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.
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: 1) Football — 35% 2) Basketball — 31% 3) Baseball — 21% 4) Other — 13%
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: 1) Scale and reach 2) Living room/big screen content 3) Negotiating power
The argument for digital buyers: 1) 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: 1) Traditional TV — 96% 2) CTV/OTT — 93%
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