‘Something enormous’: Inside Walmart’s ambitious streaming video plans

Walmart is preparing an ad-supported streaming service with middle America as the target audience.

Wow: Walmart accounts for close to 50% of all TVs sold in the United States!

Retail → Advertising: Amazon, Target, and Walmart are all making major moves into the advertising space. In addition to a potential streaming service, Walmart is pursuing “shoppable ads” and extending its audience/customer data to the Vudu streaming platform.

Flashback: Walmart Plans Competitor to Amazon’s Video Marketplace

More #1: Walmart goes from big-box stores to the small screen with Vudu ad network

More #2: Walmart Bets on TV Shows for Families, Date Night in Media Push

More #3: Target is courting advertisers with first-party data

Marketers Turn Up Podcast Advertising

Podcast advertising revenue by year (YoY growth) according to PwC:
2015 — $106M
2016 — $169M (↑ 60%)
3) 2017 — $314M (↑ 86%)
4) 2018 — $479M (↑ 53%)
5) 2019P — $679M (↑ 42%)
6) 2020P — $863M (↑ 27%)
7) 2021P — $1.0B (↑ 21%)

Share of advertising revenue by delivery mechanism:
Edited-in — 51%
Dynamically inserted — 49%

Share of advertising revenue by objective:
Direct response — 52%
Brand awareness — 38%
Branded content — 10%

Share of advertising revenue by spot length:
60s — 30%
90s — 27%
15s — 23%
30s — 19%
>90s — 1%

Top 5 podcast advertising categories:
Direct-to-Consumer Retailers –22%
Financial Services — 21%
Business-to-Business — 14%
Arts and Entertainment — 10%
Telecommunications — 7%

Podcast listeners by year (YoY growth) according to eMarketer:
2) 2018–72.7M (↑ 8%)
3) 2019–76.4M (↑ 5%)
4) 2020–78.9M (↑ 3%)

More #1: Investing in the Podcast Ecosystem in 2019

More #2: Spotify lands exclusive podcast deal with Barack and Michelle Obama

More #3: Podcast Wars: $100 Million Startup Luminary Launches Tuesday Without Reply All Or The Daily

As the Playoffs Heat Up, the NBA Looks to Profit From Gambling

Bargaining chip: The NBA is using access to its data stream as leverage for a piece of the sports betting action.

The big picture: Both the NBA and MLB believe they should directly benefit from sports betting through “integrity” or “royalty” fees. The leagues are pushing state legislators for ≈ 0.25% of total bets placed.

Share of Nevada sports betting by sport:
Football — 35%
Basketball — 31%
Baseball — 21%
Other — 13%

Wow: An estimated 18M people wagered $3.9B on March Madness games.

March Madness betters by source according to Morning Consult:
Online (mostly illegal) — 44%
Casino (legal) — 35%
Bookie (illegal) — 21%

Flashback #1: The high-stakes game for sports betting dollars

Estimated sports betting wagers according to Activate (YoY growth):
2018 — $6B
2) 2019P — $10B (↑ 67%)
3) 2020P — $44B (↑ 340%)
4) 2021P — $70B (↑ 59%)
5) 2022P — $119B (↑ 70%)

Where you can currently place sports bets according to Legal Sports Report:
2) MS
3) NM (limited)
4) NJ
5) NV
6) PA
7) RI
8) WV

Where you will be able to place sports bets soon:
2) CT
3) DC
4) IA
5) IN
6) MT
7) NY
8) OR
9) TN

Flashback #2: Nielsen projects NFL could make billions annually from gambling market

A recent study projects that legalized sports betting could add $2.3B per year in revenue to the NFL’s bottom line.

Estimated % increase in revenue according to Nielsen:
1) Media rights — ↑ 18%
2) Sponsorship — ↑ 8%
3) Ticket sales — ↑ 7%

Video #1: How legalized gambling will transform pro sports

Video #2: Washington Capitals and Wizards owner Ted Leonsis envisions sports venues partnering with casinos to open sportsbooks in their facilities

More #1: Media companies’ newest wager: Their commitment to sports betting

More #2: 3 Key Takeaways on Fox Sports Gambling App

More #3: Gambling Will Take Over TV Sports

Publicis And Epsilon: An Acquisition Of Legacies?

Big news: Publicis is buying Epsilon for $4.4B to bolster its first-party data (audience targeting) capabilities. This is the largest acquisition ever for Publicis since being founded in 1926.

Why this matters: The future of advertising is audience targeted and holding companies such as Publicis are playing catch up through acquisitions.

Recent purchases of data firms by holding companies:
Merkle → Dentsu (2016 — $1.5B)
2) Acxiom Marketing Solutions → IPG (2018 — $2.3B)
3) Epsilon → Publicis (2019 — $4.4B)

What others are saying: Maja Milicevic @ Sparrow Advisers argues that little is unique from this acquisition because the brands own their first-party data as opposed to Epsilon.

Quote from Jay Stocki — COO @ Signal:
“They had to do this. They were the last big holding company that didn’t have a strong data play.”

Key details for Epsilon:
$2.2B revenue in 2018
2) 8K employees
3) 70 offices
4) 71B
personalized emails sent in 2018
5) 250M U.S. adults in database
6) 7K different attributes

More #1: The Rundown: Agencies get their hands dirty with data ownership

More #2: What First-Party Data Does Epsilon Actually Have?

More #3: Q&A: Publicis Groupe CEO Arthur Sadoun on Epsilon acquisition

‘Game of Thrones’ Studio Tour to Debut in 2020

HBO is turning one of the Northern Ireland sets into a studio tour to capitalize off of the excitement from the final season.

Below are a few more examples of brands getting in on the action:

Example #1: ‘Game of Thrones’ Hype: AT&T Is Giving Away an $18,000 Iron Throne Replica

Example #2: Game of Thrones takes over Bellagio fountains in Las Vegas

Example #3: ‘Game of Thrones’ fans, Oreo wants to know where your loyalties lie

FYI: This video took more than 2,750 Oreos to make happen!

Example #4: Mtn Dew remakes the ‘Game of Thrones’ theme song with Migos

Example #5: Brands Shift Targeting Toward Males For ‘Game Of Thrones’ Social Ads

The big question: Do these brand tie-ups work? Our research says yes considering Mrs. Screens, and I dropped $75 on a Game of Thrones version of Risk!

More: The world is still looking for the last of HBO’s hidden Iron Thrones

FreeWheel: Q4–2018 Video Monetization Report

Key findings according to FreeWheel:
1) 52%
of advertisers and agencies currently combine the buying of digital and linear TV and 91% will do so by 2021

2) 74% of advertisers and agencies say it is important or extremely important to have integrated TV and digital video data and technology

Ad views vs. video views:
Video views — ↑ 20%
Ad views — ↑ 19%
Ad load — ↓ 1%

Share by format:
Full episodes (>5m) — 61%
Live — 29%
Clips (<5m) — 10%

YoY growth by format:
Live — ↑ 51%
Full episodes (>5m) — ↑ 16%
Clips (<5m) — ↓ 14%

Share by device:
CTV/OTT — 42%
Smartphone — 20%
STB VOD — 16%
Desktop — 14%
Tablet — 8%

YoY growth by device:
CTV/OTT — ↑ 45%
Smartphone — ↑ 43%
Tablet — ↑ 14%
STB VOD — ↓ 4%
Desktop — ↓ 18%

More: Study: Lines Blurring Between Linear TV, Digital Viewing

Inside The Agency Turf War Over Connected TV

In recent years, the battle between TV and digital agencies has been over the share of spend that each receives, but a new front has opened up with each fighting over connected TV.

The argument for TV buyers:
Scale and reach
2) Living room/big screen content
3) Negotiating power

The argument for digital buyers:
Data and targeting
2) Comfort with the complexity of digital marketing

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 just 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.

FYI to agencies: This is what your clients (remember them?) want. They want to spend more time focused on running their business and less time settling budget disputes between a TV and digital agency playing a zero-sum game with their budget.

Another sign: NCC Media recently announced that they were adding digital video to their TV offering.

Co-viewing rates according to the IAB:
Traditional TV — 96%
CTV/OTT — 93%

More #1: NCC Media To Move into New Era with New Executive Team

More #2: TV Ad Agencies Must Prepare for a Multiscreen Future

More #3: It’s time to shut down digital marketing teams for good

To chase addressable TV budgets, YouTube is changing how it pitches YouTube TV

YouTube will make ad inventory from its streaming pay-TV service (YouTube TV) available as a stand-alone during the upfronts.

YouTube TV subscribers (YoY growth):
Jan-2019–1M (↑ 233%)

Quick math on YouTube:
1) $20B
in 2018 revenue
2) 203M hours of viewing/day
3) 74B hours of viewing/year
4) $0.27 in revenue per viewing hour

Revenue per hour of usage:
Facebook — $0.60
Instagram — $0.43
YouTube — $0.27

More #1: YouTube’s Long Game: To Become A Bit More Like Google

More #2: Even YouTube CEO’s kids said Rewind was ‘cringey’ last year

More #3: YouTube is changing how its priciest ad format is bought to work more like TV — and it could start a bidding war among brands

TV Networks Form New Consortium to Advance Targeted Advertising

Frenemies: Top players in the TV advertising space are coming together around an open standard for addressable advertising set to launch in early 2020.

Why this is necessary: TV networks (national) currently have to work with pay-TV providers to identify users through subscriber data. To make matters worse, this is a fractured process with no standard between pay-TV providers.

How it will work: Inscape will develop the watermarking standard to help TV networks send targeted ads to smart TVs. The standard will be open and available to other smart TV manufacturers such as Samsung and LG.

Quote from Jodie McAfee — SVP, Sales + Marketing @ Inscape:
“The only way this really works is if there is a direct relationship between the publishers and OEMs [original equipment manufacturers],”

The players in Project OAR:
1) AMC Networks
2) AT&T
3) CBS
4) Comcast NBCUniversal
5) Discovery
6) Disney
7) Freewheel
8) Hearst
9) Inscape
10) Turner
11) Xandr
12) Vizio

Two benefits for national networks: Provide them with a way to offer addressable advertising during their share of the ad minutes without having to work with a pay-TV provider.

Ad minutes per hour (% of total):
National — 14 (87%)
2) Local — 2 (13%)

Something cool that you may have missed: Comcast released a white paper titled The New TV that breaks down the video ad ecosystem in relation to the viewer.

More #1: Disney, NBCU, Turner, CBS and More Join Vizio-Led Addressable TV Advertising Consortium

More #2: Taking A Bite Out Of Data Confusion At RampUp

More #3: With AT&T Breathing Down Its Neck, Comcast Looks To Acquire Ad Tech

Hulu And YouTube Prepare To Overtake Satellite Giants Atop Streaming Bundle Market

Dish and DirecTV both were early entrants into the streaming pay-TV battle, but YouTube TV and Hulu Live are gaining fast.

Streaming pay-TV providers by subscriber numbers (% of total):
1) Sling TV — 2.4M (27%)
2) Hulu Live — 2.0M (23%)
3) DirecTV Now — 1.6M (18%)
4) YouTube TV — 1.0M (11%)
5) PlayStation Vue — 870K (10%)
6) fuboTV — 250K (6%)
7) Other — 250K (3%)
8) Philo — 150K (2%)

Subscriber growth in 2018-Q4:
Sling TV — ↑ 50K
DirecTV Now — ↓ 267K

Video: Is cord-cutting worth it?

More #1: The future of cable may be no TV at all, as one small company from Arizona shows

More #2: The 6 dumbest cases against cord-cutting (and why they’re so wrong)