Posts for 'Advertising'

First up this week on Inside the Stream we discuss YouTube’s advertising revenue for Q1 ’23, which was $6.7B, down 2.6% from Q1 ’22 of $6.9B. Obviously growth, not contraction, is the goal, but given the huge headwinds blowing through the ad business, in my view, a slight dip can rightly be considered a clear win. And the quarters that YouTube is now lapping were extremely strong to begin with, so comps will be tough by definition.

We also spend a few minutes discussing YouTube’s four priorities outlined in the earnings call. I’m looking forward to attending YouTube’s NewFront presentations on Monday morning, especially “AI and the Future of Creative Transformation.”

Next up, we both like how Paramount is leveraging Pluto TV by having it stream “THE TONY AWARD: ACT ONE,” preceding the main Tonys broadcast on CBS and Paramount+ on June 11th. ACT ONE is a perfect example of how “shoulder content” that can drive free streaming viewership (helping build Pluto’s brand) while acting as lead gen for Paramount+ and maybe even a little incremental retention for pay-TV.

We expect to see a lot more of this “shoulder content on FAST” playbook run in the future elsewhere too. It’s a solid, synergistic play.

Last, we make a maiden foray into the intersection of AI, video and music, prompted by a well-reported - though maybe slightly over-dramatic - article in The Verge about “AI Drake.” It’s a bit of a head-spinner to keep track of the machinations, but the net of it is that - no surprise to anyone - generative AI is already kicking up some dust related to copyright and Fair Use.

Big players like Google and Microsoft will have to sort out what positions they ultimately want to stake out given their varied business interests. We do our best to decipher things and discuss implications. No easy answers here, but expect a lot more about AI on Inside the Stream in the future.

Listen to the podcast to learn more (31 minutes, 59 seconds)

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Back in our Oct. 21, 2022 podcast, “Netflix is Poised for 2023 Revenue Growth,” Colin and I articulated all the reasons we were optimistic about Netflix’s upside in the new year. Primarily we were focused on its newly launched $7/month “Basic with ads” tier and its plans to eliminate password sharing throughout the world.

Flash forward 7 months, and Netflix provided its first tangible results and commentary from the initiatives, as well as optimistic signs of where things go from here. In today’s podcast, Colin and I dig into these signs, including most prominently Netflix’s disclosure that $7/month "Basic with ads" subscribers already produce a higher average monthly revenue than do its $15.50/month "Standard" plan (ad-free) subscribers. Some basic math reveals that "Basic with ads" subscribers drive at least $8.50/month in ad revenue for Netflix, which in turn means that aproximately 55% ($8.50 / $15.50) of "Basic with ads" subscribers’ total revenue is already derived from ads, not subscriber payments.

That Netflix accomplished all of this despite 1) it still being very early days for the ad offering, 2) a massive headwind in the ad business due to recession/etc. worries, 3) all of its ad revenue being “linear TV replacement” or upper-funnel reach and frequency inventory, with nothing yet from more valuable full/lower funnel offerings, suggests the ad business is already a big win for Netflix and has huge potential.

(At this point I can’t resist noting that I have been badgering Netflix for years to launch a lower-priced ad-supported tier because of the upside…see “Why Netflix Will Launch an Ad-Supported Tier in 2020” from Dec. ’19, “6 Reasons Why Netflix Should Launch an Ad-Supported Tier Now” from Mar. ’20, and “Revisiting Why Netflix Should Launch an Ad-Supported Tier” from Mar. ’21 for a sample of my haranguing. So, in the category of “better late than never,” hallelujah, Netflix finally, finally put aside its religious objections to advertising and saw the light.)

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Beachfront’s head of strategy and operations Laura Wu discusses connected TV advertising innovations in a 10-minute interview below. Laura dives into how publishers are better controlling/monetizing ad pods, using first-party data and converting CTV into a lower-funnel channel. Laura also explains how consumers crave simplicity, which will likely lead to more bundling going forward.

If you want to hear more from Laura, then after the jump, check out her recent session at VideoNuze’s Connected TV Advertising PREVIEW: 2023, “The Big Picture: Trends and Opportunities in CTV in 2023.” Laura is joined by Aaron Goldman (Chief Marketing Officer, Mediaocean), Paul Josephsen (Chief Strategy Officer, WMX Content & Media Division @Warner Music Group) and Brian Wieser (Principal, Madison and Wall), with Danielle DeLauro (EVP, VAB) moderating.

Watch Laura’s interview now.

At this past Tuesday’s VideoNuze Connected TV Advertising PREVIEW: 2023 virtual, 22 speakers on 5 sessions provided critical insights about the industry and its future direction. We discuss our key takeaways on today’s podcast.

All of the videos are posted here.

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Yesterday was VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023, which featured 22 senior executives on 5 sessions.

Below are links to each of the session recordings along with descriptions of each session and speakers. There are many great insights about CTV advertising and what’s ahead as it evolves to full-funnel capabilities, FASTs continue to expand, the UX for both advertisers and viewers is reinvented and publishers invest heavily in delivering innovative experiences for viewers.

Thanks again to all the 22 speakers, and especially to CTV PREVIEW’s four amazing partners, Beachfront, PadSquad, Roku and Wurl.

Enjoy!

[VIDEO] Welcome to Connected TV Advertising PREVIEW 2023

[VIDEO] The Big Picture: Trends and Opportunities in CTV in 2023

[VIDEO] Is CTV’s Future at the Bottom of the Funnel?

[VIDEO] Interview With TMB’s President and CEO Bonnie Kintzer

[VIDEO] CTV UX Innovation – The 2023 Roadmap

[VIDEO] FASTs – Road to Gold or Road to “SLOW?”

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

Welcome to Connected TV Advertising PREVIEW 2023 virtual
Connected TVs and streaming are transforming the TV and advertising industries. CTV has become the hottest corner of the advertising business, forecast by eMarketer to grow another 27% in 2023 to $27 billion, in the U.S. alone. All in the face of significant economic headwinds. Yet, we are still in the very early innings of the CTV era.  

This afternoon’s program will explore topics including:

- Key macro trends and opportunities in CTV in 2023

- How/when CTV advertising will be optimized for the bottom of the “purchase funnel,” which will in turn attract huge buckets of ad spending

- If the proliferation of FASTs might lead to “SLOW” (SVOD Losses On the Way)

- How CTV UX innovation (in both content and ad formats) is driving new value for viewers and advertisers.

- How Trusted Media Brands (TMB), as a traditional publisher that includes a portfolio of digital-first brands, is successfully capitalizing on CTV and streaming

Will Richmond – Editor and Publisher, VideoNuze

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

The Big Picture: Trends and Opportunities in CTV in 2023
Connected TV is the hottest sector of the advertising industry, forecast by eMarketer to grow 27% in 2023 to $27 billion in the U.S. alone. Despite significant economic headwinds, CTV continues to enjoy significant advantages by combining the best of TV advertising’s site, sound and motion, with the best of digital advertising’s targetability, interactivity and optimization. Still, many challenges remain. This session will explore all the most significant factors influencing CTV’s evolution in 2023.

Aaron Goldman - Chief Marketing Officer, Mediaocean
Paul Josephsen – Chief Strategy Officer, WMX Content & Media Division @Warner Music Group
Brian Wieser – Principal, Madison and Wall
Laura Wu – Head of Strategy and Operations, Beachfront
Danielle DeLauro – EVP, VAB (moderator)

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

Is CTV’s Future at the Bottom of the Funnel?
With linear TV’s decline, CTV ad spending has surged as advertisers “follow the eyeballs” in order to achieve their reach and frequency objectives. But rather than CTV being viewed solely as a “top of funnel” branding channel, its biggest opportunity may be as a “full funnel” or even “lower funnel” opportunity. This would unlock performance-oriented advertising budgets that are based on high impact targeting and measurement, much the same as the successful playbook Google has run in search and Facebook has run in social. Learn how and when CTV may evolve into full funnel and what this means for all market participants.

Sean Doherty, Jr. – Co-Founder and COO, Wurl
Eric Smith – US Head of Verticals, Auto, Tech, Gaming & Entertainment, Roku
Jen Soch – Executive Director, Channel Solutions, GroupM
Olga Weinraub – Senior Director, Enterprise Marketing Partnerships, Cox Automotive
Colin Dixon – Chief Analyst and Founder, nScreenMedia (moderator)

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

Interview With TMB’s President and CEO Bonnie Kintzer
How a Traditional Publisher is Succeeding with CTV and Streaming
The venerable magazines “Reader’s Digest,” “Family Handyman” and “Taste of Home” may not be first to mind when thinking of CTV and streaming. But their owner, TMB (formerly Trusted Media Brands), has an expansive vision of how its strong brands and their super-fans can be leveraged for success in the modern era. Turbocharging TMB’s growth are its 2021 acquisition of Jukin Media and a portfolio of digital-first brands. In this interview, TMB’s president and CEO Bonnie Kintzer explains how TMB is evolving and fully capitalizing on all of the opportunities of CTV and streaming.

Bonnie Kintzer – President and CEO, TMB (Trusted Media Brands)
Will Richmond – Editor and Publisher, VideoNuze (interviewer)

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

CTV UX Innovation – The 2023 Roadmap
CTV viewing experiences benefit from dynamic, constant innovation, which in turn bolsters the value of advertising inventory as brands look to execute more interactive campaigns that achieve ever-better returns on spending. With so much happening so fast, what are the key programming and advertising changes primed to enhance the CTV viewer experience, and how will they improve engagement and boost the performance of the market in 2023 and beyond? Join us for an insightful discussion of CTV’s innovation roadmap in 2023.

Ashley Arena – Head of Advanced Video Activation, PHD
Krista Panoff – SVP, Global Enterprise Development, Innovid
David Pudjunis – VP, Revenue Operations and Digital Partnerships, AMC Networks
Lance Wolder – Head of Strategy and Marketing, PadSquad
Mary Ann Halford – Partner, Altman Solon (moderator)

The following video was recorded at VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 virtual on February 28, 2023.

FASTs – Road to Gold or Road to “SLOW?”
Free ad-supported TV or “FAST” has become one of the buzziest terms in the streaming and CTV industries. Content providers are eagerly launching FAST channels to capitalize on two key trends: advertisers’ insatiable demand for premium CTV ad inventory and viewers’ SVOD fatigue as economic uncertainty escalates. All of this makes FASTs a “road to gold” in the short-term. But in the longer-term, is flooding the market with a lot of free premium programming going to precipitate "SLOW" – “SVOD Losses On the Way?” as viewers are further conditioned to consume free premium video via FASTs and expect ever-better shows to be accessible without payment required?

Beth Anderson – GM, FAST Channels, BBC Studios
Tejas Shah – SVP, Commercial Strategy and Analytics, FilmRise
Josh Sharma – VP of Advertising Partnerships, Allen Media Group
Aneessa Steilen – VP, Media and Distribution Marketing, Vevo
Eric John – VP, Media Center, IAB (moderator)

Please save the date for VideoNuze’s third annual Connected TV Advertising PREVIEW: 2023 (virtual) on Tuesday afternoon, February 28th.
 
Connected TV is the hottest sector of the advertising industry, forecast by eMarketer to grow 27% in 2023 to $27 billion in the U.S. alone, despite significant economic headwinds.

VideoNuze’s Connected TV Advertising PREVIEW: 2023 (virtual) will feature senior industry executives sharing their thought leadership perspectives and insights on the year ahead for CTV advertising. PREVIEW is a one-of-a-kind virtual event, exclusively focused on CTV advertising.
 
The program will include a mix of cutting-edge research, keynote interviews, high-impact panel discussions and case studies (lots more news on the program and speakers soon). For attendees, CTV PREVIEW will be a must-attend afternoon of high-impact learning about what’s ahead for CTV in 2023.

Many thanks to our partners Beachfront, PadSquad, Roku and Wurl (with others to come).

If you’re interested in sponsorship information, please contact me.

Sign-up is complimentary!

PadSquad, which specializes in creating high-impact advertising experiences, has partnered with CTV leader Innovid to gain in-house access to Innovid’s full suite of interactive CTV tools. The goal of the joint advanced CTV offering is to streamline and accelerate brands’ ability to create interactive and shoppable CTV ads.

According to PadSquad’s head of marketing Lance Wolder, it is the first time Innovid’s interactive CTV tools can be fully utilized by a third-party instead of through Innovid’s managed service. Lance said that with PadSquad’s team of over 20 designers and developers, being able to directly use Innovid’s tools will enable faster turnaround times for clients’ campaigns and also unlock new creative potential.

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Happy new year and welcome to the first edition of Inside the Stream for 2023. Just after recording our Top 10 streaming stories of 2022 podcast a couple of weeks ago YouTube announced its deal with the NFL for Sunday Ticket.

In this week’s podcast we dig into how we think the economics of the deal might work. Colin modeled many of the variables, which I then tinkered with. The clear caveat is that no external person, including us, really knows all the pieces of the deal, nor the terms. So we’re taking our best guesses, based on how Sunday Ticket has performed for DirecTV and the new value we believe YouTube brings to the package.

Based on all of this Colin is skeptical about YouTube’s ability to turn a profit on Sunday Ticket, while I’m more optimistic. In addition I highlight a number of valuable strategic aspects of the deal to YouTube and Google, especially gaining direct experience with the NFL for the next 6-7 years. These insights will be extremely valuable as YouTube contemplates potentially bidding for some or all of the NFL broadcast package when it’s up for renewal in 2033.

Ultimately the value of Sunday Ticket to YouTube hinges on its ability to monetize the package much better than DirecTV did - more subscribers and more advertising revenue.

Listen to the podcast to learn more (30 minutes, 36 seconds)

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On this week’s edition of Inside the Stream, nScreenMedia’s Colin Dixon and I dig into four topics: World Cup streaming quality and the lack of 4K differentiation, Netflix’s offer to refund advertisers due to inventory shortfalls, WBD’s decision to remove “Westworld” from HBO Max, and the proliferation of music-oriented FAST channels.

Listen to the podcast to learn more (31 minutes, 25 seconds)

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