Advertisers will increase their upfront spending by 7.6% this year to nearly $19.9 billion.
As Modus Direct participated in the Network Upfronts last week, there were some key takeaways.
PRIMETIME IS ANYTIME. More focus this year on the network portfolios than primetime programming – head of sales for WarnerMedia stating “IP is the new Primetime”
DIVERSITY AND INCLUSION. All major networks focused on the importance of diverse casts, storytellers, producers as well as all inclusive themes in programming. We are seeing this as a theme across client creative as well.
Media companies are no longer in the business of selling TV commercials. They are in the audience delivery business.
91.6 million people watched the Super Bowl on CBS linear while only 5.7 million streamed.
Linear provides audience delivery volume at a lower cost. CTV/OTT offers unparalleled targeting at a higher cost. Combined they provide optimal reach and ROI.
OTT / CTV can efficiently expand your campaign television reach. We always recommend a balanced scorecard while allowing the performance to inform the spend distribution.
Inform consumer and network targets
We have utilized OTT/CTV to inform larger Hispanic targeting initiatives leading to linear TV network additions to include Hispanic targeted networks.
Some networks are more risky to test in a traditional linear environment (such as HGTV or Discovery Prime) but may produce the best results via OTT/CTV. This learning allows us to add networks to linear plans with more confidence and less risk for our clients.
78 million U.S. households maintained a cable subscription at the start of 2021. At the same time, advertisers could reach more than 84 million households via connected, streaming TV services for the first time. And, according to The Trade Desk, and all of us in this business – this trend is not likely to reverse.
OTT / CTV outpaced all other media in 2020 (which is not a surprise to anyone) and the projected cord cutting for 35+ in 2021 is something that can not be ignored.
That being said, campaigns targeting 65+ DTC products and services outperformed linear TV in some cases. This is a huge finding for companies targeting 65+ and should be a strong consideration to augment the linear workhorse.
eMarketer: Why TV Ad Spend Will Fall. Sports and Political Ad Spend.
Previous reports called for a 2% increase in TV Ad Spend for 2020. Now, experts are estimating a 22.3% – 29.3% DECLINE in TV Ad Spend first half of 2020.
Political ad spend will be on hold in 2Q20. Candidates don’t want to be seen as being insensitive campaigning during the pandemic.
No Sports Content. Professional leagues have cancelled or suspended season.
Kantar estimated March Madness, the NBA playoffs and the NHL playoffs collectively accounted for about $2 billion in TV ad revenues last year.
NBCUniversal reported advertiser commitments for the 2020 Olympics amounted to about $1.25 billion and Moffett Nathanson Research estimated losses to ESPN, ABC and TNT ~$700 million due to the NBA season cancellation.
The 55+ demo is seeing the most reach during Primetime on the 4 major broadcast networks (NBC, ABC CBS, FOX).
Of these top performing broadcast networks, NBC Primetime is the top performer for the 55+ demo with 35% segment reach in comparison to FOX which only saw 24% reach within the segment.
Of the 4 major broadcast networks, ABC is seeing the largest increases in WoW Average Time Viewed.
In particular, the Late Fringe PM daypart led with a 31% increase and Early Morning (+17%) and Overnight (+15%) followed.
Fox News Daytime is a strong performer among the 55+ demo, ranking top 10 in reach while seeing the second highest Average Time Viewed (115 min) and a 10% increase in WoW viewership.
While Fox News Daytime appears to be increasing in WoW viewership, CNN Daytime should also be monitored as it’s seeing the largest WoW increase in viewership (15%) compared to other cable news networks on any other daypart.
iSpot: Top 20 National Cable Networks by Adults 55+ Viewership
This year, I attended the Money 20/20 conference in Las Vegas. This conference gave “Money Revolutionaries” the opportunity to meet and discuss many challenges, including the following.
The major insight I extracted is how difficult it is to communicate brand appeal in the financial Industry because let’s face it, mortgages, loans and account services apps aren’t as enticing as the material presented in the entertainment or travel industries. Additionally,the industry uses very specific lingo that may not be easy to understand for the common customer. Because of these two obstacles, the concepts involved aren’t typically appealing throughout the digital/social media ecosystem.
But what’s the solution to this? TV advertising, of course! And we have three very clear reasons to believe it.
First and foremost,these “Money Revolutionaries” need to face their traditional competitors within their branding realm with a big brand-awareness push, getting the message out to the massive audience and there’s no other medium that could offer such speed and scale than digital and of course TV.
Secondly, we know that the synergy between DRTV campaigns and download rates is strong without high ad spend. Based upon the likeliness of the target market being a multi-screen user, the call to action response is more viable when the TV ad airs while having a mobile device in hand. These results are also more measurable. Having DRTV and Mobile within the marketing mix is simply a no-brainer.
Third, consumers have been losing the trust in the banking and financial sector throughout the years, and TV has been the king of media in relation to trust, giving these digital products/services the sense of reality.These new technology service providers offer new ways to manage finances, meeting the consumer’s needs and desires and moving away from the tarnished reputations of the “bad banks.” This evolution, or shall we call it FinTech Revolution, should be massively televised to build up trust!
Finally, the “cherry on top” for the FinTech data-rich and data driven industry, is that DRTV campaigns can be measured, analyzed and optimized as the “digital revolution” has brought to the marketing/advertising basics.
So for those Financial brands looking to create momentum, don’t wait anymore and contact us now! We will get your product/service where the high street banks are.