moms.


The big question. How soon will we be buying ads based on the amount of time targeted consumers spend with our content rather than mass reach?

More. Attention: The Gorilla In The Room

3. T-Mobile finds success with six-second ads

% of TV ads 30s or longer by year:
1) 2014: 67%
2) 2015: 65%
3) 2016: 56%
4) 2017: 54%


More. Discover Financial Airs Its First Six-Second Spot


4. Media Use: Smartphones Up, TV Down — With TV Viewers Growing More Selective

% change over past 5 years:
1) Individual show ratings: ↓ 25%
2) TV viewing/person: ↓ 15%

The most interesting finding was that viewers were watching fewer total networks even as their choices expanded.

If everyone is watching fewer networks, then shouldn’t it be easier to reach them with advertising? Yes, but they are watching different networks which requires buying more networks to reach the same number of viewers.

The number of viewers who watch 1–2 networks per day has doubled.

% of viewers reached through one primetime spot on each of the big 3 networks:
1) 35 years ago: ≈ 100%
2)
Today: 5%

An advertiser would have to buy ads on 135 different TV networks today to equal the reach from major networks 35 years ago!

5. ‘It’s not just for banner ads anymore’: The New York Times is making all of its ads available programmatically

The New York Times has made all of its digital ad units available through programmatic channels.

Why does this matter? A major publisher like the NYT opening up most/all of its inventory to programmatic shows that they no longer view it purely as a threat (lower CPMs, etc.).

This is part of a larger shift to digital which has led them to set a goal of 10m paid digital subscribers.

6. Connected TV Inventory Explodes, Video Advertisers Enjoy Results

Why do advertisers like connected TV advertising? It is the closest thing to TV ad quality with 97% completion rates without the viewability issues that have plagued mobile/desktop.

Why do networks like connected TV advertising? The CPMs that they can charge are 3–4X higher than mobile.


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