800.TIME.BUY

InterMedia Insights 7.5.2016

Rio 2016

Hot Media Trends for July 5, 2016

  • Programmatic TV spending will be more than double what it was a year ago but will continue to represent a tiny portion of overall spending for the next few years. Estimates are that programmatic TV – automated TV advertising software spending of live TV on cable, satellite, telco platforms will grow 127.8% to $710 million this year, according to eMarketer. That number will more than double in 2017 to $2.16 billion, and will do the same to $4.43 billion in 2018. Programmatic TV, however, will have just a 1% share of all TV spending this year, growing to 3% next year, and 6% in 2018. Programmatic TV lags behind all programmatic digital video spending, which will reach $5.51 billion this year (versus $2.99 billion in 2015) and $7.62 billion in 2017. (Read More on MediaPost)

  • According to findings presented in Nielsen’s first-quarter 2016 Total Audience Report, SVOD services have reached a milestone. For the first time, the U.S. penetration of these services has caught up to DVR penetration. In fact, half of all homes in the U.S. have access to SVOD services, such as Netflix or Hulu—equaling U.S. DVR penetration. SVOD penetration has been rising steadily over the past year, illustrating that viewers have a continued desire to control what they watch and when they watch it. In fact, close to 30% of homes have a both DVR and access to SVOD—up nearly 20% from last year. According to the recent report, the heaviest users of digital devices account for a vast majority of each device or platform’s overall usage. A staggering 83% of smartphone video viewing, 87% of in-home PC streaming and 71% of TV-connected device usage stems from the top 20% of users. Television and radio usage behavior is different among the top 20% of users because of both platforms’ wide reach and availability. Instead, their distributions seem to be more balanced, with the heaviest TV and radio users accounting for around 50% of total usage each. Both mechanisms of media still hold the title when it comes to monthly reach: AM/FM radio attracts 240 million adult users and live + DVR/time-shifted TV attracts 226 million. (Read More on Nielsen)

 

  • LinkedIn is beginning to offer advertisers the option to buy display ads programmatically for desktop devices. Marketers will be able to buy display ads through an open auction or through LinkedIn’s Private Auctions, using first- or third-party data along with LinkedIn’s targeting of audience segments such as visitors of the LinkedIn home page—on the professional network. Testing began in the third quarter last year with tech advertisers for both software and hardware, as well as other industries such as telecoms and financial services. According to the company’s first-quarter 2015 earnings announcement in late April, advertising through LinkedIn Marketing Solutions grew 29% year over year to $154 million. Sponsored content now accounts for 56% of that total revenue. This is the first time LinkedIn has offered programmatic for display ads, it’s already been offering the service for sponsored content a key part in the company’s advertising business that grew 80% year over year in the first quarter. Mobile is now accounting for more than 50% of total traffic. (Read More on ADWEEK)

 

  • Television is likely to remain the top live viewing channel in the US for the upcoming Summer Olympics. According to May 2016 research, the majority of US sports fans said they plan to be glued to the Rio Games via TV this August. But marketers shouldn’t count out other screens when it comes to simultaneous activities. In late May 2016, Rubicon Project and Penn, Schoen & Berland Associates polled 1,105 US internet users who identified themselves as sports fans and followers of the Olympics. The vast majority (84%) said they will watch the event live on television. When it came to other digital screens for live viewing, desktop (44%) and mobile (36%) came up short. Respondents preferred to just check the web for results and scores. (Read More on eMarketer)

Thinking About Cutting TV Ad Spending? Think Again!

A new study from TiVo Research and customer engagement consultancy firm, 84.51° (a wholly-owned subsidiary of The Kroger Co.) found:

For every $1 saved in TV spend, the drop in sales return was $3.

More key findings include:

  • Reduced TV ad spend led to a combined $94MM loss in return for 11 of the 15 brands, accounting
    for 69% of the 2013 incremental sales attributed to TV advertising.
  • For every dollar decline in ad spend, the 11 brands lost 3x that amount in return.
  • Brands averaged a 25% weekly reach leaving 75% open to competition.
  • Reduced ad spend resulted in reach and frequency declines for 11 of the 15 brands, which led to the drop in sales/ROI.

Download their full report here.

Don’t Forget…

Read the First Installment of “Get Your Digital House In Order” Series

At InterMedia, we negotiate over $600M in media dollars annually.  That’s a lot of traditional broadcast buying of TV, radio and print.  When it comes to TV, there is simply no other medium that can provide such a broad reach for awareness of your company, product or brand.  That being said, before you ever use a broadcast medium, you must ensure you have your “digital house in order” so you can continue to communicate with potential customers who see your broadcast advertising.  Customers are rarely ready to purchase from you today and will need additional communication along their journey toward purchase. In this series, we’ll outline effective digital strategies and tactics crucial to augment and support any broadcast campaign.  This post highlights the role of email marketing.  Read the full post.

Get Your Digital House In Order Email


If you would like to receive the InterMedia Insights weekly eNewletter directly to your inbox, just fill out the request form below: