In this week’s Week in Review: Instagram confirmed the arrival of pre-roll ads on IGTV content, IAB reports a 16 percent drop in digital CPMs in Q1, and Roku says advertisers don’t have to pay for audiences they’re already reaching on TV. To receive an update on the industry’s top stories every Friday, sign up to the weekly Video Round-Up.
Top Stories
Instagram Formally Announces Ads for IGTV
Instagram this week officially confirmed it will begin running ads on IGTV, its hub for mid-to-long form video content. The ads will run when users click on previews for IGTV content in the main Instagram feed, before the full video plays, and will be up to 15 seconds long. Instagram says it will begin testing IGTV ads with a limited number of creators, and will experiment with different features including the ability for users to skip ads.
Crucially, revenue from IGTV ads will be shared with the creators whose content they run on (with the creator taking 55 percent of revenues according to The Verge). Instagram has also introduced badges which users can buy, which will appear next to their names when they comment on Instagram Live streams, and revenue from these sales will be shared with creators too. The two products will enable influencers on Instagram to directly monetise through the platform for the first time, rather than making money through sponsorship deals with brands, or by leading users to other platforms where they can generate ad revenue.
Digital CPMs Fell by 16 Percent in Q1 Find IAB and PwC
Digital CPMs fell by an average of 16 percent in Q1 as a result of the coronavirus pandemic according to research from the IAB, an industry trade body, and PricewaterhouseCoopers, a professional services firm. And publishers are shouldering the majority of this burden, seeing 60 percent drops in CPMs, according to the report.
Different channels saw drastically different changes in CPMs according to the data. Video advertising was overall relatively resilient. CPMs for connected devices, including smart TVs, games consoles and streaming sticks, fell on average by just six percent. AVOD streaming apps (which require a login through a traditional pay TV provider) saw a seven percent drop in CPMs, and AVOD streaming services saw an 18 percent fall. Display advertising on the open web meanwhile was hit hardest, with CPMs down by 34 percent.
Roku Says Advertisers Don’t Have to Pay for Audiences They’re Already Reaching on Traditional TV
Roku, an over-the-top platform and hardware provider, touted a series of new advertiser-friendly tools at its NewFront presentation this week. The company said it is making it easier for advertisers to pull or alter creative which they’re running in campaigns on Roku. And Roku will also let advertisers avoid paying to reach audiences which they’re already reaching via their traditional linear TV campaigns, according to AdAge.
As Roku has fleshed out its ad offering Roku has been pitching itself as a way for brands to extend their traditional TV campaigns, and reach audiences who’ve moved away from pay TV. As part of this effort, the company last year announced a partnership with Innovid, a TV ad tech specialist, for measurement of demographic reach and frequency on TV campaigns run across the Roku platform and Linear TV. Alison Levin, VP, ad sales and strategy at Roku, said that these sorts of product are helping to accelerate the shift of ad spend towards streaming services, giving advertisers confidence that they’re reaching new unduplicated audiences.
Coronavirus News
Daily Mail says Ad Revenue Nearly Halved in April and May
UK publisher the Daily Mail reported that ad revenues were down by 46 percent in April, with a 45 percent drop forecast for May. In April, print ad revenues were down by 69 percent, while digital fell by 16 percent, according to Campaign.
Dentsu Aegis Network Predicts 15-20 Percent Drop in Q2 Revenues
Dentsu Aegis Network said in its Q1 financial results this week that it expects revenues for Q2 to be down by between 15-20 percent due to the pandemic, and that it does not expect a big bounce back in the second half of the year. For Q1, Dentsu Aegis Network posted a total revenue decline of 2.6 percent and an organic revenue decrease of 3.3 percent.
Sports Comeback Slowly Continues
The comeback of live sports around the world slowly continued this week, as the English Premier League announced that it will resume play behind closed doors on June 17th, while negotiations for various sports in the US to return picked up speed according to the Wall Street Journal.
ViacomCBS Announces New Round of Layoffs
The newly merged ViacomCBS this week announced a new round of layoffs, which will affect CBS’s entertainment and news divisions. CBS CEO George Cheeks said the layoffs were partly due to the coronavirus pandemic, while also coming about as part of a planned post-merger restructuring.
DMEXCO to Go Ahead as Hybrid In-Person/Digital Event
German trade show DMEXCO said this week it plans to go ahead as a part physical, part digital event. The event will go ahead in Cologne while adhering to social distancing and hygiene guidelines, but will also be accessible virtually to those who would rather stay away.
A Third of UK Consumers Trying to Avoid Coronavirus News
One third of UK consumers are now trying to avoid reading news about the coronavirus pandemic, according to surveys carried out by Ofcom, up from 22 percent seven weeks ago. But despite this, 92 percent of those surveyed said they still read coronavirus-related content at least once a day.
Nielsen Forecasts Italian Advertising Market to Fall at Double Digital Rate
Nielsen has forecast the the Italian advertising market in 2020 will fall at a double digit rate, Reuters reported this week. Nielsen’s data found that the advertising market was down by 9.2 percent in Q1, with a 29 percent decline forecast for Q2.
The Week in Tech
Viqeo Video Platform Acquires Suggestv
US-based video platform for web publishers Viqeo has announced the acquisition of UK-based machine-learning company Suggestv, known for its contextual video recommendation service which allows media publishers to propose watching relevant videos to their users and monetise video ads. The companies will combine technology and run in the market under the brand name Viqeo, offering publishers several products: a video player, video illustrations creation tools, and a recommendation video product. The two say this will facilitate publishers to get the most out of video content, both in terms of increasing engagement and in terms of revenue from video ads.
Criteo Launches Self-Serve Ad Platform for Retail Media
Retargeting specialist Criteo has launched a new self-serve ad platform for retail media, which allows brands to link up directly with Criteo’s retail media network, rather than going through a managed service. Criteo believes the platform will increase the amount of spend flowing through to retail media, and will also says it will give brands and advertisers more granular targeting and measurement tools, according to AdExchanger.
US Bill Seeks to Ban Microtargeted Political Ads
A bill put forward by House Democrats in the US seeks to ban used of microtargeting for online political ads. The ‘Banning Microtargeted Political Ads Act’ would prevent the use of behavioural or demographic data for targeting political ads, though geographical data could still be used, as well as any targeting which users opt in to.
Atresmedia and smartclip Commit to Further Investment in Addressable TV Solutions
Spanish broadcaster Atresmedia and smartclip, its current exclusive technology partner for digital advertising through HbbTV, have expanded their strategic agreement for Atresmedia’s addressable TV portfolio. This exclusive partnership underscores the commitment to further invest in future-oriented addressable TV advertising products, according to the two companies. The biggest priority will be given to roll out full addressability of the traditional broadcast TV ad break.
Consumers Want Contextually Relevant Ads, but Remain Cautious About Privacy says IAS
Two years since the enactment of the General Data Protection Regulation (GDPR), data privacy remains a key concern for a significant 94 percent of consumers, according to research from measurement and verification company Integral Ad Science (IAS). Alongside this, whilst 33 percent of consumers remain unaware of data privacy regulations, such as the GDPR, nearly nine in ten (87 percent) of consumers now understand their browsing data will be used for advertising purposes.
Kumparan Selects JW Player for Video Technology
Indonesian news provider kumparan has selected JW Player to provide end-to-end video technology. The digital news site, founded in 2017, says it aims to provide a better user experience for video playback, add live-streamed video news, and optimise advertising revenue.
The Trade Desk Partners with Zalora for Measurement Tool
Asian fashion retailer Zalora has partnered with The Trade Desk on a new attribution integration. The two say the integration will allow participating brands selling on Zalora the opportunity to measure conversions and sales value generated from advertising campaigns delivered via The Trade Desk.
The Week in TV
Quibi Advertisers Reportedly Seek to Defer Payments
Advertisers on newly released mobile-first video service Quibi are seeking to defer payments after a lacklustre start for the app, the Wall Street Journal reported this week. Meanwhile the app this week released the ability to cast its shows onto TV screens, in an effort to draw in more users at a time where audiences are spending more time indoors.
Sure we designed Quibi for on-the-go, but these days visiting the family room is like a day trip… so AirPlay support is live for iOS in Quibi 1.3. Working hard on Chromecast too which will be available in June.
— Tom Conrad (@tconrad) May 26, 2020
HBO Max Goes Live in America
HBO Max, the new subscription video on-demand service launched by AT&T-owned WarnerMedia, went live this week in the US. HBO Max launched with six original series/films, and will add eleven more over the course of the summer. But as of yet, the service isn’t available on Roku devices or Fire TV.
Channel 4 Launches 4Studio
Channel 4 this week revealed plans to offer a slate of social-first branded entertainment opportunities to clients and advertisers for publication across its social channels – including Facebook, YouTube and Instagram. The offering comes with the launch of 4Studio, Channel 4’s in-house digital content studio – formerly announced as the Digital Creative Unit (DCU).
DAZN Seeks to Raise Money to Secure its Future
Sports streaming specialist DAZN is looking to raise money in order to secure its future, the FT reported this week, having been hit hard by the coronavirus pandemic. Owner Len Blavatnik’s preferred option would be to sell an equity stake in the business according to the FT, though a complete sale of the company would also be considered.
Apple TV Secures Deal with Martin Scorsese
Apple TV secured the rights to legendary director Martin Scorsese’s next film “Killers of the Flower Moon,” which stars Robert De Niro and Leonardo DiCaprio. Apple TV reportedly beat out other streaming services, including Netflix, to secure the rights.
Ampere Finds Slight Growth in Pay TV Subscriptions
Ampere Analysis found total pay TV subscriptions in Q1 this year were 0.3 percent higher than in the previous quarter, Broadband TV News reported this week. But the US market is faring worse than most, according to Ampere, with US groups representing more than half of those facing net subscription declines.
The Week in Publishing
Trump Limits Social Media Protections After Getting Fact Checked by Twitter
US president Donal Trump this week signed an executive order limiting federal protections for social media platforms, which will make it easier for federal regulators to punish platforms if they’re believed to be curbing users’ free speech. The move came after Trump complained of being censored after Twitter posted a fact check notice underneath one of his tweets, in which he claimed mail-in ballots would lead to voter fraud at the upcoming presidential election.
.@Twitter is now interfering in the 2020 Presidential Election. They are saying my statement on Mail-In Ballots, which will lead to massive corruption and fraud, is incorrect, based on fact-checking by Fake News CNN and the Amazon Washington Post….
— Donald J. Trump (@realDonaldTrump) May 26, 2020
Facebook Executives Reportedly Stifled Efforts to Make Platform Less Divisive
Facebook executives shut down efforts to make the platform less divisive, according to a report from the Wall Street Journal this week. A 2008 internal presentation reportedly highlighted how Facebook’s algorithms promoted more divisive content, in order to get users to spend more time on the site. But CEO Mark Zuckerberg and other senior executives ignored or blocked efforts to act on these concerns and change Facebook’s products, according to the Journal.
News Corp Cuts Print Editions of Over 100 Australian Newspapers
Global media giant News Corp announced this week that it is ceasing printing over 100 Australian newspapers, in response to changes in the media landscape accelerated by the coronavirus. Seventy-six local and regional news titles are going digital-only, while 36 are closing down altogether.
Twitch Signs Three Top Streamers to Exclusive Contracts
Amazon’s live streaming platform Twitch this week signed three high-profile streamers to exclusive contracts. ‘Summit1G’, ‘Dakotaz’ and ‘JoshOG’, who have over 11 million followers combined, each signed multi-year contracts to stream exclusively on Twitch.
Pinterest Moves into Online Grocery Shopping
Pinterest has launched an offering letting users buy groceries directly from its site, Adweek reported this week. The offering lets users click on ads for groceries and complete a purchase via a third-party checkout, or click on a recipe to instantly add all the ingredient required to a shopping basket on Pinterest.
LinkedIn Stopped 7.8 Million Fake Accounts from Being Created in H2 Last Year
LinkedIn released its transparency report this week highlighting its efforts to crack down on fake accounts. The professional social network said in the second half of 2019, it stopped 7.8 million fake accounts from being created at the point of registration, with another 3.5 million blocked further down the line.
The Week for Agencies
UM Leads Forrester’s Global Media Agency Ranking
Interpublic Group-owned media agency UM led Forrester’s ranking of global media agencies this week, with Forrester ranking UM as having the strongest current offering and the strongest strategy out of the ten agencies considered. OMD, Starcom and Carat were also chosen as market ‘leaders’ by the ranking.
S4 Capital’s MightyHive Buys Digodat
S4 Capital-owned MightyHive this week announced that it is acquiring Argentinian agency Digodat. “Despite the pressures of COVID-19, S4 Capital believes that further expansion of its first-party data, digital advertising content, data and analytics, and programmatic capabilities should continue, as long as the strength of its balance sheet is not compromised,” said S4 Capital in a statement. “Digodat certainly fits the bill.”
Average Tenure of CMOs Continues to Fall
The average time CMOs at the worlds biggest brands spend in their roles fell again in 2019, according to research from leadership advisory firm Spencer Stuart. Spencer Stuart found that the average tenure of a CMO at a top consumer brand fell to 41 months last year, down from 43 months in 2018. The median tenure however rose slightly, from 28 months in 2018 to 30 months last year.
LGBT Representation in Ads Increases Acceptance and Brand Favourability
Research released by LGBTQ charity GLAAD and consumer brand P&G this week found that increased LGBTQ representation in film, TV and ads leads to higher levels of acceptance of LGBTQ people by non-LGBTQ. The study also found that consumers view brands more favourably when they include LGBTQ people in their marketing and advertising campaigns.
Three Splits with Wieden+Kennedy
UK mobile operator Three has split with Wieden+Kennedy, its creative agency of ten years, according to Campaign. Three has not yet chosen a new creative agency, according to the report.
Hires of the Week
Unruly Appoints Alex Khan as UK Managing Director
Video ad tech company Unruly, part of Tremor International, this announced the appointment of former Oath and AOL MD Alex Khan, to the position of UK managing director. As UK MD, Khan will be focused on strengthening its offering as a unified platform for cross-screen video media services — including launching new services across CTV, In-App and InStream, according to the announcement.
Three New Hires at TabMo
Mobile-first advertising company TabMo has appointed three new team members to support the increased use of its Hawk platform. Stefan Regelous has been selected for the newly-created role of platform development manager within the client services team, Denneshia Henry joins from Bauer Media Group UK as senior agency sales manager, and Matthew Stark, previously an ad ops specialist at AI specialist GumGum, takes up the role of platform operations manager.
This Week on VAN
Lockdown is Giving Advertisers Opportunities to Try Out TV Advertising for the First Time, read more on VAN
Are Publishers Finding Alternatives to Third-Party Cookies? read more on VAN
What Does Marketing Look Like in the Metaverse? read more on VAN
VideoWeek Podcast #4, Ciaran O’Kane, Exchangewire, listen on VAN
Ad of the Week
Nike, Never Too Far Down, Wieden+Kennedy
