What's Next for TV Ads? TV networks in US is feeling the squeeze in future ad revenue streams as streamers drive down CPM prices in current upfront markets, putting pressure on networks. Advertisers demanding significant discounts on traditional networks' ad space while allocating more money to streaming services and live sports (per Variety) Though streamers boast large audiences and vast (fragmented) consumer data, they're also offering significant discounts on streaming ad space, up to 10%. Cost of advertising on traditional TV channels has also decreased slightly, but significantly less than streaming, around 4% or less - platforms with the most inventory, least must-have content, and weakest targeting capabilities most vulnerable. Linear national TV advertising revenue from broadcast and cable networks is projected to sink 2.7% to $27.5 billion this year (Per MoffettNathanson LLC Research) despite strong Summer Olympics and political ad spending. Excluding Olympics, the decline estimated to be steeper, reaching 7% to $26.3 billion - makes you wonder how much further ad revenue would drop without political advertising⁉️ Many advertisers want to follow consumers to new streaming platforms, but some of these platforms are built on the premise of fewer commercials than traditional TV - this creates a challenge that both advertisers and streaming services need to manage. Pharmaceutical companies, a major source of income for traditional TV, are now more hesitant to spend as much on advertising - likely looking for better deals at streamers and exploring alternative methods. ► Traditional media companies are forced into discounts for ad space in two upfronts now, are they risking permanently lower ad rates❓ ► Are some streamers offering lower rates to push the ad market to streamers❓ ► What will next years upfront look like❓ ► How will more pop-up sports 🏈 🏀 ⚽️🎾 streaming events affect CPMs❓ Varity: https://lnkd.in/dex65PeV MoffettNathanson Research: https://lnkd.in/dB_Uy_w5
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Great insight from Evan Shapiro regarding the ad time share, which still highlights the predominance of broadcasters. https://lnkd.in/dd2TDgFY As I read that, it got me thinking about how this relates to consumption share. Given that the programming and ad insertions vary across platforms, it provides an important clue as to how an hour of consumption translates into ad space and revenue opportunities. hat's when I thought to compare this with Nielsen's The Gauge, and, interestingly, the two metrics tell very different stories. Streaming leads in consumption with 34%, but it’s far behind in ad time share, capturing just 13.1%. That stark contrast led me to explore an efficiency indicator for these platforms, and the data revealed a lot. One explanation for the lower efficiency in streaming ad time is that a significant portion of streaming platforms focus on subscriptions. That said, the numbers still caught my attention since around 50% of streaming consumption comes from ad-supported platforms. With the rise of ad-supported subscriptions, I expect this gap in efficiency to close, leading to a more balanced scenario in the near future. Additionally, the growth of FAST (free ad-supported streaming TV) services could play a key role in helping streaming gain ground in the ad market. FAST services are expanding, offering advertisers new ways to reach viewers in a more traditional TV format, while capitalizing on streaming's reach and flexibility. For instance, broadcast sees a much higher ratio (1.94) of ad time to consumption, while streaming lags at 0.34. But with these new trends, it's likely we'll see streaming make up ground soon.
A Big Score I’ve been sharing data from The Score Report, Comscore, Inc.’s new television metric measuring *total ad exposure* across Pay TV, Broadcast, and Streaming… what I call Share of Ad Voice. The reason I dig this dataset so much is that it measures what matters most for those who work in TV: NOT total viewership in lump sums, but rather how much actual advertising is getting SEEN on these channels and platforms. ALL the details and data - platform vs platform; month by month; apples to apples for all of 1H 2024 - are here: https://bit.ly/ESHAPScore2 While channel vs channel comps make for sexy metrics, let’s be honest, most ad deals are done by corporate channel group. Which brings us to the ESHAP Chart of The Day (👇). On a national basis, The Walt Disney Company combines Broadcast, Cable, and Streaming for a respectable lead over the rest of the field, with NBCU and Paramount neck-and-neck in second and third. The top four corporate TV players all boast that same powerful cocktail of B’cast, Pay TV, and streamers. Warner Bros. Discovery is the ONLY big, traditional media company in the top five WITHOUT a Broadcast platform. Which makes one wonder: What will happen to Disco Bros’ Share of Ad Voice when they lose the NBA, which scored a lot of their ad exposure this year. Seeing Netflix and Amazon a good distance behind less buzzy competitors like Hallmark Media and Nexstar Media Group, Inc. shows just how early in their ad-tier journeys those streaming giants *actually* are. Conversely, Disney’s pole position (with Hulu making THE difference between them and NBCUniversal & Paramount), Google’s rising YouTube tide, and FOX’s fast-moving FAST Tubi speak to the growing power of streamers in TV advertising (list of the Top 50 platforms at the link). Along with Nexstar and Hallmark, traditional media entrants TelevisaUnivision, AMC Networks, A+E Networks, The E.W. Scripps Company, Weigel Broadcasting Co., INSP, Sony, Allen Media Group, Sinclair, Urban One, Gray Media, and Sunbeam all make it into the Top 25. BUT they will ALL need to up their streaming games bigly to continue to compete with Big Media *and* Big Tech. For my full analysis, the complete set of data and charts, or to download the full report, hit the link up there 👆. #streaming #tv #advertising
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A Big Score I’ve been sharing data from The Score Report, Comscore, Inc.’s new television metric measuring *total ad exposure* across Pay TV, Broadcast, and Streaming… what I call Share of Ad Voice. The reason I dig this dataset so much is that it measures what matters most for those who work in TV: NOT total viewership in lump sums, but rather how much actual advertising is getting SEEN on these channels and platforms. ALL the details and data - platform vs platform; month by month; apples to apples for all of 1H 2024 - are here: https://bit.ly/ESHAPScore2 While channel vs channel comps make for sexy metrics, let’s be honest, most ad deals are done by corporate channel group. Which brings us to the ESHAP Chart of The Day (👇). On a national basis, The Walt Disney Company combines Broadcast, Cable, and Streaming for a respectable lead over the rest of the field, with NBCU and Paramount neck-and-neck in second and third. The top four corporate TV players all boast that same powerful cocktail of B’cast, Pay TV, and streamers. Warner Bros. Discovery is the ONLY big, traditional media company in the top five WITHOUT a Broadcast platform. Which makes one wonder: What will happen to Disco Bros’ Share of Ad Voice when they lose the NBA, which scored a lot of their ad exposure this year. Seeing Netflix and Amazon a good distance behind less buzzy competitors like Hallmark Media and Nexstar Media Group, Inc. shows just how early in their ad-tier journeys those streaming giants *actually* are. Conversely, Disney’s pole position (with Hulu making THE difference between them and NBCUniversal & Paramount), Google’s rising YouTube tide, and FOX’s fast-moving FAST Tubi speak to the growing power of streamers in TV advertising (list of the Top 50 platforms at the link). Along with Nexstar and Hallmark, traditional media entrants TelevisaUnivision, AMC Networks, A+E Networks, The E.W. Scripps Company, Weigel Broadcasting Co., INSP, Sony, Allen Media Group, Sinclair, Urban One, Gray Media, and Sunbeam all make it into the Top 25. BUT they will ALL need to up their streaming games bigly to continue to compete with Big Media *and* Big Tech. For my full analysis, the complete set of data and charts, or to download the full report, hit the link up there 👆. #streaming #tv #advertising
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More data and analysis you can use if your career, happiness's, dreams and goals are connected to having advertising work best in your content distribution.
A Big Score I’ve been sharing data from The Score Report, Comscore, Inc.’s new television metric measuring *total ad exposure* across Pay TV, Broadcast, and Streaming… what I call Share of Ad Voice. The reason I dig this dataset so much is that it measures what matters most for those who work in TV: NOT total viewership in lump sums, but rather how much actual advertising is getting SEEN on these channels and platforms. ALL the details and data - platform vs platform; month by month; apples to apples for all of 1H 2024 - are here: https://bit.ly/ESHAPScore2 While channel vs channel comps make for sexy metrics, let’s be honest, most ad deals are done by corporate channel group. Which brings us to the ESHAP Chart of The Day (👇). On a national basis, The Walt Disney Company combines Broadcast, Cable, and Streaming for a respectable lead over the rest of the field, with NBCU and Paramount neck-and-neck in second and third. The top four corporate TV players all boast that same powerful cocktail of B’cast, Pay TV, and streamers. Warner Bros. Discovery is the ONLY big, traditional media company in the top five WITHOUT a Broadcast platform. Which makes one wonder: What will happen to Disco Bros’ Share of Ad Voice when they lose the NBA, which scored a lot of their ad exposure this year. Seeing Netflix and Amazon a good distance behind less buzzy competitors like Hallmark Media and Nexstar Media Group, Inc. shows just how early in their ad-tier journeys those streaming giants *actually* are. Conversely, Disney’s pole position (with Hulu making THE difference between them and NBCUniversal & Paramount), Google’s rising YouTube tide, and FOX’s fast-moving FAST Tubi speak to the growing power of streamers in TV advertising (list of the Top 50 platforms at the link). Along with Nexstar and Hallmark, traditional media entrants TelevisaUnivision, AMC Networks, A+E Networks, The E.W. Scripps Company, Weigel Broadcasting Co., INSP, Sony, Allen Media Group, Sinclair, Urban One, Gray Media, and Sunbeam all make it into the Top 25. BUT they will ALL need to up their streaming games bigly to continue to compete with Big Media *and* Big Tech. For my full analysis, the complete set of data and charts, or to download the full report, hit the link up there 👆. #streaming #tv #advertising
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📺 Stay Ahead of the Curve in the CTV Space with ATD Partners LLC! 🚀 The landscape of Connected TV (CTV) advertising is rapidly evolving, and at ATD Partners LLC, we're committed to staying at the forefront of these industry shifts. The recent surge in ad-supported streaming services marks a pivotal moment, signaling new opportunities and challenges for advertisers. In a recent MediaPost article, the emerging dominance of Amazon and Walmart alongside Netflix in the streaming realm is highlighted, showcasing the growing significance of data-driven advertising strategies in the CTV space. At ATD Partners LLC, we understand the importance of adapting to these changes and leveraging data-driven insights to maximize the impact of CTV advertising campaigns. Our team is dedicated to helping our clients navigate this dynamic landscape, providing tailored solutions that drive results and capitalize on emerging opportunities. As the CTV space continues to evolve, partnering with ATD Partners LLC ensures that your advertising strategies are not only current but also future-proofed against industry disruptions. Ready to elevate your CTV advertising game? Let's connect and explore how ATD Partners LLC can help you unlock the full potential of Connected TV! #ATDPartners #CTVAdvertising #DataDriven #MediaStrategy #DigitalMarketing #AdvertisingTrends #IndustryInsights
The Ad-Supported Streaming Market Just Got Real
mediapost.com
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More marketers are embracing streaming platforms like Amazon Prime to reach their audiences as TV advertising evolves. According to recent insights from Digiday, 42% of marketers have already invested in video ads on Amazon's streaming services, with 66% planning to follow suit in the next six months. At Experian, we understand the importance of seamless connectivity across channels. Our signal-agnostic Graph enables TV platforms to utilize a variety of identifiers like connected TV (CTV) IDs, Unified I.D. 2.0 (UID2), IPs, and mobile ad IDs (MAIDs) to help advertisers reach their consumers on CTV.
Digiday+ Research: Marketers ramp up their TV ad spend, with Amazon holding growth potential
digiday.com
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More marketers are embracing streaming platforms like Amazon Prime to reach their audiences as TV advertising evolves. According to recent insights from Digiday, 42% of marketers have already invested in video ads on Amazon's streaming services, with 66% planning to follow suit in the next six months. At Experian, we understand the importance of seamless connectivity across channels. Our signal-agnostic Graph enables TV platforms to utilize a variety of identifiers like connected TV (CTV) IDs, Unified I.D. 2.0 (UID2), IPs, and mobile ad IDs (MAIDs) to help advertisers reach their consumers on CTV. Which identifiers are you finding the most impactful? Which identifiers are you most excited about? Comment your thoughts below 👇
Digiday+ Research: Marketers ramp up their TV ad spend, with Amazon holding growth potential
digiday.com
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Addressable TV advertising has grown significantly since its launch, with over half of advertisers now considering it a “must-buy.” This shift comes as streaming content continues to outpace traditional linear TV, and ad-supported streaming offers new opportunities for marketers to reach their audiences. The industry is embracing this change, making addressable TV a requirement in a multi-screen environment, not just an add-on. However, challenges remain. High costs, data limitations, and the need for more precise measurement still hold some advertisers back. As data access improves, particularly first-party data, marketers are beginning to understand the power of addressable TV in targeting specific, engaged audiences. Brands are realizing the potential of addressable TV to drive meaningful engagement without wasting resources on irrelevant viewers. #AddressableTV #Streaming #AdTech
Addressable TV’s Slice Of The Advertising Pie Keeps Growing | AdExchanger
adexchanger.com
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✅🖥️ Streaming TV Insider (3/20): “Another caveat is the entrance of Amazon Prime Video into the ad-supported streaming sphere. Ads launched on Prime Video at the end of January and AP said its forecast isn’t working under the assumption that the move will deliver significant incremental ad dollars to streaming in 2024. The firm expects most budgets allocated to Prime Video in the first half of 2024 will come from those that were already allocated for Amazon’s other streaming properties – or will compete for dollars from other streaming services. It also cited a continued weak scatter market as a major headwind for Amazon and other players through the first six months of 2024. The report also highlighted that CTV streamers aren’t only competing against each other but with social media platforms, where most content is now in video form. In 2023 social media and user-generated video platforms saw ad spend grow 14.6% over the year prior to reach $93.8B and outpace search engines “to become the largest individual ad channel in the US.” The firm found “almost all growth” in social media ad spend in 2023 came from short-form videos like those on TikTok, Instagram Reels and YouTube Shorts. It expects that format to also largely fuel the 14% total growth projected for social media ad spend in 2024. In 2025 the short form video format is expected to capture $28.72B in ad spend, up from $16.28B in 2023.” ⬇️ #streamingtv #ctvadvertising #socialmedia https://lnkd.in/eFRMKSE5
US CTV ad spend expected to surpass $20B in 2024
streamtvinsider.com
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"I came across a great article on Ad Age yesterday titled HOW STREAMING TV PRICING AND TRANSPARENCY ISSUES ARE IMPACTING ADVERTISERS. I’ve gathered my own insights and next steps based on the key takeaways." As streaming platforms grow, significant challenges persist in the advertising market. In 2024, U.S. TV ad revenue is projected to decline by 1.7%, with streaming expected to grow by 19.3%. This shift highlights the tension between streaming and traditional linear TV as advertisers spread their budgets across multiple platforms. Key issues include inconsistent pricing models, with CPMs in streaming dropping up to 40% but still significantly higher than linear TV. Additionally, ad inventory is growing faster than demand, leaving ad slots unsold and platforms struggling to offer standardized metrics across streaming services. Advertisers face difficulties with transparency, especially in understanding audience overlap across platforms, making it harder to optimize spend. ▶︎ Conclusions: 📍 Price inconsistencies across platforms lead to complexity in decision-making. 📍 Transparency in metrics is a critical barrier, as advertisers struggle to track reach and performance effectively across different streaming services. 📍 Growth of streaming ad inventory outpaces demand, creating inefficiencies in ad fill rates. ✯ Next Steps: 📍 Push for industry-wide standardization of metrics and reporting to improve transparency and effectiveness. 📍 Leverage advanced targeting cautiously, as data fees significantly inflate streaming CPMs. 📍 Evaluate platform performance closely and consider reallocating budget based on granular insights as transparency improves. The road ahead will require patience and collaboration between advertisers, platforms, and measurement providers to align streaming more closely with traditional TV's established practices.
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✅🖥️ Quartz (11/25): “As more streaming services flood the market, consumers are juggling multiple subscriptions to access their favorite shows scattered across platforms. This often leads to cancellations of less-used services. Ad-supported plans are supposed not only to help retain subscribers but also boost revenue through ad sales. “Having price points that meet the needs of various segments of our society, various demographics is really important,” said Wedbush Securities analyst Alicia Reese. “Everyone wants good content, but not everyone is willing to pay that premium price for no ads.” Looking at the broader industry, about 95% of U.S. households are subscribed to at least one streaming service, according to the market research firm Kantar. With this new reality, Netflix, along with other streaming services, has announced it no longer plans to regularly report subscriber numbers. Instead, these companies are trying to focus shareholders’ attention on other metrics. “Remember who is running these places. These are people who are struggling to figure out good TV models. And so, people do what they’re used to. People do what has worked in the past,” said University of Virginia business professor Anthony Palomba. However, streamers are still trying to figure out how to best integrate ads into their services. There is still no industry standard for when or how often ads appear on streaming platforms, compared with linear TV, according to Dan Rayburn, a streaming expert and analyst. “Some of the streaming services do fewer ad breaks, but longer ads, and some do more ad breaks, but shorter ads. Which one is better? There’s no right or wrong,” Rayburn said. “So, you still see what I would call some experimenting.” ⬇️ #ctv #ott #streaming #fast #svod #avod #tvos https://lnkd.in/eVgicxHb
Streaming was made to escape ads. Now they're back with a vengeance
qz.com
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