Although half of the media world will not disappear on November 12, 2019, there is little denying that it will be changed forever. On that day, Disney and Fox assets will be pulled from Netflix, including all of the Disney Animations, Avengers, Star Wars, Pixar movies and Disney Channel TV shows. Additionally, by opening the entire Disney Classics Vault and producing several originals based on beloved IP -- not to mention including binge-worthy content, such as the first 30 years of The Simpsons -- Disney is not engaging in any kind of “hobby” with their direct-to-consumer OTT play. The cherry on top? The top revenue-generating movie of all time, Avengers: Endgame, will only ever be available on Disney+.
The pressure is on, more than it has ever been, for traditional players to convince executives, marketers and buyers that they are maintaining relevance for consumers across all demos; putting forth content that will truly be competitive to the non-ad supported streaming services of Netflix, Amazon and Disney+; continuing to supply rigorous data for audience targeting to the degree of companies like Xandr, and are willing to demonstrate innovation in both strategic communications and compensation. It’s a tall order. The IAB’s recently released final report for 2018 Ad Spending shows that digital media revenue has passed the $100B mark. The Myers Report estimates that total digital marketing investments in 2019 will surpass $210 billion, with $92 billion committed to digital media advertising. Further, The Myers Report projects 18% growth in 2020 -- $109.5 billion. Those dollars are no longer just coming from print, newspaper or radio. The dollars from TV are starting to flow to digital and while many networks have upped their data game over the past couple of years, programmatic advertising and audience based targeting continue to be the trend among the larger media buying, holding company-owned agencies that represent billions of dollars of marketer spending. In the recently released "2019 Marketplace Assessment: Survey on Media Company B2B Relationships, Services and Value" conducted by The Myers Report, the 745 respondents from both major Media Agencies and Advertisers are indicating a continued shift in ad dollars from television to digital, but there are some new twists this year that should have TV executives on alert. MyersBizNet members can scroll down to read more or access The Myers Report online.
In Upfront 2019, look for the canary in the coal mine -- the early signs of a power shift from network sales groups to agency/brand buying organizations. A new study among 750 advertiser and agency executives by The Myers Report has uncovered an unexpected undercurrent among leading brand marketers that could be a canary in the coal mine for all those involved in the Upfront ecosystem. For the past several strong Upfront seasons, there's been an increased focus on data and analytics as the primary Upfront story, replacing the historic emphasis on programming schedules and buyer/seller relationships. While content remains a staple of most Upfront presentations, the movement toward targeted impressions vs. content environment will be more present this year. Leading TV networks have successfully been encouraging buyers to adopt a content-agnostic model that spreads budgets across multiple screens and content sources. Media agencies are equally invested in this shift as they introduce their own data resources, often integrated with their clients' first-party data. And many of the largest advertisers are moving programmatic and automated buying in-house and opening their arms to new vendors who promise greater targeting capabilities and increased cost efficiencies. Ironically, just as the TV industry is delivering on two-plus decades of addressable technology and data promises, marketers are joining together and, with their agencies, shifting their attention back to content and trust. MyersBizNet members can scroll down to read more or access The Myers Report online.