Source: FreeWheel [download page]
Notes: Premium digital video ad views continue to migrate to devices outside of desktops and laptops, per FreeWheel’s latest quarterly report, with strong growth in particular coming from smartphones, which accounted for 17% of overall views, more than double a year earlier. OTT Devices also demonstrated rapid growth year-over-year, though their 8% share was consistent with the previous quarter.
In other study results:
- Authenticated viewing accounted for 57% of long-form and live monetization for programmers (MVPDs) in Q1, more than double the 25% share from a year earlier;
- OTT devices continue to represent the second-largest share of authenticated ad views, at 19% in Q1;
- Overall video views grew by 40% year-over-year and video ad views by 43%, driven by live and long-form viewing;
- Tablets and OTT devices continue to be used primarily for long-form (20+ minutes) and live viewing, with the opposite true for desktops/laptops and smartphones; and
- Ad completion rates were almost as high for post-roll (72%) as for pre-roll (73%) videos.
Source: Leichtman Research Group (LRG)
Notes: Although the pay-TV subscriber market continues to be larger than the broadband subscriber market, that gap continues to narrow, per the latest data from LRG. The results indicate that the top broadband providers – representing roughly 94% of the market – added about 1.2 million subscribers in Q1 2015, bringing their total to 88.5 million. Cable companies had a particularly strong quarter, with a net gain of slightly more than 1 million subscribers, their largest net add since Q1 2008.
By comparison, they didn’t fare so well with pay-TV subscribers. Indeed, the top 9 cable companies shed roughly 60,000 video subscribers in Q1, though that wasn’t much worse than in Q1 2014, when they lost around 50,000. Overall, though, the top pay-TV providers (representing about 95% of the market) had a weak first quarter, adding only around 7,000 subscribers overall. That’s despite this being traditionally a strong quarter: last year, these providers added more than 250,000 video subscribers in Q1.
Indeed, the top telephone providers (+140,000) had the fewest net adds since Q4 2006, while the top DBS companies (+52,000) had the fewest of any first quarter since LRG began tracking the pay-TV market.
New premium channel standalone streaming services aren’t killing pay TV, and neither are veteran over-the-top (OTT) subscription video-on-demand (SVOD) services such as Netflix and Hulu. In fact, a December 2014 study by Horowitz Research found that having a multichannel cable subscription had plenty of benefits over relying solely on an OTT service.
The study looked at multiplatform viewers—those who watch at least 1 hour of TV and video content a day and spend at least 20% of their viewing time streaming TV and video content to their TV, computer or mobile device. Despite being the “core market” for OTT SVOD services, responses indicated ! that the group was still largely open to multichannel services as well, with half subscribing to both. In all, more than six in 10 were multichannel subscribers.
Multiplatform TV viewers with multichannel services cited several advantages to not relying solely on OTT video, with access to a wide variety of content and cable networks the top reasons. Being able to watch programs easily on TV and avoid internet connection issues were also key advantages, as were access to broadcast networks, the ability to sit back and surf TV channels and the option to watch TV drama live.
2014 wasn’t a great year for Internet security. Between the giant Sony hack that’s being called one of the biggest corporate breaches in history to the iCloud hacks that exposed celebrities’ private photos, there have been plenty of reminders of the dangers of cyber space.
In its second annual View From Around The Globe poll, Microsoft surveyed internet users worldwide to see how differently people view consumer technology. This year, users in almost every country polled said that technology has a negative impact on privacy, with India being the only exception.
That’s a five-point increase compared to last year’s study.
“Privacy has been a concern but there’s no question that it’s reaching much higher levels than we’ve seen before,” Mark Penn, Microsoft’s chief strategy officer, said to Business Insider.
Most internet users also said they do not feel that they are completely aware of the information that’s being collected about them.
There was a strong consensus in how legal matters relating to the internet should be handled, too. Most of those surveyed felt internet users should be governed by the local laws of the country in which they live— not the local laws of wherever the internet service provider is based.
“They want to know what’s being collected,” Penn said. “And they’re looking for local laws to govern! .”
The study took place between Dec. 17, 2014 and Jan. 1, 2015, with “developed” countries being defined as the United States, France, Germany, Japan, and South Korea. “Developing” countries referred to in the study include Brazil, India, Russia, China, Turkey, South Africa, and Indonesia. Global research-based consultancy Penn Schoen Berland did the polling.
Word-of-mouth (W-O-M) remains the the most effective marketing channel for generating new leads and customers, according to SMBs responding to a recent BrightLocal survey. Asked to choose from 12 online and offline channels, 28% indicated W-O-M to be their most effective, up from 26% the previous year. Online marketing channels – which appear to be gaining in appe! al among respondents – comprised the next 3 most-effective.
Specifically, 1 in 5 respondents reported that SEO is their most effective marketing channel, with 15% citing online local directories and 10% email marketing.
(For the purposes of the study, W-O-M was considered an offline medium. Social media was not among the marketing channel options listed.)
The importance of SEO is reflected in respondents’ perspectives concerning success metrics: search engine rankings emerged as a more prioritized metric than the number of customers walking through the door, although phone calls to the business are respondents’ most important metric.
There’s no shortage of survey research around cord-cutters—consumers who are getting rid of their pay TV subscriptions—but there’s more hysteria than fact, according to a new eMarketer report, “Key Digital Trends for 2015: What’s in Store—and Not in Store—for the Coming Year.”
Yes, some consumers are cutting the cord, but they’re in the low single digits percentagewise. A more real behavior is cord-shaving, where consumers reduce what they spend, rather than eliminating it altogether.
Individuals in all age groups are still watching a ton of TV the traditional way, even millennials.
Of course, now that HBO has anno! unced pl ans to offer HBO GO as a standalone service, all of that could change, especially as other networks rush to follow suit. So, as they say, don’t touch that dial: Unbundling could accelerate consumers’ latent thirst for cord-cutting.
What that means is you need to pay close attention to consumers’ shifting video consumption habits. TV is holding steady. It’s still the media big dog … for now. But mobile is the channel that’s growing. With all the time, money and attention flowing to digital video, marketers that lack deals with content owners and dynamic advertising are going to miss the boat.
Word-of-mouth tops online reviews and traditional advertising as the top influencer of purchase decisions, finds a Razorfish survey [download page] of online consumers across 4 key markets. The study is the latest to demonstrate the importance of word-of-mouth, which has been found to be a key influence among various groups ranging from college students to female empty nesters.
In the Razorfish study, the ranking of 5 measured purchase influencers (ranked by percentage of respondents rating them as influential) broke out as follows for US and UK consumers:
- Online reviews from other consumers;
- Online reviews from industry experts;
- Traditional advertising (TV, radio, print); and
- Social media posts from friends/family.
It’s interesting to note that these respondents rated online reviews from other consumers as being more influential then expert reviews, following a theme seen in other research.
We’re coming up on the all-important holiday season, in which retailers will be giving away coupons and special promotional offers in hopes of boosting awareness and selling out their wares. But for those retailers, what’s the best way to actually reach consumers?
Based on Accenture data charted for us by BI Intelligence, email is still the most effective method for consumers receiving and using coupons — by a wide margin. Around 44% of US shoppers said they prefer all their offers to come through email, and surprisingly, physical printed “snail” mail is the second-most preferred method. In-store offers can be somewhat effective, but if you want customers to take advantage of a special deal, relying on texts and social media might not be the way to go.
There’s been so many billion-dollar startups these days that it’s almost starting to feel routine in tech.
Slack, an enterprise work collaboration app, is the latest one to join the club. It announced on Friday that it’s raising $120 million at a $1.1 billion valuation.
It’s hard to imagine a company as young as Slack — it launched publicly in February — to be worth more than a billion dollars. But when you’re growing as fast as it is, especially in the enterprise space, anything is possible.
When we asked Slack CEO Stewart Butterfield about it, he agreed his company’s numbers are still small in absolute terms. But the $1.1 billion valuation has more to do with the rapid growth it’s been seeing, and the fact that it hasn’t spent a dime in sales and marketing, he said.
“We still have a long way to grow to justify the valuation,” Butterfield told Business Insider. “But it’s largely on the basis of the trajectory that we’re on, and most of all, because that’s just been happening organically.”
According to Slack, more than 30,000 active teams send over 200 million messages each month. It has more than 73,000 paying customers, and it’s adding $1 million in annual recurring revenue (ARR) every month. At that pace, Slack would surpass $10 million in ARR this year, and become the fastest-ever software-as-a-service (SaaS) company to do so.
For comparison, Butterfield m! entioned Workday, a publicly traded enterprise SaaS company that’s now worth $17.8 billion. Butterfield said it’s not an entirely fair comparison, since Slack and Workday are in different businesses, but it took Workday about three years and roughly $30 million in sales and marketing — while losing about $75 million in total — to get to $10 million in ARR.
“We’ve established that people would pay for us. Slack is being valued based on its ability to make money rather than something more speculative,” Butterfield said.
Omnicom Group, the world’s second largest advertising holding company by revenue, just gave the market another major indication that TV dollars are moving to digital.
Speaking on the company’s third-quarter earnings call Tuesday, Omnicom Group CEO John Wren explained how the rise of programmatic advertising and the increase in quality inventory becoming available online over the past few months has seen a “rapid shift” in the way clients have been booking advertising.
Referencing the move from TV and traditional advertising to digital in particular, Wren said:
“Marketing budgets continue to grow and clients, especially when it comes to TV, there has been I’d say a shift when you look at traditional areas like the upfront and scatter market. If you went back a couple of years there was an urgency on the part of clients to make certain they didn’t miss out on the programming they want.
“With all the various choices of audiences you want to reach today and the ability to do it, there just wasn’t that urgency going into the upfront this year. And with respect to the scatter market, you are seeing money being diverted into other areas.
“I believe that trend will continue. I don’t believe TV is dead, but I believe there is going to be a shift.”
The upfront refers to the time of year when TV broadcasters sell all their advertising for their most attractive Fall programming ahead of time. The practice keeps the price of TV advertising high because it creates a short, limited window in which brands feel they need to lock in the best deals they can by buying in bulk.
The scatter market refers to TV advertising sold closer to the broadcast date. It is sometimes referred to as leftover advertising and is often sold at a far higher rate if the TV show pulls in bigger ratings than previously forecast.
Wren called to the move from traditional media buying to digital practices as “the shift from mass marketing to mass personalization.” That shift isn’t new advertising money coming into the market. It’s TV advertising money (and other traditional advertising money) moving into more-measureable online advertising. That move from one pot to another was also referenced by Omnicom Media Group CEO Daryl Simm earlier this month when he said he was advising clients to shift as much as 25% of their TV budgets to online video.
Meanwhile in recent months Omnicom, which represents more than $50 billion in annual ad spend for clients like Apple and Pepsi, has signed huge global upfront advertising commitments with Instagram, Twitter, and the now Disney-owned YouTube content creator Maker Studios and became the first advertising network to trial Facebook’s new Atlas advertising platform.
All these stories compounded together ought to frighten TV broadcasters. They need to change their approach to selling, optimizing, and measuring advertising if they are to prevent this “shift” from rapidly decaying their businesses.
A shift is happening. But TV isn’t at all dead yet.
However, to put this into some perspective, TV advertising is projected by eMarketer to make up 38.1% of total US ad spend in 2014. Digital, meanwhile, is estimated to make up 28.2% of the total advertising outlay.
So even though eMarketer also predicts digital spend will overtake TV spend in 2018, there is still quite a way to go before we stop seeing 30-second ads on our TV sets. It’s also worth bearing in mind that broadcasters are ! also off ering digital advertising opportunities across their websites, video-on-demand platforms and apps, which can make up for some of the traditional advertising shortfall.
Omnicom also revealed on the earnings call that programmatic media buying — which makes the buying of media far easier than TV because the process is automated —accounts for just around 2% of the company’s revenue. However, with a recent Forrester study forecasting programmatic ad spend across North America will double to $39 billion by 2019, Wren said the company was ” rapidly evolving” its business to ensure it had the capability to serve clients in this area. There has been a “meaningful increase in demand” from clients for the company’s programmatic services over the last year, he added.
Omnicom Group’s third-quarter net revenue rose 7.4% to $3.75 billion, while net income increased 24.4% to $243.8 million. The company was boosted by strong advertiser demand in its home US market.
The earnings report came six months after the company’s proposed merger with Publicis Groupe to create the world’s biggest advertising group collapsed. The company said the pre-tax impact of the abandoned transaction in the year to date was $8.8 million, which was mainly spent on professional fees.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Marketing Costs Normalized to CPM Basis for Comparison
- Facebook advertising metrics and benchmarks
- Coke vs Pepsi vs Dr Pepper
- Try On New Glasses in Warby Parker's Virtual Booth
- The Grand Unified Theory of Marketing(tm) - Digital String Theory
- Ad Injection: Yet Another Challenge for Online Advertising
- 90-9-1 or 1-9-90 Rule of Social Media Participation
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- May 2015 (4)
- April 2015 (32)
- March 2015 (57)
- February 2015 (79)
- January 2015 (86)
- December 2014 (69)
- November 2014 (98)
- October 2014 (150)
- September 2014 (109)
- August 2014 (44)
- July 2014 (92)
- June 2014 (118)
- May 2014 (173)
- April 2014 (130)
- March 2014 (247)
- February 2014 (167)
- January 2014 (222)
- December 2013 (167)
- November 2013 (111)
- October 2013 (116)
- September 2013 (214)
- August 2013 (210)
- July 2013 (200)
- June 2013 (87)
- May 2013 (87)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (93)
- August 2012 (93)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (13)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)