With dataxu buy, Roku unveils big ad ambitions

The big news: Roku announced plans to acquire dataxu for $150M in cash/stock.

Key details for dataxu:
1) Founded in 2009
2) Based in Boston, MA
3) $87.5M in capital raised
4) 302 employees according to LinkedIn

Quote from Alison Levin – VP of ad sales and strategy @ Roku:
“The acquisition of dataxu furthers our ambition to right-size media spend [in streaming] against consumption…This provides our own self-serve platform for buyers to optimize across linear, OTT, desktop and mobile.”

Roku is adding the following:
1) Self-serve media buying platform
2) Device graph technology
3) Desktop/mobile footprint
4) Performance-based marketing experience

Video: Roku’s Unique Position

More #1: Why TV Companies Want To Own Buying Platforms – And Why It Might Hurt Buyers

More #2: Unpacking Roku’s Purchase of Dataxu

More #3: Roku is developing ad measurement tools that will soon run across all of OTT

IAB forecasts slowing growth in U.S. digital ad revenue

Digital ad spend comparison (% growth) according to IAB/pWc:
1) 
2016-1H – $32.7B
2) 
2017-1H – $40.3B (↑ 23%)
3) 2018-1H – $49.5B (↑ 23%)
4) 2019-1H – $57.9B (↑ 17%)

Share of spend by ad format:
1) Search – 45%
2) Display – 31%
3) Video – 16%
4) Other – 8%

Digital video ad spend comparison (% growth):
1) 2016-1H – $3.8B
2) 
2017-1H – $5.2B (↑ 37%)
3) 2018-1H – $7.0B (↑ 35%)
4) 2019-1H – $9.5B (↑ 36%)

Daily minutes spent with digital video:
1) 2015-1H – 62
2) 2016-1H – 71 (↑ 15%)
3) 2017-1H – 79 (↑ 11%)
4) 2018-1H – 89 (↑ 13%)
5) 2019-1H – 97 (↑ 8%)

Quick math on digital video:
1) Time spent – ↑ 8%
2) Ad spend – ↑ 36%
3) Ad revenue/hour – ↑ 26%

Mobile share of digital spend:
1) 2012-1H – 7%
2) 2013-1H – 14%
3) 2014-1H – 23%
4) 2015-1H – 30%
5) 2016-1H – 47%
6) 2017-1H – 54%
7) 2018-1H – 63%
8) 2019-1H – 69%

Mobile share of internet time spent:
1) 2018-1H – 72%
2) 2019-1H – 77%

More: Why Is Digital’s Ad Growth Decelerating: Explanations Abound, None Good

Fortnite’s two-day outage was the game’s most popular event of the year

The big deal: Fortnite went dark for over 36 hours last weekend and, people freaked out!  The crazy part is that this was 100% intentional!

Why this happened: Sunday marked the end of the 10th and final chapter of season 1.  Before launching season 2, Epic chose to take the game offline during one of their busiest times rather than doing something boring like launching the new version at 3 AM on a Tuesday.  This caused a panic, which led to far greater buzz/interest than any marketing campaign would have generated.

Audience size for Fortnite’s ‘The End’ event:
1) YouTube – 4.5M+
2) Twitch – 1.5M+
3) Twitter – 1.0M+

FYI:  The average Fortnite player spends 21% of their free time playing the game!

Flashback: Top ‘Live-Streamers’ Get $50,000 an Hour to Play New Videogames Online

Quick math on watching people play video games vs. reading:
1) 16.8 
minutes/day/person reading for 15+
2) 102 hours/year/person reading for 15+
3) 251M individuals 15+ in the U.S.
4) 25.7B hours/year of reading for all 15+ individuals in the U.S.
5) 8.9B 
hours/year of watching other people play video games (assuming all 15+ AND U.S.)
6) Total reading time is 2.9X total time spent watching other people play video games

Obvious caveats for above Twitch numbers:
1) 
Some hours are outside the U.S.
2) Some hours are for under-15

More #1: Brands are stuck paying for declining audiences for sports. They need to figure out a way into games like ‘Fortnite.’

More #2: Hollywood’s Video Game Blind Spot

Netflix Subscribers Fall Slightly Short of Expectations

Netflix subscriber growth in 2019-Q3:
1) 
Projected – 7.0M
2) 
Actual – 6.8M

Netflix subscribers (% of total):
1) 
International – 97.7M (62%)
2) Domestic – 60.6M (38%)
3) Total – 158.3M

Netflix subscriber growth in 2019-Q3 (% of total):
1) 
International – 6.3M (92%)
2) Domestic – 517K (8%)
3) Total – 6.8M

Netflix subscribers by quarter (YoY growth):
1) 
2015-Q1 – 69.2M
2) 
2016-Q1 – 86.7M (↑ 25%)
3) 2017-Q1 – 104.M (↑ 20%)
4) 2018-Q1 – 130.4M (↑ 25%)
5) 2019-Q1 – 158.3M (↑ 21%)

Video: Netflix needs more targeted content strategy to compete: Axios’ Sara Fischer

More: Why Netflix isn’t worried about the streaming wars

Baseball Saw a Million More Empty Seats. Does It Matter?

One million fewer fans attended Major League Baseball games versus last year, but revenues continue to rise due to increased media rights.

2019 baseball attendance by level:
1) 
Major leagues – 69M
2) Minor leagues – 41M
3) Total – 110M

Major League Baseball attendance per game (YoY growth) according to Sports Business Journal:
1) 
2007 – 32,766 (↑ 4%)
2) 2008 – 32,520 (↓ 1%)
3) 2009 – 30,330 (↓ 7%)
4) 2010 – 30,138 (↓ 1%)
5) 2011 – 30,236 (↓ 0%)
6) 2012 – 30,895 (↑ 2%)
7) 2013 – 30,514 (↓ 1%)
8) 2014 – 30,458 (↓ 0%)
9) 2015 – 30,517 (↑ 0%)
10) 2016 – 30,169 (↓ 1%)
11) 2017 – 30,042 (↓ 0%)
12) 2018 – 28,837 (↓ 4%)
13) 2019 – 28,326 (↓ 2%)

Total revenue for Major League Baseball:
1) 1992 – $1.2B
2) 2007 – $6.1B
3)
 2018 – $10.3B

Change since 2007:
1) Attendence – ↓ 14%
2) Revenue – ↑ 69%

Fox TV deal for Major League Baseball (% growth):
1) Current (2014-21) – $4.2B
2) Next (2022-28) – $5.1B (↑ 22%)

Flashback: The Sports TV Bubble Shows Signs of Weakness

World Series viewership by year (YoY growth):
1) 2009 – 19.3M
2) 2010 – 14.2M (↓ 26%)
3) 2011 – 16.5M (↑ 16%)
4) 2012 – 12.6M (↓ 24%)
5) 2013 – 15.0M (↑ 19%)
6) 2014 – 13.9M (↓ 7%)
7) 2015 – 14.5M (↑ 4%)
8) 2016 – 22.8M (↑ 57%)
9) 2017 – 18.9M (↓ 17%)
10) 2018 – 14.1M (↓ 25%)

Top 5 teams ranked by local TV ratings according to Sports Business Journal:
1) St. Louis Cardinals – 6.59
2) Cleveland Indians – 6.55
3) Milwaukee Brewers – 6.37
4) Minnesota Twins – 6.33
5) Boston Red Sox – 5.25

Bottom 5 teams ranked by local TV ratings:
1) Oakland A’s – 0.76
2) Seattle Mariners – 0.83
3) Chicago White Sox – 0.95
4) Texas Rangers – 1.17
5) Anaheim Angels – 1.24

More #1: Put the Playoffs Back in Waking Hours

More #2: MLB Sleeve Patches Could Be More Valuable Than NBA Jersey Ads, According to Nielsen Analysis

TV’s most expensive commercials for the 2019-’20 season

81 different prime-time shows are returning to broadcast this year.

YoY change in advertising cost according to AdAge:
1) 
Decreased – 49 (60%)
2) Flat – 20 (15%)
3) Increased – 12 (25%)

Flashback: Here’s how much it costs to advertise in TV’s biggest shows

$/Spot for This is Us (NBC):
1) 2017-18 – $394K
2)
 2018-19 – $434K (↑ 11%)
3) 2019-20 – $359K (↓ 17%)

$/Spot for Sunday Night Football (NBC) (% change):
1) 
2017-18 – $700K
2) 
2018-19 – $666K (↓ 5%)
3) 2019-20 – $685K (↑ 3%)

Top 10 most expensive prime-time shows:
1) 
Sunday Afternoon Football (Fox) – $690K
2) Sunday Night Football (NBC) – $685K
3) 
Thursday Night Football (Fox) – $540K
4) This is Us (NBC) – $359K
5) The Masked Singer (Fox) – $202K
6) The Voice – Monday (NBC) – $193K
7) Grey’s Anatomy (ABC) – $186K
8) The Voice – Tuesday (NBC) – $180K
9) 9-1-1 (Fox) – $172K
10) New Amsterdam (NBC) – $172K

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