Media Minute with Minsky: Strong Earnings Reports, Olympic Fails, VAB vs. Nielsen

Quarterly Earnings SummaryNetflixThe streaming service beat the Street on subscriber additions 15mm vs 1mm but missed on expectations of revenue per share which came in at 297 vs 316Netflix CEO Reed Hastings in looking at the futureamp160in an era of increased competition said that they are not seeing any greater impact from HBO or Disney than they have had in the past quotWe think mostly all of streaming is a growth story competing from linear TV and that this will be true until streaming is 50 60 70 of viewing Then there39s going to be a shakeoutquot he saidShedding a little light on the recently acknowledged upcoming foray into videogames Greg Peter COO and Chief Product Officer stated quotIt39s a multiyear effort We39re going to start relatively small We are in the business of making these amazing worlds and great storylines and incredible characters We know the fans of these stories want to go deeper They want to engage further We don39t have to think about ads We don39t have to think about ingame purchases and monetization We don39t have to think about pertitle purchases We39re finding that many game developers really like the concept and that focus and this idea of being able to put all of their creative energy into just great gameplay and not having to worry about those other considerationsquotSnapIf you39re an investor in Snap you had a good week With a 23 growth in Daily Active Users DAUs year over year globally and revenue doubling to 982mm with average eCPMs increasing 122 yearoveryear in Q2In North America DAU grew by 5mm or 6 year over year to reach 95mm In North America revenue grew 129 year over year in Q2CEO Evan Spiegel focused on growth with their AR platform quotOver 200 million Snapchatters engage with AR every day on average and over 200000 creators use Lens Studios to build AR lenses for our communityquot he said This quarter Snapchat releasedamp160Cartoon 3D Style Lens which uses machine learning to turn people into 3Danimated cartoon characters in realtime which generated 28B impressions in the first week of its release on Snapchat aloneSnap also revealed details about a Total Ad Ratings study that they conducted with Nielsen The study analyzed over 30 crossplatform campaigns that reached people both on Snapchat and television The analysis showed that Snapchat campaigns contributed 16 incremental reach average and over 70 of the Gen Z audiences that was reached by Snapchat was not reached by TVonly campaignsATampampTWarnerMediaCEO John Stankey updated analysts that HBOHBO Max has added an additional 107mm subscribers in the past year quottransforming HBO from a 6B with no growth to an 8B runrate company with 40 growth in Q2 2021quot In total the company reported currently there are 47mm domestic HBO Max and HBO subscribers and 67mm worldwide subscribersHBO and HBO Max led the Emmys nomination field with 130 nominations and an overall total of 180 WarnerMedia nominationsHaving beat subscriber expectations for HBO Max the company is now revising global yearend expectations to 7073mm global subscribersFor WarnerMedia advertising revenues were up nearly 50 driven by sports The return of sports contributed to more than 400mm of advertising revenueTwitterTwitter had a very strong Q2 2021 with total revenue of 119B 87 yearoveryear Daily active users have reached 206mm 11 vs YAGTwitter is leaning into the idea of the internet having a native currency aka Bitcoin FounderCEO Jack Dorsey said quotIf the internet has a native currency a global currency we are able to move faster with products such as Super Follows eCommerce subscription and TiPJAR We can reach every person on the planet because of that instead of going down a marketbymarket approach I do think it allows speed a lot more innovation and really up opens up entirely new cases for usquotSome interesting facts shared on the callAs streamers OTT services like Netflix Disney HBO Max Peacock etc continue to grow their business and launch new shows they are spending over 40 sequentially with TwitterTwitter is piloting a playable ad format for gamers so you can play a game inside an adOmnicomOmnicom reported Q2 2021 earnings announced a return of organic growth of 244 globally and 199 in the US with total revenue growth of 275 Advertising and media growth were up 298 Omnicom CEO John Wren said of the future of the company quotWe expect our primary focus forward will be on pursuing accretive acquisition in the areas of precision marketing digital transformation commerce media and healthcarequotPublicisPublicis reported a 171 increase in organic growth globally with 152 in the US and 13 in Asia Driving that growth was a 311 increase in organic revenue at data company Epsilon which Publicis acquired in 2019 Digital transformation companyamp160Publicis Sapientamp160was also a key driver of growth with an increase of 27IPGIPG reported global net organic growth of 198 which was also a 79 increase in growth over the prepandemic Q2 2019 US organic growth was 174 IPG indicated that auto and retail sectors were up more than 20 consumer goods tech telecom and healthcare were up in the mid to highteens and beverage and the financial services category were up in the low doubledigit rangeIn anticipation of a modified return to normal IPG indicated that expenses in travel and office utilities would begin to return in Q4In going over their gain in operating expense efficiency from restructuring last year Ellen Johnson Executive Vice President and CFO said quotAs a reminder these actions involve the elimination of certain positions and resulting headcount reduction that will not return with revenue growthquot However she did also indicate that IPG39s current headcount is 53000amp160 an increase of 14 from a year ago and up 52 from the beginning of this yearGlobal CEO Philippe Krakowsky touted IPG39s strength with Acxiom and Kinesso supporting McCann Worldgroup Initiativeamp160and RGA picking up the Cigna account win in what Krakowsky called Open Architecture 20In speaking about diversity Krakowsky noted quotKey accomplishments on this front include IPG being recently named by Forbesamp160to their top ten list of America39s Best Employers for Diversity During the quarter we also created a new position our industry39s first Culture Officer to focus on longterm thought leadership relating to a broad range of social justice issues for underserved and underrepresented communitiesquotIPG also took an active stance in the Environmental Social and Governance ESG arena announcing a three part action plan which includes1 Committing to setting a sciencebased target2 Sourcing 100 renewable energy by 20303 Joining the Climate Pledge cofounded by Amazon and Global OptimismFinally Krakowsky reiterated IPG US39s pledge to allocate a minimum of 5 of client budgets in Blackowned media by 2023Other Media NewsPerhaps it was the protests or the knowledge that there were no spectators allowed in the stadium but it wasn39t a great start in the ratings for the Olympics Opening ceremonies tanked 36 in comparison to the 2016 Rio Olympics I39m personally thrown by the constant reference to this as the 2020 Tokyo Summer Olympics proving once again that even seven months into 2021 2020 will just never end On the upside streaming appears to be up on NBCOlympicscom and the NBC Olympics app by 76 compared to the last Winter Games and 72 from RioThe Video Advertising Bureau VAB has asked the Media Rating Council MRC to suspend Nielsen39s accreditation citing issues with Nielsen39s ability to correctly measure ratings delivery during the pandemic According to the tenpage letter sent by the VAB Nielsen violated at least five minimum standards quotwith the damage done to their largest subscriber clients still creating material negative impact into July 2021quot The VAB has been vocal around this issue since calling for an audit of Nielsen back in April 2021Omnicom has named Karen van Bergen as Chief Environmental Sustainability Officer She will oversee climate change initiatives and processes to reduce Omnicom39s carbon footprintCongrats to Harold Geller and his team at AdID as NBCUniversalamp160will use the technology across its One Platform as a standardized crossplatform unique identifierCongrats to Carla Hassan who takes over the role of CMO at JPMorgan Chase Hassan has previously been CMO at Citi and ToysquotRquotUsEnjoy the week Go Team USAClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNetamp160

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Media Minute with Minsky: Strong Earnings Reports, Olympic Fails, VAB vs. Nielsen

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