05/20/24: Cynopsis Media Tech Update

Medias First Morning Read
Monday May 20, 2024

Reddit has partnered with OpenAI for a deal that allows use of its data for training AI models. OpenAI will gain access to Reddit’s Data application programming interface, and Reddit will offer AI features to users and moderators, powered by OpenAI. “Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything,” said Steve Huffman, Reddit co-founder and CEO in a blog post. “Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit.” OpenAI will also become a Reddit advertising partner.

As tensions between the US and China mount, Microsoft has offered to relocate 700-800 employees in its China-based cloud-computing and AI operations, according to The Wall Street Journal. The staffers, mostly engineers with Chinese nationality, were offered the opportunity to transfer to countries including the US, Ireland, Australia and New Zealand. Employees have until June to decide whether to make the move, a source told WSJ.

Apple announced new accessibility features for the iPhone and iPad, including Eye Tracking, Music Haptics and Vocal Shortcuts. “Each year, we break new ground when it comes to accessibility,” said Sarah Herrlinger, Apple’s Senior Director of Global Accessibility Policy and Initiatives. “These new features will make an impact in the lives of a wide range of users, providing new ways to communicate, control their devices, and move through the world.”

Sony Music Group has notified 700 AI developers and streaming services that it is opting out of having its content used in the training of AI. “Due to the nature of your operations and published information about your AI systems, we have reason to believe that you and/or your affiliates may already have made unauthorized uses (including TDM [text and data mining]) of SMG Content in relation to the training, development or commercialization of AI systems,” states a letter to the companies, which adds that AI developers who want to train their technology on Sony’s IP will have to clear it with the company first.

What ban? Despite facing regulatory challenges, TikTok is experiencing a 27% increase in clickthrough rate (CTR) month-over-month, according to a report from data analytics platform, Tracer. Other takeaways include:
· Big changes for X: Although the average CPM for April experienced a small slowdown, this change was coupled with huge increases in CTR.
· Instagram and Pinterest remain strong: Instagram and Pinterest continue to show significant year-over-year growth in CTRs and sharp decreases in CPCs. This pattern affirms the impact of Meta’s focus on algorithm optimization and Pinterest’s new interactive features and advertising formats.

Snapchat has partnered with first-party data company Datahash to help its customers adopt Snap’s Conversions API (CAPI). While it takes time and technical resources for advertisers to implement CAPI on their own, notes Snapchat in a blog post, Datahash setups often take only about 15 minutes to get up and running, with no coding required. In addition to rapid implementation speed, Datahash also delivers strong Event Quality Scores (EQS), a way to measure signal quality on Snap. “We see +25% improvements in purchase value and an 18% decrease in costs simultaneously, when advertisers have implemented both CAPI and the Snap Pixel,” said Sid Malhotra, VP of Small & Medium Customers, Snap Inc.

AI

A bipartisan group of four senators has recommended that Congress draft emergency spending legislation to boost US investments in artificial intelligence, including new research and development and new testing standards. The group also recommended new requirements for transparency. “It’s complicated, it’s difficult, but we can’t afford to put our head in the sand,” said Chuck Schumer, D-N.Y., who convened the group last year.

OpenVault is expanding the capabilities of its Proactive Network Maintenance (PNM), Profile Management Application (PMA) and other troubleshooting solutions for broadband networks, integrating an array of AI functionality that will complement existing machine learning algorithms. To protect broadband provider and consumer data, OpenVault is building on Open Source AI to host and train AI models that are specific to the needs of its broadband industry customers. “AI will be a force multiplier for broadband technical teams, but the industry needs to take great care in choosing the right solutions,” said Brady Volpe, Chief Product Officer for OpenVault. “Because the safety of data needs to be paramount, operators need to ensure that their AI implementations are decoupled from corporate tools such as OpenAI.” The initial use case, a multifaceted support tool for technicians, is anticipated for later in the current quarter.

PilotDesk, a no-code AI workflow automation platform for ad operations and account management, has secured over $3 million in financing from investors led by Ardent Venture Partners and AperiamVentures. PilotDesk’s no-code automation platform, purpose-built for the adtech industry, is platform agnostic. It automates repetitive tasks that to date have required manual, administrative work like campaign setup, budget monitoring, and yield management. “PilotDesk is spearheading the AI revolution in ad operations,” said Phil Herget, General Partner, Ardent Venture Partners. “By freeing up teams to focus on strategic efforts, PilotDesk is paving the way for a more efficient and human-centered era in advertising technology.”

WSC Sports announced the creation of a generative artificial intelligence group. “We have been an AI company first and foremost for over a decade. Creating this group is the logical next step given advances in the technology,” said CEO and Co-founder Daniel Shichman. “Our team is actively developing new Gen AI products that include various features with text, audio, and video in coordination with design partners at some of the most recognized sports brands in the world. We believe Gen AI will unlock even more opportunities for teams, leagues and broadcasters to create new fan experiences and have released our first product in AI generated audio commentary.”

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MEASUREMENT

Nielsen launched The Media Distributor Gauge, a cross-platform view of total TV consumption across broadcast, cable and streaming, aggregated and ranked by media company. This new insight is created by mapping all the various national media distributors — including broadcast and cable networks and streaming services — up to their parent company. Nielsen calculates the total minutes viewed on the TV screen for each network’s services and aggregates those totals based on initial distributor mapping, ultimately arriving at a share of total TV usage for each parent company. The minimum reporting threshold for a parent company is a 1.0% share of TV. Disney was the top performer in April, accounting for 11.5% of TV viewing, with 42% of its share attributable to viewing on Disney+ and Hulu. YouTube was the No. 2 overall company with a 9.6% share of TV in April, followed by NBCUniversal at 8.9%, Paramount at 8.8%, and Warner Bros. Discovery at 8.1%. Netflix was sixth with 7.6% of TV.

The Advertising Research Foundation released findings from the second phase of its Attention Measurement Validation Initiative. Key takeaways include:
· The study identified significant differences in the consistency of attention measurements across various methodologies, highlighting the challenges in achieving uniformity in how consumer attention is quantified.
· Findings underscore the critical role of creative elements and media platforms in capturing and sustaining consumer attention.
· The initiative has established guidelines for assessing the reliability and validity of attention measurement tools.

“The detailed insights from Phase Two of our Attention Measurement Validation Initiative mark a significant step forward in understanding how attention is measured across the industry,” said Scott McDonald, CEO and President at ARF. “Our findings provide a clearer picture of the degree of congruence among current methodologies and pave the way for better-informed use of attention metrics by marketers trying to up their creative game.”

STREAMING

TV and streaming content have a greater impact on Gen Z viewers’ emotions, engagement and actions than social media. That’s the chief takeaway in a new report, Laugh, Cry. Share, Buy: How TV & Streaming Influences Gen Z More Than Leading Social Platforms. The report, released by the VAB, presents insights, based on research conducted in partnership with Hub Entertainment Research. Among the findings:
· Gen Z viewers are 42% more likely to have cried because of something they watched in TV or streaming content versus TikTok content.
· Gen Z are 100% more likely to enjoy the quality time they share with friends or family watching premium video content versus Instagram content
· Gen Z are 40% more likely to set aside time to enjoy their favorite premium video content versus YouTube content.
· Gen Z are 70% more likely to regard watching content on premium video platforms as “me time” versus Instagram content.
· Gen Z are 24% more likely to model their personal style after a character, actor or personality from premium video content versus TikTok content.
· Gen Z shoppers are 51% more likely to purchase clothing similar to what a character, actor or personality from premium video content wore versus YouTube content.

“While, at the end of day, streaming and social media ultimately complement each other, the emotional connection that streaming evokes is undeniable,” said Danielle DeLauro, EVP, VAB. “The platforms and brands that make the conscious decision to continue leaning into that connection will be the ones primed to drive the most engagement, sales and importantly, brand loyalty among these young customers.”

Bundle up! A streaming bundle of Peacock, Netflix and Apple TV+ called StreamSaver is headed to consumers this month, said Comcast CEO Brian Roberts at the MoffettNathanson Media conference. The offering will be introduced at a “vastly reduced” price from anything currently on the market, according to Roberts. Disney and Warner Bros. Discovery ‘s Disney+/Hulu/Max combo is scheduled to launch this summer.

As rivals like Disney, WBD and NBCU form alliances to win the streaming wars, data suggests the strategy is a smart one. In the past six months, SVOD subscribers migrating to ad-tiers increased by 52%, according to Circana’s TV Switching Study, which also showed 75% of US households now subscribe to at least one ad-supported SVOD service, up from 55% six months ago. Among those that subscribe to a bundle of SVOD services, 49% see it as a good way to save money and 45% would like more customizable bundled options available. “Cost management is playing a prominent role in consumers’ TV consumption decisions, and this focus is bolstering the proliferation of ad-supported TV,” said John Buffone, VP and Media Entertainment Industry Advisor at Circana. “This behavior presents significant opportunities for advertisers as these audiences are poised to scale rapidly. And this suggests the industry will reap the rewards of recent and upcoming strategies to bundle SVOD services, even when bundling with competitive platforms.”

Outdoor America and former San Diego Chargers and Buffalo Bills linebacker Shawne Merriman have teamed for new streaming service “Lights Out Sports.” The free ad-supported streaming service will contain a variety of sports, entertainment and outdoor lifestyle programming.

Canela Media struck a strategic partnership with WBD Conexión Latina, adding over 16 million monthly US Hispanic Adults, to increase Canela Media’s scale to over 45 million monthly uniques across its portfolio, and reaching over 40% of the bilingual US Hispanic population. “This partnership underscores our commitment to delivering targeted advertising solutions that resonate deeply with diverse audiences, empowering brands to connect effectively in today’s multicultural landscape,” said Isabel Rafferty Zavala, Founder & CEO of Canela Media.

Music video network Vevo has partnered with TCL to launch live linear-programmed channels on streaming service, TCLtv+. The channels will include official releases and live performances, as well as originally produced content by Vevo.

DAZN announced the launch of 10 new channels, including two new boxing channels, in collaboration with Amagi. “Through DAZN’s free tier, fans will be able to access a huge range of sport for free, including even more of the best combat sport. Leveraging DAZN’s worldwide reach and market-leading technology, these channels will unlock the best sports action in new ways,” said Shay Segev, DAZN Group CEO.

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TV/VIDEO SPONSORSHIP-PRODUCT INTEGRATION SALES REPRESENTATIVE
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>>
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