CYNOPSISDIGITAL
05.26.16

Good morning. It’s Thursday May 26, 2016, and this is your first early morning digital briefing.

Frequency Capping: As a general rule in online advertising, showing users the same ad too many times will lead to diminished response, and possibly to lasting hostility toward one’s brand. That’s where frequency capping comes in. Ad-buyers use frequency caps to restrict the number of times that a specific website visitor is shown a specific advertisement. The restriction is applied to all websites serving ads from the same advertising network.
 
 

As a Financial Times report foreshadowed last week, the European Union’s European Commission has proposed new regulations that would subject streaming sites such as Netflix and Amazon Prime to 20% quotas for European content in their catalogues. Netflix has forcefully opposed against such requirements, yet it remains to be seen just how harmful they will prove to the biggest streaming companies; Netflix and Amazon, for example, have already been stocking up on local European content, both licensed and original. In fact, the companies have made no secret of the fact that such acquisitions are crucial to their business strategy as they continue to expand globally. Potentially more damaging than the 20% quotas is another aspect of the proposal, which would allow any of the 28 EU member states to require that streaming services help finance European-made productions. In any event, for the measure to go into effect, European lawmakers would first have to approve it.
 
Yet another twist in the Yahoo saga: AT&T, which initially sat out the auction of Yahoo’s core business, has swooped in with an offer, according to a report from Bloomberg. The telco faces off against its rival, Verizon, which has widely been considered the most likely buyer. AT&T already owns a joint stake (along with The Chernin Group) in the digital media venture Otter Media, which owns Fullscreen Media. And DirecTV, which AT&T acquired last year, will soon be launching three OTT services. Suffice to say, acquiring Yahoo does seem in keeping with AT&T’s latest efforts to expand its digital media presence. And keeping Yahoo out of Verizon’s hands would likely be a solid bonus as well.
 
According to a report from BuzzFeed News, Twitter has ended development on its product pages and its “Buy” button. BuzzFeed reports that the company has also disbanded its commerce team and moved its members into other divisions and notes that, while the pace of social commerce has been slow, Twitter’s Dynamic Product Ads (product ads shown to Twitter users based on their browsing activity) have been more successful. “We made a change 3 months ago to INCREASE our investment in commerce by moving fully into Dynamic Product Ads after seeing the great early results,” a Twitter spokesperson told BuzzFeed in a statement.
 
 

According to comScore’s Q1 2016 advertising report, programmatic video ads see a high rate of fraud. “Video ads on programmatic exchanges – where there is less transparency – have Invalid Traffic (IVT) rates 4.5x direct buys,” the report says. ComScore also finds that roughly half of all programmatic ads “don’t have the opportunity to be seen.” Contributing to the problem are ad-blocker use, instances in which winning bids on premium sites are lost when an ad doesn’t serve in time, and, of course, intentional fraud. According to the report, it’s somewhat easier to manage fraud with programmatically purchased display ads than with video ads.
 
 

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Magic Leap, the secretive mixed-reality startup that’s managed to raise roughly a zillion dollars from Google and other investors, announced a new partnership with the communications company Twilio. Magic Leap will be integrating Twilio’s services and tools into its SDK (software development kit). The integration will likely be used to develop Magic Leap’s holographic messaging ambitions. (Picture Superman’s conversation with a holographic facsimile of Jor-El, and you’ll have some idea of what Magic Leap is gunning for.) Magic Leap also announced that 10 developer teams from Twilio will get early access to the new tools, helping to build Magic Leap’s new mixed-reality hardware.
 
 

 
ICON Network, the Michelle Phan-helmed digital lifestyle network from Endemol Shine Beyond, is launching a new Asian channel. Simply called ICON Asia, the network will feature original series from emerging Asian creators, including beauty specialists Michelle Dy and Sichenmakeupholic. The network will be headquartered in Singapore.
 
Speaking of ICON Network, beauty-themed ICON creator NataliesOutlet recently hit the one million-subscriber mark. The creator, who is also starring in the new ICON series #LifestyleGoals, launched her channel launched less than two years ago.  “I honestly feel like a proud mother having discovered Natalie when she was only at 7,000 subscribers and seeing how much her channel NataliesOutlet has grown over the last year since she signed with the ICON Network,” Leslie Morgan, VP of Programming for Endemol Shine Beyond USA, told Cynopsis Digital.  “From the beginning, Natalie had the perfect blend of charismatic personality mixed with incredible creative sensibility in her shooting and editing style. This, paired with her ability to execute strong format concepts, has really resonated with her audience.”
 

 
It’s easy to install an ad blocker, click the skip button, or fast-forward. But consumers can’t ignore a solidly executed out-of-home marketing campaign.
 
On average, consumers spend 70% of their waking hours outside the home. And on a weekly basis, out-of-home advertising reaches 96% of U.S. consumers. So it’s no surprise that out-of-home campaigns are just about the most reliable investments that marketers can make. A recent report from the Outdoor Advertising Association of America showed that out-of-home advertising revenues rose to $1.64 billion in the first quarter 2016. That marks 24 consecutive quarters of year-over-year growth, which is more than any other local media format when measured on a national scale.
 
But when you think of out-of-home marketing, what springs to mind? A billboard, a poster, or other signage? No doubt, those are crucial tools. (For a particularly gorgeous example, see Starz’ recent subway wrap promoting the drama series Outlander.) But this is 2016, and like the rest of the advertising industry, successful out-of-home TV and brand marketers are making use of increasingly sophisticated tools, such as mobile-based geographical targeting and extensive data sets.
 
This week, Cynopsis Digital gathered experts to discuss how to craft successful out-of-home campaigns. Alison Hoffman, EVP of Marketing at Starz, Dawn Callahan, CMO of Boingo, Rick Robinson, COO of Billups, and David Krupp, U.S. CEO of Kinetic Worldwide shared their insights during our webinar, The New Out-of-Home Marketing: How to Drive Tune-In and Brand Awareness
 
Excerpts from the webinar:
 
“It’s not just about getting the most impressions as a media vehicle. Out-of-home marketing is a way to really grab people, and wrap them in an experience that they’re going to find memorable, that they’re going to take with them, and that will make them want to tune in.”
– Alison Hoffman, EVP of Marketing at Starz
 
“Today, a ‘mobile billboard’ is a phone, or the tablet in your hand. And that mobile billboard comes with a ton of mobile data: who the user is, what they’re doing, all kinds of information about their life, their interests. We’re in a really profound era where we can marry data with creative to drive purchase from consumers.”
– Dawn Callahan, CMO of Boingo
 
“A giant out-of-home moment can create amplification throughout a city and across mobile and social…If we can create utility, if we can deliver what we call ‘time, fun or money’ – if we can create a moment that adds to people’s days, they will stop their agenda, they will give you their attention, they will take notice, they will document, and share, and participate, and engage, and amplify.”
– Rick Robinson, COO of Billups
 
“Because we understand audiences more than we ever have before given their locational footprint on a daily basis, [marketers] are able to tie content, context and location all together, to create a smarter and more targeted micro-campaign for individual consumers.”
–      David Krupp, U.S. CEO of Kinetic Worldwide
 
To order the webinar on demand, go here: http://bit.ly/1TDXACC
 
 

The Summer Olympics aren’t coming to Rio de Janeiro, Brazil until August – but NBCU’s Fandango is ready to get started. The movie ticketing service (and burgeoning content creator) has launched I Love Movies: Rio Olympic Edition, a digital video series in which Olympic athletes discuss their favorite movies and film moments. Fandango says that the debut marks the beginning of months of Olympic-themed programming leading up to NBC’s broadcast of the Opening Ceremony on August 5. The first three episodes, featuring Olympic swimmers Ryan Lochte, Missy Franklin and Matt Grevers, are available on the Fandango MovieClips YouTube channel and on Fandango.com.
 
 

Cubeiq, a location intelligence company that provides geo-behavioral insights and offline location analytics for cross-platform ad targeting, announced a new hire. Jim Shilale will serve as Global Head of Supply, a newly created position. In the new role, Shilale will lead all partnership initiatives with mobile app developers to scale Cuebiq’s audience, supporting the geo-behavioral targeting and analytics platforms. He previously served as Head of Business Development at the app discovery and advertising network AppTap.
 
 

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