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Advertising | Featured Post | Innovation | Video

Condé Nast’s Deborah Brett on the power of partnerships

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.”

Industry-Research | Video

FAST momentum drives the booming streaming market

The streaming revolution is reshaping content consumption at a rapid speed. comScore’s State of Streaming 2023 reveals a 21% surge in the number of hours households watch connected TV (CTV). This increase translates to an additional 2 billion hours in 2023 compared to the previous year. Total hours viewed grew from 9.6 billion to 11.5 billion from May 2022 to May 2023.

Ad-supported services, which claim the largest part of the newfound viewing audience, are driving this growth. The data underscores the shift towards digital streaming as millions of households’ primary content consumption mode.

The overall growth in streaming consumption is quite impressive. However, the most game-changing statistic highlighted in the report is that 75% of the newly acquired streaming hours are from providers beyond the top six streaming apps. This elite group includes Netflix, YouTube, Prime Video, Hulu, HBO Max (now Max), and Disney+ is witnessing an interesting transformation. As the consumption of FAST (Free Ad-Supported Television) and targeted programming intensifies, these traditional giants face competition from rising stars in the streaming realm. FAST’s expanding influence is reshaping the streaming landscape.

Key trends in the streaming market

comScore’s report explores and confirms trends in the streaming landscape, adoption, growth trajectories, and the ever-evolving range of services.

Digital video acceleration: Digital video consumption is accelerating, with 81% of households with WiFi engaging in streaming content.

Ad-supported streaming growth: CTV households streaming ad-supported content now reach an impressive 83.7 million, a 17% increase from 2021 to 2023. Non-ad-supported services also showcase growth, reaching 81.1 million, reflecting a 9% increase.

Targeted programming triumph: Targeted programming on FAST platforms is surging. Hispanic households lead the charge by consuming nearly twice as many hours of FAST content, showcasing an impressive 81% YoY increase. Linear streaming providers also found their place in the digital realm, securing three top spots in the Top 10 video services based on hours viewed per household.

Cord-cutting dominance: The cord-cutting trend is reaching a new milestone, with 60% of CTV households now being cordless. This substantial leap from the 37% recorded in May 2019 underlines the growing shift away from traditional TV subscriptions.

Smart TVs reign: Smart TVs are firmly establishing themselves as the preferred device for CTV streaming, with a robust 23% increase in total households streaming content via these devices since May 2021. Gaming consoles are also seeing a notable 18% increase in usage for streaming purposes.

Real-time market impact at play

Further, comScore’s report provides context in understanding how the evolving TV streaming marketplace impacts the current television revenue model. The current Charter-Disney dispute centers on pressure to change the existing television distribution paradigm. Charter is declining to accept Disney’s requested fees for its channels, citing the fact that Disney primarily reserves its premium content for its streaming platforms. Charter wants complimentary access and distribution flexibility, which directly impacts Disney’s direct-to-consumer revenue strategy. This dispute underscores the rapidly shifting dynamics of the entertainment industry.

The State of Streaming showcases the ongoing revolution of streaming in the entertainment landscape. With consumption growth, the ascent of ad-supported services, and the proliferation of emerging players, the report provides valuable insights to help reshape content monetization strategies.

Industry-Research | Video

Streaming consumers like episodic content on big screens

The streaming industry is experiencing rapid, continuous evolution including consumer behavior and preferences. NPAW’s, a global video analytics company, new report Video Streaming Industry Report H1 2023, tracks and analyzes video consumption, consumer behavior, and quality of experience. The research looks at streaming behavior in Asia, Europe, Latin American, North America, and the Pacific. The report shows that overall playtime for the streaming industry is growing steadily, with a 4% increase compared to the previous year. This offers a positive indicator of user engagement with platforms and their content.

Streaming playtime grows

Further, all regions except Asia report higher playtime per user and service. North America leads the way with a remarkable 41% year-over-year increase, followed by Latin America at 21%. These differences highlight the diverse streaming preferences that exist globally.

Examining the raw figures reveals the emergence of two distinct categories. Europe, North America, and the Pacific region constitute high-consumption zones, each averaging over 79 minutes of daily service usage per individual. In contrast, the second group, comprising Asia, Latin America, and the Middle East, experiences less usage, with a daily average of under 53 minutes. Notably, Asia records a mere 30 minutes.

Episodic content takes center stage

NPAW’s streaming data shows a clear preference for episodic content among users. Globally, episodes account for 60% of the total playtime, whereas movies capture 25%. This preference for episodic content remains consistent across regions, except in North America, where movies share a comparable share of playtime. Notably, the Middle East stands out as a region favoring episodic content, with movies and short content comprising less than 10% of the total playtime.

Smart TVs dominate the viewing landscape

The dominance of large screens, especially smart TVs, in VOD consumption, is expanding. In the first half of 2023, smart TVs contribute 51% of the total VOD playtime, highlighting viewers’ inclination towards the immersive experience provided by these bigger devices. This trend also plays a role in consolidating smaller-screen devices like smartphones, which are currently witnessing a decline in their share of playtime.

Parallel to VOD, larger screens continue to dominate linear TV consumption. TVs and set-top boxes collectively account for approximately 80% of the linear playtime, highlighting viewers’ preference for the traditional, in-home viewing experience.

Sports streaming takes off

One of the most remarkable trends in streaming is the rapid growth of sports streaming. Major sporting events in the first half of the year increased substantially in streaming adoption and engagement compared to the previous year. This surge in sports streaming highlights the changing nature of entertainment consumption as viewers increasingly turn to streaming platforms to catch their favorite sports action.

Streaming evolution

The streaming landscape continues to evolve in the first half of 2023. VOD consumption continues to grow, driven by user preference for episodic content and larger screens, particularly smart TVs. Improvements in visual and audio quality contribute to a more gratifying streaming journey across most geographical areas. Understanding user preferences and expectations remains pivotal in shaping the future of entertainment consumption. Be it indulging in episodic narratives via smart TVs or immersing in live sporting spectacles on expansive screens, streaming is a universal practice.

Featured Post | Video

TikTok’s Pulse Premiere partners with media brands. Will it work?

TikTok and media companies across the globe are teaming up to write the next chapter in the epic saga of the media and its complex relationship with social platforms. In early May, TikTok announced Pulse Premiere, a program designed to place advertisers alongside the premium content created by trusted media brands — and share the revenue 50/50 with those content creators. 

The first question that might bubble to the surface for media companies is, “How is this different from all the other revenue-sharing schemes with social platforms?” 

“Some publishers have had good relationships with some platforms,” says Nic Newman, Senior Research Associate at the Reuters Institute for the Study of Journalism. He points to Snapchat as an example of a platform that has led to reasonable revenue for some media companies. But revenue is not the main impetus for them to embrace TikTok. “Cultural genres are things that premium publishers are pushing into, especially to reach younger users,” says Newman. And TikTok has been a key partner in that strategy all along.

This strategy aims to combat news avoidance and engage new audiences, says Newman. Add to the mix a decline in brand revenue and media buyers who find it easier to buy through platforms, and it’s clear why premium publishers are eager to partner with a wildly popular platform like TikTok. From TikTok’s point of view, Newman adds, it also makes sense to reward media companies for creating content that helps fuel the platform’s ongoing success. 

But as it turns out, there are a few key differences between TikTok and its social media competitors that have media companies feeling bullish.

Embracing TikTok as a content creation platform

TikTok is unique. Facebook and X/Twitter, at least for publishers, are places where publications and audiences share links to content, which drives traffic back to a website. This dynamic has been a source of tension over the year, which continues to play out. TikTok, however, is more of a content-creation tool than it is a distribution platform. Publishers who are successful on TikTok understand and embrace the peculiarities of TikTok and create content designed specifically for this audience.

Reuters Institute’s 2022 Digital News Report cited TikTok as the fastest-growing social network for news consumption. This is driven, in part, by publishers’ desire to reach new, younger audiences. Reuters found 40% of people 18 to 24 use TikTok, and 15% of them use it for news. It only makes sense that news brands with robust TikTok audiences would seek to cash in on that engagement through advertising.

One of those media brands is Vox Media, which joins Condé Nast, Buzzfeed, Dotdash Meredith, Hearst Magazines, MLS, NBCUniversal, UFC, and WWE as one of the initial Pulse Premiere partners. “Our editorial brands and video franchises reach millions of highly engaged followers on TikTok, and we are now excited to work with TikTok on a new ad product,” Ray Chao, SVP & GM of Audio and Digital Video at Vox Media, said in a statement to DCN. “We are hopeful that this partnership will help us strengthen our digital video revenue model through a new revenue stream.” 

Similarly, Deb Brett, Condé Nast’s Chief Business Officer, Digital, says, “Our audience demands us to be on TikTok.” That’s not a problem for Conde Nast’s publications, which have been “digital first” for years, according to Brett. 

Importantly, Condé Nast also avoids taking a one-size-fits-all approach to its social media channels. “We tailor what we create for every platform. We want to hear from our brands in different ways,” says Brett. Before TikTok introduced Pulse Premiere, that often meant creating branded content integrations and custom programs for advertisers who wanted to reach the brands’ audiences. Condé Nast even tried live streaming and shoppable content. Pulse Premiere is now making it easier for media organizations to monetize their presence on the platform. 

Thinking about brand safety

Pulse Premiere comes on the heels of TikTok Pulse, launched in 2022, which places brand advertisers next to the top 4% of trending videos on TikTok across a number of categories. Throughout the history of social media advertising, brands have run into the problem of unpredictability. Historically, this problem was only addressed once it boiled over, sometimes in the form of a boycott. As ads follow users around one social platform or another, there has been no telling what content an ad will be placed beside. At this stage of the social game, it’s no surprise that TikTok is being proactive about providing a solution to that ongoing issue.

In its announcement, TikTok said, “Pulse Premiere gives brands the control to choose where their ads are placed, adjacent to content from our premium publishing partners in lifestyle and education, sports, and entertainment categories for specific tentpole events as well as evergreen, ongoing content.” In other words, TikTok is giving advertisers the ability not only to avoid being placed next to the latest viral conspiracy theory video — or even just dance trends irrelevant to a brand’s messaging — but to easily continue existing publisher relationships.

Extending existing brand relationships 

As a publishing community, we love [that TikTok Pulse Premiere is] turnkey, its low lift, and its scalable,” says Brett. Rather than devising ad hoc solutions to advertiser demands to be part of the TikTok conversation that Condé Nast’s brands create, the publisher can now take advantage of a native ad platform.

Condé Nast will kick off its Pulse Premiere participation by aligning a campaign with what it calls one of its “cultural calendar moments”: Vogue World. The event takes place on September 14 in London, and Brett says Vogue will align its TikTok content with the event. “It’s an exciting intersection of their ad product and our cultural calendar moments,” she adds. 

While it’s still too early to tell whether the economics add up for publishers, Brett says, “It has indicators for a huge potential.” Newman, however, points to a problem publishers have come to know well: “Fundamentally, people’s attention is the problem. The first few publishers do well, then other pubs follow, and the rates go down.” Only time will tell if TikTok proves to be different from its competitors in the ways that matter most for publishers.

Advertising | Industry-Research | Video

Advertising popular with streamers and consumers

It is becoming increasingly clear that advertising will play a significant role in the streaming ecosystem. As Disney CEO Bob Iger told investors in Disney’s quarterly earnings call, “The advertising marketplace for streaming is picking up.It’s more healthy than the advertising marketplace for linear television. We believe in the future of advertising on our streaming platforms, both Disney+ and Hulu.”

Industry giants are now seamlessly incorporating ad-supported tiers into their streaming options. This shift from the early days of subscription-based, ad free streaming underscores the industry-wide recognition that catering to budget-conscious consumers is integral to achieving sustainable subscriber growth.

New research from HUB, TV Advertising: Fact or Fiction, affirms that most television viewers actively embrace ad-supported offerings. Six out of ten viewers prefer ad-supported subscriptions, especially when presented with the prospect of a reduced monthly fee. Interestingly, those with reservations about advertising remain in the minority, underscoring the widespread acceptance of ads as an primary and tolerable factor of content consumption.

Shifting the paradigm

The transformation in consumer sentiment towards ad-supported subscriptions carries a dual impact. Firstly, it renders ad-supported tiers significantly more appealing to a broader spectrum of viewers, including those who haven’t subscribed previously. Secondly, it reinforces the notion that the quality and diversity of content have a significant influence over viewer preferences. This often outweighs the appeal of a completely ad-free experience. Within the streaming ecosystem, advertising now emerges as a central thread weaving together content variety, affordability, and viewer gratification.

The rising desire for customization

Furthermore, a growing trend in viewer preferences is the desire for enhanced control over subscription tiers. Nearly four out of 10 viewers express a strong inclination towards personalizing their subscription model. They’re searching for a flexible array of choices, ranging from a premium, ad-free encounter to a more budget-friendly alternative featuring strategically placed advertisements. The attraction in customization preferences empowers streaming providers to cater to a broader spectrum of consumer segments.

Entrants that intrigue

Notable platforms like Max, Disney+, and Netflix, which recently embraced ad-supported tiers, are meeting positivity from their audiences. This dispels concerns about potentially hurting your brand in a previously ad-free service due to the introduction of advertisements. Twenty-seven percent of viewers switched tiers. Among them, 60% switched from with ad to no ad tiers, and 46% switched from no ads to with ad tiers.

Enhancing engagement through thoughtful execution

Ensuring a satisfactory viewing experience for consumers creates an environment ripe for advertisers to thrive. When viewers encounter an appropriate amount of advertising content, their engagement levels increase. This principle extends not only to the overall number of ads but also to the duration of ad breaks. Contrary to the notion that advertising detracts from the streaming experience, it possesses the potential to elevate it, capturing viewers’ undivided attention when executed thoughtfully.

The valuable component of ad-supported subscriptions

As viewing sources diversify, ad-supported subscriptions assume a key role within the streaming landscape. Subscribers want the autonomy to mold their subscription expenditure as well as the degree of advertising they’re willing to embrace. In response, streaming platforms offer a dual strategy, presenting ad-supported and ad-free tiers. This shift harmonizes content diversity, affordability, and engagement, shaping the streaming ecosystem.

Advertising | Industry-Research | Video

For SVOD success, launch with ads from the start

In the ever-changing landscape of streaming services, media companies constantly explore new strategies to attract and maintain subscribers. One notable approach is the success of the ad-support SVOD tier. In fact, new research from Ampere shows that streaming services launching with an ad-supported tier from the start have a higher proportion of subscribers than those that added it later.

Ampere’s data reveals that SVOD services like Hulu and Peacock, which were early adopters of ad-supported tiers, boast an impressive 90% of ad-supported viewers. On the other hand, latecomers like Netflix, Disney+, and HBO Max struggle to gain significant traction with their ad-supported options. These late starters capture only a small share of their subscriber base. For instance, as of June 2023, approximately 2% of Netflix and Disney+ US subscribers are on the ad-supported tier. Even HBO Max, which launched an ad tier in March 2021, had only 5% of its subscribers on its ad-supported plan before transitioning to Max in April.

Drivers of success

Ultimately, an ad-supported tier’s success depends on several factors, including the service’s pricing strategy, content library, and targeted audience. Launching with an ad-supported option from the start appears to be more effective in building a substantial base of viewers. Late adopters may find attracting a significant share of their subscribers to the ad-supported tier challenging. This is especially true if the service has a strong legacy of being ad-free.

Ad-free service is still appealing

Despite the apparent appeal of ad-supported viewing, most new subscribers across the top seven SVOD services still prefer ad-free plans. According to Antenna data, between January and May 2023, three out of five new subscribers opted for ad-free viewing. Even services that recently introduced ad-supported tiers, such as Peacock, saw a considerable percentage (69%) of new subscribers choosing ad-free options.

However, there are potential changes on the horizon. Netflix has made a strategic decision to remove its Basic plan, which previously served as a mid-range option between the ad-supported and standard ad-free plans. With the elimination of the Basic plan, the price gap between ad-supported and ad-free viewing has increased significantly from $3 to $8.50 monthly. This move might lead more new subscribers to opt for ad-supported viewing due to the cost difference.

Additionally, Netflix’s crackdown on password sharing during June and July 2023 could have also impacted its subscriber base. Free viewers who were previously enjoying content outside of the subscriber’s home are now more likely to sign up for their accounts. For these price-conscious users, the cheaper ad-supported tier could become an appealing option.

However, the trend of traditionally ad-free services attracting more ad-free subscribers might continue to prevail. Peacock’s decision to close the free ad-supported tier to new users. However, they still allow existing subscribers of the free ad-supported to continue using it. This suggests that companies are recognizing the importance of retaining ad-free subscribers.

Advertising | Revenue | Supporter Spotlight | Video

Here’s why publishers should be thinking about CTV revenue

Once again, the media world has found itself in belt-tightening mode. A number of high-profile media companies have announced layoffs, and ad spend has grown more slowly in 2023 than in the previous few years. Publishers are looking for revenue streams beyond subscription packages – and for those who have video content, CTV offers a lot of promise. 

After all, CTV is where the growth is, in terms of ad spend and audience. For publishers that are already monetizing video on desktop and mobile, CTV is the most intuitive next step for diversifying revenue. For those that aren’t monetizing their video content yet, that’s all the more reason to jump into CTV.

In terms of both viewership and the influx of ad dollars, CTV is growing like gangbusters. Streaming CTV ad spend is tracking to reach $23 billion by 2026 – a double-digit increase from today. Streaming video consumption has surpassed linear TV, as experts had predicted, and there will be 3.5 users of over-the-top (OTT) streaming services globally by 2027. 

Right now, the audience growth is coming from ad-supported tiers, which is an ad inventory source so desired by brands that supply can’t keep up with demand. This sure sounds like a field day for the Netflixes and Hulus of the world. But while the largest streaming platforms get the lion’s share of attention in the industry trades, they won’t be – and, considering demand, can’t be – the sole beneficiaries of this influx of ad spend.

Power to the content owners

According to industry experts, more than 90% of CTV ad spend coming through DSPs goes to around 30 streaming platforms. That’s a much larger number than the handful of big names that get name-dropped most frequently in CTV conversations. Not many of these platforms own all, or even most, of their content outright. They source it through deals with other media creators. And those creators have a distinct advantage: They reserve the rights to sell ads on their content. Streaming services don’t have exclusivity in the same way as the publisher who creates the content. 

Clearly, media companies stand to benefit greatly by partnering with CTV services for video syndication. There are two types of publishers who can most easily grab those ad dollars: those that already stream their content on CTV, and those that have video content on their owned and operated properties that they’re not monetizing via CTV yet. 

We’ve heard about leading publishers who have launched their own video apps on CTV services including The Economist, Vox, the Wall Street Journal, and the Washington Post. But across the broader landscape of publishers who produce the high-quality video content advertisers crave, there’s a great untapped opportunity for ad revenue. 

Good news for publishers: The bar for entering the CTV space isn’t nearly as high as it was a few years ago. Free ad-supported streaming TV (FAST) services have democratized access to the streaming ad market, as it’s not nearly as costly as developing a subscription app – the means of access in the days before FAST. 

Publishers who already have the video content can launch their own channels across multiple CTV platforms and devices, at a reasonable cost. For the great many publishers who already have experience syndicating video across social channels, it’s an intuitive move and it opens up inventory that delivers higher CPMs, is more desirable to advertisers than pre-roll on the video players hosted on publishers’ own digital properties, and presents opportunities for advertisers to connect with viewers in a wider variety of viewing environments and viewer mindsets. 

CTV calls for a strong data strategy

Expanding to CTV will be an easier task for publishers who partner with data platforms that offer flexibility and interoperability. The limited availability of actionable, scalable first-party data remains a pain point not only for advertisers, but for publishers looking to get into streaming. This presents challenges in working across streaming platforms and devices, which have their own data but are reticent to share it. To drive the most revenue, publishers will want to be able to connect their data with any of their ad partners who need it for campaign optimization. That means the ability to solve for identity, and to provide interoperability, are essential pieces of the puzzle.

A solid, well-applied data strategy opens up key advertising functions like cross-platform targeting, frequency capping, and personalization at scale. Publishers don’t have to consider themselves out on their own in sourcing the necessary data, though. Streaming device makers are one place to look, although publishers may need to match the device makers’ proprietary IDs for actionable cross-platform insights. Using IP as a proxy (common in CTV) enables measurement in CTV, although IP may not be the best proxy in other digital environments, or for targeting at the individual level. Demographic, location, behavioral, and other data from data providers will enable programmatic buying, and incentivize advertisers that want the scale and efficiency of programmatic. 

To get the most value from CTV, publishers benefit from having a capacity to break down data silos and unify all identifiers (and the data signals used for ID enrichment). This opens up access – access to inventory for buyers, and to new revenue for publishers. It also allows for targeting across the broader ad ecosystem, while limiting wasted spend. 

A strategy that unifies data from relevant sources, and the ability to solve for identity, enhances a publisher’s value proposition to advertisers in CTV. It presents a great revenue opportunity for publishers. And delivering the value of actionable data insights is central to deepening long-term relationships with advertisers.

Making the most of the opportunity

At this stage of the CTV marketplace’s growth, there’s a real opportunity for any creator with quality video content. Therefore, publishers should be taking advantage of their video libraries. To fully capitalize on those advantages, they’ll need to be able to access and fully leverage the data that advertisers are looking for. 

Publishers who can bring both to CTV will be in a better position to weather economic unpredictability that may come to the digital media marketplace in coming months and years. Resilience hinges upon the ability to vary revenue sources, reach new audiences, and capitalize on an ever-expanding viewer base. And a strong data strategy, based on bringing together data from all relevant sources, will be key to truly realizing the revenue potential CTV holds. 

About the author

For over a decade Hunter has held and managed a variety of sales, consulting, and partnership positions in Advertising/Marketing Technology (#MADtech) throughout the US, Southeast Asia, and Australia. Currently based in Baltimore/DC after six years in the Asia Pacific, Hunter leads Lotame’s Connected TV initiative focusing on household graphing, viewership data partnerships, and data enrichment throughout various supply and demand channels.

Prior to his current role, Hunter led Lotame’s Global Solutions Consulting team solving leading marketer and publisher challenges through identity resolution and data enrichment methods. Additionally, Hunter has helped expand the Lotame Sales and Account Management teams in their Singapore and Sydney offices during his tenure in APAC.

Advertising | Revenue | Supporter Spotlight | Video

5 ways the writers’ and actors’ strike will impact advertising

On May 2nd, the Writers Guild of America (WGA), an alliance of over 11k film, TV, news, radio, and online writers went on strike demanding fair contracts and pay stability. They also stated numerous concerns surrounding artificial intelligence. In June 2023, 65k actors from the Screen Actors Guild (SAG) cast their votes to join the strike in support of their colleagues and to protest how technology has affected their wages as well.

There is much talk about the impact the current entertainment industry strike will affect advertising. The truth is, we are just starting to see its influence. This is mostly due to the timing of the strike. Many scripted shows are on hiatus during the summer and typically advertising is purchased well in advance of their run dates. As the strike drags on, the impact will be keenly felt across much of the media industry. 

Here are five ways we will likely see the strike impact advertising’s bottom line.

A short strike may be a win for broadcasters and streamers

In the short term, broadcasters and streamers are likely to see a boost in their profits. While that may seem surprising on the surface, if the strike lasts under four months it’s a real possibility.

Broadcasters and streaming companies have already sold the advertising that will air during these months. Additionally, contractor and personnel costs declined sharply during the early months of the strike. Hopefully, these early profits are reinvested to buy up the rights to movies and content available for sale – as a way to shore up their audiences regardless of the strikes’ duration. 

However, broadcasters and streamers should be prepared with new inventory, so they don’t lose out to social media if the strike continues until early 2024, as many predict it will. They will want to avoid airing reruns instead of new content, since that will affect viewership and in turn advertising revenue will be lower.

Broadcasters will be hit hardest if the strike goes beyond six months

If the strike lasts only a few months, changes in ad spend may be limited. In the short term, we haven’t seen much of an impact on ad sales. However, if the strike goes beyond a few months, the largest TV broadcasters could be hit hardest. Relative to streaming channels, TV broadcasters have more content that’s prepared “just in time.” 

Unscripted television, like variety shows, reality shows, and game shows have not been impacted by the strike too much. However, we do see a hit to lucrative late-night talk shows, which have already been off the air for a couple of months. This programming relies on writers who have been on strike since early May. 

Prime time advertising is estimated at $13.1 billion during the first half of 2023, which makes up 50% of all national TV ad spend. If the strike is prolonged, we could easily see some weekly prime-time TV shows off the air after a few months of their Fall debuts, as a result of new episodes not being completed.

Media & entertainment advertising will suffer across media

Movies, streaming services, and TV shows (along with others that support the industry) invested over $3.9 billion from January through June 2023. This represents 39% of the total ad spend from media and entertainment advertisers ($10 billion). This estimated advertising investment reaches beyond just TV, to over a dozen media formats. Since the start of the strike, we saw a dip in May YoY (4%). However, in June this segment was already down 26% YoY.  As the strike continues, advertising to promote movies, shows, and streaming services will likely continue to decrease and shift in investment. 

A prolonged strike may even prompt the largest U.S. firms to move more English-language production outside the U.S., to work around the problem entirely. Many countries have none of the protections offered to SAG members in the U.S., offering a viable alternative to production companies. 

Streaming and social platforms may experience a resurgence due to the strike

Streaming channels have significant material pre-recorded, “in the can.” This gives them the  ability to release movies, mini-series, and documentaries. If they have new content while broadcasters are struggling to recreate fall lineups, streamers will benefit. Netflix’s CEO has already said they’ve been preparing for the strike for some time and will stretch out their new releases.

In the event of a longer strike, streaming channels can easily dub content from outside the U.S. and show it here. We saw this during the pandemic. For example, Netflix saw great success airing the South Korean survival drama, Squid Game in the US. Another example, and a personal favorite of mine, was the HBO produced sci-fi flick, Beforeigners. This show  was originally produced in Norway and was dubbed and placed in their U.S. lineup. 

We are also likely to see social video platforms like YouTube, TikTok, and Instagram benefit from a prolonged strike. Their content producers are independent and non-unionized so these platforms will not see a pause in content creation. Viewing hours could easily surge as they did during the pandemic, which will drive more advertising dollars away from traditional broadcasters and toward streaming and social platforms.

Sports and news content will be sold at even more of a premium

Broadcasters with sports rights could do well in this environment because sports content is likely to be one area that isn’t negatively affected by the strike. Broadcasters will likely lean into more active coverage of sports. And they can use the strike as ammunition to defend the high price of sports licensing fees. 

We also predict that news broadcasters will sell advertising at a premium as well. News broadcasters are covered by SAG, but they have their own separate contract. As a result, news programming and advertising supporting it will continue and may even expand. Media like CNBC, NPR, Bloomberg, etc. will be mostly unaffected.

While the full impact of the writers’ and actors’ strike is still very much uncertain, it is expected to result in notable alterations and realignments of advertising investment in the upcoming months. While some may experience short-term advantages due to reduced costs and pre-sold advertising, the long-term impact could profoundly impact advertising investment across media.

Innovation | Supporter Spotlight | Video

The media business is constantly evolving. Are your products?

Digital media has experienced a near-constant evolution in consumer behavior, preferences, and expectations over the past couple of decades. And things show no sign of slowing down. Many media companies are not just at a crossroads, they are at a point of no return. How they respond now will likely shape whether they survive or not.

Of course, some media companies have adapted skillfully to these changes. It’s now possible for consumers to watch TV on half a dozen devices whenever and wherever they want (possibly all at the same time if you’re my kid). We can read the news from anywhere, and the news now often comes packaged with games, recipes, communities, podcasts, and even in-person events. 

Meanwhile, advertisers can track viewers across platforms, and measure engagement on a deeper level, with more robust data than anything offered in the Nielsen era. Even the programming has changed, as media companies adapt to changing audience preferences.

As media companies continue to evolve and experiment, the challenge is to do this without potentially alienating their customer base. It requires the right mix of innovating with a product mindset to create something new: viewer experience, insights into customer wants and needs, and consumer engagement.

It all starts with product

What do companies need to consider to move the needle? They need to constantly shift with – and shift – consumer expectations. There is a cost in every decision that media companies make, and every action or inaction has consequences.

All of these decisions ladder up to the product itself. Product development never, ever stops, because if it does, it leads to stagnation (and even irrelevance). For example, media companies like National Journal have made their investments to differentiate, not just improve. Category leaders like Netflix, Instagram, and TikTok offer products that look very different today than they did a few years ago because they continued to evolve. They updated to both shift and meet consumer expectations and as a result, have remained the best at what they do.

For media companies looking to follow a similar pattern, there are three key considerations:

  1. Viewer experience 
  2. Insights into customer wants and needs 
  3. Consumer engagement 

Viewer experience

Developing cutting edge products requires alignment with users, because every innovation has to improve the experience. Every product must be highly-intuitive and easy to interact with. As companies push the boundaries on what’s possible, they also need to ensure that new functions work seamlessly. 

If you are a consumer, there’s nothing worse than loading a new application or website area only for it to raise questions in your mind. This extends beyond the technical components to other consumer touchpoints, including user support and billing. 

At the core, media companies need to design products that their customers love, and not just simply use.

Insights into customer wants and needs 

The goal of every media company is to build an experience that consumers love. To do that, companies need to constantly research and design for needs. The biggest insights in media consumption habits are the rise of free ad-supported TV (FAST) channels on streaming platforms and the dominance of short-form content. 

Consumers accept advertising because they know that it funds the media they are viewing, reading, or hearing. 

Media companies have looked for a way to layer advertising on top of their offerings in a way where advertisers see value, and consumers understand that the ads they see are funding the media they digest. FAST channels seem to strike this balance perfectly, much to the surprise of the ad industry.

Short-form content offers another, similar opportunity. TikTok’s massive adoption shows that consumers are ingesting information at a dizzying pace. Media companies should be seeking out ways to create and capitalize on this new form of content.

Consumer engagement

The natural benefit of designing for needs is that it improves user engagement. One of the biggest learnings about the FAST adoption described above is that consumers actually use ads as a way of engagement. This creates opportunities for media companies to use these ad slots to get consumers to engage with new forms of content. 

Ads are now interactive, with surveys or the ability to click to watch something new. By using data signals and programmatically serving tailored ads to customers, media companies can help drive consumers to other products and content offerings, building greater engagement.

Engagement goes much deeper than watching ads, of course. Media companies want consumers to spend time with their content, whether that’s as simple as watching a video or reading another article, or as deep as attending an event or paying for a subscription with unique benefits.

Streaming TV is largely viewed as TV in the traditional sense, but consumers don’t always engage with it on their couch in the living room. Some watch on the subway, some just run a TV show in the background and listen to it like a podcast. Media companies need to adjust their user experiences to better meet the evolving needs of these different audiences.

Learn without asking

As media companies work through the three considerations above, they need to keep one thing in mind: consumers aren’t necessarily going to tell you what they want. In fact, they may not know what they want. So if you adopt a product mindset and continue to evolve and push forward, it’s critical to analyze all of the data signals you have on consumer behavior and build something that meets the trends.

Product development never ends, and that’s especially true in the media space. A decade ago, no company would have been able to predict our current situation. It’s unlikely that any single enterprise can accurately predict the next 10 years of change, either. Regardless, evolution is key, so that media brands can remain in business and help define the next iteration of the industry.

Advertising | Supporter Spotlight | Video

Tune in to CTV viewers advertising expectations

TV no longer occupies one screen. Viewers have redefined “TV” to encompass long-form, streaming, on-demand content consumption. Along with this shift comes a transformation in the audience’s advertising expectations. 

Capitalizing on the connected TV gold rush

With global revenues from ad-supported video on demand (AVOD) projected to reach $91 

billion in 2028, the allure of free ad-supported streaming has captivated more than half of US TV viewers. In this landscape, Connected TV (CTV) shines as the jewel of the advertising world, fueling the open programmatic CTV ad spend with its 31% year-on-year growth.

Boasting larger screens, higher resolutions, and sound quality, CTV empowers viewers to curate their content consumption- offering the ultimate viewing experience.

Although industry stakeholders acknowledge CTV’s potential, you can’t help but wonder: Do they fully understand the impact of poor advertising experiences on CTV? And is the industry prepared to safeguard brand integrity and guarantee high-quality ad experiences?

CTV viewers ad experience expectations 

CTV stakeholders can learn from past web/in-app programmatic pitfalls. According to our research at GeoEdge, 56% of consumers admitted that they immediately leave the site or close the app when they encounter a bad ad. Moreover, 73% of consumers claimed they would not recommend a site or app to their friends and family after encountering a bad ad. 

Audiences have made their needs clear: they demand a streamlined and non-intrusive ad experience. One of the reasons that viewers prefer CTV over traditional linear TV is because of the quality experience. Unlike web or in-app ad experiences–where users have grown accustomed to being bombarded with ads–CTV viewers approach the platform with a different mindset. They expect few, if any, ads. And they certainly don’t want to see offensive or disruptive ones. Oh, and they will quickly abandon ship if their expectations aren’t met.

CTV delivers what viewers desire, from the ability to skip ads to shorter durations and reduced ad frequency.

A lack of focus on programmatic transparency and brand safety could turn CTV advertising into a minefield of offensive and intrusive ad experiences. Sabotaging the viewing experience, instigating disengagement, negative brand perception, and even outright alienation from the platform. To secure viewer loyalty, it’s crucial to maintain the quality of ads and ensure they align with viewer preferences.

The complexities of co-viewing and shared screens

Addressing the complexities of shared screens and co-viewing poses a significant challenge when delivering relevant and engaging advertisements. The diversity in viewers’ preferences and age groups also introduces intricacies related to content restrictions and enforcing industry guidelines. The suitability of an ad for an individual viewer might not align with a diverse audience.

Inappropriate ads are not confined to X-rated content featuring explicit material. Ads showcasing distressing global news, natural disasters, contentious political content, or pharmaceutical promotions have the potential to disturb viewers. 

To preserve ad-supported experiences, it’s essential to maintain creative control, especially within the context of a shared screen. Preventing offensive content, explicit material, and sensitive ads is crucial to maintaining an environment suited to a wide range of audiences, including cross-generational and family-safe.

The playbook for engaging CTV ad experiences

Creating a safe and dependable ad environment that viewers can trust is tricky but certainly not impossible. By taking lessons from past mistakes in web and in-app ad experiences, CTV can not only ride the wave of growth but cement its foothold. Here are some guidelines that should help:

  • Implement strict filters for sensitive and controversial ad content.
  • Ensure compliance with child privacy laws and provide age-appropriate video content for younger viewers.
  • Carefully consider media specifications, such as ad duration and sound quality.
  • Secure the post-advertisement journey to keep a safe environment for viewers. For instance, interactive ads that use QR codes necessitate safety protocols that extend beyond the ad itself.

To maintain the integrity of the CTV viewing experience, it’s crucial the industry aligns with audience expectations for the ad experience. It’s time to think like a viewer. 

Industry-Research | Video

What consumers value in streaming services

The streaming television landscape is increasingly competitive. Experimenting with the formula for success, many streaming services are introducing ad-supported tiers, while others are raising subscription fees and consolidating corporate offerings. Therefore, understanding consumer preferences regarding payment methods, perceived value, and preferred providers is crucial to meet audiences’ changing needs in an evolving environment.

Hub Research’s new report, Monetization of Video, delves into the evolving dynamics of the TV business from a consumer perspective. The study shows that nearly half (43%) of respondents reached their set limit of seven different TV services and said no more. Another 35% of respondents actively set a limit of seven TV subscriptions but have yet to reach that maximum number. Limiting the number of TV subscriptions indicates (seven appears to be the magic number) that consumers are becoming more selective about the services they choose, seeking quality over quantity.

Usage and subscription

The report also shows that 44% of respondents spend more time on TV than a year ago, indicating a growing investment in the medium. Approximately 40% of Tubi or Pluto users rated these free platforms as the highest value, suggesting their investment in FAST content and user experience is paying off.

Furthermore, the research highlights that value perception among consumers is similar between ad-free and ad-supported versions of platforms. This suggests that consumers are willing to accept advertising if it allows them to access content at a reduced cost or for free. Providers should consider offering ad-supported and ad-free options to cater to a broader range of consumer preferences.

The study also finds that a significant portion of viewers (42%) sign up for a new platform but cancel shortly after. This trend is particularly prevalent among Gen Z viewers and those with children. Moreover, the research indicates that the more paid TV subscriptions a consumer has, the more likely they are to subscribe to a new service and cancel it soon after.

Assessing consumer perspective

Importantly, the HUB analysis provides insights into the consumer perspective on the streaming market and factors that influence their perception of value. The research looks at the complexity of the television landscape. It identifies how friction points, FAST channels, and economic factors affect consumer decisions and value perceptions.

  • Friction points and erosion of perks: Traditionally taken-for-granted perks, such as password sharing and content exclusivity, are starting to erode, leading to a higher level of friction among consumers.
  • Rise of FASTs: Competition in the subscription video-on-demand (SVOD) space is intensifying with the emergence of Free Ad-Supported TV (FAST) services. Media companies and TV manufacturers are entering this arena, further diversifying the TV landscape.
  • Economic factors: Consumer concerns about inflation and the economy’s state are additional variables shaping TV consumption choices.

Hub’s research offers insight into consumers’ evolving preferences and dynamics within the streaming industry. As the landscape becomes increasingly complex, understanding consumer payment preferences, value perceptions, and the optimization of content monetization is crucial for content services. By adapting to these changing preferences and offering compelling features, services can improve consumer satisfaction and grow revenue in this evolving industry.

Perspectives | Video

How video providers can create a compelling CTV ad experience

Audiences can now choose from a veritable buffet of advanced TV channels. Viewers can feast on their favorite shows via broadcaster catch-up services, online social video aggregators, free ad-supported streaming services (FASTs) and Smart TV apps, video-on-demand, and addressable linear. According to the recent Streaming Video: CTV Uncovered 2023 study from  AudienceXpress, 46% of UK connected TV (CTV) viewers surveyed also tuck into free streaming platforms daily to watch content.

So, how can broadcasters and premium video providers ensure the advertising experience captures these viewers’ attention? The latest consumer insights from AudienceXpress reveal current audience preferences to inform best practice; here are the biggest takeaways from the full study.

What’s on the CTV menu for UK audiences?

Understanding viewing habits is imperative for premium video providers when creating their content offerings. Almost U.K. CTV participants in the AudienceXpress study, for instance, state they watch more free ad-supported streaming platforms than live broadcast TV. To capture this audience, some broadcasters are diversifying their business models to include different platforms and models.

Viewers appear to prioritize accessing premium content over using specific platforms or channels; 59% of UK CTV audiences surveyed tune in to free on-demand platforms, including FASTs, when nothing on traditional TV channels grabs their interest. While these ad-supported advanced TV platforms are rapidly gaining traction among viewers, it is important to note that the AudienceXpress study also found that broadcasters’ live TV (37%) and catch-up services (35%) continue to attract a significant proportion of viewers, reaffirming that the main driver of platform success is content. As such, media buyers are looking to connect with viewers across all touchpoints, with advanced TV channels enabling them to drive incremental reach and capture the attention of elusive audiences.

Sharing personal data leaves a bitter taste for many viewers

According to the Streaming Video: CTV Uncovered 2023 study, only 26% 26 U.K. respondents with a CTV screen are comfortable sharing their personal data with brands in exchange for more personalised TV advertising. Data sharing seems to be on top of mind for U.K. viewers. (This could possibly be a ripple effect from major web browsers’ removal of third-party cookies.) Although this shift does not impact the TV and premium video advertising ecosystem directly, it requires media owners to keep privacy-conscious viewers front of mind when refining their advertising operations.

Audiences’ views on data privacy will continue to shape the future of premium video advertising and many remain cautious about how their data is used. For this reason, TV and premium video providers need to uphold audience trust. They can do this by being transparent about data practices. They must also clarify why advertising is critical for making premium content more accessible to video-hungry viewers and for funding new, quality productions, as well as leveraging data to cook up a compelling and relevant advertising experience.

With that in mind, which elements of advertising resonate best with U.K. CTV viewers?

Create an appetizing ad experience

Despite being apprehensive about sharing data, audiences still appreciate some degree of targeted advertising. Almost one third (32%) of U.K. CTV participants in the AudienceXpress study prefer ads that harmonize with the context of the content they watch, one in four prefer ads based on their geolocation, and one in five like ads relevant to their personal interests.

Capturing attention could likely be the ad industry’s top priority as many advertising environments become saturated. In fact, ad volume can make or break the viewing experience with seven in 10 UK CTV respondents feeling there are too many ads on social video aggregators. It is important that TV and premium video providers continue to carefully manage their ad volumes using advanced digital capabilities to further enhance the advertising experience through frequency capping and ad podding.

Nearly six in 10 U.K. CTV respondents also affirm that when accessing free premium video and TV-like content on their CTV screen, they would prefer pre-roll style ads with no ad breaks afterwards. It is necessary for TV and premium video providers to account for this and balance sustaining a quality ad experience with helping advertisers meet their KPIs and attracting greater spend.

In addition, almost three-quarters of these CTV viewers surveyed indicate that they pay more attention to advertising on premium on-demand TV platforms compared to social media or video aggregators. Through ensuring their advertising experience is contextually relevant and features long-form ads with high-impact creative, TV and premium video providers can secure high levels of attention that increase the value of their inventory.

As the advertising landscape is rapidly evolving, TV and premium video providers need to continually taste-test how their advertising experiences and business models align with audience habits. With in-depth insights of the current market, they can plate up successful offerings that meet the expectations of viewers and media buyers, define best practices for advanced TV advertising, and secure an essential valuable delicacy — audience attention.

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