Category results for "Video"

Fix findability to expand streaming audiences

April 25, 2024 Matthew Keys – Independent Media Reporter

Young streamers are more likely to gravitate to user-generated platforms like TikTok and YouTube for their entertainment needs over subscription-based products like Netflix and Max. Streaming services need to update their user experiences, particularly around findability and discoverability, to offer more-personalized content recommendations over generalized suggestions, according to the findings of a new report.

Deloitte’s “2024 Digital Media Trends” study found that 60% of Generation Z video consumers are more likely to watch user-generated content because they “don’t have time to spend searching for what they want to watch.” Half of all respondents say they “abandon an entertainment experience because they can’t find what they’re looking for.”

The findings are problematic for entertainment giants, which are committing large budgets toward the production of original content that aren’t attracting significant audiences. Deloitte says the top six subscription streaming platforms are likely to spend $100 billion on original content production and marketing in 2024 alone. Jeff Loucks, the Executive Director of the Deloitte Center for Technology, Media, and Telecommunications who co-authored the Digital Media Trends report, said that investment is likely to be wasted effort if streamers can’t easily connect to those shows and movies.

The discoverability dilemma

According to Loucks, one big reason why shows and movies aren’t being watched is because streaming platforms make it difficult for that content to be readily discovered, likening the experience of sifting through shows and movies on a streaming service to “the old days of Blockbuster.”

“You’re searching through a bunch of titles, and you can’t agree on what to watch. It’s going to take an hour and a half of your time,” Loucks said. “The content discovery has got to get better.”

Industry experts who spoke with Digital Content Next said they were largely unsurprised by Deloitte’s findings that streamers — particularly younger audiences — were increasingly turning to user-generated content platforms like TikTok and YouTube for their entertainment needs. One often overlooked reason is that platforms like YouTube and TikTok have made heavy investments in their search and discovery algorithms that identify what a person is watching on the regular, and then serve up more content that caters to their interests.

“YouTube and TikTok are scarily accurate and predictive and elemental, whether the content is large-scale or bite-sized,” said Tim Hanlon, the founder and CEO of the media consultancy firm Vertere Group. “Those are all independently describable and ascribable elements, data-rich elements that can be mixed and matched together.”

Loucks agrees that younger viewers are increasingly attracted to short-form content, which can be easily skipped for something new if it isn’t appealing. “Sometimes, people are telling us that they’ve got a lower attention span, and smaller, snackable content is something they’re willing to watch — it’s easier to consume,” Loucks said.

Addressing fragmentation

Embracing short form and the push-based UI of user-generated content platforms won’t serve as a silver bullet that will solve the complex challenges of streaming search and discoverability, however. There are still plenty of consumers who prefer to be entertained by watching feature-length films and episodic TV series — and they’re having the same challenges finding interesting things to watch across apps and platforms, too.

According to a report from Accenture, about 36% of people say they’re exhausted from having to constantly look across platforms and services to find something they want to watch. And 60% of consumers say they’ve churned out of a service because a movie or TV series was dropped, or they thought they’d watched everything there was to watch.

Fragmentation is accelerating these trends, because content that is relatable to a person is spread across different services. “The net impact of fragmentation is the fact that consumers can’t simply find content in consistent places where they want to spend their time,” pointed out Dallas Lawrence, a former communications executive for Roku’s platform.

Lawrence spent a lot of time thinking about this problem at Roku. He noticed that companies spend a lot of time and marketing money drawing customers into their streaming services only to “fail at the five-yard line.”

“They’ve failed to actually consumers with a piece of content they want to watch, and that’s probably one of the biggest challenges today, both from a streamer perspective — to keep people from cycling out — but also from a consumer perspective.”

Lawrence is now the chief strategy and communications officer for Telly, a startup that grabbed headlines last year after promising to offer a free, dual-screen smart TV. Telly packs a lot of features that are meant to entice consumer interest — from a premium screen to an integrated high-fidelity sound bar. They also promise to play nice with any streaming platform that a customer wants to use.

Telly is rooted in the idea that the TV will pay for itself over time through advertisements shown on a secondary screen that sits beneath the main display. Lawrence said Telly is uniquely positioned to help ease the challenges of streaming discovery for consumers and services alike because the device is able to evaluate what someone is watching across any service.

“If I’m watching Bridgerton on the top screen of my Telly, the device is recognizing that, and we’re going to say, hey, maybe you’d like to watch Gilded Age on Max as well,” Lawrence said. “We can throw that ad on the second screen, and when you’re done watching Bridgerton, you just pick up your remote and click into Gilded Age. The ability for us to recognize what someone is watching now, and then pull them into new content with a single click before they’ve turned off the TV or cycled out, that will have huge benefits.”

Streaming discoverability beyond the EPG

For now, Telly is the only dual-screen device on the market that can seamlessly pull off this experience. However, the idea of using viewing habits to deliver personalized results and improve streaming discoverability is not unique and can be franchised by other services.

Instead, streaming services seem to be defaulting to antiquated ways of browsing across content, complains former CBS executive Adam Wiener, who now operates his own media consulting firm Continuous Media.

Wiener says that subscription-based platforms have adopted the “endless scroll,” which allows consumers to quickly flip through movies and TV shows. Often, however, this approach fails offer personalized content recommendations the way user-generated platforms like TikTok and YouTube do. Free, ad-supported platforms and some premium pay TV services that deliver linear content are even worse, Wiener notes. That’s because they’ve embraced the grid-style electronic program guide (EPG) that was used by cable and satellite platforms for decades, but hasn’t kept up with the times.

“The problem with the EPG is that it’s the clunky thing of yesteryear, and it also doesn’t include all the things that you may be interested in,” Wiener opined. “An EPG should know that I never, ever watch reality shows, and it should never show those things to me.”

Endless scrolling and EPGs also reveal another problem: There is a lot of stuff to watch. According to Nielsen’s State of Play report, there are now more than 2.7 million unique titles across hundreds of streaming services, and the sheer volume of content libraries can leave consumers feeling extremely overwhelmed and make finding something to watch seem impossible.

“It’s the paradox of choice,” Wiener says. “The age-old discussion that it becomes tiring to scroll through a screen, the thought that maybe if I continue scrolling right, I might find something more interesting…and then it feels like you can’t choose, like you have to settle for something, and you just hope that it’s good.”

Hanlon agrees: “When everything is a choice, there’s a paralysis that occurs when you either revert to something you know from the past, or you’re looking for signals to grasp,” Hanlon said. “What services wind up having to do is dumb things down and simplify it to the point where it becomes pages and pages of tiles or, worse, a search box.”

AI leads the way for streaming discoverability

Wiener and Hanlon both point to generative artificial intelligence (AI) as a solution that can help ease a lot of the pain points associated with streaming search and discovery. At least one company is already embracing the idea: Earlier this month, Cineverse said it was working on a new AI-powered content recommendation engine called cineSearch.

Using metadata provided by Nielsen’s Gracenote and an AI platform powered by Google’s Gemini language model, cineSearch will power a forthcoming consumer chatbot called Ava that aims to offer personalized TV shows and movies across apps and services — even if the content isn’t offered by Cineverse itself.

“Our partnership with Gracenote increases the number of films and TV shows that are discoverable by users and allows us to offer cineSearch users the highest-quality title information with intensity rankings – when paired with a user’s viewing history, streaming service filters and content preferences – will help solve a major consumer issue and the leading cause of viewer frustration,” Tony Huidor, the Chief Technical Officer at Cineverse, said in a statement.

Deloitte’s Media Trends report suggests companies like Cineverse are on the right track. According to the report “streaming services should look to the engagement models of social media services to improve their own content delivery strategies, making a more concerted effort to leverage user data and AI technologies to target content toward individual viewers.” Loucks affirms that video platforms should want to embrace generative AI solutions to improve their content recommendation engines.

“Each service is going to have to work on having a user interface that is good and that works better, and I think generative AI is going to be a big part of that,” Loucks said.

Discoverability delivers streaming audiences

Audiences expect personalized experiences. According to a November 2023 report by Google Cloud, 81% of streaming video viewers “expect streaming services to provide highly personalized experiences,” and 31% will switch out of a service if they can’t find something they want to watch. Worse, nearly half of respondents say they’ve canceled a service in the past “if they couldn’t find something to watch,” Google Cloud revealed. Clearly improving streaming content discoverability is critical for success.

The experts and the data reveal common themes: Streamers don’t want to spend a lot of time trying to find something to watch. And if a video platform makes an investment in personalized search and discovery, that is where audiences — especially younger viewers — will spend their time.

Industry-Research | Video

Most people opt for free, ad-supported streaming

April 2, 2024 Rande Price, Research VP – DCN

The ubiquity of streaming services is evident in their widespread adoption across various models, including subscription-based and ad-supported platforms. In fact, nearly every U.S. household (99%) subscribes to one or more streaming services. Of those, the majority (58%) are willing to endure occasional interruptions in exchange for cost savings.

This sentiment underscores a growing trend toward prioritizing affordability without sacrificing the viewing experience. In addition, 62% prefer free, ad-supported streaming over paid subscriptions. New research, The Stream 2024, sponsored by Tubi, examines the streaming surge and reflects a fundamental shift in how people consume content. These days, convenience and flexibility take precedence over traditional television viewing.

Further, on-demand streaming services are the new norm in entertainment consumption. As households cut the cord to traditional cable subscriptions, streaming services are now integral to daily life for millions. From disrupting the sports-streaming landscape to championing representation and diversity in content, millennials and Gen Z are at the forefront of this cultural shift. However, as these demographics grapple with financial constraints, they are increasingly reevaluating their relationship with streaming services.

Viewers’ advertising preferences

Consumers viewing ad-supported streaming services ad preference:

Like those on TV, standard ad breaks are strategically inserted at convenient plot point breaks within an episode or film (35%). They provide a fitting pause that harmonizes with the content’s flow.
Personalized ads that align with consumer interests and viewing journeys offer an enhanced experience. Most viewers (67%) prefer ads relevant to their streaming content, while 29% appreciate targeted ads tailored to their preferences.
A notable 35% of audiences embrace quirky or unconventional ads for an added dose of enjoyment: Surprise and delight viewers with the unexpected.

Budget constraints and content preferences

While the attraction of streaming is undeniable, viewers are increasingly mindful of their spending habits. With subscription costs rivaling traditional pay TV services, price sensitivity is rising, particularly among younger audiences. Consequently, many are reassessing their streaming habits, with 27% admitting to using more services than they plan to in the future.

Moreover, viewers crave variety and fresh content. Their preferences lean towards a vast selection of shows and movies (69%) and new or original content (61%). As such, there is a growing demand for tailored content experiences that cater to diverse tastes and preferences.

Streaming adapts to evolving trends

This report suggests that ad-supported freemium models are poised to play a pivotal role in shaping the future of content consumption. By offering a blend of quality content and reasonable spending options, platforms can cater to consumers’ evolving needs while presenting compelling opportunities for marketers. Notably, the future of ad-supported services relies on a holistic viewer journey where ads amp up rather than interrupt the narrative.

Tubi’s research also suggests that integrating artificial intelligence (AI) holds immense promise in enhancing content discovery and personalization, addressing viewers’ dissatisfaction with current recommendation algorithms. As technology, tastes, and behaviors evolve, the onus is on streaming platforms to anticipate and adapt to shifting trends, delivering engaging narratives and seamless viewing experiences.

Streaming quality time and self-care

Streaming has taken on a role beyond entertainment, fostering a role in human connection and personal empowerment. For many, streaming represents an opportunity to bond with loved ones, with 71% of viewers citing it as a form of quality time spent with family or friends. Moreover, many view streaming is a form of self-care, with 68% of individuals leveraging it to carve out precious alone time in their hectic schedules.

The rise of on-demand streaming represents a paradigm shift in how audiences consume and engage with content. As streaming services continue to develop, understanding and adapting to evolving viewer preferences and market dynamics is essential for both platforms and marketers. Streaming platforms can shape meaningful connections with audiences by embracing innovation, diversity, and affordability.

Advertising | Featured Post | Video

Podcasters explore diverse revenue streams in a bid for growth

March 28, 2024 Jessica Patterson – Independent Media Reporter

Advertising and subscriptions are popular podcasting revenue streams. As with all things digital media, revenue diversification is the name of the game. So, it is interesting to see media companies exploring alternative and creative revenue streams for podcasting.

Deloitte predicts that a growing number of consumers worldwide will engage with audio entertainment overall in 2024—bringing the number of monthly average podcast listeners to more than 1.7 billion. Fueled by this demand, podcast advertising is also on the rise. In fact, it outpaces growth trends for the internet ad market, according to IAB’s U.S. Podcast Advertising Revenue Study 2023. Podcast advertising revenues have grown over 115% from 2020 to 2022. And ad revenues grew 26% year-over-year to $1.8 billion.

So, it’s no surprise that for many publishers, networks and individual creators, advertising is still the primary revenue driver. Jenna Weiss-Berman is EVP, Head of Podcasts at Audacy, Inc. and Co-Founder, Pineapple Street Media (an Audacy Company). She believes that, while it is important to explore new revenue opportunities, advertising is too important to neglect.

“We all want to look into alternative models,” Weiss-Berman said. “But I think we are also very focused on the one that we know is working and how do we make that one work better? I think because we are seeing a lot of annual and quarterly growth, we want to make sure that that’s really the priority – focusing on the thing that we know works best.”

Ray Chao, SVP and general manager of audio and digital video at Vox Media, also believes that advertising is still a strong revenue model for podcasts. He points to a combination of new advertisers entering the podcast space as well as existing advertisers allocating increasing budgets to podcasting. “I think what that reflects is a real understanding of the fact that podcasts are one of the most engaging media channels,” he said.

Streaming ad innovations for podcasters

And, the research certainly backs up the level of engagement. Podcast listeners in the U.S. are expected to spend an average of 54 minutes per day tuned into programming in 2024, according to EMarketer’s February 2024 forecast. According to eMarketer, in 2024 digital audio will make up a fifth of all time spent with digital media in the U.S. and in 2023, almost 75% of U.S. internet users listened to digital audio.

“This growth comes as no surprise to us,” said Emma Vaughn, global head of advertising business development and partnerships at Spotify. Spotify’s advertising revenue climbed 12% to €501 million last year—an all-time high, thanks to double-digit growth across both music and podcasts. With this kind of revenue opportunity on the table, Spotify is focused on evolving the advertising technology for podcasting.

“We’re continuously advancing the ad products we offer,” Vaughn said. The company just launched a music agency called AUX in February. “We’ll use our expertise to counsel brands about how best to use music to enrich their campaigns and leverage our relationships with emerging artists to help them reach new audiences.”

The company has also been “been modernizing podcast ads in format and in experience through CTA Cards, an interactive, multi-way experience that transformed podcast ads from something that could only be heard, into an experience that you can also see — and, most importantly, click,” she said.

Vaughn also emphasized the need for measurement to mature in the podcast business, citing the global shift in consumption from downloads to streaming which has opened the door for advances in more data-driven podcast advertising measurement. “When we launched Streaming Ad Insertion (SAI), we introduced impression-level insight to podcast advertising for the very first time,” she explained. “Rather than relying on download data, advertisers now had access to standard digital reporting like impressions, unique reach, and frequency, along with unique audience insights and creative performance metrics powered by Spotify’s first-party data.”

SAI is a podcast ad technology available on Spotify that incorporates digital planning, reporting, and measurement for podcast advertisers – based on confirmed ad impressions. It was designed to “deliver the intimacy and quality of traditional podcast ads with the precision and transparency expected of digital marketing” according to Vaughn.

Paid podcast subscriptions

However, Vaughn points out that at Spotify, subscriptions are a critical piece of their business. “In our last earnings, subscription revenue increased 17% to €3.17 billion.”

And, while most podcasts are ad-supported and free to listeners, some publishers are now offering exclusive podcast content only paid subscribers can access. For example, late last year The Economist launched an audio subscription ($4.90 US per month) that put the majority of its shows behind a paywall. The Economist’s entire collection of podcasts is exclusively available to Economist Podcasts+ subscribers.

At Fox News Audio, the breadth of podcast content across the Fox Audio Network allows the company to attract a broader audience with diverse interests, explained William Sanchez, executive director of digital & business development at Fox News Audio and Fox Audio Network. Fox News is not new to podcasting or subscriptions.

The company has been in the business for 10 years, and Sanchez says that “when we started our first venture into podcasts with our talk radio shows as premium podcasts. So they’ve always been a part of our strategy as far as subscription goes, and now is inclusive of Apple podcast subscriptions and ad-free listening on Amazon Prime for Prime members. Subscription continues to be, it was always a part of our plan or strategy, and it used to be a part of our roadmap.”

At Vox Media, while the company’s business model is primarily advertising-driven and their main focus is continuing to grow advertising. However, it’s also a priority to continue to diversify their revenue model, explained Chao. “We’ve done that through subscriptions and consumer revenue,” Chao said. “We’ve been operating Cafe Insider, which is a subscription business for several of our shows, including Stay Tuned with Preet. And, we recently launched Criminal+, which is a subscription product for Criminal. We’re excited about consumer revenue as a space to continue to grow and diversify our revenue model.”

Their strategy starts by looking at the show and thinking about its host, its team, the audience, and figuring out if there is an opportunity for a paid consumer product that allows fans of the show to engage more deeply with the content, Chao said. “So, for fans of Preet Bharara who are listening to Stay Tuned with Preet, they are excited about more content in the intersection of policy, law and politics. And, we deliver that each week through Cafe Insider.”

Video audiences expand podcast audience and revenue

While podcasts used to be the medium of choice for multi-taskers, publishers are now filming their podcasts and distributing them on visual platforms with big built-in audiences like YouTube and TikTok. In case media companies worry that offering full length content might cannibalize an audio audience, there’s certainly a wealth of highlights to be clipped for social and promotional purposes, and a clear opportunity to expand podcast monetization.

The fact is that people actually enjoy watching video podcasts almost as much as listening to them. A February YouGov poll suggested 33% of respondents favored listening to audio podcasts, while 25% preferred watching video podcasts. The visual appeal of video podcasts was one of the main reasons for 51% of respondents, while 29% preferred the variety of content and ability to share on social platforms.

And, as users increasingly consume podcasts in both audio and video formats, leveraging YouTube for consumption, digital media companies are slowly expanding upon existing ad models to make video part of their go-to-market plans. Video-enabled podcasts represented just under 10% of revenues in 2023, according to IAB’s most recent U.S. Podcast Advertising Revenue Study. Which makes it a prime opportunity for advertisers to engage in cross-channel buys.

Last year, Slate announced a partnership with YouTube to bring Slate’s network of podcasts, including favorites like Slow Burn, Political Gabfest, What Next and Amicus, to the platform.

“We see this as a real opportunity to build scale and reach a new, untapped audience on YouTube, which has become the world’s most-used podcast platform,” wrote Charlie Kammerer, Slate’s president and CRO, in a release.

After introducing video podcasts in 2020, Spotify announced in June last year that they had more than 100,000 video podcasts on their platform, adding that the U.S., Brazil, Mexico, the U.K., and Germany published the most video podcasts.

Fox News Audio has success with video and its podcasts, according to Sanchez. “Our audio division lives among a video first world, so we get to tap into a lot of the resources and the expertise from the video side of the business that allows us to bring the audio-first business into the video world as well and capitalize our platforms like YouTube.”

So, while Fox News Audio has shows that come from the video side, they’re findinging that they have a much larger catalog that is audio-based. “We’re starting to move forward with bringing those to our YouTube channel. So, that’s another revenue stream opportunity for us as we all try to figure out what video role plays in podcasting.”

As Chao sees it, a podcast is just a direct to consumer (D2C) show that has been delivered through RSS onto platforms like Apple and Spotify. However, the ecosystem for podcasting continues to expand into new content categories, new creators and talent, and as consumer behavior continues to evolve and there are flourishing video platforms like YouTube and TikTok out there.

“We’ve seen a lot of success with these direct to consumer shows, building an audience and a business on platforms outside of just traditional RSS feed podcast listening platforms,” said Chao. “So, if you think about podcasts more broadly than just an audio show, it’s actually a direct to consumer show that can be audio, can be video. That is really where we see continued expansion in the podcast industry for both audiences and advertisers.”

Podcast merchandise revenue: swag, gifts and more

Podcast networks and digital publishers are now hawking merchandise – from clothing lines to bags, water bottles and more. Fans, eager to show their allegiance to their favorite podcasts through t-shirts, mugs, or hoodies, discuss which podcasts have the best merchandise.

Indeed, podcast merchandise has become big business. Vox Media has some podcast-related merchandise in its shop, for Today, Explained, Vox’s daily news explainer podcast and its Future Perfect podcast.

Fox News Audio offers some podcast-related merchandise as well. While it’s not a large part of their business, there is representation in the Fox shop, Sanchez said.

American podcast network Wondery, home to podcasts Morbid, Smartless, Redhanded, MrBallen and other popular shows, has a merchandise shop that offers apparel, accessories, drinkware and home and office.

Podcast revenue forecast

“The era of podcasting that we’re moving into now is that we need it to be a sustainable business and not just something that people are trying to get rich quick off of,” according to Weiss-Berman. “I think that it’s fun figuring out how a thing can be sustainable and a good long-term business. There’s a lot of opportunity for growth that we’re seeing and it’s actually not very complicated to make it a profitable business when that’s the focus.”

While 2023 was a challenging year for podcasters, with layoffs at NPR, Spotify, Stitcher and Amazon Music and lucrative deals with celebrities falling apart, the industry also saw growth in listeners and ad revenue. While it is heartening to see stalwart revenue models–advertising and subscription supported–holding strong for podcasting, diversification builds strong media businesses. Publisher investment in new revenue streams like video and merchandise comes from a desire to drive expansion, growth and sustainability.

As Vox’s Chao put it: “As we think about continuing to grow this business and to continue to help it flourish, these additional revenue streams or diversifying our revenue model through expansion into subscriptions and consumer revenue and other types of revenue streams is a core component of how we’re going to continue to grow this business going forward.”

Diversity, Equity & Inclusion | Industry-Research | Video

Hollywood’s diversity-driven returns don’t align with investments

March 20, 2024 Rande Price, Research VP – DCN

In Hollywood, where creativity meets commerce, diversity is a central theme, not just on the screen but also behind the scenes. Box-office numbers demonstrate the power and profits wielded by audiences of color and women: People of color dominated opening weekend sales for 14 of the top 20 films in 2023, while while female moviegoers dominated sales for three films in the top 10, according to the latest Hollywood Diversity Report.

UCLA’s annual Hollywood Diversity Report, now in its eleventh edition, offers insight and guidance for the industry in representation, inclusion, and profitability. This report examines diversity within Hollywood’s top films and TV shows, showcasing the realities between demographics and the bottom line. It delves into dimensions such as race, ethnicity, gender, age, sexual orientation, religion, and disability status. The study offers a better understanding of Hollywood’s diverse landscape using data from sources like The Studio System, Variety Insight, IMDb, comScore, and Box Office Mojo. The report provides valuable insights into the industry’s efforts to reflect society’s diversity by tracking data and their correlation with audience preferences.

Cast diversity

Despite the demonstrated success of diverse casts, the report highlights disparities in gender representation. Despite significant gains, women’s share of top theatrical film leads declined to 32.1% in 2023 from 38.6% in 2022. This decline underscores women’s ongoing challenges in securing prominent roles within the industry.

Moreover, the report delves into the representation of individuals with disabilities, an area that has historically received less attention. While the report shows some progress, adults with disabilities remain underrepresented as theatrical film leads in 2023. Only 7.1% of all top theatrical film roles include actors with a known disability.

Further, the report uncovers disparities within racial and ethnic groups and gender identities. While certain groups, such as Asian and MENA (Middle East and North Africa) individuals, approach proportionate representation, others, including Black, Latinx, and multiracial individuals, continue to face significant underrepresentation.

Budget allocation and financial performance

Budget allocation also emerges as a factor affecting diversity within the industry. The report underscores the correlation between diversity and box office success, revealing that films with casts featuring 31 to 40% BIPOC (Black, Indigenous, and People of Color) enjoy the highest median global box office receipts. Notable titles include Barbie, The Hunger Games: The Ballad of Songbirds & Snakes, and Shazam!

However, films with BIPOC leads are also likelier to have the smallest and largest budgets, highlighting the uneven distribution of resources and opportunities for diverse talent.

In addition, BIPOC audiences emerge as a critical demographic for the industry, with most opening weekend domestic ticket purchases by BIPOC moviegoers for seven of the top 10 and 14 of the top 20 films in 2023. Additionally, films featuring casts where more than 30% of the actors are BIPOC account for nine of the top 10 and 15 of the top 20 films at the global box office.

Global distribution and the importance of intersectionality

The report also sheds light on disparities in global distribution and representation, revealing that top theatrical films with Black and Asian leads are less likely to have distribution in China compared to other racial and ethnic leads. However, films featuring Latinx and multiracial leads are more likely to have distribution in China.

Moreover, the report highlights the importance of intersectionality. Films featuring casts from 41% to 50% BIPOC post the highest median domestic box office, and those with casts from 31% to 40% BIPOC dominate the international markets. These findings challenge the notion that “diversity does not travel,” emphasizing the global appeal of diverse storytelling. As the industry continues to navigate the dynamics of diversity and representation, this report serves as a vital resource for understanding Hollywood’s evolving landscape. Overall, the report offers insights into the state of diversity in Hollywood and the challenges in achieving true representation. Looking closely at this data shows that having various types of people in movies and TV contributes to their popularity, and profitability.

Industry-Research | Video

YouTube dominates social platform usage

February 20, 2024 Rande Price, Research VP – DCN

Public platforms, including social media, offer a forum for open for communication, citizen journalism, and audience engagement. However, these platforms also pose many challenges including misinformation, privacy concerns, and algorithmic biases. For better or worse, the largely ungoverned content available shapes public discourse and impacts societal perceptions. These days, the field of social media platforms continues to expand with TikTok experiencing a high level of growth. However, stalwarts YouTube and Facebook lead the pack in overall usage.

Pew Institute’s new research, Americans’ Social Media Use, delves into U.S. adults’ social media usage patterns, offering insight into how individuals engage with various social media platforms. With a robust sample size of 5,733 respondents, this study shows that social media continues to play a central role in shaping communication dynamics and societal interactions.

Among all of the social platforms today, YouTube emerges as the undisputed leader, with an overwhelming 83% of U.S. adults saying that they use the platform. Following closely behind is Facebook, 68% of adult usage, and Instagram, 47% of adult usage.

While YouTube and Facebook maintain their dominance, other platforms command significant user bases. Approximately 27% to 35% of U.S. adults use platforms like Pinterest, TikTok, LinkedIn, WhatsApp, and Snapchat. X (formerly known as Twitter) and Reddit attract approximately one-fifth of American adults.

A notable finding from the survey is TikTok’s growth, which saw a surge in its user base. Currently, one-third (33%) of U.S. adults use this video-based platform, a significant increase from 21% in 2021. In contrast, other platforms experienced more modest or stagnant growth over the same period.

Age demographics play a crucial role in shaping social media usage patterns. Adults under 30 exhibit higher usage rates across Instagram, Snapchat, and TikTok. However, YouTube and Facebook remain ubiquitous across all age groups, with most adults using these platforms. While there’s a substantial age gap in YouTube usage, interestingly, Facebook’s usage is more evenly distributed across age cohorts.

Pew’s analysis shows demographic differences in platform usage. For instance, Instagram attracts higher usage rates among Hispanic and Asian adults than Black and white adults. Similarly, TikTok usage is particularly prevalent among Hispanic adults and women. Similarly, race and ethnicity play a role in WhatsApp usage, with Hispanic and Asian adults more likely to use the platform compared to their Black and white counterparts.

Educational attainment also influences platform usage, with individuals with higher levels of education more likely to use platforms like LinkedIn. Meanwhile, household income is a significant factor for platforms like X, formerly known as Twitter, where higher-income users exhibit greater engagement.

Gender disparities are evident in platforms like Pinterest, where women constitute a significantly larger proportion of users than men,

It’s important to note that the Pew Research Center transitioned from collecting responses via telephone to web and mail surveys. This shift can impact study outcomes, so monitoring these trends moving forward is important.

Overall, the Pew Institute’s research underscores the undeniable influence of social media in shaping modern communication and societal interactions in the United States. Despite ongoing controversies and concerns, social media platforms play a central role in shaping communication, connectivity, and societal dynamics.

Importantly, demographic differences further highlight the nuanced social media usage patterns, with age, race, ethnicity, education, income, and gender playing significant roles in platform preferences. These insights provide a deeper understanding of how individuals from diverse backgrounds engage with various social media platforms.

While acknowledging the ongoing challenges such as misinformation, privacy concerns, and algorithmic biases, it’s clear that social media platforms continue to serve as vital conduits for communication, connectivity, and community engagement. The transition in survey methodology underscores the importance of continually monitoring and adapting to evolving trends in social media usage.

Industry-Research | Video

What audiences of all ages like about “non-premium” video

February 5, 2024 Rande Price, Research VP – DCN

Viewership habits are changing in the video entertainment and news landscape, presenting challenges and opportunities for today’s media content companies. Hub Entertainment’s annual Video Redefined study delves into this growing alternative video content consumption ecosystem. The research explores the rise of YouTube influencers, TikTok, podcasts, and the impact of gaming on the streaming video industry. Hub’s study finds a significant change in consumer preference towards “non-premium” online content sources like YouTube and TikTok. Hub attributes this shift to increased smartphone usage and expanding content on these social platforms.

Aware of these shifts, some media companies, like Paramount, Disney, Max, and others, are experimenting with releasing exclusive content on social platforms. Paramount released Mean Girls on TikTok in 23 parts, and Disney created a content hub dedicated to their company’s 100th anniversary.

Broader appeal of non-premium content

TikTok emerges as a significant player in short, quick, and trend-centric content, appealing to all age groups and excelling in providing vast amounts of video content. The study reveals that while TikTok is now on par with Instagram in popularity among young viewers, YouTube remains the unrivaled leader.

Gen Z’s affinity for non-premium videos, such as short-form, user-generated, and influencer content, is evident, with nearly two hours daily of consumption. The study highlights a surprising increase in non-premium video consumption among older viewers (35+), with a two-hour-per-week rise compared to the previous year. Hub Entertainment notes that their interest in staying updated on news and current events is primarily attributed to the surge.

Smartphone video viewing

While social media is popular across all ages, viewership is not uniform. Over 80% of all viewers use YouTube weekly. However, Gen Z stands out for its higher usage of Instagram, TikTok, and Snapchat. The study emphasizes the importance of recognizing the unique benefits offered by each platform. TikTok, for instance, excels in delivering short, trendy videos, while YouTube’s extensive library remains the go-to source for informative content.

As noted earlier, the study underscores the dominance of smartphones as a viewing source, particularly among younger audiences (13-24). Younger viewers spend half as much time on traditional TV as their older counterparts. Their smartphones are the go-to platform for gaming, social media, and non-premium video content. Companies like Netflix are aligning their strategies with this trend, developing games based on popular shows like Squid Game and Wednesday, further blurring the lines between traditional TV and gaming. Gaming IP, too, is gaining traction, with promises of more TV show game adaptations like Fallout on Prime Video.

Media content companies face challenges as younger viewers move away from traditional television and cinema experiences. The dominance of smartphones, the rise of non-premium content, and the changing preferences of different age groups underscore the need for the industry to adapt and explore opportunities presented by these shifts. As media companies chart the future of the video ecosystem, they must embrace innovative strategies to stay relevant and engage with evolving audiences.

Video

What the US and Europe TV markets can learn from each other

January 30, 2024 Christy Tanner, Founder – Coraly Partners and Senior Advisor Oaklins DeSilva & Phillips

In an increasingly global market, it is vital to recognize that, while Europe and the U.S. may have many similarities, they also have notable differences. The good news is that there’s a lot to learn from these differences. No matter what your perspective, the “television” space is growing more complex by the day. Applying one world view to fundamentally different markets is a recipe for failure. Thus, it is critical that media executives realize the world is not black and white but consists of shades of grey.

When we talk about television, what we mean by “TV” can vary dramatically, depending on geography, distribution service, device and – increasingly – the type of content being viewed. These variations are critical to understanding opportunities in this space. For the purposes of our discussion here, “TV” includes but is not limited to:

Over-the-air (OTA) broadcast channels
Cable & satellite-delivered channel
+s
FAST channels
SVOD services

All of the above may be accessed on mobile devices, laptops/desktops, and connected TVs. They are the primary (and most lucrative) content delivery formats for both traditional and new content creators and aggregators, who are most likely to be interested in our analysis.

A key component of the challenges now faced by media companies is a false assumption that “one size fits all.” As we explore the strategic complexity of the streaming television market, compounded by the acceleration of AI integrations, taking a “one size fits all” approach is particularly risky.

Instead, each media company must clearly evaluate and understand its strengths and core competencies, and what these mean when moving in a new direction. In order to remain viable, it is imperative media players have the confidence to try new tactics. And, to truly innovate, they also need to get comfortable with the possibility of failure (as the tech industry has been).

The five key strategic questions

As they decide their next steps, media executives should be focused on five key long-term strategic questions:

How can you prepare your media business for success and survival in a rapidly-changing, highly competitive environment?
How can you attract and retain talent?
How can you serve your current customers and acquire new customers?
How can you grow revenue and profitability, sustainably?
And, finally, what exactly is your end goal?

Streaming lessons the United States and Europe can learn from each other

What we present below are six key – deliberately brief – lessons that U.S. and European media companies can learn from each other as they develop and evolve their offerings in the global streaming TV marketplace.

Lesson #1: Ask the right questions

The number one lesson that European media companies can learn from the U.S. is that many major media companies neglected to ask those five questions soon enough. That particularly seems the case when it comes to the last question: The strategies of most of the major U.S.-based streaming companies seem to lack a clearly defined end goal. But the good news is that it’s not too late. In fact, late movers have an opportunity to learn key lessons from the U.S. streaming market and thus serve viewers more effectively.

Lesson #2: Understand the market

One of the major mistakes that the mainly U.S.-based SVOD streaming services made (at least up to now) was the assumption that the world looked like the United States and would act the same way. A study of the history of the U.S. and European television markets would have made it clear that, when it came to paying for television, both markets had fundamentally different characteristics.

For example, Americans are used to paying $100 or more for their television, Europeans are not. Also, European pay-tv penetration has typically been 30 to 40% lower than the U.S. (even lower in some markets). Europeans prefer national language content and use free to air content more. When it comes to streaming, both sides need to first understand the structure of their markets and then work out what solutions work best.

Lesson #3: Media tech is a long-term investment

Technology has forever changed the game for media, and every player in the content value chain needs to become tech-savvy. This means continuously educating oneself – and one’s team – on new developments in technology. AI is a perfect example of a technology that has already impacted media (and will continue to do so). And yet, many major media players still think that AI is something for their tech department or even a new “Chief AI Officer” to manage rather than something about which they personally need to invest time learning and educating their entire teams about.

It’s imperative to everyone in a media company – senior or junior – to understand how mass market consumers connect using technology. For example, have they experimented with writing a ChatGPT or Midjourney prompt? Have they recently visited Walmart, Best Buy or Amazon to learn how most consumers purchase a TV, and thus come to have built-in, bundled access to their products? Do they have TikTok accounts? YouTube, Facebook, Instagram, Twitter, or even LinkedIn? And so on. Technology is a constantly evolving space, both in terms of innovation and consumer behavior. Staying connected to these changes will allow media leaders to make better short-term decisions and long-term investments in their business.

Lesson #4: Do what you do best

When faced with the dominance of Netflix, instead of doing what they did best, many U.S. media companies simply tried to do what Netflix did – but not as well. This approach hasn’t made a significant dent in Netflix’s market dominance, which is measured as present in two thirds of U.S. households, according to Kantar, with 49% in 2023 viewing it as their most important streaming service.

While this short-term strategy has floundered, the top U.S. media companies have a) strong, resilient brands, b) expertise in creating world-class content and content pipelines and c) the best deal-making skills Hollywood can teach. So, their potential remains strong. The same holds true for European media players. If you aren’t U.S.-based, don’t assume that your media company should follow the same strategies as the U.S.-based media giants. Nobody wants or expects your company to be the next Netflix. Instead, your company should be the next version of itself.

Lesson #5 – Don’t lose sight of the bigger picture

CEOs and corporate boards face a multitude of pressures when it comes to decision making. They must actually run their companies and navigate continually changing sectors and wider trends. And, in most cases, they must do so under the scrutiny of shareholders who have a multitude of short and long-term interests. What management must not do is panic.

For European companies, one area this particularly relates to is the treatment of linear television. There is no doubt that linear television faces challenges, yet European executives must also be wary of writing off the medium. While viewing for “traditional” television in the U.S. hovers just above 50%, linear television programs still dominate the schedules in virtually all major European countries. That reflects both the history of how television developed in these respective markets and the demographics involved. Linear can still be a powerful tool for advertisers in Europe in a way that is becoming increasingly challenged in the United States.

Lesson #6: Be humble

Media executives must not fall into the trap of thinking that, just because they view the world in a certain way, then that will be representative across the population of their market, much less the globe. That kind of thinking can lead to severe business consequences. It is good business sense to recognize you do not know everything and act accordingly. If there is one lesson that can be said to be applied equally across both Europe and the United States, it is this one.

The bottom line

The bottom line is that whether European or U.S.-based, media companies are not in need of a one-time strategy implementation or new product launch. As our six lessons illustrate, these companies need flexibility of thought and to be prepared to accept the realities on the ground, instead of implementing “one-size fits all” strategies. As we move into a new phase of hybrid traditional TV-streaming business models and assess how to integrate AI, this is particularly important to keep front of mind.

NBCU Local’s collaborative approach to streaming local news

November 2, 2023 Esther Kezia Thorpe – Independent Media Reporter

We hear a good deal about news deserts and the struggles of local news. However, at least in the U.S., local broadcast news remains a bright spot. Yet, as audiences increasingly flock to streaming for what had long been broadcast-based content, NBCUniversal is focused on staying in front of the migration. The company’s launch of 15 new news channels on nine streaming platforms including Roku, Peacock, TCL and Xumo over the past two years is not just a strategic move to keep them future ready, it’s helping their local news offerings reach a more diverse audience now.

In terms of strategy, of course, there is more to launching on streaming platforms than just technology. For NBCUniversal Local, it required careful planning and design of collaborative tools and tactics, as well as consistent communication to get staff on board both practically and philosophically.

NBC’s free ad-supported streaming television (FAST) channels were born out of the traditional linear broadcast and cable channels NBC already produces each day. But while the company leverages its existing content in its FAST offerings, they took a decidedly different approach according to Meredith McGinn, EVP of NBCU Local Media, Multicast Networks and Original Programming. “What we didn’t have in our portfolio was an all-news local channel,” she said, as she outlined their reasons for launching 24/7 local news channels in markets including New York, LA, Chicago, Philadelphia and Boston.

They chose to stream partly to reach a younger audience. “But what we’re also seeing on these platforms is a more diverse audience in all demographics; age, race etc.,” said McGinn. “It was really important to reach a viewer who had either bought a new connected TV in the last three to five years, perhaps cut the cord, or was a ‘cord never’ and didn’t have an easy linear always-on source for local news.”

A blank slate

Being early movers to local news streaming has meant the team has had to work out both what the audience on streaming platforms want to see from a local news product, and what the best workflow is internally to deliver that. Angela Grande, Director of NBCU Local’s Streaming News Channels says they’ve experienced a lot of learning and had to move quickly in order to figure out the best strategy.

When launching a new newscast in a market, NBC typically includes in-market producers, writers and reporters for each location. But in this instance they took a different approach. “Instead of beefing up staff in each individual market to build a network from the ground up, we built a small central team,” McGinn explained. One reason for this was because the cloud server technology, cloud playout, virtual production control rooms, and other technology used to make the streams work was relatively new for the business.

“[The technology] could be best tested with a tight central team that could then put the new process through its paces. Then spokes go out and train each of the stations and personnel on how to use this technology. As we get product updates or new product ideas, we can test them again with a central team, again put them through their paces and then roll out more widely.”

Designing the setup from a blank slate meant that the team could test and learn first, without legacy technology and processes from the rest of the business slowing them down. But it was not without its challenges. “As you’re working with new tools, you realize that they’re not quite built for what you need,” McGinn outlined. “So we hired producers who pretty much became product managers working with vendors on development. They’re really trying to improve the product significantly day in and day out.”

Workflow, staffing, collaboration

The tech stack and staffing were not the only area the team had the opportunity to reimagine from scratch. McGinn noted that they were able to behave more like a start-up, but with a lot of resources to leverage from the wider business. It helped that the team was very eager to embrace change and new ideas.

One of the biggest learning curves for Grande’s team was collaborating and communicating with dozens of news stations across the country. “We had to break down the walls of communication to be sharing content and breaking news,” she said. “We’ve built this central team here in South Florida that works with all the stations across the country on best communication workflows, and how to actually work with us as virtual members of their news groups.”

To facilitate good communication and collaboration, the business set up Teams channels with every newsroom across the country. There are leaders on the central South Florida team who check in with ‘captains’ at each station on a daily basis. These check-ins and allowing the personal relationship to build have been a crucial part in keeping the streaming product front-of-mind for the teams.

“When we were setting up the business, we talked a lot about structure and workflow,” said McGinn. “There was a lot of concern around the ‘out of sight out of mind’. If you’re not there in the newsroom, are you and the platform going to be forgotten?”

Grande noted that initially there were a lot of reminders needed for the local newsrooms when news broke to make sure the information came to the streaming teams as well. “Then, after a lot of that practice, we really started to get the communication flowing,” she said.

Now, the teams communicate around the clock. “Someone’s always available to answer. So, if news were to break in Philadelphia, they can say, ‘Hey, there’s breaking news here, we’re going to go live,’” Grande explained. “Then folks here on our team can respond and jump in to help support the live event as they break into the channel. It’s really wonderful to see just how smooth all the communication is there.”

Integrating Spanish language and broader markets

NBCUniversal Local initially launched a select few English streaming channels, in order to get some early audience data that it could build upon. “The data from Peacock showed us that we had significant out-of-market, out-of-city viewership for our channels,” McGinn explained. “So we were able to see, for instance, that our South Florida NBC channel was being viewed in New York, and while it’s based in Miami, it was being viewed in Tampa and Dallas and LA.”

As well as the English language channels, NBCUniversal Local also has four regional streaming channels which bring live local news in Spanish to Hispanics across the country: Noticias California, Texas, Florida and Noreste. The wider business division already has 30+ Spanish language Telemundo stations and were aware that there was a growing opportunity in providing a FAST local news service to an Hispanic audience in those markets.

“So we took that data and thought, why don’t we do a different approach for Telemundo [streaming]? Why don’t we combine the resources in certain regions and create regional news channels? To beef up the coverage and recognize that there are many viewers out there who are interested in a broader view of local news, not just one hyperlocal market.”

The improved communication has made it easier for the Spanish and English teams to share content. It has also helped collaboration with the Telemundo channel teams, who now build newscasts for the entire region. “It’s something that they’ve never done before that they’re now doing through new types of collaboration to create these great streaming products,” noted Grande.

Sharing early successes

McGinn credits the instant messaging tools and channels like Teams with really helping to bring people together in the true spirit of collaboration. But she also noted that sharing early successes was just as important in cementing the new processes in people’s minds.

“As quickly as we received data from the platforms that proved to people that people are watching these channels, we shared that widely,” she said. “That told the newsrooms, ‘Oh, this is not just the latest social media fad that may be gone in a year. This is real, on-television viewing.’”

The successful set-up and centralized team to test and share technology means that additional expansion is on the cards. But the learnings go beyond NBC’s Local News initiatives in order to help keep the company ahead of the streaming pack. Importantly, this team is sharing its learnings with other divisions in the company. “We want to be able to help others launch channels and initiatives that they have,” McGinn concluded.

Diversity, Equity & Inclusion | Featured Post | Video

The Boston Globe leans into video to build and diversify its audience

October 19, 2023 Theresa Cramer – Independent Journalist

In New England, we have a saying: “An ounce of experience is worth a pound of theory.” At The Boston Globe, New England’s largest news organization, the team is taking that saying to heart as they carefully launch and implement a video and larger marketing strategy designed to engage current subscribers and reach new, younger, more diverse audiences. Underpinned by an audience-centric mentality, the team focuses on understanding exactly what its users want and finding innovative ways to give it to them.

Engaging existing subscribers with video

The centerpiece of the 150-year-old publication’s video strategy is Boston Globe Today. Just celebrating its six-month anniversary, the 30-minute show is broadcast five days a week at 5 p.m. on Globe.com, NESN 360, and NESN’s linear channel. (NESN is the New England Sports Network.) The show focuses on mostly news topics Monday through Thursday, and on Friday, they switch to sports. Rather than just reporting the news, Boston Globe Today focuses on taking a closer look at the news, often from a journalist’s perspective. Host Segun Oduolowu talks to Globe journalists about their stories, sometimes even telling the story behind them.

“We know our readers watch television… but they weren’t doing it with us because we are traditionally a words-driven platform,” says Peggy Byrd, Chief Marketing Officer at The Boston Globe. The priority for this team is to engage current subscribers by meeting them where they are, no matter the channel.

“Conceptually, it was coming from who we are rather than what’s out there,” says Michelle Micone, Vice President, Innovation & Strategic Initiatives at The Boston Globe. Over a year in the making, The Globe hired a television producer and other industry pros to help bring this vision to life and ensure its quality is up to readers’ expectations. The TV team is constantly conversing with the newsroom, keeping an eye on interesting stories coming up and deciding which ones will translate well to the television format.

Boston Globe Today is available online for subscribers. However, a segment from each episode is available to all site visitors — potentially giving them a reason to subscribe. “We built this in segments as well as a full show,” says Micone. This allows viewers to engage with the content they are most interested in. Not only does this let audiences use their time wisely, but it also gives The Globe team an idea of what people are most interested in, which allows them to create an even better product moving forward.

While new subscribers are always nice, engagement of existing, loyal readers comes first. Byrd says the goal is to “expand a habit” and that the team wants to “expand the expectation and the experience and give people a new way of consuming.”

So far, Byrd says they are seeing traction when it comes to engaging existing subscribers, and they have just started to measure conversion for new subscribers.

Reaching audiences wherever they consume video

Giving your audience what it wants is always critical to building loyalty and retention, but no publication can grow without new audience members. As Byrd says, younger audiences and people of color “over-index” when it comes to video consumption, so The Globe knows that video is an essential part of finding those subscribers.

Having The Boston Globe Today available to NESN subscribers is part of that strategy. However, TikTok is also always a part of the conversation whenever publishers talk about engaging younger, more diverse audiences.

From topics to geographies to channels, The Globe tries to serve its broad audience in several ways. As Micone puts it, “We do feel like we have to do it all, and these are the ways we’re trying to service everyone in a modern way.” On TikTok, that means creating content specifically for the audience in ways that feel authentic to the platform.

“We’re definitely committed to video for the long term,” says Micone. “Part of the reason for even starting this conversation with the TV show is to become an organization that’s very skilled at video.”

Strategic approach to audience growth

YouTube has played a slightly different role at The Boston Globe and its many brands. It’s primarily been a marketing tool, which Byrd says provides valuable feedback, allowing the team to take the data they collect into its content rollout on YouTube. “This is a long road we’re on,” Micone adds. “The TV show, YouTube, TikTok, all these pieces are part of it.”

However, engaging younger audiences isn’t all about TikTok and video. The B-Side is an “email and social forward product,” according to Micone, the idea for which came from a Globe employee during the company’s biannual innovation weeks. After some massaging of the idea, the B-Side emerged, which the website describes as “a hyperlocal email- and social-only daily newsletter that provides authentic and relatable news to keep readers up-to-date and in the groove on local happenings in and around Boston.”

Up next, The Globe team is turning to SMS to expand the publication’s reach. As many mobile marketers know, getting users to opt-in is the biggest hurdle to messaging users on their phones. It’s “another way to meet people where they are,” says Byrd, and as is typical of The Globe’s methodical approach, “we’re taking our time with it.” It will be more of a marketing tool in its first iteration, eventually moving to the content distribution part of this puzzle. “The point of SMS is to learn what people want to get,” says Byrd, “and then once we discover what they want we can start to give it to them through their phones.”

Staying true to their New England roots, The Boston Globe team will continue to prioritize experience over theories as it experiments and innovates with ways to reach and serve audiences old and new.

Advertising | Supporter Spotlight | Video

How optimizing ads reinforces premium video experiences

October 18, 2023 Emmanuel Josserand, Senior Director, Brand, Agency and Industry Relations – FreeWheel

Premium video is plentiful and streaming options abound. This high quality, ‘TV-like’ video content occupies multiple screens and is accessible via many channels. Its appeal and impact has helped media companies foster a unique relationship with audiences.

Continuing to preserve this relationship is critical for retaining and growing their viewer bases, as well as monetizing their content. In an increasingly crowded streaming marketplace shaped by the rise of ad supported tiers, media companies need to deliver viewer experiences that go beyond great content, taking into account the ad experience itself.

With premium video diversifying rapidly, FreeWheel’s latest report, The Delicate Art of Balancing Ad Load, uncovers how media companies across European markets are tailoring their ad loads in response to this and how their efforts influence the quality of the viewer’s experience. Here, we look at the key findings from the report and provide actionable takeaway for media executives looking to tailor their ad loads to deliver the best possible experiences to their audiences.

Understanding premium video audiences: how, where, and what they watch

The data – ad views occur across a range of devices:

Mobile 29%
Set-top-box video-on-demand (VOD) 30%
CTV 26%
Desktop 15%

The takeaway — Big screens and mobile are the home of premium video content

Over half of ad views happen via set-top-box VOD or CTV. This suggests that audiences are consuming premium video at home on bigger screens, in what is most likely a shared environment with family and friends.

However, mobile accounts for more than one-quarter of ad views, so audiences may be viewing on-the-go. In light of these distinct possibilities, media companies must tailor their ad loads for device types, as this is necessary to preserve the quality viewer experience for all the moments audiences engage with premium video.

The data — Ad view composition across content type:

Live content accounts for 22% of ad views.
Video-on-demand (VOD) content accounts for 78% of ad views.
Breaking down that 78%, over two-thirds (68%) of VOD ad views come from long-form content (longer than 30 minutes) and 32% from short-form content (less than five minutes).

The takeaway — On-demand, long-form content is top preference

Current ad view compositions indicate that audiences continue to largely prefer on-demand video entertainment that runs for more than five minutes.

But just as audiences are now also using smaller screens when accessing premium video content, so too are they watching shorter forms of entertainment with 32% of VOD ad views occurring in short-form clips. Additionally, live ad views, while still relatively small have more than doubled from 10% in 2020, highlighting that the mix of premium video environments audiences engage with is always in flux.

What does the optimum ad load look like for media companies?

The data — Ad break lengths and ad volume

The longest ad break: Prerolls for long-form content (90 seconds).
The shortest ad break: Midrolls for short-form content (under 20 seconds).
Across all content, ad breaks consist of three ads on average.

The takeaways — Breaks should mirror content and minimize disruptions

Media companies will seek to reduce interruptions to the viewing experience in order to align with audience preferences. According to our CTV Uncovered 2023 consumer study, almost half of European CTV viewers surveyed favour pre-roll ads followed by unbroken content. Furthermore, average ad volumes per break have dropped 40% since 2016, suggesting that shorter disruptions also help to ensure a high-quality viewing experience.

The variation in ad load across types of content also emphasises there is no “one size fits all” optimum ad load. The length of ad breaks, the quantity of ads per break, and the position of the break within content must all be fine-tuned to ensure premium video continues capturing the high levels of audience engagement it is renowned for.

The importance of ad load in premium video environments

The data — Ad completion rates across content

Long-form and mid-form content achieve an ad completion rate of 94%.
Short-form content achieves an ad completion rate of 80%.

The takeaway — premium video delivers unrivalled levels of audience engagement

Audiences’ interest in premium video content is largely due to the fact they can select precisely how, when, and where they watch their content of choice. This makes premium video an extraordinarily impactful advertising environment — one where audiences are receptive to viewing ads in exchange for quality, professionally produced content.

Media companies’ efforts to optimize ad loads are proving successful and are sustaining the superior viewer experience. However, it is critical to keep in touch with audience habits and preferences in a rapidly evolving landscape. This will uphold the reputation of premium video as a highly engaging environment for audiences and an exceptionally effective one for brands, in turn supporting media companies ability to monetize their quality content.

Advertising | Industry-Research | Video

What neuroscience reveals about successful CTV ads

September 26, 2023 Rande Price, Research VP – DCN

In the evolving advertising landscape, the shift from traditional linear television to digital platforms offers new ways for marketers to reach their audiences. However, while advertisers have new tools and techniques to target audiences, viewers are confronted with ads that disrupt their viewing experience, feel irrelevant, or annoy them. And new research uses neuroscience to demonstrate how context and tone affect advertising’s impact in CTV environments.

Integral Ad Science (IAS) and Neuro-Insight’s new study, The Mind on the Stream, explores how advertisers can enhance the relevance of their CTV ads through tone and context. The research shows an increase of 14% in brand impact when the ads match the tone of the content viewed on CTV. Ads that match the context of the content experience show a significant boost in brand impact, +39%. Moreover, ads that match tone and context result in a greater significant increase of 49% in brand impact.

Matching advertising with content’s tone and context

The study includes a cohort of 137 participants in a controlled environment simulating an ad-supported streaming experience. All participants watch the same program content. During this simulated streaming experience, participants see 20 ads from 20 known brands across various verticals, including food/beverage, telecommunications, entertainment, finance, and consumer packaged goods (CPG). The ads vary in terms of length and narrative style.

The research tests the ads in two ways: tone/context and frequency.

Group 1 participants undergo tone and context variations, where some ads match the show’s context, some match its tone, and some match both tone and context.

Tone matches when advertisers ensure that their ads align with the overall feeling or voice of the content they accompany. In this study, since the program content is humorous, the research examines the impact of running ads that are also humorous.
Context matches when there’s a thematic or tangible connections between an ad and the program content. For instance, if the show features basketball, a contextually matched ad would also incorporate basketball elements.

Group 2 participants encounter different ad frequencies, with some ads appearing once, twice, three times, or four times during the program.

The study includes several metrics to measure the impact between Group 1 and Group 2 exposures.

Detailed memory measures ad memorability and brand impact by analyzing how well viewers retain specific details from the ads.
Emotional intensity gauges the emotional impact of the ads on viewers, with high scores indicating a strong emotional connection.
Global memory assesses how well viewers remember the visual, audio, and thematic elements.
Engagement measures the personal relevance of ad content to viewers.
Approach/Withdraw identifies the “lean in” or “I want to learn more” response from viewers, indicating likeability and overall positivity or negativity towards the ads.

Ad frequency

Interestingly, viewers overall show lower interest in ads repeated multiple times on CTV. However, ads that align with the video content mitigate the negative impact of repetition and perform better among viewers despite increased frequency. While brand impact remains consistent through the third viewing of a CTV ad, the fourth viewing results in a significant decline of 26%. This emphasizes the importance of limiting ad frequency to three viewings to preserve viewer connection and comprehension.

Advertisers and streaming publishers can optimize their ad strategies and drive better results when matching ad tone and context with the content viewed on CTV. The study also underscores the critical role of ad frequency in viewer engagement. By embracing contextual targeting, marketers and publishers have an opportunity to shift ad budgets and deliver impactful results in the digital advertising landscape.

Advertising | Featured Post | Innovation | Video

Condé Nast’s Deborah Brett on the power of partnerships

September 21, 2023 Jessica Patterson – Independent Media Reporter

FKA Twigs joined by members of the Rambert Dance Company at Vogue World. Photo credit Marc Brenner/Vogue.

Condé Nast’s Global Digital Chief Business Officer Deborah Brett has a long history of leveraging the power of partnerships to drive consumer and advertiser growth and implement revenue-generating products. According to Brett, content drives consumer engagement and intent, which in turn delivers value for the reader and improves audience engagement.

“We’ve been doing this long before an advertorial or a branded content post or dark social ever existed,” she explained. “So, candidly, it’s been very easy for us to translate that legacy into all of the different emerging partnership platforms as they’ve presented themselves.”

A world of partnerships

Brett spent last week in London for Vogue World, which began last year as a live fashion show and street fair in New York but became an integral part of Fashion Week 2023. This is an emblematic partnership for the iconic Condé Nast fashion brand. And it’s something that Brett believes Condé Nast is uniquely positioned to do because of the caliber of its content, which drives audience engagement.

“We’re executing Vogue World out of London, which will of course live on our owned and operated platforms. We’ll also engage the broader consumer-base across all of the social platforms,” said Brett.

Celebrities, royals, opera singers, actors, supermodels, fashion designers descended on London’s Theatre Royal Drury Lane for Vogue World London, a theatrical West End production encompassing the best of British culture and fashion. British Vogue teamed up with Italian luxury fashion house Moncler to host a VIP Vogue World party on September 14th at private members club George in Mayfair, which was decked out with Blooming Haus florals.

The star-studded event celebrated iconic British creatives, culture and fashion from Shakespeare to Stormzy, with performances from opera, theater, and film, as well as classical and pop music. The guest list included royals, celebrities, designers and featured music, dance, and a runway extravaganza finale. But the event’s reach was far from limited to the A-listers in attendance.

“Wherever somebody happens to tune in, they’re going to be met with incredible content from Vogue World and the talent that engages in this event,” Brett explained. Audiences will also experience “all of the ways that our advertisers have integrated, activated on the ground–but more importantly–have activated within environments like TikTok, Instagram and X” (formerly known as Twitter).

The event is a calling card for how Condé Nast mirrors culture on the wide range of platforms where they reach consumers. It is also representative of how they bring advertisers along to the party.

The approach illustrates what Pam Drucker Mann, Condé Nast’s global chief revenue officer, says at NewFronts in May: The company isn’t a walled garden. They are creators who meet consumers where they are.

The platforms

Condé Nast operates in 32 markets, among them France, Germany, India, Italy, Japan, Latin America, the U.K. and U.S. This vast global network consists of about 80 different distribution platforms, including the usual social suspects (Twitter/X, Instagram, Facebook, SnapChat, TikTok, LinkedIn) and YouTube as well as WeChat and Viber internationally. The media company also has a strong presence on Connected TV (Sling, Amazon Fire and Tubi, Roku) and across audio platforms (Spotify, Apple Podcasts, Pocketcast, Google Play).

And as Brett pointed out, “It’s not just the same content everywhere, but tailored content that is going to be native and relevant to what that consumer expects.”

Condé Nast’s biggest platform partner is YouTube, where the company boasts more than 65 million subscribers, a gain of 12% over the previous year.

Earlier this year, Condé Nast announced over 300 new YouTube pilots over 55 brand channels in 11 countries. This included the return of over 230 original series, including Wired’s Autocomplete Interview, Vogue’s Beauty Secrets, GQ’s 10 Essentials and Architectural Digest’s Open Door, which together drove over 700 million views in 2022, Mann told Adweek.

Condé Nast is also expanding its streaming partners to include Sling, Amazon Fire and Tubi. They’ve also got a brand channel for Architectural Digest on Roku, which features the Open Door and Unique Spaces series. These focus on celebrities’ private homes and the world’s most beautiful and architecturally unique homes, respectively.

Condé Nast was also one of TikTok’s initial Pulse Premiere partners – a platform Brett said their audience demands they be part of. She describes TikTok as a platform that is turnkey, low-lift and scalable.

Finding the right partners

Evaluating the perfect partnership involves a lot of considerations including brand image, customer benefits, fit, and value to bottom line.

“For us, performance drives premiumness and premiumness drives performance. It’s a two-way street,” said Brett. “And what Condé Nast does uniquely is maintain a really strict code of elevated consumer engagement and elevated content creation.”

The media company does this by staying brand-consistent. They are driven by journalistic integrity. If they’re not authentic to the voice of that specific brand, the partnership doesn’t work. “If we miss on that authenticity, on the expectation of what Vogue would be or what the New Yorker would be or what Bon Appetit would be on one of these platforms, we’ll get called out.”

Tracking conversion

Given the incredibly diverse platforms Condé Nast brands are on, as well as the global audience, evaluating ROI is a complex undertaking. However, Brett said that one of the most rewarding parts of her job is seeing how these efforts translate into conversions in trackable ways.

“When we work with Meta, for example, when we use their platform, with our intent-driving content, we’re able to track attributable conversion: literal click to purchase, click to buy.”

Condé Nast focuses on intent-driving metrics, like how likely people are to perform a certain action, for example, buying a product or attending an event.

“For so long it felt like we knew we were driving these choices, but we would never have been able to bridge the gap with the click attribution of them actually happening.” Brett said that “the partnerships that we’ve built and the way that we’ve evolved, the way we work with all these different platforms and measurement tools have really proven back to us how direct that connection actually is. And we can see the dollars transact against our recommendations. I think that’s perhaps been–not the most surprising–but certainly the most satisfying.”

Brett said that witnessing the direct connection between the two has been a remarkable evolution of how platforms and capabilities are coming together to close the loop for the advertiser. Through metrics, they can see how it all intersects. For example, they can see how high value integrations convert to high value intents, and keep the funnel full while converting at the bottom of it.

“I think we like to say that content is really the best advertising, and to know that the content that we create for advertisers is driving every different stage of the consumer journey and that we can prove it for them in simple and repeatable ways. It’s just been such an exciting era for us as Condé Nast,” she said.

Premium connects the dots

In the last five years or so, Brett said they’ve been able to move from more siloed strategies to connecting all of the dots.

“I certainly think that the more recent shifts in cookie attribution and all the rest of these things has helped to open everybody to the power of premium content to drive performance and really figuring out how to connect those dots more purposefully.”

For a long time, the digital media industry relied on third-party cookie-based verification to assess and validate the performance and delivery of digital advertising campaigns. Cookies had broad-scale adoption, but that all changed when Google announced it would phase out third-party cookies on Chrome.

“Now without that crutch, we’re really leaning back into what is true, what is fundamental, what speaks to the consumer, and how we come together to capitalize on that, but also to measure that in really meaningful ways.”

Digital media companies are now focusing on privacy, transparency and user consent as they consider alternative strategies for measurement. First-party data is more reliable and privacy-compliant and boosts engagement through personalization, content creation and recommendations and targeted advertising.

“I think everything that we do is calibrated around meaningful engagement for the consumer,” said Brett. “So every single campaign we’ve ever run and every single choice that we’re making would ladder into that ultimate goal. If it’s not delivering value for our audience, it’s not a place where we belong.”

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Streaming discoverability beyond the EPG

AI leads the way for streaming discoverability

Discoverability delivers streaming audiences

Viewers’ advertising preferences

Budget constraints and content preferences

Streaming adapts to evolving trends

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Streaming ad innovations for podcasters

Paid podcast subscriptions

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Podcast merchandise revenue: swag, gifts and more

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Global distribution and the importance of intersectionality

Ranking social media platforms

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Social media rules

Broader appeal of non-premium content

Smartphone video viewing

The five key strategic questions

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Lesson #1: Ask the right questions

Lesson #2: Understand the market

Lesson #3: Media tech is a long-term investment

Lesson #4: Do what you do best

Lesson #5 – Don’t lose sight of the bigger picture

Lesson #6: Be humble

The bottom line

A blank slate

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Sharing early successes

Engaging existing subscribers with video

Reaching audiences wherever they consume video

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Understanding premium video audiences: how, where, and what they watch

The data – ad views occur across a range of devices:

The takeaway — Big screens and mobile are the home of premium video content

The data — Ad view composition across content type:

The takeaway — On-demand, long-form content is top preference

What does the optimum ad load look like for media companies?

The data — Ad break lengths and ad volume

The takeaways — Breaks should mirror content and minimize disruptions

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The data — Ad completion rates across content

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Ad frequency

A world of partnerships

The platforms

Finding the right partners

Tracking conversion

Premium connects the dots