March marked a new milestone for streaming, as audiences spent nearly 30% of their total TV time watching over-the-top video (OTT) content. The Gauge, the monthly total TV and streaming snapshot from Nielsen found that, despite a 0.7% decrease in time spent streaming from February, viewing share across all streaming platforms was either flat or gained slightly in March.
In a further boon for the sector, Sensor Tower Usage Intelligence’s Q1 Data Digest found that the top mobile subscription video on demand (SVOD) apps in the United States saw an average of nearly 18 million monthly active users in Q1 2022, up 14% compared to Q1 2020 and 49% from Q1 2019.
The release of new streaming platforms and the race to add more content has made the space more competitive ever in Q1 2022. According to Sensor Tower, six different apps had more than 10% of the download market among top apps, and four apps had more than 10% of the monthly active users.
While market competition continues to intensify, Sensor Tower believes that enthusiasm around new launches and the strength of the top players continues to drive mobile usage. “The addition of these new content providers, as well as increased content offerings by existing platforms, have led to a consistent upward trend in average MAUs even after the expected spike in usage during their launch months,” according to the analysis. Netflix, Hulu, and Disney+ led the cohort as the top three most-used mobile SVOD apps in the U.S. in 1Q22.
The Gauge reports that, as a whole, total television usage was down in March, decreasing by 4.2% versus February. Cable stood out as the only viewing category to see an increase in both share and volume, jumping 1.6 share points from last month. Cable news viewing was up 14% from February and accounted for 21% of the cable share, driven by continuing news coverage of the Russia-Ukraine war.
Nielsen’s The Gauge: March 2022
Gaining a full share point over February, The Gauge finds that streaming services benefited from the transition away from the finale of professional football and the Olympics, which bolstered fall and winter TV viewing across broadcast networks. Sensor Tower also finds that content drives download and viewing. According to their report, several big events in Q1 2022 helped boost adoption and give certain apps an edge in this competitive space. HBO Max’s season two of “Euphoria” was incredibly popular, and Peacock TV and Paramount+ benefited from major U.S. . sporting events.
In May 1961, President John F Kennedy declared that America would put a man on the Moon and return him safely to the Earth and his vision took the world to new heights. Sixty thousand companies in 70 countries invented five million parts and 400,000 of the world’s greatest minds collaborated to achieve a giant leap for mankind. That’s what you call a moonshot.
There is a rising groundswell that the time is now right for a Media Moonshot: one that recasts the industry to blend trust with technology and a new commercial model that can last. The good news is that for those willing to embrace change, it’s not that hard.
A billion dollar opportunity
I have spent the past 15 years working in premium publisher video. I believe a relevant video in the right place in the right article lifts the quality of reporting, and improves the news experience for readers. This is now being recognized by ad agencies who are increasing spend in this sector.
To measure this, we at Oovvuu have been working with the Tribune Content Agency over the past year to match videos to articles from hundreds from America’s largest publishers. Those articles are read 93 billion times a month. Significantly, our data showed only 7% featured video, even when it was available.
Unfortunately, just 1% of the videos that were embedded were relevant. And, unfortunately, the least relevant videos of all were the most likely to be autoplay and contain low yielding bottom of the funnel programmatic advertising. However, our research showed that putting the contextual videos in priority positions, and making them click to play, was popular with news consumers and advertisers who would pay premium CPMs.
We used journalists, along with our own matching tech, with 100 global wires and broadcasters in the TCA project to ensure the highest levels of contextuality. The evidence was compelling according to Wayne Lown, Vice President of Tribune Content Agency, part of Tribune Publishing.
The Tribune News Service syndicates hundreds of daily articles read by millions and across the most trusted brands from Los Angeles Times, Dallas Morning News, Denver Post, St. Louis Post Dispatch, and Chicago Tribune.
“We were able to match 86% of articles in the Tribune News Service with relevant video across news, sport, lifestyle and multiple other genres,” Lown said. “It proved relevant video was there and could be simply matched, revealing a major new revenue stream for publishers who get it right.”
A timely solution
Display advertising is in freefall and subscriptions nearing saturation. The good news is that premium video – which fetches $40 CPMs – offers a way to capitalize on billions of page views and reset publishers’ earnings.
Last month, the world’s largest ad agency GroupM released a report that showed global ad spend was predicted to exceed $1 trillion in 2025. Of that, premium video will account for 19.6% of spend in 2022.
Mark Lollback who served GroupM CEO in Australia and New Zealand before joining Oovvuu believes that “Publishers are perfectly placed as they have massive engaged audiences. And the big global agency groups are openly talking about supporting publishing.”
At the same time, he pointed out that the biggest spending brands are looking for trusted locations for their messaging. Premium publisher video opens a whole new marketing channel for them, but it needs to be done right.
“Publisher video must be click to play, sound on, highly contextual and get premium positions in premium brands. When it does, it taps into users’ attention and delivers the high performance metrics that marketers are demanding,” according to Lollback.
He recently presented research to the IAB showing publisher video delivered double digit performance boosts compared to YouTube on viewability, completion rates and click throughs.
Publishers must act now
The benefits to publishers to grow revenue couldn’t be clearer. Unfortunately, 99% of US articles today feature machine-matched autoplay video with low relevance that attracts low yielding programmatic $7 CPMs. However, The TCA trial has proven that relevant video is available for 86% of articles and premium pre-rolls command $40 CPMs when they are click to play, sound on and highly contextual.
Autoplay should now be outmoded by the smart publishers so they can tap into the opportunity to shift ad spend from YouTube back to publishing. That is the Media Moonshot
Undoubtedly, the emergence of large video syndicators, powerful matching technologies and premium advertising support means it will play an increasingly important role in publisher earnings going forward. The good news is that publishers who do this will be poised to meet customer demand for video, increase engagement and performance metrics across their sites and open access to the largest premium advertising budgets on offer.
The contents of your TikTok “For You” page, a stream of videos curated by the near-omniscient algorithm, says a lot about what you stand for, who you are, and what you like. It’s part of what draws audiences to the platform. When you open the app, you know what to expect. And, better yet, you know you’ll like it.
This type of personal experience is what digitally native audiences have come to not just enjoy, but expect, from the content they consume. If it isn’t authentic, vulnerable, and personal, they don’t want it.
So, when it came time to reimagine what video content would look like for Ascend, Harvard Business Review’s brand for young professionals, we knew we’d have to make it real. We knew we’d have to take a host-driven approach. And we knew we’d have to meet our audience where they are. On TikTok, yes, but also on YouTube, Instagram, and whatever comes next.
Appearing as on-camera hosts, being authentic in front of an audience of millions, and making sure that audience feels engaged — this is all easier said than done. Here’s how we make it work at HBR, and some tips on how to make it work for you and your audiences.
Authenticity and vulnerability are necessities.
Obviously, neither video nor social media was new for HBR in 2020. But that was the year Christine vs. Work marked the first show that we designed specifically and primarily for YouTube. This meant leaning into a host’s personality (in addition to credibility), embracing mistakes that make us human (the word “flawesome” is often applied), and creating a dialogue with our audience.
In each episode, I (Christine) address a real work dilemma, seek advice from experts, and then put that advice into practice (with varying levels of awkwardness). Although I feel like I “should” know the answers to my biggest career questions by this point in my path as a manager, I often don’t — or I’m not confident about them. In Christine vs. Work, I’m honest about that. It’s that vulnerability, which many can relate to, that earns the trust of our audience.
The same goes for Career Crush, another host-driven, YouTube-first series we launched in 2021. In this show, I (Kelsey) interview people with my “dream” careers to get to the bottom of what their jobs are really like. I dive into how much money they make, misconceptions about their roles, and whether they actually enjoy what they do for a living. Most of the time, I have no idea what it takes to get a job like theirs, and I don’t pretend that I do. After all, I’m not an expert in software engineering, or Twitch streaming, or photography. I’m still in my early career, too. So, the questions I ask and the ideas I uncover are based on things I’m genuinely curious about. That curiosity is crucial to creating a connection with our viewers.
A key element to making this work is to remember that you can’t manufacture “realness” and “authenticity.” We film in our own homes as much as the office (a necessity during lockdown), process complex emotions on camera, and are transparent about ourselves in front of a virtual global audience. It’s not always easy for us as hosts, but the human connection that forms from sharing our vulnerability is a lasting one. That’s particularly important for bridging the HBR brand to Gen Z audiences and reassuring them that we’re here for them in a world where it’s harder than ever to determine what is real and who to trust.
More voices, more perspectives.
We’ve learned, as individual hosts bringing our authentic selves to the fore, we’re not going to be everyone’s cup of tea. That’s precisely the point: We want our audience to connect with whoever they vibe with most. And, when it comes to host-driven content, that means diversifying the personalities, voices, and perspectives on our channels.
We put great care in our guest selection to fulfill that mission. In Christine vs. Work, we feature practitioners in addition to academics and thought leaders from around the world. In Career Crush, there’s no substitute for hearing first-person accounts of what it’s like working in a specific role or industry.
We also think carefully about the “faces” of Ascend. By design, our TikTok channel isn’t led by any single content creator. Although there are recurring familiar faces that deliver a regular dose of work advice and office humor, we encourage each presenting editor to lean into their distinct and authentic storytelling style. Plus, anyone in the company who wants to pitch, write, shoot, or star in a TikTok is welcome to join the party (a.k.a our weekly brainstorm). Who knows whose video will go viral next?
Lastly, we recently launched a pilot called HBR Presents on our video platforms. In this initiative, we partner with and feature talented external creators to share their expertise on topics like personal finance, early career, and email etiquette. The vision is to thoughtfully grow this creator network, expanding our offerings for an audience hungry for helpful and engaging content delivered in a relatable way.
To put it simply: You can’t have authenticity without hosts who are willing to be vulnerable. Expand your pool of hosts, make it diverse in every sense of the word, and never pair a host with a video or topic that doesn’t resonate with them. Audiences can spot an uniterested host from a mile away.
We’re listening. You matter.
What’s most exciting about our roles as hosts and producers is that we’re able to forge a connection, through our own voices, with our audience. Whatever platform or channel, we commit to reading the comments, replying as ourselves, and responding to questions and stories that others have shared with empathy and insight. We take viewer requests and incorporate them into future episodes. In addition to performance analytics and audience data, we’re able to synthesize viewer feedback to inform Ascend editorial projects across the board. With host-driven video, audiences keep coming back not just for the content, but for the hosts themselves. So creating that engagement — that direct connection — matters.
Long story short, we’re listeners, not lecturers. This philosophy defines our commitment as editors. We also represent a piece of Harvard, for an audience that demands — and deserves — a brand they can trust.
And if you find us on TikTok, Instagram, YouTube, or Ascend, our goal is that you’ll feel like this content is delightfully “for you.”
About the authors
Kelsey Alpaio is an Associate Editor at Harvard Business Review.
Christine Liu is the innovation editor at Harvard Business Publishing’s product incubator.
Streaming TV may have killed cable － but where do we go from here? After the pandemic-induced streaming boom, consumers are cancelling subscriptions at record rates. As viewers grapple with rising prices and an explosion of subscription services, OTT players should embrace the potential of ad-supported streaming in order to survive an increasingly competitive market.
OTT on the up
The OTT (over-the-top delivery of TV and film via the internet) industry is booming. In 2017, approximately a third of U.S. adults cited streaming services as their main means of consuming television. Double that for people aged 18-29. During the pandemic, streaming television has continued to display incredible growth. In 2020, screen time overall was up almost a third on the previous year. Viewers watched streaming services, such as Netflix, Amazon Prime Video, and Disney+, for one hour and 11 minutes per day. Also, 12 million people joined a service they had never used previously. Three million of those viewers had never previously subscribed to any TV streaming service at all.
A changing paradigm
The mass adoption of streamed OTT services coincides with a fundamental change in the television business model. While television has traditionally been funded largely by advertising, most streaming TV platforms have instead opted for a subscription-only model. For traditional TV providers transitioning to streaming, this choice is understandable, given the abundance of legacy technologies that cannot easily be switched towards an advertising-based SVoD. New players like Netflix, by contrast, have made a strategic decision not to offer an ad-supported subscription.
OTT overload
The subscription model appears to be working well enough for Netflix, the undisputed market leader. The problem lies in the explosion of alternative streaming platforms. In 2020, the average viewer was subscribed to nearly eight streaming services, compared to six in 2019.
Netflix raised the prices of their memberships in 2020 and may well do so again. The result is that the monthly cost for consumers of streaming tv is increasing, as both the prices and number of services go up. There is an inevitable tipping point where paying multiple subscriptions becomes too expensive for the viewer and they will choose to let some go. Many have already crossed that threshold: 36% of Americans plan to cancel streaming subscription services in the next 12 months. And the most common reason – by far – is the price of service.
Ad-supported gains ground
Although subscription dominates, ad-supported streaming services have seen substantial growth during the pandemic. Research by Deloitte found price to be a key factor in consumer streaming decisions. Most consumers (65%) want cheaper ad-supported streaming options (up from 62% pre-Covid). And, of those who did, more than 50% preferred ad-only streaming. Sixty three percent of respondents in a PwC survey said they would be willing to sit through more ads if it meant cheaper subscriptions. Providers offering ad-supported streaming now include The Roku Channel, IMDb TV, Discovery plus, CBS, and Hulu, to name a few.
Sell smarter ads
Part of the appeal of the subscription-only model lies in its apparent simplicity. For established television providers, transitioning their advertising model from cable to digital presents many technical challenges. For those providers who have embraced ad-supported, a combination of white-glove and programmatic ad sales are the norm.
However, a new approach is also gaining popularity: self-serve advertising platforms. Inspired by the walled gardens of Facebook and Google, self-serve ad platforms allow OTT providers to sell their ad inventory through a branded, automated marketplace. This allows them to tap into the massive SME ad spend that currently drives digital ad growth. SMEs increasingly favour self-serve solutions, and for OTT brands with their own platforms, less value is lost in the infamously murky “black box” programmatic supply chain.
Roku, for instance, sells home screen banner ads, Roku screensaver ads, and video ads via their self-serve platform Roku Ad Manager. Ad Manager is designed to be a smarter, simpler, and more cost-effective way of managing channel promotional campaigns within the Roku ecosystem. It is just one of an increasing number of self-serve platforms popping up among OTT brands.
The other important aspect of ad-supported streaming is that it’s not simply a return to the dark days of regular, irritating ad breaks (as still found on linear TV). OTT providers that adopt ad-supported models are innovating the user ad experience to make it more effective and less obnoxious. Hulu, for instance, runs pause ads. This non-disruptive, non-intrusive user-initiated ad experience appears only when viewer presses pause when watching content. That’s a far cry from the ad breaks of old, and an indicator that ad format innovation is an essential part of the new streaming experience.
Ad-supported is inevitable
As OTT prices and the number of platforms continue to rise, consumers are increasingly looking for flexible, low-cost alternatives to meet their streaming needs. For OTT providers, offering only subscription models means that they price themselves out of the market for cost-conscious cord cutters.
We are not likely to return to the days of constant ad breaks and linear TV. Rather, the future lies in the flexible middle ground where consumers can pick and choose from a selection of price models: subscription, ad-supported, or a hybrid of both. OTT providers need to embrace ad-supported streaming － the sooner, the better.
About the author
Johan Liljelund is the Executive Vice President at DanAds based in Sweden. Johan is an entrepreneur with more than 20 years of experience in developing technology towards the media industry and a pioneer in the digital advertising industry enabling publishers to streamline and efficient their internal processes on a global market.
The business of digital media is not dull. It can be a bit like the not-so-well-wish “may you live in interesting times,” though. Keeping up with it all is a big job for digital media executives tasked with keeping their organizations healthy and at the forefront of this industry. A clear-eyed look into what’s next is important in order to keep up with the pace of innovation in this industry. To help, I’ve outlined four trends I’m watching closely during the second half of 2021:
1. Pandemic-era rebound in advertising market
Big takeaway. Knocking on wood, but all digital revenue indicators are trending positive in 2021 through midyear for premium publishers. DCN distributed both its proprietary annual benchmark and first quarter revenue reports in the past month. The reports are only available to participating members. However, I can share the top-line good news: Year-over-year growth was strong. And that’s even prior to the favorable comparisons to the depressed market from the onset of Covid in the Spring of 2020. CPMs have also strengthened in the open market where advertisers are finally putting in more diligence to know where their money and brands are delivering.
Watch this. The largest challenge to the premium publisher business is keeping pace with the massive consumption in the back-half of 2020 due to a record convergence of captive audiences and riveting news cycles. Putting aside what is good for our business for a moment, it’s nice to see outdoor activities once again competing for attention! And for the booming digital audio market, that has some upside as well.
Surprise twist. The Delta variant looks like it may drive many Americans back to some of our early 2020 habits. Clearly, Covid continues to concern all of us personally and professionally. How it impacts economic and media consumption trends is to be determined as we approach the Fall.
2. Privacy and data protection
Big takeaway. 2021 will be the year that killed “tracking” – regardless of how successfully Google protects the soft underbelly of its surveillance business model. Apple will continue to distance itself from Google in an effort to position itself as the consumer champion by carrying the privacy torch. They pressed forward with iOS 14.5 in Q2 with installations now approaching 75% of the market. Why does this matter? It’s the first major operating platform to require consumers to grant companies permission to track them outside of the apps they’re choosing to interact with.
Watch this. This move better aligns iOS with the tracking prevention values long held by the Safari browser and those increasingly held by consumers. Given the market power of Apple, it has triggered a war with Facebook, the second largest tracker on the internet. In fact, Apple’s impact on Facebook’s future revenues was mentioned repeatedly on Facebook’s Q2 earnings call yesterday with future headwinds dominating the press headlines (despite their efforts to talk about the future “metaverse.”) As global regulators have frequently noted, a majority of Facebook’s data (and with that, their revenue) has long been derived from tracking users.
Surprise twist. The Attorney General of California also announced last week that their office had accelerated sending out warning letters to companies that weren’t properly honoring consumers’ opt-out of tracking requests via the Global Privacy Control. This should send fear through Google and Facebook as California law has defined tracking consumers as a “sale of data.” That definition will be mighty uncomfortable for two empires built on exactly that. And the California AG’s moves will accelerate pressure to create a federal law where Facebook and Google already have multiple regulatory issues to deal with. All of this has forced industry to accelerate its “reality check.”
3. Growing consumer revenues
Big takeaway. After a robust 2020, consumer direct revenues — including subscriptions — continue to grow, albeit at a slower pace. Overall, non-advertising revenues grew in the first quarter of this year. And they are trending up to 30% so far this year.
Watch this. Although “subscription fatigue” continues to be a topic of discussion, DCN’s prior research and industry trends have shown nothing short of an insatiable appetite for quality programming. Yes, even when it bears the price of subscription. It doesn’t hurt that making a purchase is now as easy as a thumbprint on mobile.
Surprise twist. Gen Z (yes, the kids who grew up with iOS) don’t seem to mind advertising. DCN will be releasing research in September that shows that Gen Z’ers (16-24) actually have something in common with Gen Y (25-40). Both groups are very open to advertising in their programming. Whether they pay or opt for a free service, the existence of advertising doesn’t seem to be a major factor for younger media consumers.
4. Strong streaming market
Big takeaway. No market has had more of a dichotomy between advertising and subscription-supported models than the red-hot video market. In fact, DCN broke out the “advanced video” segment for the first time in our most recent quarterly revenue report. And it nearly tripled in our first year-over-year comparison.
Watch this. Apropos to this heading, America can’t seem to get enough to watch from these trusted brands (and DCN members): Disney Plus, HBO Max, Peacock, Discovery Plus, Paramount Plus, and the many other services that have gone direct to the consumer and are reaping the rewards.
Surprise twist. The 10-ton giant of streaming video, Netflix, missed earnings in Q2. It lost hundreds of thousands of U.S. subscribers in Q2, with metrics that looked more like a traditional cable TV company. Maybe it’s a momentary lapse from last year’s stay-at-home streamers. But it could be a sign of migration to the newest competitors. Either way, I’ll be watching.
Trend watching and trendsetting
As someone whose job it is to promote the value of quality and trusted media brands and to call out those who seek to disintermediate them, monitoring trends can be one of the most fluid and head spinning parts of the job. The team at DCN will continue to champion the trusted providers of content that informs, entertains, and delights because that is what consumers expect and what we believe will ensure a healthy future for our industry.
Rounding up these current trends, I see a lot to be excited about – particularly with the next generation – as we continue to learn the lessons, both good and bad, from the pandemic. It’s never a dull business and I can’t wait to see what’s next.
Earlier this year, VIX was acquired by Spanish-language content leader Univision. It was the culmination of a six-year journey, which started out as my effort to disrupt, well, Univision.
Around 2015, I stumbled upon the statistic that Latinos would soon represent 20% of the United States’ population. It spoke to me because my Texas roots meant that Hispanic media had always been a part of my world. Pretty soon, I had decided that my next media venture would be creating a mobile-focused streaming service for what appeared to be a drastically underserved U.S. Latino digital media audience.
By the time that our Pongalo service launched as a $5.99 per month subscription offering for U.S. Latinos, I had rounded-up digital rights to thousands of hours of Spanish-language content. I’d also assembled a group of shareholders and mentors who included some of the smartest people in media. That meant that the Pongalo team could tap into a deep bench of expertise from folks like former MTV Networks Vice Chairman, who has Puerto Rican roots, Herb Scannell, and former Univision digital chief Kevin Conroy.
Like all good success stories, we promptly fell on our face. But we learned. We learned that building a video streaming technology platform is not for the faint of heart. We learned to license not only U.S. content rights, but also long-term international rights. That’s because our eventual expansion across Latin America presented a massive opportunity. And we learned that we absolutely did not want to compete with deep-pocketed players like Apple, who were making noises about coming into the subscription streaming space.
We eventually added Discovery Communications veteran Rick Rodriguez to our team. And, after borrowing a bit from the early playbooks of TubiTV and Pluto, Pongalo quickly evolved into the free, ad-supported streaming space. When it did, every metric went through the roof. Despite our early stumbles, we had clearly found the right model.
The race to scale
By 2019, scale had become the name of the game in media. In a world where Disney needed to buy Fox to gain scale, even a dominant spot atop AVOD in the still-unproven Latino digital media market wasn’t part of the conversation. If Pongalo was ever to be acquired by a larger media organization (and I believed it should be), we needed scale.
So, about a year ago, we combined Pongalo’s streaming service with Rafael Urbina’s VIX. Rafael had built a powerful social media megaphone of almost 100 million Latino Facebook followers. He’d also put together a potent ad sales team of over 50 people stretched across two continents. By the time VIX was acquired by Univision in 2021, our streaming service offered more than 20,000 hours of content that entertained millions upon millions of Latinos each month.
Today, the VIX team, now under the leadership of new Univision CEO Wade Davis, also helps to manage PrendeTV, Univision’s recently launched free, premium ad-supported streaming service. And the results have been spectacular. Early indicators tell us that PrendeTV and VIX are finding eager, content-hungry audiences across platforms.
The still-untapped opportunities
Our success (so far) does beg the question, however, of why no major media company had previously built a standalone service that focused on the free streaming opportunity for U.S. Latinos.
To be fair, Latinos have traditionally been easy to overlook in favor of general population audiences, who have always seemed to capture all the oxygen in the front-page streaming stories. But in a day and age of always-improving data, we now know that that was foolish.
According to the 2020 LDC U.S. Latino GDP Report, if the economic contribution of U.S. Latinos was its own country, it would be the eighth largest in the world. That would exceed even Italy, Brazil, and South Korea. In fact, between 2017 and 2018, the U.S. Latino GDP’s growth exceeded that of non-Latinos in the U.S. by more than 4.5x. Yes, 4.5x! That would make it the single fastest-growing GDP in the world during that period.
With this immense opportunity in mind, media companies need to be thinking about how they can capture a share of these vast U.S. Latino revenues.
Keep moving
Mobile is one of those places. Latinos drastically over-index for having mobile devices, and those devices tend to be their primary connections to the internet. But many media companies seem solely focused on delivering connected TV experiences. And despite PrendeTV and VIX’s many successes, Latinos still remain underserved on mobile. And they will likely continue to be so until the industry can create media products that play by the unique rules of a mobile-first experience – mainly simplicity.
For instance, at one point, most major media companies continued to push TV Everywhere apps that required an engineering degree to authenticate. We were the first to remove registration entirely from the VIX app. That meant that we had to innovate clever ways to build data around our audience. But if the premise of AVOD is to show ads to as many people as possible, why put up barriers?
The payoff for media companies in targeting Latinos is data. The genius of Amazon comes down to, “Since you bought this, you might also like this.” And the opportunity around underserved Latinos and mobile is similar. It’s a treasure trove of data just waiting for companies that are willing to lean in – in-language and in-culture. That data translates into revenues.
Over my six years navigating Pongalo, then VIX, and now Univision, I have heard countless voices encouraging media companies to target Latinos because it creates more diversity in our audiences. Undoubtedly, that’s a true and powerful reason in and of itself. But, with that, you will also make more money. That’s a reason media companies can not only understand, but it’s one that they need to capitalize on.
Abut the Author
Rich Hull is Senior Vice President of Univision, and President of VIX, Univision’s recently acquired digital media subsidiary. As a digital and traditional media company founder, operator and investor, Rich has constantly led the innovation of new ways for delivering content and empowering diverse voices. Rich previously collaborated with DCN Editorial Director, Michelle Manafy, on their multi-award-winning book, Dancing With Digital Natives: Staying in Step With the Generation That’s Transforming the Way Business Is Done.
The new year brings new cheer to the advanced TV advertising sector, with an exceptional outlook for 2021. Following months of accelerated change in 2020, a remarkable 84% of marketers across five European markets expect to increase their investment in advanced TV during the next 12 months. This positivity signals a recognition of the channel’s potential to reach highly engaged audiences in premium video environments that are on-demand, connected, and addressable.
Media owners – whether programmers or distributors – have a golden opportunity to tap into this wave of optimism for a channel that includes multiple interconnected solutions and platforms. This includes video-on-demand (VOD), connected TV (CTV) and over-the-top (OTT), to audience-based linear, programmatic, and addressable. Here are just a few of the trends media owners should be aware of as they prepare for advanced TV’s take off in 2021.
Unification of linear and digital
Linear TV and digital video have been on a convergent path for some years. However, in 2020 it became perfectly clear that viewers see no difference between the two. People switch effortlessly between channels, platforms, and screens to satisfy their appetite for video content everywhere, any time. Advertisers are adapting to this evolution. They want to deliver seamless experiences across all premium video environments, regardless of whether they are linear or digital.
In 2021, the ability to sell and deliver inventory across all devices and platforms in a unified way will be a top priority for media owners, enabling them to meet advertiser demand. Significant steps are already being taken towards achieving this goal, including the advance of linear schedule optimisation through digital ad decisioning tools. However, more still needs to be done to achieve greater unification over the coming months so media owners can make a greater portion of inventory available for advertisers to buy simply and holistically.
Availability of addressable inventory
Marketers are increasingly keen to target TV advertising at household level through the use of high-quality data insights. Traditional TV advertising is still the most effective option for achieving scale. However, marketers can supplement it with addressable advertising to access niche audiences and achieve incremental reach.
Across Europe, over three-quarters of marketers expect to increase investment in addressable advertising next year, with a 9% growth predicted overall. This does vary however, according to the maturity of individual markets, the technology capabilities and the availability of addressable inventory. Spain has the most optimistic outlook, forecasting a 13% increase in addressable advertising, while France is the most cautious at just 4% growth.
To take advantage of increased investment in addressable advertising, media owners should focus on making more of their inventory addressable. This will mean breaking down silos between TV and digital teams. It also requires exploring how they can effectively use first-party and second-party data – while complying with data privacy regulations – to enable richer targeting.
Preparing for addressable advertising will require a degree of collaboration and European media companies can take inspiration from the U.S. Across the Atlantic, industry initiatives such as On Addressability are driving progress towards simple, scalable addressable capabilities across TV formats. And project OAR (Open Addressable Ready) is establishing a common technology for dynamic, addressable advertising management.
Collaboration with competitors
The trend for cross-industry collaboration doesn’t just apply to addressable advertising, but to advanced TV as a whole. Advertisers demand more streamlined solutions that allow them to buy across channels, platforms, and devices. So, media owners will need to put aside traditional rivalries and take a collaborative approach. In this case, working with competitors well help them gain mutual advantage.
There are already examples of successful collaborations around addressable TV within European markets, including partnerships between FranceTV and both Bouygues Telecom and Orange, as well as the LOVEStv platform in Spain. In the U.K., Sky, Virgin Media and Channel 4 are all partnering on AdSmart. ITV has extended an open invitation to broadcasters to join its Planet V platform. More established cross-market collaborations are also in place, such as the European Broadcaster Exchange, which was established in 2017 between Mediaset, ProSiebensat.1, TF1 and Channel 4 to enable programmatic video advertising across multiple countries.
Over the coming year, more media companies will form partnerships or join existing collaborations. This will allow them strengthen inventory offerings to allow advertisers to access premium, brand-safe advanced TV environments at scale.
After a turbulent year all round, the next 12 months look extremely promising for the TV and video ecosystem. Media executives will be poised to maximize the opportunity by embracing the unification of linear and digital and making more of their inventory addressable. If they also find ways to collaborate with partners and competitors across the industry, media companies can put themselves in the best position to make the most of advanced TV’s 2021 take off.
In 2020, the over-the-top (OTT) landscape shifted greatly, ushering in a new era for subscription-based OTT video streaming services. New players like HBO Max, Disney+, and Peacock joined the scene. All the while, service providers like Netflix, Hulu, and Amazon Prime Video continued to dominate the market.
So, what is next? OTT services are predicted to generate just over $158 billion in ad revenue by 2024.
As OTT experiences these major growths and investments, it brings about some key advertising questions – What are the best practices for selling advertising in this emerging channel? Which channels have the best measurement? How is OTT different from linear TV? And, more. With that, MediaRadar hosted a virtual panel to explore these recent and upcoming changes in OTT, plus what the future holds for this type of advertising.
Los Angeles Times reporter Wendy Lee moderated the discussion.And panelists included Bill Condon of Xumo, Justin Gutschmidt of Premion, and Matt Graham of Acorn TV, as well as myself. Here is a recap of some of the key insights discussed.
Ad innovation
While TV advertising has been largely the same for decades, OTT platforms are changing the game, offering new ways for advertisers to get their messages across. Hulu, for example, has a choose‐your‐own‐adventure‐type ad option, allowing viewers to select which of multiple ad options they would like to watch. Hulu also uses interstitial and binge ad options, a format where viewers can watch all their ads at once so they don’t have to be interrupted later.
After a lifetime of seeing TV ads presented in one way, these new, more creative ad options feel refreshing. They also help keep audiences engaged. With more of a change in what they’re watching, most people are much less likely to get bored. In fact, Hulu claims that the options provided by their platform lead to a 150% increase in brand recall.
Targeting
OTT advertising offers many advantages to brands looking to get more for their money, as well as more views, more click‐throughs, and more sales, and provides opportunities to get a message in front of the right people at the right time. Leveraging the audience data that OTT channels provide, advertisers are able to produce highly targeted campaigns. They can segment audiences based on geographic location, demographics, preferred content, and much more. Advertisers can also capture impression data for guiding future ad buys.
By narrowing down an ad’s audience to include only those to whom it is relevant and applicable, brands drive awareness. They also save money by not showing ads to obvious dead ends. Audiences also appreciate not being shown ads that don’t apply to them.
Consolidation
As OTT content becomes more popular, the industry is starting to consolidate. For example, Xumo was acquired by Comcast in February 2020. According to Bill Condon of Xumo, being tied to a larger company has boded well for them.
“Right before the pandemic hit, we were doing well. But, being tied to a larger company has been really beneficial. I’d say there’s four key areas in terms of what has been helpful to Xumo,” Condon explained.
Condon shared that distribution, discoverability, content, and data were four primary benefits of the merger for Xumo. With Comcast’s help, Xumo now reaches a wider audience and is easier for potential audience members to find. It has also seen a large increase in the content acquisition budget, and has access to more data and data processing tools. Other companies are likely to undergo similar merges and find similar benefits, moving forward.
The number of unique OTT providers will likely decrease, now that all of the major players have introduced their OTT platforms. The average OTT consumer is willing to pay for about 3.2 platforms. Past this threshold, they are willing to accept ad-supported OTT, which major leaders already offer (i.e. Peacock and HBO Max starting next year).
What’s Next?
At MediaRadar we track what happens to our customers and, out of those 2,400 customers we track, there was more M&A activity last quarter than any single quarter in our ten years of doing this. As for the number of OTT platforms, this consolidation is a strong sign that the industry is maturing. As the platforms band together for various benefits, we will soon learn what else they can offer.
With many big name players already on the scene, the future of OTT advertising will be interesting. As advertisers continue to capitalize on the benefits of OTT, it is only a matter of time before we begin seeing even more of its potential and profitability play out.
When you’re launching a new brand amidst multiple global crises, it helps to hone your focus and target audience. That’s part of the thinking behind NowThis Earth. The new channel from Group Nine Media’s mobile-first news publisher NowThis will address the impact of human actions on the Earth’s climate.
NowThis Earth launched in partnership with a coalition of climate-focused non-profits, research organizations, and NGO’s. The new channel will offer daily coverage of science-based coverage of the changing climate, as well as stories that focus on sustainable living. According to NowThis President Athan Stephanopoulos, climate change is a topic around which the NowThis audience is already highly engaged.
Mobilizing the brand
That’s one way in which NowThis differs from some legacy publishers. Many have struggled to find a way to cover climate change comprehensively. They cite limited consumer appetite for science-based coverage and the risk of fatigue with the sometimes-dire stakes of the issue. Attitudes toward and interest in the issue has started to shift among the public at large. However, Stephanopoulos is confident that NowThis’ young audience, primarily composed of Millennials and Generation Z, is more than ready for a sharper editorial focus on the issue many see as the defining challenge of their age.
“When we’ve covered issues of climate and sustainability in the past we’ve seen those stories over-index in terms of engagement, particularly with our younger audience,” says Stephanopoulos. In fact, NowThis viewers are five times more likely to engage with climate and sustainability content than with any other topic. This engagement has produced a reported 600 million views across NowThis’ existing news and politics channels. Clearly, its native audience is ready to see the topic take center stage.
Audience engagement
Of course, even with signs of growing consumer interest, launching a new mobile-first news channel in a crowded ecosystem presents challenges. That’s why NowThis is leveraging some of its existing assets to give the new brand a boost. NowThis Earth will take over the channel previously occupied by NowThis Future, a science and technology vertical that was one of NowThis’ most frequent homes for sustainability-driven content. Taking over an existing channel with a built-in audience will give Earth a leg up as it aims to break into an increasingly competitive mobile video market. NowThis can seamlessly connect new brand’s content directly with the segment of the audience most primed to receive it.
The channel also enjoyed a boost from science educator, climate activist, and occasional NowThis collaborator Bill Nye. He gave the launch a boost with the introduction of a live climate tracker. The new channel is open to partnerships with relevant voices in the climate conversation. However, Stephanoulos stays that bringing Nye into the launch has more to do with foregrounding future collaborations with the brand than a concerted influencer strategy for the channel. “It was mostly about the fact that we’ve done work with Bill in the past. And we’re talking about things we can do with him now under the NowThis Earth umbrella.”
Strategic partnerships
The new channel will also leverage an array of non-profit partnerships that will play a key role in informing its editorial coverage and helping it to connect with new audiences. NowThis has teamed with the Global Commons Alliance, a coalition of climate-focused organizations including research, business, and philanthropy. According to Stephanopoulos, the partnership will help NowThis Earth to identify stories on the frontlines of climate coverage. IT will also provide access experts who can provide additional context. GCA member organizations will also contribute local reporting from journalists and NGO employees involved in conservation efforts around the world.
The Global Commons Alliance will also help support the new channel through funding that will allow it to remain, at least initially, ad-free. In the near-term, the focus for Stephanopoulos and his team is on building an editorial brand that can motivate its viewers to take the kind of actions that help to address the global climate crisis. This could be by donating to preferred causes, following tips for more sustainable living, or engaging in activism.
NowThis has successfully partnered with commercial brands in the past. However, Stephanopolous thinks it’s important to avoid any potential conflicts at launch. He remains optimistic about the long-term potential of traditional advertisers to support sustainability-driven content both on NowThis Earth at large.
“We’ve seen a lot of brands and advertisers who want to be in this space, particularly content around sustainability,” says Stephanopoulos. “There are a number of companies that are driving themselves to be more sustainable as brands. I believe there will be even more opportunities in the future.”
Lessons to repeat
For publishers looking to launch a new video brand into today’s highly competitive market, there are some valuable lessons in the NowThis approach. NowThis Earth isn’t so much a new vertical, as a distillation of coverage that was previously spread across multiple channels in the NowThis portfolio.
With close attention to user engagement, the NowThis team was able to identify an area of opportunity that it was already well-positioned to develop based on its existing network of partners and to grow based on its established cross-channel audiences. The topic is timely, but as Stephanopoulos pointed out, NowThis has been nurturing this audience across several of its brands for years already.
In a world turned upside down, TV – in all its current forms – serves as a vital anchor. It is a trusted provider of news and information, as well as a continual source of entertainment and comfort. It unifies families and friends through shared viewing experiences – even when they are in different locations. And it facilitates new routines, which helps people through these testing times.
TV consumption has spiked, with a Thinkbox.tv weekly viewing report from May 2020 revealing UK viewing is up 21% year-on-year. Even as the country begins to return to a socially distanced version of normal, staying home will be the default position for many. And this will prolong consumers’ reliance on TV.
This trend is positive for advertisers. This is particularly true as 54% of consumers are paying as much or more attention to ads than they were before lockdown began, according to a recent FreeWheel survey. But to make the most of these larger audiences, advertisers need to understand the changing habits, preferences, and expectations of consumers. This will allow them to make informed decisions around messaging, tone, and delivery channel.
Match the messaging to the moment
Ad messaging needs to relate to what is happening during current times, to be contextually relevant and to resonate with consumers.
Our survey revealed that the vast majority of UK consumers want advertising to be relevant. Three quarters of respondents feel that brands should acknowledge the present situation in their ads. Ads can be used to reinforce preventative measures such as social distancing and hand washing. They can also show customers that brands are there to help them with lockdown related challenges.
From Nationwide to NatWest, financial services businesses are recognizing the current situation in their advertising. They are reinforcing their support for customers and outlining how they can still access services from home. Supermarkets have also brought the current context into their messaging, such as the Co-op’s campaign to support food redistribution charity FareShare.
Set the right tone for the vertical
Just because consumers want ads to relate to the current situation in some way, that doesn’t mean messaging needs to be sad or negative. In fact, humor should play a central role in advertising. True to form – the majority of Brits (58%) say they want to see ads that make them laugh. Many brands have taken a fun and light-hearted approach to messaging such as Maltesers with its “Look on the light side” campaign and Hotels.com with its humorous “Just stay home”’ messaging.
Setting the right tone often depends on the vertical in which a brand operates. Despite ongoing uncertainty, a quarter of consumers want to see TV ads relating to travel. They also want emotive ads that make them dream, providing beacons of positivity in challenging times. Just because viewers can’t go to their dream destination right now doesn’t mean travel brands shouldn’t maintain awareness and advertisements.
Online search data reveals that millions of travelers are in escapism mode, discovering and dreaming of life without restrictions. So, reaching out to these consumers now can make all the difference in the medium to long-term. Sandals Resorts is one travel brand continuing to spend on TV ads. They acknowledge the reality of the current situation, but remind viewers that their holiday havens are ready and waiting.
Choose the right delivery channels
The term “TV” now encompasses a wide range of delivery channels. These include traditional linear TV, broadcaster video-on-demand (BVOD), and subscription streaming services. Much media attention is currently given to the rise of video streaming. However, FreeWheel’s survey found that linear TV is still the most watched type of platform, with 34% of consumers selecting this as their first choice compared with 26% for paid streaming services and 14% for catch-up TV.
In the current climate, audiences rely on broadcast TV for important updates, with over 27 million viewers watching the Prime Minister’s “road map to recovery” announcement on Sunday 10th May 2020 and almost 13 million viewers watching the Queen’s VE day address. Primetime remains a significant moment for people to connect with others. In France, primetime audiences broke the all-time viewers record on Monday 13th April 2020: 36.7 million watched French President Emmanuel Macron’s speech, on TV and online. That represents a 94.4% market share according to Mediamétrie.
Advertisers can make use of multiple channels to reach consumers when they are fully engaged in TV content. And they can use different platforms to reach different audiences or demographics. As TV content across all channels becomes more addressable, advertisers will be able to target audience segments defined by specific criteria, regardless of the platform they are using or the content they are watching.
Tune in
In these unprecedented times, consumers are turning to TV – in all its forms – for information, entertainment, and routine. And they want to hear from brands; only 8% say that it should be a priority for brands to stop advertising. Armed with important consumer insights, brands can make use of a boom in media consumption to reach and engage TV audiences with useful, appropriate and contextually relevant messaging. Media and brands have an important role to play, they have demonstrated that they can be agile, reinvent themselves and be creative. In future, companies that listen to viewers are more likely to better match viewers’ user journey, expectations, and needs.
As the world adjusts to the “new normal” of remote working life, forward-thinking publishers have been coming up with new ways to connect with their audiences and help them through the crisis. In a matter of weeks, Harvard Business Review has spun up its own live video offering: HBR Quarantined.
HBR’s new weekly LinkedIn Live show focuses on how businesses are coping with the consequences of coronavirus. The show, co-hosted by Editor in Chief Adi Ignatius and Chief Product and Innovation Officer Joshua Macht, debuted on April 27 with Pulitzer Prize-winning columnist Thomas Friedman as a special guest.
Ignatius, Macht and HBR’s Senior Multimedia Editor Scott LaPierre talked to DCN about what prompted the launch, how the first show went, and where they plan to take it in the future.
Evolving an idea
The initial concept for HBR Quarantined stemmed from Ignatius and Macht wanting to explore their dynamic in different formats. “Adi and I go way back together. We’ve grown accustomed to taking chances together and inventing things,” Macht said, explaining that a podcast was initially on the table. “Within weeks we went from, ‘Maybe we should launch a podcast,’ to ‘We’re going to do a live television show on a platform that’s pretty new.’ Then, all of a sudden, we had a show.”
Ignatius said that the genesis of the idea came from a desire to connect with the millions of their audience who are now working from home. “They, like us, are wondering, ‘When do we get to go back to work, and what will work look like when we do?’” he explained. “We’re always talking about these issues. So we figured we could do a service delivering insight on COVID-19 and how it affects businesses and the economy.”
But unlike other HBR products, the show is designed to have a very different tone. “Harvard Business Review tends to be a brand that speaks to a very high altitude. That’s our secret sauce: high-level pieces that are based on research,” Ignatius emphasized.
“This show is something different. It’s meant to be warmer, really connecting in the moment. We’re all in the same boat and trying to figure this out together. So, it’s certainly an experimentation with a different kind of voice for us.”
Viability in quarantine
Under normal circumstances, a product like this would be resource-intensive. But LaPierre highlighted that quarantine has actually lowered the bar for everyone in terms of production values and expectations.
“The way a lot of video producers are seeing the COVID-19 crisis, perversely, is as an opportunity to try new things,” he said. “HBR is not a TV station. We only have a small video team. So it would be hard for us to launch a true broadcast live video series. But now, everyone’s been equalized in terms of what they’re capable of doing. It’s a chance for us to make a viable series that doesn’t look that different from what others are doing.”
LinkedIn’s Live tool is just over a year old, and the platform was relatively late to the video space compared to its competitors. But for HBR, their vast social following on LinkedIn – 10.2 million followers – made it an obvious choice to debut this type of show.
The team began by testing out a high-level broadcast tool. However, that was proving problematic as it wasn’t suited to their purposes. “We pivoted to something called StreamYard, which is a ‘prosumer’ grade software that allows you to stream live, but is a lot more lightweight,” explained LaPierre.
Live streaming can be risky in terms of technical hitches. But HBR’s first show went smoothly, attracting 35,000 live viewers and thousands of comments during the stream. Ignatius highlighted the long-tail benefits of the video as well, with total views doubling in just a few days.
The biggest surprise for the team was the lack of drop-offs. “Everyone was saying we would have these spikes in viewers. But actually, people showed up for the whole thing, and it just kept growing,” Macht explained.
HBR Quarantined post-quarantine
When it comes to the future of HBR Quarantined, the team is remaining flexible. They have a total of six episodes planned so far. However, they will be constantly reviewing what the response is to them and what their audience needs going forward.
“I was pleasantly surprised that it went off as well as it did. But it will be interesting to see where it goes,” commented Ignatius. “I think there is something of a service that we can provide for our readers. There’s knowledge and insight about what’s going on, and we want to see what that means post-quarantine.”
HBR is also scouting out potential sponsors. They believe the show offers a timely opportunity for advertisers to reach their audience with messaging related to the moment. “There is not a lot of sponsorship money out there these day. And part of our experiment was to find a new medium that was of the moment,” explained Ignatius.
But sponsorship aside, future episodes will be focused on trying to engage people with the brand, and with the wider goals of bringing people into HBR’s subscription funnel. “The show is good for getting people to engage with our brand, and we want to continue to grow the number of people visiting the site,” Macht concluded.
These
days, the new normal involves a whole lot of not going anywhere, and it’s a situation
that’s wreaked havoc on businesses of all kinds. Yes, that includes streaming
programming, too, particularly those of the scripted variety. While viewers
abound, production shutdowns have placed the future of many programs on
uncertain footing. Some shows have decided that they can –and will – go on, COVID-19
be damned. However, the inability to film within a standard studio environment
has necessitated some serious outside-the-box thinking and a whole lot of
making the most of what one has at hand.
For Complex Networks, this sort of thing is old hat. Some of their most successful series to date have emerged as a result of being scrappy in the face of budgetary and situational constraints.
Wings and chill
Take
Hot Ones as one tasty example. It all started when Chris Schoenberger, GM
of Complex Networks’ First We Feast, and host Sean Evans were setting up to interview
a guest. After spying some hot sauce in the company kitchen, they came up with
the idea of interviewing people while serving them hot wings.
“I
think the wings have probably improved in quality since the first time around,”
says Justin Killion, laughing. “And the sauce has certainly improved!
But it came out of being as opportunistic as possible, given the limited
resources that the company had at the time.”
If anyone would know, it’s Killion. He’s GM of Complex Networks and EVP of Operations and Content, and he knows everything there is to know about Complex programming. As such, when he suggests that a few semi-new series in Complex’s programming lineup have the potential to be an heir apparent to Hot Ones, you may want to add them to your “what to watch” list.
Fun and franchises
“If
you’re talking about new franchises, Tacos Con Todo, which First We
Feast just put out, that show is excellent, and we also did another one called Gochi
Gang,” said Killion. “I think both of those are franchises that you’re going
to see us double-down on and potentially do more of. But if you want to talk
about a breakout show, Full Size Run is right on the cusp. It’s a little
bit of an in-the-weeds sneaker show, for true sneakerheads. But it’s edited in
a fashion not that dissimilar to what you see on Adult Swim. I’ve never really
seen anything quite like it. I really don’t think there is anything
quite like it!”
Killion
knows all too well how much of a whirlwind the business of streaming entertainment
has become in the face of the Coronavirus outbreak – and how much of a boost everyone’s
numbers have gotten with people being stuck inside.
“Truth
be told, we’re up 35 percent in engagement on our YouTube shows over the last
two, two-and-a-half weeks,” said Killion. “That’s just incredible. Our dot.com
is up over 20 percent. Our social is up significantly. We’ve seen a massive
spike in Tik Tok. We’re doing about five times the daily views that we were doing
prior to the quarantine.”
Thirst and lemonade
Looking
at these numbers is one of the few ways to make lemonade out of the lemons
everyone’s being handed lately. (And by “lemons,” of course, we mean “stay-at-home
orders.”) But the public’s thirst for entertainment has also resulted in a
certain degree of forgiveness from the viewership, which puts Complex in a
position to try some things that they might never have risked doing before.
“The
quality of the content still needs to be there. But we’re at a moment in time
where no one’s getting dragged for putting out content that isn’t exactly up to
their usual standards of polish,” said Killion. “That allows us to take chances
that we otherwise wouldn’t be able to take. So, there’s been a lot of experimentation.”
Case
and point: Life at Complex. In the pre-coronavirus world, the series
involved host Tony Mui wandering around the Complex offices, interviewing staff
members. Killion describes the show as “a look-how-cool-it-is-to-work-here kind
of thing.” However, when everyone is suddenly working at home, you’re looking
at some retooling.
Sole-ful solutions
“What
Tony’s turned the show into is almost like an incubator each week for a
different format that we’re gonna try,” explained Killion. “One episode is him
checking in with all of [Complex’s] different deputy editors… Just kind of getting
a sense of what their home life is like in general and getting to know them a
little. Then, he did something called ‘Sneaker Battles,’ where he took Brendan
Dunne, our host of Full Size Run, and paired him with someone from our
editing team. They were comparing sneakers from their own personal closet, and
had it judged by one of our directors of photography from Sneaker Shopping.”
Killion
says that it’s a fun format that they were able to quickly pull together.
However, he points out that, if they’d been producing the show prior to their
current ad-hoc situation, “the level of polish on it would have to be
significantly higher. We would’ve been shooting with a crew at four different
locations to make that happen. Instead, it’s just turning on a computer monitor
at four different locations!”
