This weeks Future of TV Briefing talks about how Netflixs advertising plans are shaping up or not predicated on its recent conversations with ad buyers and show producers.
Soon after Netflix announced on July 13 that Microsoft would power its fledgling advertising business, top agency executives met with Netflix for high-level briefings on the announcement. Those meetings have already been accompanied by more meetings continuing through August between Microsoft and agencies teams that might be more directly involved with buying Netflixs inventory, in accordance with multiple agency executives.
In these latter meetings, agency executives have already been looking to receive more info about Netflixs ad sales page after months of the streamer attempting to gauge advertisers investment appetite because of its impending ad-supported tier, that is slated to debut in early 2023. The secrecy surrounding these meetings such as for example limiting just how many folks from agencies can take part in the conference calls has led agency executives to take a position on which insights they could provide, such as for example reading tea leaves when agencies programmatic specialists are invited to participate and whether which means Netflixs ad inventory will undoubtedly be available programmatically at launch.
Due to who the meetings I’ve create with on the next fourteen days, Personally i think like were likely to get a many more clarity, said one agency executive before their meetings with Netflix and Microsoft.
It will be feels as though weve asked plenty of questions and havent gotten plenty of answers yet, said another agency executive ahead of their meeting. I dont know if [the] meeting could be more productive, but theyre definitely attempting to be hush-hush.
Up to now that’s proving to be wishful thinking.
Chaos cloaked in confusion
While meetings remain taking place, they will have yet to net a lot of the insight that agency executives had envisioned, in accordance with those agency executives who’ve met with Netflix and Microsoft up to now. Multiple agency executives said they’re still waiting to listen to what exactly would be the ad products on the market and who’ll be selling them.
After the announcement arrived about Microsoft, we thought within the next fourteen days wed have all of the answers, said among the agency executives. Instead, this executive described the problem as chaos. Its chaos.
Chaos might be a bit strong; cloak and dagger is how another agency executive described matters. Clouded may be a lot more apt given how opaque the meetings have already been up to now.
Neither Netflix nor Microsoft outlined just what the ad placements will undoubtedly be on the streaming service. Nor have the firms detailed who will be in charge of selling the placements, not merely between Netflix and Microsoft but additionally within Microsoft.
When [Netflix] made that announcement [with Microsoft], most of us thought it had been simply for the ad server integration, definitely not all the sales. And I believe thats honestly portion of the confusion of just how many folks are Microsoft likely to placed on this and what’s Netflixs involvement? And I dont understand that they even understand all those details to the extent that maybe they ought to, said a company executive.
Even though you speak to Microsoft, which teams selling this is a little everyone thinks they’re no one thinks they’re simultaneously. Its a small amount of confusion at this time, said another agency executive.
Digiday contacted Netflix and Microsoft for comment because of this article, and the formers response didnt exactly clarify matters. We have been still in the first days of deciding how exactly to launch a lesser priced, ad supported option no decisions have already been made. Which means this is all just speculation at this time, said a Netflix spokesperson within an emailed statement. A Microsoft spokesperson declined to comment.
The chicken and the egg
Instead of providing agency executives with the info they’re seeking, Netflix has been prodding them for home elevators what advertisers will undoubtedly be ready to pay.
You can find no details. All they would like to know is numbers. They need [to know], Just how much [money] are you experiencing, and what size will be the clients. They need merely to understand the full total opportunity, and the thing is opportunity changes predicated on what the ad experience will likely be. Plus they dont know very well what that’s, said among the agency executives. Its like chicken and the egg.
The chicken or the egg, in the event that you will is probable Netflixs ad product. The agency executives believe Netflixs ad sales page will probably remain amorphous before ad product takes shape. Theyre building out their ad product simultaneously as a sales staff, and I believe the focus is on the ad product at this time. And I believe itll pivot rapidly. It just all must belong to place, said a company executive.
One indication Netflixs ad product isn’t yet fully fleshed out originates from its dealings with production companies.
One company producing a genuine show for Netflix to debut in the initial quarter of 2023 has already been deep into production on the growing season but have not yet been told whether to structure episodes to add ad breaks, said an executive at the production company. They havent told us that yet. Were in the center of now beginning to deliver [episodes] to them]. Itll be interesting to see because thatll mean theres a shift in how they would like to show a few of these shows since they didnt want it initially, said the production executive.
To be fair, Netflix isn’t yet running against the clock to start out disclosing the particulars of its ad sales page to agencies and advertisers. As a streaming service, Netflix can compete for digital ad dollars which are typically more flexible than traditional TV ad dollars. But with advertisers and agencies annual budget planning seasoning approaching in September and October, there’s some urgency for Netflix to supply the info that ad buyers may use to assess how much cash to create aside for the streamer in 2023. So agency executives are continuing to press on hoping of experiencing some insights eventually.
Were looking to get to underneath of it. And we at this time are just attempting to muddle through the complexities and discover whos the decision-maker, said a company executive.
What weve heard
Most of the way weve tried to obtain advertisers into [shows and movies on ad-free streaming services] has experienced this content side, whether weve been doing handles production companies or Netflix or Amazon has gotten us into content that theyve been focusing on So how exactly does that work now [that streamers like Netflix are adding ad-supported tiers] easily have an advertiser that wants in however they dont want in on a competitors ad for the reason that content?
Agency executive on product placement within ad-supported original programming
The separation between videos and ads in short-form video feeds is a big complicating element in short-form video platforms like TikTok, Instagram Reels and YouTube Shorts establishing revenue-sharing programs a la YouTubes program for traditional, long-form videos. But TikTok has actually began to answer this question.
In the video featured above,learn how TikTok determines which videos be eligible for a revenue split and hear from UM Worldwides Stacey Stewart on what TikTok Pulses tests with advertisers have fared up to now.
Numbers to learn
12.5 million: Amount of people that Amazon expects to stream Thursday Night Football through the e-commerce giants properties starting the following month.
19%: Percentage share of premium streaming services subscribers who canceled three or even more subscriptions previously 2 yrs.
>1 million: Amount of people who have registered to cover Snapchats two-month-old subscription tier.
95%: Percentage share of U.S. teens who use YouTube.
16.1 million: Amount of people who used Vizios connected TV platform SmartCast in the next quarter of 2022.
42%: Percentage share of Magnites business represented by connected TV.
The measurement panel perseveres
IT ad measurement panel could be invincible. Not merely is Nielsen doubling down on its panel regardless of the deficiencies that led the Media Rating Council to strip the measurement providers accreditation, but Nielsens chief critic, industry trade organization the VAB, is seeking to form its measurement panel.
- The other day Nielsen announced its TV measurement panelspans 42,000 households, up from 29,456 households through the pandemic.
- Also the other day, the VAB announced it really isattempting to develop its measurement paneland contains approached the Association of National Advertisers about working together on the panels formation.
Considering just how much criticism has been leveled against panel-based measurement to be outdated in the era of digital tracking, its kinda funny to observe how much attention has been heaped on the panel (though we have been in your dog days of August).
That said, the panel persists since it offers a unique type of measurement valued by ad buyers. While tracking mechanisms like cookies and IP addresses give a greater scale of measurement, panels provide more in-depth insights because they’re predicated on deterministic data sets.
For the clients, which we’ve lots of CPG clients, I really do visit a role for the panel, at the very least before point where theres enough data to focus on households and know if theyre frequent buyers of a brands soap, said one agency executive.
Quite simply, for the panel to keep to persist, it must expand. That is what the VAB has at heart; the bigger the higher frankly is what VAB CEO Sean Cunningham told Ad Age.
Within an interview, Nielsen CEO David Kenny declined to go over specific numbers for how Nielsen plans to cultivate its panels household count. I believe its likely to be fluid as time passes, he said. But perNBCUniversals Measurement Framework Look Book, published in February, Nielsen plans to cultivate its panel size by 15% come Q2 2023.
What weve covered
Ad buyers say TikToks growth has resulted in problems with ad reps:
- TikTok sales reps often provide ad buyers with conflicting information.
- The platforms teams are attention however, not as well-informed because they ought to be.
Read more about TikToks ad dealingshere.
Disney+ tops 152 million subscribers, but growth slows in the U.S.:
- Disneys flagship streamer only added 100,000 U.S. subscribers in the quarter.
- The business has disclosed the pricing and launch date because of its upcoming ad-supported tier.
Read more about Disneys latest earnings reporthere.
Hulu adapts social technique to follow fans interest:
- The Disney-owned streamer monitors social sentiment to see its social ad spending.
- Hulu has spent $106.8 million on advertising this season, with 36% likely to Facebook.
Read more about Hulus social ad strategyhere.
The dos and donts of native and repurposed advertising on TikTok:
- Repurposed ads, unsurprisingly, have to be edited for TikToks vertical format.
- Ads specifically made for TikTok, also unsurprisingly, perform much better than repurposed ads.
Read more about advertising on TikTokhere.
What were reading
Walmart looks to market streaming bundles:
As streaming subscriber growth hits a rough patch, Walmart is seeking to seize the chance to end up being the streaming exact carbon copy of a pay-TV provider because they build subscriptions into Walmart+, based on the NY Times.
YouTube looks to market streaming subscriptions:
As streaming subscriber growth hits a rough patch, YouTube is seeking to seize the chance to do a similar thing that Amazon and Roku did years back by reselling streaming subscriptions, based on the Wall Street Journal.
Warner Bros. Discoverys traditional business strategy:
Warner Bros. Discovery is resembling a pre-streaming entertainment company by adopting modest streaming targets, concentrating on traditional revenue streams like linear TV and theatrical movies and being ready to license programming to others, based on the Hollywood Reporter.
Amazon drafts Nielsen:
Amazon has signed a cope with Nielsen to supply measurements for the e-commerce giants Thursday Night Football streams, marking the initial live streaming program to be tracked through Nielsens national TV service at the same time when Nielsens measurement dominance has been under threat, based on the Hollywood Reporter.