05/18/23: Cynopsis Upfront Report: Thursday

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Cynopsis Medias First Morning Read
Thursday May 18, 2023

On the Ground During Upfront Week: Thursday

Streamers rounded out 2023 Upfront week, working toward multiplatform, multi-currency measurement, multi-device viewership and new ad formats. Over the course of the week we’ve heard about “unmissable,” “unrivaled” and “limitless” possibilities, and Day #3 was no exception. One thing was different at YouTube’s event at Lincoln Center’s David Geffen Hall: no striking writers, since videos are mainly made by content creators who aren’t guild members.

But first, a note on traditional television. “Linear TV ratings and viewership have declined dramatically to the point where you can’t build effective reach and business results without taking a screen agnostic approach to video,” said Stephen Magli, CEO and founder of AI Digital. “Therefore, this Upfront season we are hopeful that we will finally see a true transition to an audience based and screen agnostic approach to video. In addition, we hope that within the context of the upfront, programmatic trading, targeting, optimization and measurement will play a more prevalent role. This approach offers advertisers greater financial flexibility, dynamic optimization, and accountability towards upper funnel and lower funnel actions without sacrificing content quality.”

Easing the transition in measurement for advertisers is key, notes Paramount Advertising President John Halley: “Nielsen says it is sunsetting C3 and C7 in the fall of 2024. The implication of that is enormous. There will be no more status quo in currency. At Paramount, it’s our job to make this transition as simple as possible for our agency partners. We are committed to working together to minimize the disruption, and we think this broadcast year is a vitally important period of transition. Paramount has really been a leader in this arena out of necessity, and we’ll continue to be.”

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“The world watches YouTube.” With an assist from video creator and singer Jacob Collier, YouTube’s Brandcast rolled out the red carpet for some of the platform’s biggest creators. Amelia Dimoldenberg of “Chicken Shop Date,” Airrack, and Colin and Samir unpacked news of the company’s partnership with the NFL, as well as partnerships with brands like Hershey, Nissan and Walmart. Whether through 15-second Shorts or 15-hour live streams, the company reported that more creators are flocking to YouTube than ever before, driving engagement for advertisers. “When YouTube first launched, it opened up new possibilities for people around the globe to create,” said CEO Neal Mohan. “Now every one of us has the power of a production studio in the palm of our hands. The universe of ‘creators’ is growing every day as more people make videos on their phones. This limitless access means the world of creation is changing. Fans used to engage with a like or subscribe. But now, you can see a trend and easily jump in with your own video.”

According to the latest Nielsen Gauge Report, YouTube viewership increased last month, making the platform the No. 1 most-watched streaming service for TV in America. YouTube reached over 150 million people on connected TVs in the US, continuing as the leader in streaming watch time. “Viewers, especially younger viewers, no longer make a distinction between the kind of content they’re watching,” said Mohan. “When they turn on the TV, they want everything they love in one place — from their favorite creators, to blockbuster movies, to football. And they can find it all on YouTube.”

News that the company is bringing 30-second unskippable ads to YouTube Select on CTV (kind of like we’ve seen on linear since TV ads began) drew applause. The spots offer advertisers “longer-form storytelling on those screens to build awareness and ROI to their brands,” said Sean Downey, president of ad sales for Google.

NFL Commissioner Roger Goodell was on hand to discuss the NFL’s partnership with YouTube. “NFL Sunday ticket is only the beginning,” he said. The YouTube/NFL partnership includes MrBeast, the No. 1 individual creator on YouTube with 153 million subscribers, to create behind-the-scenes football content. “The fact is, millions of football fans are on YouTube to catch all things NFL,” Goodell said. “This partnership will build on the success we’ve seen on YouTube’s platforms with our most sought-after content.” And if that wasn’t enough to excite the audience, YouTube Chief Business Officer Mary Ellen Coe announced all guests will receive this year’s NFL Sunday Ticket, free of charge.

Downey talked about platform transformations happening with AI, noting, “You can build your brand here, because it’s the place where the world comes to watch.” Helping to scale and multiply creativity, AI can trim videos or flip them for the right format, moving business markets at the speed of consumers. Neal Mohan thinks generative AI is at an inflection point. “Our teams are already using AI to get ads in front of the right audiences, to improve measurement, or to flip a creative to reach viewers wherever they’re watching, from Shorts to the living room,” he said. “But this is really just the beginning – simply put, AI will transform the way we make videos. You can imagine that with just the click of a button, I could change my hair color or change my background to instantly transport myself from the desert to a forest. Google AI is accelerating creativity, and the possibilities will extend beyond anything we can imagine today.”

Doja Cat, the American rapper who was propelled to stardom by the viral video “Mooo!” on YouTube four years ago (which now boasts over 123 million views), headlined the video company’s presentation with a performance of her Grammy-winning songs.

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Joining the Upfront lineup for the first time, Netflix positioned its upcoming content front-and-center for advertisers on Wednesday. Peter Naylor, VP of global ad sales at the company, said, “We are just getting started.” Netflix announced that its ad-supported plan has nearly five million monthly active users globally, adapting to the way people consume TV and video. Describing a multi-day, “30-minute commercial” ad format, co-CEO Ted Sarandos said, “This isn’t going to happen overnight, and maybe not even next year. It’s just one idea.” Co-CEO title Greg Peters observed, “We share a common goal, which is building connection. You want to connect consumers with your amazing brands. And we want to connect them with amazing entertainment they’ll love.” Referring to a phenomenon dubbed “The Netflix Effect,” executives punctuated the idea of the company’s role in creating and curating moments and trends in culture.

This year, Netflix had the No. 1 original TV show on streaming in the US for 15 out of 17 weeks, and the number one movie for 14 weeks, according to Nielsen. Chief Content Officer Bela Bajaria credited this to Netflix’s priority of “super serving our audience – giving you something you will really love, that will really satisfy you.” She continued, “To super-serve our members, we have to focus on quality, with the understanding that quality, like beauty, is in the eye of the beholder.”

“We are building a forever business,” said Jeremi Gorman, president of Worldwide Advertising, noting that in the first six months the company “worked hard to be brilliant at the basics, focusing on areas advertisers told us matter most – like geo, age, and gender targeting; third-party verification and deploying the right brand suitability mechanisms for [advertisers] to make the best decisions for [their] brand.” And “while we’re focusing on reaching parity, we’re also innovating. We treat our ads with the same care we treat our incredible content: serving them locally; seamlessly transitioning between shows and ads with no latency; and implementing industry-leading frequency caps with an ad load of four to five minutes per hour.”

Projects from Netflix include:
– “All the Light We Cannot See, Griselda” season one
– “3 Body Problem” season one
– “Bridgerton” season three
– “Stranger Things” season five
– “Formula 1: Drive to Survive” season six
– “Outer Banks” season four
– “Cobra Kai” season six
– “Ginny & Georgia” seasons three and four
– “Virgin River” season six
– “The Night Agent” season two
– “The Diplomat” season two
– “Love is Blind” season five premieres in September
– “Squid Game: The Challenge” season one debuts in November
– “The Crown” sixth and final season premieres this fall

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SEEN & OVERHEARD

YouTube CEO Neal Mohan said, “From the very start of my career, I’ve been inspired by all the ways advertising funds creativity online.”

YouTube’s Brandcast presentation took over Lincoln Center’s David Geffen Hall and plaza, offering color-changing cocktails, branded cold brew martinis, snacks and more.

When discussing her YouTube series “Chicken Shop Date,” host Amelia Dimoldenberg said it’s about “following me on my endless journey to find the one… And by ‘the one,’ I mean Drake.”

Airrack, the YouTube creator who partnered with Pizza Hut to make the world’s largest pizza earlier this year, handed out pizza cookies to attendees.

Jacob Collier performed a rendition of Queen’s “Somebody to Love” during YouTube’s Brandcast.

YouTube creators spent time at Lincoln Center’s Josie Robertson Plaza before the show, filming TikToks – and YouTube content, no doubt.

WGA picketers around New York City held signs today that read, “Hey AMPTP, ‘As if!’” “Boy Meets Residuals,” “Hi-ho hi-ho it’s off to work we go,” and “Grandmas stand with WGA.”

And that’s it for events – tomorrow, we’ll offer a recap of Upfront week 2023, plus a look at what changes could be in store for next year.

Cynopsis Team

Lynn Leahey
Editorial Director
@Lynn_Leahey

Kerry Smith
Division President
Access Intelligence

Robbie Caploe
VP/Group Publisher
@robertacaploe

Executive Director of Sales
Albert Nassour
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