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Geopath Partners With SQAD To Integrate Enhanced OOH Cost Data Into Planning Platform

Geopath Members Can Now Access Enhanced Analytics and Cost Insights to Plan and Execute OOH Campaigns.

New York, NY – December 11, 2017

Geopath, a not-for-profit organization whose mission is to provide audience location measurement to the out-of-home (OOH) industry, today announced the integration of SQAD’s OOH cost database into the company’s OOH Plan platform, Geopath’s market averages planning tool. Geopath members who are also SQAD subscribers will now have access to enhanced analytics and cost insights to plan and execute OOH campaigns.

SQAD, the advertising research, analytics and media planning software company, introduced OOH cost data to their MediaCosts platform in April.

“The integration of SQAD’s OOH cost data further establishes Geopath as the premier resource for buyers and advertisers pursuing OOH strategies,” said Kym Frank, President, Geopath. “As we move toward the launch of Geopath’s Insight Suite next year, we continue to pursue partnerships with analytics and data providers to deepen our platform and provide our members with the tools needed to design and execute highly effective OOH campaigns.”

“The integration of SQAD’s OOH cost data further establishes Geopath as the premier resource for buyers and advertisers pursuing OOH strategies.” – Kym Frank, President, Geopath.

When accessing the Geopath OOH Plan platform, members who are subscribers to SQAD’s MediaCosts: Local OOH will now have a range of new information including CPP and CPM data, historical rate levels for each media format in a market (highest, lowest and average), and projections for changes over the next two quarters. This enhanced data covers the top 100 DMAs and CBSAs, making it easier to plan and budget with greater transparency and accountability. Planners and advertisers will gain greater visibility into how OOH can be incorporated as part of a multi-channel marketing strategy.

“The strength in OOH lies in that it cannot be blocked by an ad-blocker or skipped on a DVR player, which ultimately contributes to the effectiveness of this platform,” said Marc Krigsman, CEO of SQAD. “Thanks to advancements in the OOH data and new technology innovations, advertisers now have a broader reach and unprecedented cost transparency – allowing more accurate cost measurements, better buying decisions, and stronger cross-channel strategies. The integration of MediaCosts: Local OOH data into the Geopath research platform further brings out-of-home data into a more prominent role in the media planning process.”

“Thanks to advancements in the OOH data and new technology innovations, advertisers now have a broader reach and unprecedented cost transparency – allowing more accurate cost measurements, better buying decisions, and stronger cross-channel strategies.” – Marc Krigsman, CEO, SQAD

Geopath will host a webinar on December 15th at 2:00 PM to educate members and provide guidance as to how the new SQAD data can most easily be accessed and utilized. To register for the webinar, please email geekout(at)geopath(dot)org.

ABOUT GEOPATH
Founded in 1933, Geopath is the industry standard that powers a smarter OOH marketplace through state-of-the- art audience location measurement, deep insights, and innovative market research. The organization is headquartered in New York and governed by a tripartite board composed of advertisers, agencies and media companies spanning the entire United States. For more information, please visit http://www.geopath.org.

ABOUT SQAD
SQAD LLC. has been an industry leader for more than four decades, providing more than $1 trillion in transaction-based, real cost data for local and national broadcast, cable, and syndicated television, as well as local radio, and Hispanic TV & Radio advertising. Along with their MediaCosts and MediaLogic product verticals, they also provide the mission-critical media planning software, MediaTools – a robust and flexible enterprise planning solution for advertisers and agencies around the world.

By |December 11th, 2017|Press Releases|0 Comments

5 Game Changers Every Advertiser Must Know in November 2017

SQAD POD: 5 Game Changers Every Advertiser Should Know – November 2017

Industry news and insights podcast curated from the world of advertising and marketing trends.

It’s time to unbuckle the belt and settle in for the holiday feasts. This time of year, we like to give thanks to the advertising world, which keeps things interesting with hot new trends and revolutionary technologies. This month, we’re talking about the potential for AppNexus to take on the great the Facebook/Google duopoly, the new Twitter Promote feature, Big News from Cheddar, a possible ad-supported version of Amazon’s Prime Video, and the increasing use of web-based virtual reality.

1. AppNexus: Does It Stand a Chance Against the Big Guys?

For the past few months, much of the advertising industry talk has centered around the duopoly of Facebook and Google, with increasing chatter about Amazon being the most viable third player to disrupt the dynamic. However, equipped with higher levels of automation and data science, AppNexus believes it has what it takes to successfully face up against the advertising giants with its arsenal of new ad-buying software. The newly overhauled software allows advertisers to more easily buy digital ads by automating the manual bidding process involved in programmatic buy transactions. In addition to making the programmatic buying process more seamless, AppNexus is planning to more effectively store and process the vast amounts of data that brands regularly collect for their analytics and reporting. From the looks of it, this tech company is coming directly for Facebook, Google, and Amazon as a real contender.

2. Twitter Promote for Small Businesses

Thanks to Twitter Promote Mode, small businesses are now able to more conveniently promote tweets on Twitter. The new feature allows brands to simply toggle between regular Twitter and Twitter Promote Mode with the click of a button. Once it’s activated, the page tweets are automatically amplified to the most-relevant audience. Imagine, a small company selling soaps can turn on Promote Mode, and now their tweet about participating in the local craft market will be pushed into the feeds of possible buyers. While this new feature gives small businesses a “set it and forget it” ad strategy, the simplicity does come with limitations, as the targeting is not as robust as Twitter’s regular ad platform. Regardless, Twitter is looking to Promote Mode to give small businesses with little to no marketing strategies a hassle-free way to get on the Twitter ad bandwagon. With any luck, the ease-of-use for Promote may give Twitter the boost they need to pick up their declining revenue numbers.

Cheddar Big News is Big News

With all that’s happening around the world today, it’s no surprise that news viewership is on the rise… and it’s also no surprise that video networks and platforms are trying to cater to this demand. Cheddar, a business video network, has its sights set on launching another channel to deliver national and world news, seizing on the opportunity to gain a wider audience and increase its ad revenue. The video network says it is on track to reel in around $11 million in advertising-related revenues this year, relying on its ongoing native ad sponsorships that start at $100,000 per month for entry-level, as well as its higher-level customized ads. While Cheddar’s new channel, Cheddar Big News, looks like a direct competition to long-running news networks like CNN, it may point to something bigger: the fight against cable companies like Xfinity that provide CNN. Cheddar is now available for streaming on platforms like Facebook and Sling TV – according to Cheddar CEO Jon Steinberg, the news channel will stream in “every OTT bundle available in the U.S” by the middle of 2018. The wide distribution network and ongoing advertising deals will set Cheddar apart from traditional channels, with the potential to transform how people consume news.

Amazon Prime Video… FREE for Everyone? Maybe.

As we’ve been discussing, cord-cutting is the future as more and more consumers reject traditional pay-TV options and move their dollars to on-demand streaming services. For many, one of the big draws for cutting the cord is the promise of commercial-free programming – endless binging without the interruptions from Hidden Valley (trying to convincing you vegetables are still good for you when drowned in mayo and buttermilk). However, Amazon is apparently toying with the idea of a free, ad-supported version of its Prime Video. It’s easy to see the hook: You’re watching “Mozart in the Jungle” and you see an ad for paper towels… one click later it’s in your cart ready to check out next time you’re shopping. As of now, Amazon is negotiating licenses for TV programming and movies that viewers could have access to beyond original shows like “Transparent” and “Man in the High Castle”. Offering an ad-supported version of Prime Video may very well change the game for how advertisers drive purchase habits of consumers with… just… one… click.

Brands Are “Virtually” Everywhere

Thanks to constantly evolving technology, brands have a lot of freedom to discover the most effective way to reach their target consumers. Advances in virtual reality, for example, are allowing brands to introduce consumers to a whole new level of product engagement. The latest to take on the virtual world is the new Jumanji movie. They have worked with developers to create a VR experience without requiring the use of specialized gear (like Samsung’s Gear VR or Facebook’s Oculus Rift). Using React VR, a technology that allows VR to be written in JavaScript, Jumanji’s VR experience is available through most web browsers right within the Facebook Timeline. This shift in accessibility means that virtual brand engagement is not just a fringe technology for early-adopters. From an advertising standpoint, it won’t be long before we’re seeing cross-platform VR content as promoted ads on Facebook, Twitter, and beyond, running side-by-side with traditional content.

By |November 18th, 2017|Game Changers|0 Comments

NFL Sees Lower Sept. Scatter TV Ad Deals

By: Wayne Friedman
November 6, 2017

…SQAD says that across all NFL broadcasting networks, there was an average decline of 6.7% in September compared to the same month in 2016 for TV commercial sales in the scatter advertising market — a marketplace that occurs after long-term upfront advertising deals are made in the summer.

October went in the same direction as September — down 11% as an average among all networks. NBC was up 14% to $675,939 and Fox was down 27% to $403,407. CBS was also down 27% to $300,888, while ESPN headed up 7% to $313,642…

Read more at: MediaPost

By |November 7th, 2017|In The News, News Room|0 Comments

Ad Prices Down for Most NFL Broadcasters

By: John Lafayette
November 6, 2017

…SQAD says that so far this season, among the networks that carry NFL games, only NBC is showing an increase over last year in commercial prices. Spots on NBC are selling for between $716,489 and $878,778 for 30 seconds, an increase of 13.75% from last year.

Despite the gains at NBC, across all networks that carry the NFL, spot prices are down 6.7% compared to a year ago.
Spots on CBS’s NFL games were down 19.16% to a range of $313,847 to $366,965. On ESPN, unit costs on Monday Night Football were down 15.67% to a range of $262,905 to $319,0868…

Read more at: Broadcasting & Cable

By |November 7th, 2017|In The News, News Room|0 Comments

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5 Game Changers Every Advertiser Must Know in October 2017

SQAD POD: 5 Game Changers Every Advertiser Should Know – October 2017

Industry news and insights podcast curated from the world of advertising and marketing trends.

We’re unpacking the sweaters and heating up the chai tea… that must mean autumn is finally here. But, before you drive into the mountains to watch the leaves change, or binge on Halloween candy, we’re taking a minute to get you updated on what’s happening in the world of advertising. This month, we’re talking about Google’s new Insight Engine Project and Stamp tools, Amazon’s full-court press as an advertising platform, the ability to read minds and manipulate consumers, and Adobe’s programmatic platform for connected TV ad targeting.

1. Part I: Google Using New Data to Attract Publishers

Once again, Google is stepping up its game against its biggest rivals, Facebook and Apple, to win the hearts of content publishers with the promise of providing them with the same valuable data it already offers its advertisers. The Internet giant says it will offer publishers previously unavailable data on website visitors traffic – including age, relevant search history, gender, and more – in a new tool it’s releasing known as the Insight Engine Project. The data will be a part of DoubleClick, Google’s ad sales management platform for publishers, and will allow publishers to more granularly target their ads through Google’s programmatic exchange as it reorganizes the vast amounts of raw data tracked on websites into an easy, readable format. It will also bring machine learning to DoubleClick, granting publishers insight on how their sites are performing against competitors. And as if that was not enough, they will also gain access to key ad metrics to aid in forecasting. The Insight Engine Project aims to help publishers pave the road ahead in a world where data and technology are vital, not just to success, but survival.

2. Part II: Google Swipes Another Snapchat Feature

It seems like poor Snapchat can’t catch a break these days. Every time it rolls out some cool new feature to attract more users, another platform is standing by ready to snatch it up and make it their own. Up next for cloning is Snapchat’s Discover section – the in-app media hub for entertainment & news content targeted at the coveted app users – which offers an engaging mobile experience unlike any other and has been serving as a significant source of revenue for the company. And surprising no one, Google has announced a platform that basically mimics Discover – only, they’re calling it Stamp, for some reason. Like on Discover, Stamp users will be able to swipe through headlines and trending stories just like they were texts, photos, and videos in an app. And to add insult to injury, Google will be digging into their very deep pockets to pay publishers (such as Conde Nast, Hearst, Vox) to produce content specifically for the service. While Google isn’t planning to sell any ads on the platform at the time, you can bet the advertising giant has big plans to monetize their new efforts. Meanwhile, Snapchat is trying to stay relevant and solvent by chasing startups and small businesses – hoping to get them to advertise on the app by luring them in with offers like free branded filters and early access to ad products. All of this in the hopes they can develop long-term strategic partnerships and box out Google and Facebook. If you stop and think too much about it, you might almost start feeling sorry for Snap… almost.

Amazon Gets Aggressive as an Advertising Platform

Amazon is cooking up some serious advertising initiatives, making moves to break out of its reputation as solely being a global marketplace and establishing itself as a respectable player in the world of ads and paid content. Amazon has been making serious moves in the advertising world, so much so that we have covered them in at least three recent Game Changers. It’s no secret that they are making aggressive moves and rising up as a serious player to disrupt the advertising duopoly of Google and Facebook. Now they have set their sights on adding 2,000 new jobs to New York City, mostly in advertising, and is planning to add more advertising features such as TV-like ads on its Thursday Night Football programming on Prime Video and self-service programmatic tools. In an advertising world that has long been dominated by the two giant powerhouses, Amazon is gaining speed at a spectacular pace. With their ambition, aggressive market plays, and seemingly infinite cash reserves, Google and Facebook should have one eye over their shoulder.

If Brands Could Read Your Mind

Imagine a world where brands had the power to read the minds of consumer… would they use this power for good or for evil? We may not need to wonder for much longer. The online auction-commerce giant eBay has launched what they are calling the Inspiration Zone, an experience where they hook participants up to an electroencephalogram headset that detects brain wave activity. They are then given 20 minutes to complete a series of number exercises and browse through an art gallery. Afterwards, based on the neural feedback provided during the seemingly mundane tests, participants are shown a shopping list specially curated by a deep-learning AI machine. In theory, the machine knows your brain and what you want, and can deliver far more tailored and relevant product recommendations. While you may not initially think you need the new DSLR camera or the vegetable spiralizer the AI is suggesting, the mere suggestion in the list may tickle your subconscious and suddenly hours or days later, you’re just itching to get the new gadgets. Is this just harmless efficiency or subconscious mind manipulation that creates inescapable urges to purchase unneeded items by bypassing the reasoning areas of your brain? While eBay says that it will not be utilizing this technology for marketing purposes, it’s only a matter of time. Maybe someday, your phone will be reading your mind and complicit in your new shopping addiction.

Adobe Expands Connected TV Advertising

As more households hook their TVs up to Rokus, Chromecasts, and other connected devices, advertisers are searching for new ways to capture the growing audience. Earlier this year, Adobe launched the Adobe Advertising Cloud to compete with major ad tech firms, offering tools for advertisers to manage TV and digital buying across platforms. Just this month, the company enhanced their Advertising Cloud with a new tool that will enable digital marketers to better target connected TV audiences through a cross-screen planner. Adobe is hoping to expand programmatic advertising, which has traditionally been used in digital, to the TV space. The Planner gives advertisers the power to execute linear TV buys, digital buys, or combinations of both using household-level data from both first and third parties. Additionally, Adobe is partnering with Nielson (for planning purposes), as well as a range of networks including A&E and Discovery. In a landscape where ad-supported, connected TV services are increasing at a rate of 30% month-over-month, Adobe seems to be making the right moves to lead the way in cord-cutter advertisement targeting.

By |October 16th, 2017|Game Changers|0 Comments

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By |October 9th, 2017|MediaTools Update, Product Update|Enter your password to view comments.

DATA REPORT: Historical Unit Cost Analysis for Will & Grace Reboot

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DATA SOURCE: SQAD MediaCosts: National (NetCosts)

Our Data SQAD Team has pulled historical cost data (2004-2006 season) for the NBC juggernaut, Will & Grace to see where the show was sitting for ad values compared to the competition; and to see how those same numbers would compete in the current TV landscape.

The data in this report is showing the AVERAGE :30sec AD COST for each of the programs listed, averaged across the date range indicated. When comparing ad costs for shows across different years, ad costs for those programs have been adjusted for inflation to reflect 2017 rates in order to create parity and consistency.

IN THIS REPORT:

WILL & GRACE

V.S. TOP SITCOMS ON MAJOR NETWORKS – 04/05 SEASON

Reviewing data from the second to last season of Will & Grace, we see that among highest rated sitcoms on broadcast TV of the time, Will & Grace came out on top for average unit costs for a 30 second ad during the Fall 2004 season. Although it had been seeing declining ratings over the previous 3 seasons, it dominated with an average ad cost of $325,619 – with Everybody Loves Raymond taking second place with an average cost of $268,163, and Two and a Half Men following closely behind at $266,167.

Looking at the second half of the season (Winter/Spring 2005), ratings continued to decline but Will & Grace again took first place with an average unit cost of $377,733. Second and third place remained the same, as well – Everybody Loves Raymond had an average unit cost of $298,851 and Two and a Half Men had $234,260.

COMPARISON DATA:

We compared Will & Grace to the following sitcoms for the 2004-2005 season:

PROGRAM FALL 2004 SPRING 2005
Arrested Development $188,144 $180,625
Two & A Half Men $266,167 $234,260
Everybody Loves Raymond $268,163 $298,581
George Lopez Show $117,689 $102,585
My Wife & Kids $127,867 $100,026
Will & Grace $325,619 $377,733
 
 

WILL & GRACE

V.S. TOP SITCOMS ON MAJOR NETWORKS – 05/06 SEASON

For Will & Grace’s final season, we compared it against other top sitcoms on broadcast TV and discovered that falling viewership had an impact on its place as top earner for comedies. Will & Grace came in second during the Fall 2005 season with an average unit cost of $186,883, right behind Two and a Half Men ($267,451). That ‘70s Show and The Office were neck and neck after Will & Grace, with average unit costs of $170,919 and $171,773, respectively.

As we transitioned into the back half of the season, average unit costs for Will & Grace jumped nearly 30% from the fall season to $242,500 – keeping it in second place behind Two and a Half Men ($261,927), and fending off challenges from The Office and How I Met Your Mother.

COMPARISON DATA:

We compared Will & Grace to the following sitcoms for the 2005-2006 season:

PROGRAM FALL 2005 SPRING 2006
According To Jim $126,806 $99,919
Bernie Mac $85,029 $92,388
How I Met Your Mother $159,014 $185,827
King of Queens $154,829 $167,013
That 70’s Show $170,919 $137,331
Two & A Half Men $267,451 $261,927
Will & Grace $186,883 $242,500
The Office $171,773 $198,298
 
 

WILL & GRACE

TOP SITCOMS TREND REPORT – 04 – 06 SEASON

Pulling back to view the trends over the last two seasons of the show, the year/year comparison trend shows Will & Grace experienced a dip during its last season, 2005-2006, coming in second for average unit costs at $242,500, behind Two & A Half Men ($261,927). Despite the drop, it still topped popular shows of the time like King of Queens ($167,013), That ‘70s Show ($137,331), and According to Jim ($99,919).

COMPARISON DATA:

We compared Will & Grace to the following sitcoms for the 2004-2006 season:

PROGRAM FALL 2004 SPRING 2005 FALL 2005 SPRING 2006
According To Jim $127,115 $117,227 $126,806 $99,919
Bernie Mac $164,597 $165,875 $86,029 $92,388
George Lopez Show $117,689 $102,585 $114,843 $85,461
King of Queens $126,848 $140,946 $154,829 $167,013
Still Standing $149,108 $148,613 $93,928 $73,858
That 70’s Show $187,113 $218,802 $170,919 $137,331
Two & A Half Men $266,167 $234,260 $267,451 $261,927
Will & Grace $325,619 $377,733 $186,883 $242,500
 
 

WILL & GRACE

V.S. TOP SITCOM FINALES

For perspective, we pulled the ad cost numbers for the finale episode of other popular comedies that said goodbye since Will & Grace dropped off the air, and equalized their average :30 costs for inflation. Of these finale broadcasts, Will & Grace saw the highest average unit cost of $574,233. King of Queens (finale May 14th, 2007) came in second at $483,245 and How I Met Your Mother (finale March 31st, 2013) in third with an average cost of $460,557.

COMPARISON DATA:

We compared the series finale show of Will & Grace to finale shows of other sitcoms on the major broadcasting networks, adjusting all the costs for inflation to reflect 2017 rates:

PROGRAM AIR DATE AVG :30 ADJ. INFLATION (2017)
How I Met Your Mother March 2014 $444,082 $460,557
King of Queens May 2007 $408,103 $483,245
Ugly Betty April 2010 $117,571 $132,378
The Office May 2013 $356,000 $375,196
Arrested Development February 2006 $98,000 $119,349
Scrubs March 2010 $166,600 $189,890
That 70’s Show May 2006 $182,500 $222,258
Will & Grace May 2006 $471,513 $574,233
 
 

WILL & GRACE

V.S. CURRENT RUNNING SHOWS – Fall 2016

Fall 2016 NBC Dramas

When considering the motivations for NBC’s resurrection of Will & Grace, it’s interesting to look at the current averages for :30 ads for NBC’s 60 min dramas currently running on the network. When adjusted for inflation, we see that the average :30 ad value of the worst rated season (‘05/’06) of Will & Grace is standing in a commanding position in the field, taking second, right after the juggernaut This Is Us.

While comparing the earning potential of a 30 minute sitcom against NBC’s 60 minute dramas is not a perfect comparison, it illustrates the earning potential NBC may be expecting with this reboot.

COMPARISON DATA:

We compared Will & Grace to the following NBC dramas running in the Fall 2016 season:

PROGRAM AVG. :30
Chicago Fire $147,676
Law & Order: SVU $87,470
The Blacklist $150,940
This is Us $272,702
Will & Grace* $227,596
 
 

Fall 2016 Comedies

When we look at the data from the top rated broadcast TV comedies airing in the Fall of 2016, we compared average unit costs during Will & Grace’s last season (adjusted for inflation) and found that the adjusted average :30 from their lowest rated season ($227,596) comes in second, right behind Big Bang Theory ($281,225). Seeing that the average :30 for the final season of Will & Grace is beating popular shows like Modern Family ($209,656) and Kevin Can Wait ($143,808), it’s reasonable to surmise that NBC sees the reboot as a strong competitor for ad dollars.

COMPARISON DATA:

We compared Will & Grace to the following comedies running in the Fall 2016 season:

PROGRAM AVG. :30
Big Bang Theory $281,225
Black-ish $138,232
Fresh Off The Boat $106,046
Kevin Can Wait $143,808
Life In Pieces $128,865
Modern Family $209,656
Mom $113,103
New Girl $100,676
Superstore $105,249
The Good Place $100,891
The Last Man On Earth $115,347
The Middle $132,572
Will & Grace* $227,596
 
 

WILL & GRACE

V.S. CURRENT RUNNING SHOWS – Spring 2017

Spring 2017 NBC Dramas

Looking at the back half of the 16/17 television season, we see that the adjusted average :30 for Will & Grace ($295,329) has taken the leading position among NBC’s most-valuable drama programming, beating out all of the 60 min dramas on the network including the breakout hit, This Is Us ($256,030). Of course, the bump in average :30 unit costs for Will & Grace in 2006, which pushed it over the top, can be attributed to the series ramping towards its finale in 2006.

COMPARISON DATA:

We compared Will & Grace to the following NBC dramas running in the Spring 2017 season:

PROGRAM AVG. :30
Chicago Fire $122,352
Law & Order: SVU $83,886
The Blacklist $130,058
This is Us $256,030
Will & Grace* $265,329
 
 

Spring 2017 Comedies

Looking at the second half of the 16/17 season, against a heavily packed broadcast TV roster of 30 min comedies, Will & Grace’s adjusted average :30 ad rates from their final (and lowest rated season) puts them at the top of the heap; ahead of the Big Bang Theory ($214,025) and Modern Family ($146,543) with an average (adjusted for inflation) unit cost of $295,329.

Even when comparing the average :30 unit cost of the lowest rated season of Will & Grace, against the top money-maker comedies on TV today, it’s easy to see that NBC had good reason to reboot this series – if only to regain a portion of the earning potential of the original series.

COMPARISON DATA:

We compared Will & Grace to the following broadcast TV comedies running in the Spring 2017 season:

PROGRAM AVG. :30
Big Bang Theory $214,025
Black-ish $116,557
Fresh Off The Boat $94,538
Kevin Can Wait $106,708
Life In Pieces $92,952
Modern Family $146,543
Mom $87,749
New Girl $137,417
Superstore $90,211
The Last Man On Earth $101,049
The Middle $113,251
Will & Grace* $295,329
 
 
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By |September 29th, 2017|News Room, SQAD Data Reports|0 Comments

5 Game Changers Every Advertiser Must Know in September 2017

SQAD POD: 5 Game Changers Every Advertiser Should Know – September 2017

Industry news and insights podcast curated from the world of advertising and marketing trends.

Summer is wrapping up and everything is becoming pumpkin-spiced… that must mean fall is just around the corner. Before we unpack the sweaters and schedule our apple picking adventures, there’s just enough time to take a look at what’s moving and shaking the industry right now. This month, we’re taking a closer look at Facebook’s new video service, the vending machine renaissance, the growing number of brands shifting to in-house advertising teams, NFL’s ban on alcohol advertising, and Apple’s attack on ad tracking.

1. Watching Facebook’s Watch

If there is one thing we’ve learned about Mark Zuckerberg and the team at Facebook: they know a good idea when they see one. After swiping all the best ideas from Snapchat for their recently acquired Instagram service and messenger app, they now have set their sights on YouTube. For obvious reasons (nearly every video link on Facebook directs users to YouTube) Facebook has decided to launch “Watch” – a user-driven video streaming service. The new Watch allows content creators to upload their own original videos and gives users access to hundreds of shows from platforms like Buzzfeed, Discovery, ABC, A&E, and more. While Facebook is still testing the waters (read: how advertising and revenue sharing will work for its partners), it’s probably safe to say they have the resources and drive to become the YouTube contender Vimeo never could. According to the vice president of partnerships at Facebook, Dan Rose, the social media giant eventually plans to allow their billions of users to submit shows to Facebook for approval and distribution on Watch, providing a 55% share of the ad revenue. It appears the gauntlet has been thrown down, and the battle lines have been drawn for the future of short-form streaming programming.

2. Mini Retail Kiosks Redefine OOH Advertising

The venerable and once ubiquitous vending machine is getting a fresh new makeover and is making a grand re-entry into the market as the next big digital out-of-home advertising vehicle. This re-imagining is courtesy of Vengo Labs, a new company that has kiosks in 38 states and serves ads on about 1,400 screens. Advertisers can place ads digitally on-screen or physically as a wrap-around on the outside of the machine, while filling the device with targeted products and samples ready and waiting for the next passerby. The concept could be particularly appealing to brands who want to hone in on a specific target audience; for example, a protein powder company might set up a machine in a gym locker room, or a notebook company could set one up in a college library. The little kiosks are coming in with a huge potential to make OOH advertising more engaging and interactive.

3. Brands Are Giving Ad Agencies a Reason to Be Nervous

It looks like the trend of advertisers bringing their creative ad teams in-house is continuing, with Sprint being one of the latest large companies to do so, following in the footsteps of other large companies like Allstate, Unilever, Netflix. At the end of the day, an in-house ad department allows brands to better leverage their data, messaging, and spend – and gives them control over creative initiatives, search advertising, traditional media buying, as well as programmatic buying. As if to illustrate the problems brands are trying to avoid, Uber recently filed a lawsuit against its mobile advertising agency, Fetch, seeking a return of $40 million (out of the $85 million it paid) based on allegations of misrepresentation and false analytics. This lawsuit points to a significant problem the entire ad industry is now faced with, as more companies start to question their transparency and effectiveness. The agencies are going to need to make significant changes soon if they hope to stem the tide of brands jumping ship.

4. NFL Opens Its Advertising Doors to Spirits Companies

At the beginning of September, liquor giant Diageo ran the first ever hard liquor ad during a regular NFL game season, marking a significant milestone for the industry that has long been banned from buying spots during the coveted sports season. The NFL has lifted its ban on airing spirits and hard liquor ads, and allowed four 30-second liquor ads to be aired per game under the condition that they do not represent a football theme in any way and must carry a “prominent social responsibility message.” Despite the regulations set by the league on these ads – many of which do not apply to beer brands – this is a huge step forward for the broader alcohol industry, and opens the door for them to capture a sought-after audience. Is this latest change a sign of an enlightened NFL management, or simply the adapting policies of an organization looking to maximize ad dollars in the face of falling viewership? Either way, you can be sure you’ll be seeing more Captain Morgan and Absolute Vodka commercials during your Sunday night games.

5. Apple’s New Ad Tracking Limitations

With a few changes in the browser code on Apple’s Safari, the ad industry is up in arms. But the tech giant couldn’t care less. In its latest move to protect user privacy, Apple is limiting ad tracking in Safari, making it more difficult for ad buyers to target niche markets. The new limitation will protect users’ privacy by disabling their data from being tracked by third parties after 24 hours of visiting a website. Without long-running tracking cookies stored in the browser, advertisers lose their ability to custom tailor the ads they feed users on other sites. Now, when you look at that new pair of shoes on Amazon, you’ll only see the creepy ad for those shoes for 24 hours on other sites. While not expressly stated, it’s a good bet that Apple is doubling down on their reputation for protecting their users – which could attract more consumers to the products using these more-secure technologies. But, the change is leaving advertisers industry groups enraged, six of which have already published a letter expressing their frustrations over the limitation and how it has the ability to disrupt the Internet’s economy. How much Safari’s restrictions will impact the digital advertising landscape we have yet to find out, but it could really change the game if other browsers decide to follow suit (since the latest version of Safari only accounts for less than 15% of market share, according to W3Counter).

By |September 28th, 2017|Game Changers|0 Comments