Marketers are braced for a period of when policy impacts can change overnight and post-lockdown shopping flips from one channel to another. The post ‘Patience is the real key here’: Why advertisers are keeping calm as Europe and U.S. economic recoveries are thrown into extended uncertainty appeared first on Digiday.
Murmurs have circulated in recent weeks that several ad tech companies are preparing initial public offerings, contributing to the most robust IPO market in five years. Adweek spoke with several analysts in the space to gauge if the recent reports indicate a repeat of past investment crash-and-burn bubbles, or whether the industry is entering a...
The Spanish-language streaming company Vix launched its ad-supported OTT service in Brazil on Friday, adding to the growing number of services that are expanding the market for advertising video-on-demand (AVOD) internationally. Two top Vix execs talked with Business Insider about how they're tackling the unique hurdles in AVOD's international expansion and the lessons they learned from streamers like Netflix. Vix held off on its Brazil launch until it acquired enough Portuguese-language content to satisfy local audiences, and it is using its existing social footprint to draw viewers to the newer AVOD offering.  The Vix execs also said selling ads directly is a key component to their business model. Visit Insider's homepage for more stories. The Spanish-language streaming company Vix launched its ad-supported OTT service in Brazil on Friday, adding to the growing number of services that are expanding the market for advertising video-on-demand (AVOD) internationally. Other free streamers including Pluto TV and Tubi have also pushed abroad in recent months with the help of corporate backers like ViacomCBS and Fox, respectively. Their international expansions come after subscription players like Netflix and Amazon made streaming a global habit, but also experienced growing pains in markets like India where their price points were steep compared with local competitors. Ad-supported streaming video, which is usually available for free or cheap, faces its own challenges in expanding globally, such as building out local libraries without the support of subscription revenue, and attracting local advertisers. The landscape is also getting more competitive as legacy players venture into the AVOD space, like NBCUniversal's Peacock. Two top Vix execs talked with Business Insider about how they're tackling the unique hurdles in AVOD's international expansion and the lessons they learned from streamers like Netflix. Vix, founded as a digital-media outlet for viral videos and stories aimed at US Latino and Latin American audiences, acquired in 2019 Pongalo, a company that runs Spanish-language streaming services. The deal helped Vix, which counts Discovery and private-equity firm HarbourVest Partners among its investors, launch an AVOD offering that has become a major player among Latino audiences. Vix said it was on track to hit 10 million app installs in August, up from the 5 million it told the Los Angeles Times it had in July. The app has risen in Roku's app rankings in recent months, as well, Variety reported. Vix launched its AVOD service in both the US and Mexico last year, but held off on pushing into the lucrative streaming market of Brazil because of the language barrier. Most of Vix's now-20,000 hours of programming was in Spanish, while Portuguese is the dominant language in Brazil. The company had to build up a library of local-language content before expanding into the region. Subscription services like Netflix found international success in part by building local libraries.  "Netflix did a lot of things right, particularly in terms of reaching out to local directors and producers to make sure the the programming they're making is appropriate for the market," Alan Wolk, analyst at TVREV, told Business Insider. "That was a great lesson for everybody else on how to roll things out internationally." Vix went to some of the same content owners it licensed Spanish-language movies, series, and novelas from to acquire Portuguese-language programming. "We were able to go to them and ask them to add Portuguese content into their deals with us," said Rich Hull, Vix's chief strategy officer and founder of Pongalo. "We were able to shortcut that process ... Sourcing and licensing content is a really time-consuming process and it's a very specialized art." Vix is leaning on its existing social footprint to draw audience to its streaming-TV app Vix is leaning on its larger social following to draw audiences to its OTT app in Brazil, as it has in other markets. The company garnered more than 700 million video views on Facebook in July, according to data from measurement firm Tubular Labs.  In Brazil, Vix said it had roughly 30 million followers across its Facebook, Instagram, and YouTube channels. The company is using social to help program and market its AVOD offering to local audiences. For example, Vix's short-form videos about the British royal family tend to over-index in Brazil. Audiences there are "obsessed with the royals," Hull said. So Vix licensed more movies and TV shows about royals and is using the short-form videos on its social channels to draw audiences to that longer programming.  "That social web, OTT funnel that we built is kind of our secret sauce," Vix CEO Rafael Urbina said. Vix says its AVOD model is a 'flywheel' and direct ad sales are key to it Attracting local advertisers can be another challenge for ad-supported platforms expanding into new markets. The concept of AVOD is still relatively new outside of the US. Vix said it points to its success in similar markets, like Mexico, in its pitches to advertisers, as well as its standing in globally recognized app store's like Roku and Google Play Store. In Brazil, Vix is also leveraging its existing ad-sales team, which has direct relationships with local advertisers as part of the company's social-video business. It landed a sponsorship deal with local food brand Perdigão for a Brazilian BBQ-themed on-demand channel on its AVOD service, for instance. The Vix execs said selling ads directly is key to the company's business model, because it generally secures higher CPMs, a common metric for ad rates, than when selling through programmatic exchanges. Direct sales don't always carry higher CPMs than ads sold through third parties, said Brian Wieser, global president of business intelligence, at WPP's media arm, GroupM. But TV and streaming advertisers typically care more about the context — the shows and platforms — their ads are airing in than many other digital advertisers, so it makes sense that an AVOD platform would be able to realize higher CPMs by selling directly. "When it comes to TV, almost all advertisers do care about the context," Wieser said. Vix said the higher rates also help increase revenue, which gives the company more money with which to vie for content-licensing deals. Vix, as a whole, expects to bring in $20 million in revenue in 2020, up 40% from 2019. "The AVOD business model is kind of a flywheel," Vix CEO Rafael Urbina said. "You need audience. To get the audience, you need content. But to sustain the content, you need ad sales." Vix said it caps ad loads at 10 minutes per hour. That's less than most traditional-TV channels, but more than AVOD services including Tubi that run 4 to 6 minutes of ads per viewing hour. Join the conversation about this story » NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly
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According to a report from advertising media company GroupM, Pinterest has about $1.4 billion of outstanding restricted shares held by the company's 1,800 employees as part of their compensation packages.The report says the average Pinterest employee has about $700,000 in equity based on the $12 billion valuation from its last funding round in 2017.According to the report, Pinterest's conservative pricing may help set investor expectations by tempering internal disruption and high employee turnover.The average equity held by Pinterest employees is less than was the case with Snap employees when it went public in 2017, GroupM says, but still represents a significant risk of employee turnover after the IPO."At these levels Pinterest employees will be heavily impacted by stock performance," writes GroupM head of business intelligence Brian Wieser in a public report.A volatile stock price after an IPO can cause internal disruption and excessive employee turnover, he writes.
The trade press’s most famous source for real-time analysis, industry trends and commentary is going in-house: WPP’s GroupM hired Brian Wieser for its the newly-created role of global president, business intelligence.In the role, Wieser will be tasked with driving and expanding GroupM’s thought leadership practice and collaborating with GroupM agencies and the broader WPP network to gather and analyze marketplace intelligence to provide clients with insights on markets, audiences, platforms, partners and industry dynamics.Wieser will remain based in Portland, Oregon, reporting to global CEO Kelly Clark.“We are thrilled to welcome Brian to our team,” Clark said in a statement.“He has a deep understanding of economic and industry dynamics, consumer behaviors, media partners and technology platforms.He is uniquely suited to create insightful analysis that will help our clients make marketing investment decisions.”
Facebook was under pressure in the second half of 2018, falling 34% from its record high set on July 25.The social-media company was rocked by the Cambridge Analytica data scandal in March, and got hard hit after posting brutal earnings in July.Public scrutiny over Facebook's data protection is unlikely to stall its long-term progress as users are still sticking to the community, according to Rob Sanderson, managing director at MKM Partners.Sanderson added that US regulators won't be too harsh on Facebook for fear of hurting innovation.What Facebook experienced in the past year was just a "wake-up call," and the company's long-term fundamentals are still solid, an analyst says.2018 was a year to forget for Facebook investors.
A third of the revenue come from co-op budgets, where Amazon promotes a brand's products based on how well an item is selling.Amazon's ad business continues to fascinate brands as an alternative to the duopoly of Facebook and Google.Amazon is proving to be the sleeping giant of advertising.Amazon made roughly $9 billion from advertising spending in 2018 (bucketed as "other" revenue in the company's earnings) and is expected to hit $38 billion in the category by 2023, more than quadrupling in five years.Read more: Amazon wants to give Facebook and Google a run for their money in advertising — here are the 6 execs making it happenRetailers are putting sales dollars into advertising
The traditional television advertising business is increasingly under threat as Americans shift their viewing habits, Pivotal Research Group analyst Brian Wieser said in a new report.New data from Nielsen indicates that streaming video services are making significant gains against ad-based broadcast and cable television networks.TV ad spending already is declining, but things could get worse, Wieser said.Streaming video could soon have a big impact on the TV ad business— even bigger than it's already had.Americans are increasingly watching video on their televisions via streaming devices such as Roku's players instead of from traditional broadcast or cable services, noted Brian Wieser, a financial analyst with Pivotal Research Group, in a new report.That's bad for the ad industry, because the kinds of video that consumers are streaming are less likely to have advertisements in them than those from broadcast or cable.
After this week, there is no doubt that WPP CEO Mark Read plans to fulfill his promise to bring a “radical evolution” to the biggest name in advertising.The news that J. Walter Thompson will merge with Wunderman is no less dramatic for being somewhat expected.To many industry observers, the only real unknown was which creative shop would join forces with WPP’s secret weapon to bring the one-two punch of digital and creative services to clients around the world.During October’s Q3 earnings call, Read acknowledged that the quarter had been “tough” and said the company needed “to take decisive action and [adopt] more radical thinking” as Omnicom overtook the network in market value.“Killing off the JWT brand is a big, bold, brave move,” said Tom Denford, North American CEO of search consultancy ID Comms.Denford, whose firm has overseen recent global media reviews for Mars, McDonald’s, GSK and LVMH, noted that JWT was “one of the few ad agency names recognized by the public” but said its “operations hadn’t kept with the times and sometimes seemed outdated.”
Media agencies are under fire from a number of fronts, but they aren't taking the existential threats to their model lying down.Marketers continue to complain about a lack of ad buying transparency from their agencies.In fact, they are vowing to fight off disruption — often by building out new services and divisions that go beyond just buying lots of ad space.Agencies, including UM and Mindshare, have set up business intelligence groups and agile development teams, to help clients tackle broader business problems.UM, for instance, has established a team with over 500 people globally whose primary job is to analyze data and apply it to clients' media plans, according to global CEO Daryl Lee."It helps us combine AI with real human insight and get deep insights at scale," said Greg James, global chief strategy officer at Havas Media.
Compared to a year ago, time spent on the social network has fallen by almost 7%, according to an analysis of new Nielsen data.The amount of time people are spending on the Silicon Valley company's main social network has dropped by almost 7% from a year ago, according to new data from research firm Nielsen that was highlighted in a recent research note by Pivotal's Brian Wieser."Overall, including Facebook, Messenger, Instagram and WhatsApp, Facebook's share of digital consumption was at 15.2% vs. 16.9% in the year-ago period," Wieser wrote in his note.Facebook will have around a 23% share of US digital ad revenue this year, he said, noting that percentage is significantly higher than its share of users' time.A new study of teens by Common Sense Media cited by Axios found that only 15% of those aged 13 to 17 said their "go-to social site" was Facebook.In 2012, it was the go-to site for 68% of that age group.
Google and Facebook have made the headlines so frequently in recent days that news about them is beginning to sound more like salacious celebrity gossip than reports about tech companies.In fact, one recent headline claims that “Google consumes one-third of our digital minds.”The headline was inspired by a study by Brian Wieser, a researcher at Pivotal, that found consumers spent 34.2% of their time online in June using Google products, including Waze and YouTube.If consumers are no longer spending as much time on Facebook and have migrated to Google, should advertisers follow suite?Then, a month after the GDPR took effect, it was announced that Facebook’s stock dropped 20%, losing $120 billion in value.And most important for marketers, Facebook ads are getting more expensive, yet people seem to be less receptive.
The ad-tech sector has taken it on the chin over the last couple years, with the ever-growing dominance of Facebook and Google, early stage investors impatient for an exit and increased public scrutiny over the use of personal data for ad targeting.However, The Trade Desk, which primarily offers a programmatic media buying tool known as a demand-side platform (DSP), continues to post impressive financials since listing publicly in 2016.Last week the company reported revenues of $112 million for the three months to June 30, representing a rise of 54 percent year-over-year, with the California-based outfit further increasing its full-year forecast to $456 million, up from its earlier $433 million estimate.Speaking on the company’s subsequent earnings call, The Trade Desk CEO Jeff Green commented that his company was able to benefit from some of the headwinds faced by the rest of the industry such as the EU’s General Data Protection Regulations (GDPR) and marketers’ increased focus on transparency in programmatic trading practices.These numbers clearly impressed investors with its stock pricing rising by more than 36.4 percent, valuing it at circa $5 billion within the 24-hour period after the filing.However, despite the prolonged success of The Trade Desk on the public markets, some have questioned whether or not its much-vaunted success and market valuation is overinflated, especially in the long term.
The company said users logging in at least once a day dropped for the first time, hitting 188 million over the three months ending June 30, down from 191 million earlier this year.Evan Spiegel, Snap's CEO, blamed much of the poor results on an unpopular redesign that was released six months ago that was so unpopular social media influences like Kylie Jenner openly expressed their disappointment.Mix that with a controversial ad shown on Snapchat making light of domestic abuse involving the pop star Rihanna, and Snap just can't seem to get things right lately.Even before its earnings report, news shot around the internet that the social network had failed to properly lock down its iOS app, leaking portions of the source code to its app."These results do not cause us to alter our longer-term view by much," wrote Pivotal Research analyst Brian Wieser in a note to investors.He has a "sell" rating on the stock.
Today, Interpublic Group confirmed rumors that it will pay more than $2 billion to acquire Acxiom, an Arkansas database marketing company that collects and distributes information drawn from an estimated 2.2 billion consumers around the world.The holding company believes that this acquisition will help clients better target their ads while relying less exclusively on tools provided by tech giants such as Facebook and Google.According to at least one prominent analyst, the news should put to rest all speculation about IPG going up for sale.“The conclusion to draw is that IPG is willing to invest, period.It’s not something they’d done in the past 20 years,” said Brian Wieser of Pivotal Research Group.“This indicates that they’re moving forward as a standalone company.”
AT has acquired digital advertising technology company AppNexus, it said Monday, signaling that the telecom giant is looking to become a bigger player in digital advertising and siphon digital ad dollars from Google and Facebook.The deal, reportedly worth around $1.6 billion, will bring AppNexus’s digital advertising capabilities under AT’s expanding roof.AT will likely use AppNexus’ capabilities to better leverage its existing customer data and its vast portfolio of television content it just acquired in a landmark $85.4 billion merger with the entertainment giant Time Warner.Buying AppNexus also gives AT a chance to square off with its biggest corporate rival, Verizon.In 2017, Verizon acquired AOL and Yahoo, now known as Oath, giving Verizon access to advertising technology as well as digital content operations.These acquisitions over the past year signal that the telecom companies may be pursuing similar strategies to compete in the digital ad space: Create the content, distribute the content, sell the content.
Digital disruption is infiltrating the local sports page thanks to a new publication that opened its doors with something many newspapers have fought for years: a paywall.The Athletic, a subscription-based sports website, debuted with its Chicago vertical in January 2016 and has substantially grown by recently raising $20 million and expanding its subscriber base to six figures.(The Athletic declined to provide either its audience figures or demographic information, other than a rep noting “our readers run the gamut—fans of all kinds.”)As more publications introduce a paywall, including Vanity Fair, Bloomberg and Business Insider (and Adweek), media experts say The Athletic’s model is unique because the company is growing through attracting loyal subscribers, luring them with the promise of high-quality journalism that’s not interrupted by advertising.That’s the million-dollar question,” said Rebecca Lieb, co-founder and analyst at Kaleido Insights.With the $20 million it just secured, The Athletic is looking to expand into more markets and hire for its headquarters in San Francisco to support that growth, said The Athletic COO Adam Hansmann.
Daniel Gallant, the cafe’s executive director, said he was spending too much money on print without verifiable results, and he couldn’t make last-minute changes.Facebook, even before it catered to small and midsize businesses (SMB), solved his problem.Now, the tools are so comprehensive that it’s “far and away the most effective and powerful means of connecting content with spectators that will benefit from it,” Gallant said.And Google has enjoyed similar dominance in the search sector.Those platforms do two things exceedingly well for SMBs that lack manpower and time: They’re extremely effective at reaching target audiences, and they’re convenient.“If you’re only spending $1,000 per month and you don’t monitor and optimize, you only have time for one or two platforms,” said Brian Wieser, senior analyst at Pivotal Research Group.
Facebook's troubles with Russian election meddlers , "fake news " and misused data have dominated headlines globally.But they don't seem to be affecting Facebook's bottom line, so far, as advertisers continue to flock to the service in droves.Advertisers rely on the reams of data Facebook collects on its 2.2 billion users to specifically target their ads — baby shampoo to someone who is likely a new mom, for example — thus increasing the value of their ad spending.But Facebook has been facing backlash about how it uses that data since news broke in March that the Trump-linked data-mining firm Cambridge Analytica had gained information on up to 87 million users.A few companies, including the German bank Commerzbank and speaker-maker Sonos, temporarily paused their ads.But advertisers have shrugged off the scandals in the aggregate.