In this week’s Week in Charts, Mark Penn says Stagwell is taking on bigger clients, streaming services lean on TV shows for ad loads, and CTV consumption growth outpaces mobile video.
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TV Shows Carry Significantly Higher Ad Loads Than Movies on US Streaming Services
TV shows on US streaming services carry approximately double the ad load of movies, according to research from Ampere Analysis. The difference is particularly stark on Paramount+, whose ad load on movies is 10 times lower than its TV shows. “Films rely on maintaining narrative and cinematic immersion, so ad breaks are typically less frequent to align with the viewing experience,” said Callum Sillars, Senior Research Manager at Ampere. “By contrast, TV series naturally lend themselves to more ad opportunities, as episodic content has organic breakpoints both during and between episodes, enabling higher ad loads.”
Magazine and Newspaper Ads Offer Highest ROI for UK Retail Brands, Finds IMS
Magazine and newspaper advertising offers 9.6x ROI for UK retail brands, according to econometrics agency Independent Marketing Sciences (IMS), based on data analysed from over 270 IMS campaigns over the last decade. The research found that radio (6x) and TV (5.9x) advertising outperformed certain digital channels, such as paid social (5.7x), shopping PPC (5.1x) and SEO (1.6x). “Many retail brands – and, in particular, the venture capitalists and private equity funds that own these brands – instinctively flock to digital, and accept the ROI data that digital platforms promise as gospel,” said Alex Vass, Founder and CEO of IMS. “But very often, digital platforms overclaim their impact on sales and omit to mention the role of other marketing platforms in driving conversions.”
CTV Consumption Growth Outpaces Mobile Video in US Forecast
The average time US consumers spend watching CTV video is projected to reach two hours and 47 minutes per day in 2027, according to forecasts from EMARKETER, compared with 1 hour and 39 minutes for mobile video. The data projects average daily time spent watching CTV to grow by 24 percent between 2023 and 2027, versus 13 percent for mobile device video.
AI Enthusiasts Are Split on Brands Using AI-Generated Content
Thirty-nine percent of ‘AI Enthusiasts’ (consumers who regularly use AI) say they trust brands less when they use AI-generated content, according to a survey from Klaviyo, while 42 percent are neutral on the practice. The research also found that this group are highly attuned to brands using AI, with 60 percent saying they are confident that they can tell when they’re interacting with Al, while 38 percent say they encounter “Al slop” from brands multiple times per week.
The Week in Stocks
Agencies
Shares in Stagwell dropped last week after the agency network’s Q1 revenues fell short of expectations, despite growing by 8 percent YoY.
TV
Roku’s share price jumped by 10 percent, when the streaming hardware and CTV platform provider posted 22 percent YoY revenue growth in its Q1 earnings update.
Publishers
Reach’s stock price took a 10 percent hit last week, following reports that the publishing group is raising its cover prices on most of its newspaper titles.
Ad Tech
Shares in Teads gained another 15 percent ahead of the ad tech firm’s Q1 results on Thursday.
Tech
Meta stock fell by 10 percent after the tech giant’s Q1 results, as further increases in AI spending spooked investors, while CEO Mark Zuckerberg refused to rule out further layoffs.
