VideoNuze Posts

GroupM, the world’s largest ad buyer, is forecasting total TV advertising in the U.S. will drop by 7% in 2020 and another 12% in 2021. National TV will drop 11% in 2020 and gain 6% next year. Local TV will bear the brunt in 2020, dropping 34%, due to slowing retail and automotive advertising. But when one-time political ads are added in for 2020, GroupM sees a 1% total increase in local TV advertising.

However, it is forecasting a “modest” 3% decline in advertising revenue for TV “digital extensions” (which it defines as both “digital ad revenue realized by traditional media owners for their traditional properties and the pure-play digital media owners with directly competitive products”). GroupM includes Hulu, Roku and others in the digital extensions category. And for 2021, GroupM sees TV digital extensions advertising increasing by 15%. GroupM believes that TV digital extensions spending will add up to around 14% of national TV ad spending in 2020.

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I’m pleased to present the 518th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia. We hope all of our listeners are staying safe and healthy.

This week Colin and I dig into a range of different data and forecasts about changing SVOD viewership patterns as the pandemic continues. These include data about co-viewing from Nielsen and average viewing minutes for major SVOD services from 7Park.

We also highlight new survey data from Magid how sports fans may shift from SVOD when sports returns. Finally we touch on a new forecast from MoffettNathanson that U.S. pay-TV subscribers will drop by 22 million by 2024, with SVOD benefiting.

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A joint solution announced by two Comcast companies, FreeWheel and Comcast Technology Solutions, will enable programmatic advertising for set-top box video-on-demand (VOD) inventory. TV networks, content providers and pay-TV operators will be able to use the solution, which taps FreeWheel’s ad targeting and decisioning along with CTS’s Ad Store for real-time creative distribution.

The companies said in a release that “creative conditioning of advertisers’ video creative requires special considerations in the STB VOD advertising environment” have hindered programmatic approaches that are common in connected TV and OTT.  Richard Nunn, VP/GM of Advertiser Solutions at CTS said “until today, it has not been possible to effectively monetize this content in the same programmatic fashion as other video inventory.”

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Connected TV ownership continues to surge, with 80% of U.S. TV households now having at least one CTV, according to new research from Leichtman Research Group. The penetration of CTVs has grown steadily from 24% in 2010 to 57% in 2015 to 74% in 2018.

The mean ownership is 4.1 CTV devices per CTV household, translating into approximately 400 million CTVs currently deployed, according to LRG, up 60% from 250 million in 2016. 64% of CTV households said they had 3 or more CTVs.

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I’m pleased to present the 517th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia. As always, we hope our listeners are staying well.

This week Colin and I discuss how new “virtual linear” channels will translate into more viewer engagement and advertising in connected TV. We start the discussion reviewing new data from Innovid and Pixalate showing healthy gains in both CTV ad impressions and programmatic spending.

Adding to the momentum will be virtual channels, which are essentially on-demand playlists of themed programming. Many CTV platforms are adding these free, ad-supported channels. Colin points out a new partnership between Endemol Shine and Vizio for four unscripted virtual channels. Roku was also in the news this week, launching 40 virtual channels with various programming partners. Virtual channels are also a key feature for Peacock. Colin and I expect the trend to gain momentum. 

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Global connected TV ad impressions were up 36% year-over-year during the week of May 24-30, according to new data released by Innovid. The growth rate is above the prior week’s growth rate of 27%, but below the 4-week CTV average of 44%. It is still well above other devices; during the same period, mobile video ad impressions were down 26% year-over-year (compared with a 5% drop for the prior week) and PC/desktop video impressions were down 20% (compared with a 12% drop during the prior week).

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Roku is highlighting its ability to support “agile investment plans” by advertisers as it rolls out Upfront presentations to attract more ad spending on its platform. Roku is focusing on delivering advertisers enhanced agility, control and value as they navigate huge market uncertainty.

Dan Robbins, Roku’s VP of Ad Marketing and Partner Solutions, told me in an interview that the shift to streaming, acceleration in cord-cutting and the pandemic’s suspension of live sports and stay-at-home guidelines have led to “each advertiser facing a different reality.” In particular, Dan said more agility is the “number one request” Roku is getting from advertisers. Roku’s goal is to help align advertisers’ spending with actual media consumption. He noted that half of 18-34 year-olds’ consumption is now streaming, requiring different strategies by advertisers targeting this age group.

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I’m pleased to present the 516th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia. As always, we hope our listeners are staying well.

After much anticipation HBO Max has launched and we share our initial observations on the app and content. Colin is especially impressed with the recommendation feature, which reportedly mixes algorithms and human curation. Even with its massive content library, HBO Max at $15 per month is at the high end of the market which should slightly limit its appeal.

A far bigger limiter is that neither Roku nor Amazon Fire TV are supporting HBO Max. Colin and I dig into what’s behind the conflict. Colin believes all the companies are seeking control over the user experience and the accompanying revenue and usage insights. In particular Amazon has around 5 million HBO Now subscribers through its Channels program that it is reluctant to see transition to HBO Max directly.

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