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.
April marked the first full month of lock down for most of the world. As advertisers adjust TV spend and creatives to reach and engage with consumers watching increasingly more video across all screens, what trends have emerged?
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
With the fast growth of the Hispanic market in the United States, it has become more important for brands to market to that demographic. With overall population growth, higher HHI and a strong purchasing power, brands can no longer ignore that market if they want to grow their ROI.
However, it is not as simple as using traditional “techniques” used to market to the Anglo market. Latinx consumers behave different and it is the responsibility of the marketer (and their agency) to understand the Hispanic audiences first.
A little bit about this demographic:
Hispanics are the second-fastest growing demographic group in the United States * and it’s a young population as for over 50% of them are age 30 years old and younger *. This specific fact should be accounted for in how brands talk and reach out to this massive younger generation of Hispanics, since the majority of this audience, although being of Hispanic background, is born in the US and exhibits bi-cultural behaviors. With that being said, the greatest opportunity lies on a wider spectrum for creativity. Since this demo tends to be bilingual, Creative Directors get the chance to develop messaging in “three languages”, English, Spanish and “Spanglish”. In addition to the message, it is important to tailor messages specific to the platforms where Hispanics consume media. Brands have the chance to engage them where they are “hanging out”. For instance 74.5% of the Hispanic population consume media through TV Cable and/or ADS and Hispanics are the most avid radio listeners *.
Brands are always looking for loyalty and repurchasing tendencies in their consumers and according to the Experian Simmons National Hispanic Consumer Study, about 56% of Spanish-dominant Hispanics agree that, “When I hear a company advertise in Spanish, it makes me feel like they respect my heritage and want my business.”
So, let me assure you that for the next two decades, brands that ignore the Hispanic Market won’t survive. They have to understand that this market has great growth potential; nevertheless, it remains an underserved demographic, and there’s where the GREATEST opportunity lands. It’s always a good idea to be the FIRST in doing anything. So, don’t wait and contact us; Modus Direct can become your partner in helping your business grow as never before, with our many years of experience and understanding of this Demographic Group, we will take your brand/product/service to the next level.
People say “TV is dying”, however, in truth, TV is more alive than ever. It continues to be the biggest mass media channel and the “go-to” for brands that desire to make an impact in the marketplace and spread their message to as many people as possible at once. Before you say “nah..”, have you seen the Facebook Ad apologizing for their latest botch with Cambridge Analytica? I am sure you did. How about the re-branding of Wells Fargo claiming “Established 1852, Re-established 2018”? No? Oh wait, how about the new Nike ad with Colin Kaepernick?
Are you still thinking that “TV is dying”? I bet not. Millions of dollars have been spent on TV advertising for each one of these campaigns. Why? Because even the most sophisticated online brands like Facebook realize TV still reaches the masses in a cost-efficient way. They acknowledge the power of TV in their media mix as one of the most (if not the most) impactful of the media channels in terms of reach and social impact. In addition, TV is entrenched in our day to day lives, including our water cooler conversations, our shared social media posts, etc.… I know I’ve heard my share of talks around Walking Dead, Shameless or America’s Got Talent. Have you?
So, whether you are consuming TV programming via linear TV or via OTT options like Hulu, Roku, Sling or Video-On-Demand among others; trust me, TV is more alive than what we give it credit for.
Is TV in your media mix? If it is, are you maximizing it? And if it is not, I invite you to reconsider AND we should definitely talk.
We believe in a balanced scorecard. Why? Because it is what is best for our client’s.
As direct response television experts we are constantly challenged with “why television”, “why not put it all in digital”. We also hear a lot about how no one is watching television anymore. Well, if that was true Facebook would not have just launched a TV PR ad campaign to try to fix their privacy/consumer trust problem. Television continues to have the highest reach of any other media. Period. Are the patterns of how people consume video changing, absolutely! That is why the way we purchase television aka video has changed and must continue to change. We buy more VOD than ever before. We take advantage of DSPs more than ever before. We buy more Hulu and Roku than ever before.
Despite all of that, this article is to provide some up to date trends from IAB, VAB and other sources on how TV and digital media work together to make a positive impact on an advertiser’s business. We also provide some stats on media usage/time spent. And last, we provide some debunking of cord cutting.
1. TV and Digital Executed Simultaneously Drove the Most Impact for Awareness, Familiarity, Opinion and Intent
2. Television continues to have the highest daily media consumption.
Pay TV subscribers will drop cable services for more affordable Over-the Top (OTT) options like Netflix, Hulu and YouTube.
83% of TV households watch cable – steady over the past 15 years
71% of US TV Viewers are “cord stackers” – subscribing to Pay TV and streaming services. Streaming-only customers account for only 11% of viewers. One of the reasons cord-cutters were liberating themselves from the shackles of cable was the cost of cable. In order to fulfill the viewing needs many are now having to subscribe to multiple paid streaming services – inching closer to the cost of cable.