The Virtual Upfronts: 10 Ways Advertisers Should Adjust their TV Thinking in the Quarantine Era

In conjunction with that open video letter to the community here are 10 considerations for advertisers as they work through the industryamp8217s favorite time of year amp8212 changed as it has been by one of the most consequential periods in our modern history1 Acknowledge the catalystsThe linear TV business is transforming into a different kind of business one driven by news sports and hosted entertainment Programming production is at a standstill and TV executives are primarily focused on launching new SVOD services Months of quarantine now threaten tens of billions in ad revenue due to the lack of sports Cable and satellite are now at 1995 penetration levels The dearth of highquality adsupported content is having a profound impact on the media economy2 Music videos are a scalable CTV opportunityData tell us that 2020 is the year of CTV While about 80 percent of digital investments typically go to the superaggregators Google and Facebook CTV is an opportunity for advertisers to become less beholden to them Weekly time spent streaming in the US has grown 86 percent from a year ago to over 147 billion minutes weekly according to Nielsen But as productions dry up content is at a premium amp8212 and music videos provide marketers a unique opportunity With 70 percent of viewing minutes now coming from scaled platforms like Roku Samsung and FireTV music videos now represent a scaled means of reaching streaming viewers With little in the can for the networks fresh firstrun content like music videos amp8212 with more nimble production methods remote teams and individual artists still working during the quarantine amp8212 can offer a life raft of quality solutions to advertisers3 Achieve more reach by diversifying video plansAudiences are so fragmented that reachplanning in video today should no longer center on minimizing overlap between a select few highquality options Instead video marketers stand to capture widely varied audiences by seizing on as many highquality content choices as possible4 See content carry its weightSoughtafter content generally results in higher viewer attentiveness and better resonance with audiences than passive viewing Thatamp8217s one advantage of ondemand optin viewing Investing in specific content that generates reach and resonance is extremely valuable while algorithmically derived content which is pushed on viewers leads to lessvaluable passive viewing For marketers the surfacelevel results at first can look like better CPM efficiency or more engagement but the deeper and more impactful outcomes are watered down in a lesser context and ad exposure5 Look beyond the numbersPerceptions of scale can be misleading for several reasons So much time spent with content is now adfree even on large platforms that sell advertising A video platform may purport to boast tens of millions of subscribers but half of them may have adfree subscriptions and half the programming that buoys the service may be adfree as well The platform may also mix linear and ondemand experiences with differentiated ad loads further muddling value The bottom line is numbers tell a story but numbers taken together with all the details of a platformamp8217s actual advertising mix are the whole story that marketers need6 Be honest with yourself about CPMsConsumers spend money where they see the most value not on what costs the least the same goes for media Great content is often expensive to produce and it can pose challenges to the very media companies that distribute it It has cachet Viewers want to consume firstrun scripted TV movies sports and music more than any other types of content in the world A single set of highvalue content assets can move large portions of the population in a week or even a single day7 Empower multiplatform touchpointsCTV and mobile are symbiotic platforms While 40 percent of Vevoamp8217s total audience is reached by CTV each month our mobile viewing reaches over onethird of the population Our research has shown that multiplatform exposures on CTV and mobile together is significantly more powerful to advertisers than exposures on CTV or mobile alone8 Find flexibility in a new media economyIn a time of quarantine consumers are spending money in fewer places But brands still matter and advertising promotes brand health Companies like PampampG and Amazon have recognized this dynamic as an opportunity to solidify or steal market share from their competitors Brands can only get out of highquality media what theyamp8217re willing to put into it When brands assess new media partners they need to consider a new range of the amp8220Psamp8221 Products platforms positioning packaging promotions pacing and of course pricing9 Get in on the ground floorSamsung recently reported that 41 percent of its CTV users watched less than two hours of linear TV in the last month and 13 percent didnamp8217t watch any While CTV is nascent penetration is strong and CTVamp8217s path is clear There is tremendous value in being among the first to learn about interactive executional tactics harmonize planning channels build practical measurement solutions ensure stewardship grab ownership stakes and reinforce overall communication strategies10 Know that healthy brands will triumph in the long runThe US Bureau of Economic Analysis recently reported that American consumers have the highest savings rate since 1981 saving cash and spending less because of stayathome orders and growing unemployment But the US is a nation of consumers empowered by new viewing experiences and in love with spending leisure time by consuming entertaining and informative stories from programmers and advertisers alikeFor more information and to learn more about Vevoamp8217s advertising solutions our distribution network how we program perspectives on media and more please visit VevocomThis article was originally published in DigiDayClick 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 MediaVillagecomMyersBizNet

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The Virtual Upfronts: 10 Ways Advertisers Should Adjust their TV Thinking in the Quarantine Era

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Bryon Schafer

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The Virtual Upfronts: 10 Ways Advertisers Should Adjust their TV Thinking in the Quarantine Era

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Bryon Schafer

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