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Perspectives

DCN’s must reads: week of June 16, 2022

Here are some of the best media stories our team has read so far this week:

DCN’s must reads: week of June 9, 2022

Perspectives | Supporter Spotlight

How to drive registered users to become paid subscribers

Getting a user to register is far easier than getting a user to pay—users shown a registration offer have a 1.69% median conversion rate, vs. 0.26% for a paid subscription offer.

The good news is that registered users are more likely to become subscribers. But it can take some time for them to convert. The best practices below can help you attract more registrants and ultimately push them down the funnel to become paid subscribers.

Asking the right users to register

The first thing to recognize is that a registration offer may not be the right path for all user segments. So publishers must be strategic on how to segment audiences and determine who to convert quickly as registered users, vs. those who should only see the paid subscription offer.

Email is the leading referrer when it comes to acquiring subscribers, according to Piano data, which validates the registration experience for anonymous users who are coming from lower-performing referral sources (search, social, etc.). Those coming from email could be more apt to convert, so you might show them a paid subscription offer right away. However, you should consider introducing a guest pass or trial for users who arrive on-site from lower-performing referral sources.

Another way to segment the appropriate users to show a registration offer is algorithmically, or through machine learning. If you can determine a user’s likelihood to subscribe, you can ask those who aren’t as likely to instead register. It’s a common “first ask” in the customer journey and a solid tactic to engage the user with your publication and content.

Converting registered users to paid subscribers

When you do get someone to register, how do you keep them engaged and ultimately to become a paid subscriber? It’s not uncommon to wonder whether registered users will ever subscribe, but a smart strategy can ensure that the registration experience does not impact your conversion rates for users who are more likely to become a subscriber.

Some users convert quickly on their first day or first week as a registered users, but many more users will take a month or more to become paid subscribers. These numbers can help you model potential subscriber growth over time.

Some tactics you might implement to encourage paid subscription include:

Collect first-party data

By analyzing your registered user group, define how many have hit a content lock and have not subscribed. Do they warrant a different journey? There are always going to be users that just won’t pay, so collecting more first-party data to build those users’ profiles can help you tap into more advertising opportunities and generate revenue outside of subscriptions.

Make a ‘“crazy” offer

Offer a great deal at a steep discount because it just might be an offer your audience can’t refuse. Not all users will warrant this offer. However, by segmenting those that visit often but never subscribe, this may push them across the conversion “finish line.”

Target logged-in no-access users

Running promotions outside of your content lock is a good tactic to target users who are logged-in but aren’t subscribed to your site. Less intrusive on-site messaging can show users an offer while they’re reading “free content.”

A few more registration best practices

Whatever your strategy or how a user registered, treating registered users the right way will help lift conversion rates:

Create a clear value exchange

Whenever possible, connect the registration to the user benefit. It’s not just about registering, but becoming a member, getting these exclusive benefits, getting something tangible in exchange for providing your information. This messaging tends to increase conversion rate and make user consent more likely.

Minimize friction

Utilize email-only registration or social signups for ease of registration and collect additional information over time. You might consider a passwordless initial option to get users in the door, then you can capture other data later on in the user journey.

Be transparent

If you are collecting additional information, tell the user how you’ll use it and what the benefit is for them. For example, don’t just use their email address for ongoing subscriber acquisition emails. Give them something they want and will engage with, like an email newsletter.

Treat registered users like customers

It may take time, but registered users are likely to subscribe, so treat them as you would a valued customer. Create an onboarding experience for registered users as you would for a new subscriber.  Encourage engagement, highlight user benefits and provide relevant content recommendations.

A registration experience can unlock a lot of additional value for your publication, but only if you proceed with caution so you don’t impact your existing paid subscription offer. Treating these users like customers with a clear value exchange will ultimately help audiences cross the finish line to become paid subscribers.

Advertising | Perspectives | Supporter Spotlight

Why publishers need to get taxonomies right to succeed

Taxonomies have long been a not-so-sexy – but totally important – part of our industry. They help bridge the buy and sell sides of digital advertising through a common standard. As a concept in the digital ad world, they refer to naming conventions or “naming groups” that apply structure to groups of data such as audiences or content. For publishers, correctly mapped taxonomies lead to increased buyer opportunities and an improved user experience for those reading their content. For buyers, they can enjoy better brand safety and brand relevance.

The importance of taxonomies today and in the future

Recent developments have put a renewed importance on the accuracy and robustness of taxonomies, as well as the ease of the data flow from seller to buyer. As has been well documented, we are living in an era where user identifiers are being removed from the digital advertising ecosystem. From cookies to MAIDs, the audience targeting capabilities cherished (and sometimes abused) by the buy-side are slowly – but surely – slipping away.

Some Advertisers and Publishers are looking to newer solutions, such as clean rooms and identity solution partners, to express their targeting. But questions remain about how to securely and accurately communicate those identifiers down the chain. So, others are investing in contextual data as a targeting methodology.

Whatever the targeting method, advertisers and publishers need a way to speak the same language so that advertisers know what they’re buying, and publishers can accurately package and sell their content.

IAB taxonomies

Having standardization in programmatic has always been important. Standards are what helped drive programmatic ad spend to $100billion+ annual industry in the United States. That’s why the taxonomies offered by the IAB have long been a staple of our industry. These can be broadly bundled into three sections: content, audience, and the ad product taxonomies (the product being sold within the ads). The IAB taxonomy with the widest adoption is content categories, boasting strong support among both publishers and demand side partners (DSPs) alike.

As we (at ArcSpan) have experienced first-hand, [publishers are now putting more emphasis on the accuracy and breadth of IAB content taxonomy, as many see contextual targeting as a way to “bridge the gap” until they can accurately – and safely – pass first party audiences through to buyers again.

Having previously worked as a trader on the buy-side, I’ve run campaigns then compared the performance of targeting third party content taxonomies vs the IAB taxonomies. On a CPM basis, the IAB would typically perform better (which makes sense, given the third parties charge a fee). However, third-party vendors often yielded stronger engagement.

This might be chalked up to the fact that publishers sometimes mislabel their content. This is an easy mistake to make, given content is constantly updating and ensuring categorization is accurate can often be an arduous, manual process. However, buttoned up publishers will reap the rewards, especially given the renewed importance of addressability without third party cookies.

Google taxonomies

Another argument for the renewed importance of the IAB content categories is that Google has integrated them in their Topics API functionality. For those that are unaware, Topics is Google’s approach to targeting once cookies are deprecated. Within Topics, a user is assigned three topics for targeting purposes in Google’s Chrome browser, and these topics are then passed downstream to the buyer for targeting. Although some see this as a behaviorally-driven approach, the actual set of topics used will be pulled from both the IAB content taxonomy and Google’s own audience taxonomy.

Seller Defined Audiences

Finally, I’d be remiss to not mention the very buzzy topic of “Seller Defined Audiences.” These audiences not only leverage the IAB taxonomies, they also require a publisher to pass first party addressable identifiers into the bid stream.

Publishers may initially hesitate to adopt this strategy, as they don’t want their valuable first party data being scraped by bad-actor vendors. However, this approach, although not yet widely adopted, will be one to watch, as it’s an important concept for both publishers and advertisers.

Beyond the IAB

Even within the adtech industry, the idea of taxonomies doesn’t stop with IAB content categories. There are numerous types of vendors within AdTech that have their own taxonomies. For example, advertisers and publishers alike might have their own, customized taxonomies. A common use case for a custom taxonomy would be when the IAB or Google taxonomies aren’t granular enough to capture the content an advertiser wants to target, or that the publisher is looking to surface.

If a publisher has nuanced, but seemingly high-value segment of content that they want to offer to buyers, they will need to go beyond the IAB’s categorization and offer their own custom categories to buyers. Take, for example, Trusted Media Brands: they recorded 110% growth in 202,1 due in part to their overhauled taxonomy, to focusing on better insights for buyers. Likewise, advertisers’ needs are constantly evolving, so certain advertisers have their own custom taxonomies.

As a final point on the topic of taxonomies: in this article I’ve spoken mostly about taxonomies as it relates to web-based buying. While this is certainly the most developed area here, other taxonomies do exist. For example, both mobile in-app and CTV employ custom taxonomies but it’s a bit more difficult to understand content in these environments, as standardization is harder to achieve in CTV and in-app environments.

Invest now

Given the dynamic nature of content, ensuring the heath of both publisher and advertiser taxonomies will require some level of investment. Ideally, the process of creation and updating said taxonomies would be automated and scaled, either by investing in an in-house team or outsourcing to industry experts.

We’ve seen some publishers are going even further by combining their correctly mapped taxonomies with behavioral audiences for advanced segmentation, then serving it to buyers via deals or passed via Open RTB in a seller defined audience. Either way, developing deep taxonomies now will benefit publishers now, and in the future, as buyers look to replace the granular targeting methods they once had with cookies.

Featured Post | Revenue

What The Economist’s move into education can teach other publishers

Education may not be an obvious segue for a news publisher. But when you look more closely, it can actually be an incredibly powerful way to leverage the expertise of journalists to create something valuable for your audience (and bottom line). The Economist launched its Executive Education pillar in February 2021 as a growth initiative that would allow it to leverage its journalists’ deep knowledge and understanding of global issues. 

The education sector itself is vast, and there are many routes publishers could take, from accredited courses to partnerships with schools and universities. The Economist decided to focus on its existing audience, and tailor its courses at highly qualified senior executives. “We’re already catering to the needs of mid-career executives who are upskilling, and that’s our target audience for our courses,” explained Fionnuala Duggan, Executive Director of Education at The Economist Group Media.

“We chose a format for a course and topics that would resonate well with them and at the level they were looking for. The whole operation is pitched to their needs in terms of their ongoing executive development, corporate professional development and career development.”  

Now, they are expanding their offering with a new course on fintech and the future of finance. Billed as giving attendees a “future-focused view of the major issues”, the aim is to demystify personal fintech, blockchain, and cryptocurrencies. Notably, the program will draw in implications for both the business and personal lives rather than being solely work-related.

Quality not quantity

Each course runs for an average of six weeks, and requires between 6-8 hours a week from participants. They are delivered online, which was a pre-pandemic decision to widen participation to a global audience. Courses contain a mix of writing, infographics, video, audio and links. Each is led by a head tutor alongside a team of tutors who guide students through each week. 

The Economist decided to take a guided approach with scheduled start and end dates rather than run on-demand courses because it offered a higher quality experience. Having tutors that can answer questions, stimulate discussion and provide feedback helps participants get more out of the courses, which underpins the value of the four-figure price tag. 

Duggan also noted that having a schedule means they can bring participants together. “There are around 72 countries represented in most courses,” she said. “If you’re discussing something like international relations with people from the U.S., Australia and central Asia, you get all these different perspectives. There’s an enormous amount of learning from each other.”

Although the courses may run to schedule, they are far from being one-hit wonders. The first course Economist Education ran was on International Relations, which is now on its sixth presentation. “Each of these courses takes quite a long time to develop — four or five months,” Duggan said. “That’s why we have a smaller number of courses that are high quality.”

Blending journalism and pedagogy

One key part of the publisher’s approach has been separating the focus of this pillar from the rest of the business. Although there is a great deal of collaboration between the departments, their approach is different. “We’re not in the media business,” Duggan said. “We’re in the business of education. But we’ve benefited enormously from all the things that The Economist and The Economist Group has.”

This has also meant the team are able to acknowledge what strengths they don’t have within the business. Duggan was cognizant of the fact that The Economist had never run courses before, and that this needed additional expertise in order to meet audience expectations. They chose to partner with GetSmarter, an EdTech firm who deliver online education from world-leading universities like Harvard and Cambridge. 

“We really wanted these courses to be from The Economist, so that they would be able to carry over people’s expectations journalistically, and also bring the coverage into the courses,” Duggan explained. “At the same time, the journalists aren’t teachers. So we’ve found a really cool way of blending what they’re able to bring with the pedagogical expertise that our partner has.”

“This means we have this very constructive, collaborative relationship with the journalists and all of the knowledge and knowhow and context they bring. Our editorial processes are also involved clearly in the editing of the course. And then we bring in the pedagogical experts who can shape the course, and we have the best of both sides.”

Duggan’s advice for other publishers is to focus on getting the proposition right, and partner up if necessary. “For a media brand to go into education, it’s very important to execute very well,” said Duggan. “But it’s also important to understand what your brand brings.” The Economist brand’s vast reach helps with attracting an audience to the course. But that’s not all: The courses put the publisher’s journalistic expertise front and center of both the courses themselves, and the marketing strategy.

“Bringing the newsroom into our courses is absolutely central to our offering,” Duggan emphasized. “When you’re talking about topics that are extensively covered already in our publications, we need to make sure that the courses have the same take on subjects, the same access to the sources the journalists might use, and of course, the journalists themselves, because they are the best people to comment on these topics.”

Top marks and takeaways

The courses so far have been a success. Each one sees completion rates of around 94%. “When very busy executives are giving six to eight hours a week into a course, that’s quite a lot of time,” she said, noting that the lack of attrition highlights the strength of the content. 

The publisher declined to give any specific revenue figures, but did note that each course is attended by between 100-300 people on average. Given the price is £1,475 per person for their current selection, it is safe to assume each course is generating a healthy six-figure sum.

Now Economist Education has established itself and had time to iron out the kinks, they have a wide range of topics they can develop courses on next. Duggan confirmed that their next course will be on sustainability, coming in October. They are also exploring the B2B enterprise market. “From where we are now, there’s plenty of opportunity to continue growing quite quickly,” she noted. “There’s an awful lot of scope in the education sector.”

Although The Economist’s approach is specific to its own needs, there are still plenty of takeaways for other publishers looking to extend into educational courses. First and foremost, it is important to consider what your brand would bring to an education course. There may be lots of opportunities depending on the type of coverage. But educational courses like this are best suited to super-serving existing audiences rather than bringing in additional subscribers.

It is also crucial to acknowledge where skills may be missing at a publication. A well-crafted course will almost certainly need input from educators. Consider partnering with educational institutions or companies who specialize in pedagogy in order to bring the most value to a course. 

Ultimately, however, as publishers’ seek ways to build value for audiences and diversify revenue, there are lessons to be learned from The Economist’s successful addition of an Education pillar. Given a media brand’s strength and deep institutional expertise, there may well be value for audiences that want to engage more intently and enhance their own knowledge further.

Perspectives

DCN’s must reads: week of June 9, 2022

Here are some of the best media stories our team has read so far this week:

DCN’s must reads: week of June 2, 2022

Advertising | Perspectives | Supporter Spotlight

Publishers hold a strong hand for the future of advertising; now they must play it wisely

Concerns around consumers’ online privacy, particularly how businesses can collect, store, and utilize consumer data, have captured regulators’ attention. The resulting regulations are causing platform-level changes that will force the advertising ecosystem—and the adtech that supports it—to evolve and be more responsible with consumers’ data. The good news is that publishers have long had benefit of their close, trust-based relationship with consumers. If well-managed and wisely leveraged, this gives them a data-advantage in the evolving ecosystem.

Certainly, when platforms such as Google, Apple, and Facebook address their data practices, it impacts the entire ecosystem. The cookie-blocking changes that Apple has made in Safari and the anti-tracking movement across its app ecosystem are already having a significant impact on how advertisers track and target consumers with relevant ads.

In April of this year, Google reengineered the consent pop-up message throughout Europe to make it equally easy for users to “reject all” cookies as it is to “accept all.” As a result, some publishers have seen a 55% opt-out rate. As this opt-out culture among consumers grows across regions, including the U.S., publisher data becomes even more valuable. Eventually, we will see a global shift toward data privacy that prioritizes user consent.

User opt-in is key

Much of the advertising industry debate to date has focused on the upcoming deprecation of third-party cookies, However, the issues around consumers opting out of sharing data for advertising purposes are much broader and require urgent consideration. This is significant for the entire adtech community, advertisers and publishers. When a consumer hits “reject all,” the ad tech that support programmatic advertising—targeting in particular—stops working.

We have already seen with Apple ATT that over half of iOS users opted out of being tracked by apps and marketers when presented with the choice. This, coupled with the opt-out rate publishers are experiencing in Europe, demonstrates that consumers are actively controlling what data they share with companies.

The next era of ad tech is about user opt-in. Meta has recognized this too. The recent Meta breach, which suggests their ad business is likely non-compliant with GDPR and upcoming privacy regulations, shows that walled gardens aren’t immune from the impact of privacy regulation despite being closed ecosystems.

The regulatory requirement is full oversight and understanding of the data within these walls and enforcing users’ preferences. It’s why publisher data, made up of contextual and audience first-party signals, becomes an extremely valuable commodity in advertising. 

The value of publisher data

Advertisers will find the most effective way to reach customers is by working with publishers who have and can continue to collect first-party data, plus contextual insights that are not impacted by consent.

These include behavioral signals, such as time of day, clicks, scrolling, and video engagement, which are gathered when a user browses a web page; and contextual data, through the content being consumed and metadata, such as locations searched, description, topics, and keywords. Publishers can also gather insights from declared data, which is provided directly to a publisher by users and subscribers, data such as the purpose of visiting, industry, or preferences about certain topics or content.

In this ecosystem, publisher first-party data increases in value because it provides advertisers with the opportunity to target consumers based on consented data and contextual insights. Publishers that recognize the value of their data assets and educate advertisers on what’s possible and privacy-compliant can unlock new, sustainable revenue opportunities.

Fortunately, we are already experiencing a move from the open to a more direct relationship between the buy- and sell-side. When publishers and advertisers work closer together and view adtech as an enabler rather than an intermediary, they can responsibly activate audiences.

Moving forward responsibly

The current disruption we see has always been about more than third-party cookies; it’s about the demand for consumer privacy. Going forward, the ability to track and enforce user consent of first-party data at a granular level can’t just be a bolt-on–it must be treated with the highest importance. When publishers and advertisers work together and build direct relationships, they are in control of how audience data is used, be it for insights, activation, or collaboration. Adtech provides the tools to foster collaboration with controls and permissions. When this happens, publishers regain their place in the advertising ecosystem and the industry moves to a more responsible web. 

About the author

Katie Millington is the Head of North America Publisher Sales for Permutive. In her current role, she is responsible for leading Permutive’s North American Publisher Sales Team. Katie has previously held roles at the likes of Vox Media and Mediacom and has a decade of experience in the digital media industry. An agent for change, Katie is driven by innovative technologies that disrupt the status quo, evident in her background as an early proponent of publisher first-party data and programmatic advertising

Advertising | Perspectives | Supporter Spotlight

Why publishers should be advertising on audio to improve ROI

As consumer and audience behaviors continue to evolve in the wake of the pandemic, publishers must remain responsive to rapidly changing advertising trends. Omnichannel marketing has become essential for achieving adequate reach, as more channels—from apps and social media to the burgeoning metaverse—vie for audience attention.

Most recently, digital audio has emerged as a major player, with ad spending reaching $4.9 billion (a 58% rise) in 2021. In fact, according to the IAB Internet Advertising Revenue Report, digital audio grew faster than any other online channel last year, with gains doubling that of display advertising. Advertising on audio offers publishers the opportunity to deepen audience relationships due to audio’s highly engaging nature. It gives them a channel in which they increase reach and the impact of their advertising with their potential audiences.

What Is digital audio advertising?

Audio advertising is a simple concept: Ads delivered via digital audio reach audiences while they stream music, digital radio, and other online audio content. This includes podcast listening, which has risen 42% globally since the start of the pandemic. There’s no shortage of streaming channels for listeners to choose from, with some of the most popular being Spotify, Amazon Music, Pandora, iHeartRadio, and SiriusXM. Digital audio can be streamed on a wide variety of devices, including mobile phones and smart speakers, making it an ideal platform for audiences on the go.

If you haven’t yet incorporated audio streaming into your advertising strategy, it’s time to do so. Here are four reasons why publishers should be investing in digital audio ads to improve reach and boost ROI.

Four reasons publishers should invest in audio advertising

1. Audio goes where display and video can’t

Digital audio ads are unique in that they don’t require visual engagement. Unlike video or display ads, audio allows audiences to engage while being involved in other activities, such as driving, commuting, or working out. This makes audio streaming the perfect medium for multitaskers, including key consumer groups like millennials and Gen Zers. According to a report from Adobe, 50% of both groups say they listen to digital audio at home while completing household tasks like cooking and cleaning.

74% of adults ages 25 to 54 listen to digital audio content every month.

–Edison Research

2. They’re immersive and engaging (but not overwhelming)

In today’s oversaturated marketing landscape, audiences are constantly bombarded by ads. This is especially true when consumers are using their desktop and mobile devices, as advertising has infiltrated every corner of the screen. Whether they’re checking email, scrolling through Instagram, or receiving a push notification via text, people are now accustomed to seeing (and often ignoring) ads wherever they tap or click. This makes getting and retaining audience attention even more of a challenge than it was before.

With audio ads, the delivery is much less jarring because listeners don’t have to stop everything they’re doing to receive a message. Digital audio ads are also not as easy to skip. That’s why average listen-through rates are close to 98%. And even if a listener is partially distracted, audio ads are still very effective, boasting a 24% higher recall rate than traditional display ads. Podcast listeners are especially engaged: 60% say they’ve made purchases from audio ads, and a whopping 81% say they always pay attention to podcast advertisements.

3. They’re highly targeted and contextual

Because podcasts and streaming sites appeal to very specific demographics, it’s easy for advertisers to target audiences based on categories such as music type and podcast genre. At the same time, programmatic audio advertising allows publishers to leverage valuable behavioral and contextual data, including geographic location, weather, website browsing history, and device type. What’s more, as is the case with all types of digital advertising, key metrics such as engagement levels can be measured in real-time, giving marketers the ability to make tweaks to improve campaign performance and ROI.

By 2025, digital audio will reach almost as many listeners in the U.S. as traditional radio advertising.

–Statista

4. They create a strong emotional connection

By tapping into the senses using the human voice, digital audio ads can feel more emotional and authentic to listeners than display ads. They mimic the experience of one person talking to another, often via headphones, which make the experience seem even more up-close and intimate.

This allows publishers to build a strong emotional connection with their audience, especially when their ads are read by podcast hosts. Host-read audio ads are essentially another form of influencer marketing, capitalizing on an audience’s familiarity with and trust in the hosts they love to listen to. According to a survey by Morning Consult, 52% of podcast listeners say they’re more likely to try a product or service that’s recommended by a podcast host.

Moreover, the conversational nature of audio can help make calls to action appear more subtle and organic than they would in a visual ad. Rather than prompting users to engage with stilted, sales-y phrases like “buy now” or “add to cart,” CTA commands are naturally softened by a human voice recommending listeners visit a website to get more information.

A listener’s love of music can also help enhance the power of an audio ad. According to a study commissioned by Pandora, audio ads embedded within participants’ personalized playlists impacted long-term memory 49% better than radio, 36% better than television, and 29% better than mobile video ads.

Doing more with digital audio

In a digital advertising landscape that’s overwhelmingly visual, publishers can strengthen customer relationships and ultimately boost advertising ROI by taking advantage of digital audio advertising. In addition to creating an emotional connection with listeners, audio ads can reach users during the screen-free moments of their day, when they’re engaged in other activities but still receptive to receiving information. As more and more people incorporate streaming audio into their media diets, digital audio ads will become increasingly critical components of effective digital marketing strategies–strategies that publishers need to be aware of and using as they seek to grow their audiences.

Perspectives

DCN’s must reads: week of June 2, 2022

Here are some of the best media stories our team has read so far this week:

DCN’s must reads: week of May 26, 2022

Advertising | Industry-Research | Supporter Spotlight

Europe’s CTV audience is switched on for ads

Connected TV (CTV) audiences in Europe seem to have embraced streaming as their go-to destination for video entertainment, where they enjoy a wealth of content from a diverse set of providers. While subscription-based offerings have long dominated the landscape, ad supported services are gaining traction, delivering new user experiences as well as opportunities for brands. 

In collaboration with market research company Happydemics, FreeWheel surveyed CTV viewers across the UK, Italy, France, Germany, Spain, and the Netherlands (the “EU6”) to understand their preferences and how advertisers can tap into the connected audience.

Smart TV tops connection methods

The popularity and convenience of Smart TVs has led them to be the primary method of connecting to internet video throughout the EU6, with one notable exception. In France — where telco and pay TV operators have held strong — set-top boxes are the favored connection method, used by 72% of the French CTV viewers surveyed. On the other end of the scale, our study found that 86% of CTV viewers in Italy connect via Smart TVs, well above the EU6 average of 60%.

The popularity of premium and ad-supported options

As for what they watch once they are connected, long-form premium video content reigns supreme, with the majority (59%) of respondents using at least one subscription video on demand (SVOD) service. On average, EU6 CTV viewers surveyed spread their attention across 3.5 different streaming platforms, including SVOD, ad-supported video on demand (AVOD), broadcaster video on demand (BVOD) and live TV, showing that consumers are willing to switch between apps to find what they want.

However, when it comes to SVOD, there may be a point at which viewers reach “subscription saturation.” In fact, free ad supported tv services (FAST) are gaining in popularity. According to the survey, free streaming platforms, such as Pluto.TV and Molotov TV, see the highest uptake among viewers who subscribe to multiple paid services.

AVOD users come for the price, stay for the content

As SVOD giants Netflix and Disney+ tease their ad-supported tiers, EU6 CTV viewers surveyed are warming up to AVOD, with adoption by our connected respondents nearing two-fifths (38%). Consumers seem content with the trade-off of watching ads in exchange for content. In fact, 60% of these users said that free access was, unsurprisingly, the biggest appeal of such services. However, more than a third (36%) were won over by the variety and quality of content on offer.

With no cost barrier, we might expect audiences to dip in and out of AVOD. But those who try it tend to stick around, with over two-thirds of CTV viewers surveyed (68%) accessing ad-supported video every week, half of whom do so daily. AVOD appears to slip seamlessly into viewing schedules. This bodes well for platforms big and small exploring this new frontier of content monetization.

Big-screen ads grab attention best

Advertisers seeking to capitalize on CTV will be reassured to know that TV ad experience is considered the most effective by the vast majority (64%) of EU6 CTV viewers surveyed, with little variation between regions. In the age of distraction, attention-grabbing, big-screen ads provide an opportunity to maximize campaign impact.

One advantage of CTV is the ability to personalize ads for the viewer, and EU6 respondents were generally receptive to this. When asked which type of personalization they prefer: 37% chose ads related to their personal interests, 30% related to their lifestyle, and 23% for brands or products in line with their values, such as sustainability. While the EU6 CTV audience is accepting of ad personalization, they are not accepting of their personal data being used to achieve it, as stated by 62% of respondents.

Time to unlock CTV ad potential

Advertisers go where their audiences are, and in the EU6 countries they can be found enjoying premium video streamed via Connected TV. So, there is real potential to harness CTV platforms for campaigns, particularly when you look at the apparent shift of bigger SVOD players towards ad-supported models and concerns over subscription fatigue.

Normalizing AVOD should be good for viewers, platforms, and advertisers alike. Viewers get to try content with no upfront cost, while content platforms can compete on quality rather than price. Advertisers, meanwhile, would be able to target their ad spend and creative to key demographics, while having the potential to reach new audiences; all thanks to CTV’s “superpower” – the ability to combine the best attributes of TV and digital video in one place.

Featured Post | Innovation | Perspectives

Streaming is for everyone: three strategic considerations

2022 already has been a dramatic year for streaming. Even if you’re not trying to keep up with day-to-day industry developments, you’re probably aware that CNN+ launched and died, Netflix announced plans to launch an ad-supported tier, and IMDb TV was renamed “Freevee.” These rapid developments may seem daunting for many potential streaming players, considering that the ground will shift again soon.

But here’s the good news about these rapid changes: While the “Streaming Wars” narrative — referring primarily to competition among media giants’ SVOD strategies — remains the focus of many in the business and trade press, the reality is that there are wide-open opportunities for a variety of players. Whether it’s a paid app, a YouTube channel, or a free channel on a FAST service, streaming is definitely not confined to the players locked in the so-called streaming wars. Streaming is for everyone.

We’re just getting started

SVOD, AVOD, FAST, OTT, and CTV are not only competing, overlapping, and complementary acronyms — they represent multiple potential business models as well as multiple avenues to reach audiences looking for entertainment, news, and sports. Across devices, services, and platforms, there are more opportunities than ever before to develop content, products and business models contributing to the next evolution of the streaming industry.

Media players and startups — large and small — can compete and win the loyalty and trust of consumers. By the end of 2022, we will see new players on the streaming scene — growing, thriving, and innovating to capture audience attention and significant revenue opportunities.

Find your place in streaming

The fact is, it remains early days for streaming viewership, and we need bold players to bring expertise and creativity to the space. So let’s set aside the winners-take-most Streaming Wars narrative and consider these factors:

1. Focus on the right video strategy for your audience.

In the streaming space, many strategies and tactics are still in an experimental stage, so don’t assume that your traditional competitor’s widely-publicized strategy is going to work. And definitely do not copy their strategy without significant research and diligence, because you may find that your competitor doesn’t have a clue — and won’t provide significant competition at all in the streaming space. For instance, it may be that launching a solid AVOD or FAST strategy will give you much of the data you need to make a decision about an SVOD strategy.

2. It’s easier and less expensive than you think to get started.

There are new technologies and new tech companies that can support a variety of streaming strategies. Generally speaking, these options are less expensive, more standardized and faster to implement than many broadcast technologies. Additionally, trusted brands will be in a good place to negotiate with these vendors.

3. Creativity and innovation are badly needed in the streaming space.

Think about how hard it is — still — to navigate streaming interfaces. This space needs to improve the consumer experience, ASAP. With so many major media brands in flux, those who are focused on making streaming a great consumer experience have an incredible chance to jump in and create a successful strategy.

Focus on the consumer to improve what’s ahead

The complexity of the streaming landscape is enough to confound savvy media veterans and newcomers alike. But this complexity should not prevent most media players from crafting or revamping their streaming strategy – now. It’s a wide-open field for trusted brands and innovators, especially those who create content, products and services with viewers at the center. We all have a lot to learn from rapidly shifting consumer habits and preferences, and the timing has never been better to start learning.

About the author

Christy Tanner, President of Tanner Media LLC, is former EVP & GM of CBS Interactive, where she built CBS News Digital/CBSN into the #1 streaming news service, with more than 1 billion streams in 2020 and 2021.

Featured Post | Perspectives | Policy

The FTC is about to enter a new era

Nominated by President Biden, and recently confirmed by the Senate, Alvaro Bedoya was sworn in as the 5th Commissioner of the Federal Trade Commission (FTC) this month. As a result, Chair Lina Khan now has a majority of Democratic-nominee votes with which she intends to move quickly to implement a promised progressive agenda. Let’s dig deeper into what issues Chair Khan and the FTC are likely to move forward and how this might play out.

Privacy rulemaking

In February, the FTC gave the required advance notice to the relevant Congressional committees that it intended move forward with a rulemaking “to curb lax security practices, limit privacy abuses, and ensure that algorithmic decision-making does not result in unlawful discrimination.”

Now that Commissioner Bedoya is confirmed, it is widely expected that the FTC will move forward in the very near future. Historically, an FTC rulemaking of this kind can take years to process. However, in 2021, the FTC streamlined the process including by removing the requirement for a staff report and analysis. So, while it is not clear exactly how long it will take, the intent is to move quickly.

One of the wild cards in this process is a petition filed last year by Accountable Tech, which urged the FTC to ban “surveillance advertising” under its authority to prosecute “unfair or deceptive” acts. The petition suggested the FTC could act in one of two ways:

  • Prohibit platforms from using personal data for targeting ads, or;
  • Prohibit businesses from “sharing user data, for the purposes of advertising, to any business line, website, advertising technology, or tracker other than the business or service with which a user intentionally interacts” AND prohibit platforms over a certain threshold from using consumer data to target ads.

As hinted at in the second option, Accountable Tech’s petition notes that “any rule should make clear that it does not ban all advertising or even all targeting of advertising.” Indeed, they specifically call out search, contextual, and first-party targeted advertising as acceptable practices in line with consumer expectations. All that said, it is unclear whether and how much the FTC will follow the suggestions of the petition.

Ramping up COPPA enforcement

In 2019, the FTC initiated a mandatory review of their regulations concerning the Children’s Online Privacy Protection Act (COPPA), but we have heard very little since. Consumer groups have been calling on the FTC to modernize the COPPA rules, which have not been updated since 2013. Now that Chair Khan has a majority, we are likely to see revised draft regulations sometime before the end of this year.

In the meantime, on May 19, the FTC issued a policy statement indicating that they intend to closely examine whether ed tech providers are fully complying with COPPA. Specifically, they will focus on whether these companies have sufficient “limitations on collection, use, and retention, along with security.” Enforcement action in the ed tech space could provide clues as to how the FTC wants to update the COPPA rules.

Merger reviews

The Biden Administration has publicly announced that it will closely scrutinize any and all acquisitions by big tech companies. To that end, the Department of Justice and FTC are working on updating the merger guidelines.

As part of a series of “listening forums” to gather feedback, Chair Khan voiced concerns about mergers in the media sector, noting that there were $200 billion worth of mergers in 2021. She disclosed that “we are working to ensure that our analytical methods are keeping up with new market realities.” Specifically, she wants to avoid consolidation that leads to firms having “outsized power over how information is distributed.” At the same forum, DOJ Assistant Attorney General Jonathan Kanter expressed concerns that consolidation in the media sector has led to a decrease in the amount and diversity of content.

From my perspective, there are two big takeaways from this listening forum. First: The Administration is doubling down on its efforts to stop big tech platforms from developing (via acquisition) a dominant position in the content industry. To that end, they are looking for new ways to identify and quantify harms to content creators and the market in general. And Second: While we can expect the Administration to remain hyper-focused on big tech mergers and acquisitions, publishers should also understand that the FTC and DOJ will be closely scrutinizing deals between publishers.

Dark patterns

Last year, the FTC issued a policy statement to curb the use of “dark patterns” to trap consumers in subscriptions. Since then, the FTC has followed up with enforcement action against various companies and we expect that action to continue going forward. Many have observed that Amazon may be in the Commission’s sights. While that may be true, the FTC’s enforcement record indicates it is looking at the industry more broadly.

A bold era begins

Lina Khan has been heralded as a bold thinker, ready to lead the FTC into a new, modern era. Yet, for most of her tenure, she has been hampered by the lack of a working majority. With that constraint removed, we can expect more and aggressive action from the FTC on privacy and competition. Indeed, the era of Lina Khan is about to begin in earnest.

Perspectives

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