06.09.16 Good morning. It’s Thursday June 9, 2016, and this is your first early morning digital briefing.
Attribution: In marketing, Attribution refers to the process of identifying a set of user actions (also known as “events” or “touchpoints”) that contribute to a desired outcome, and then giving each of those actions a specific value. The goal is for marketers to enhance their understanding of which combinations of events, in which particular order, can effectively influence consumers to engage in a desired behavior. With the rise of digital platforms and the growing availability of sophisticated data-gathering tools, attribution models have grown increasingly prevalent – and increasingly important.
Unlike its ephemeral content, Snapchat isn’t going away. On the contrary: According to a forecast from eMarketer, Snapchat is on pace to grow its number of active U.S. users by 27% this year, hitting 58.6 million total users. That would put it above both Twitter and Pinterest for the first time. And eMarketer also projects that, through the year 2020, Snapchat will add 26.9 million users – more than twice what Twitter and Pinterest are expected to add in the same time period. But as rosy as Snapchat’s future looks, Facebook Messenger is projected to do even better. According to eMarketer, FM will have 105.2 million U.S. users by the end of 2016 – which is millions more than what Snapchat is projected to have by 2020.
Apple announced some new rules for the iOS App Store, and streamers like Netflix and Hulu may stand to benefit. The fees that Apple charges developers for offering subscription sign-ups within their apps will be reduced. At first, companies will still have to give Apple 30 percent of monthly charges once a user signs up within an app – but that fee will be cut to 15% after 12 months. (Companies that sell their apps, as opposed to offering free downloads and then selling subscriptions, will still have to give Apple 30% of revenue.) In addition, Apple is preparing to offer subscriptions as a billing option to a greater variety of apps, as opposed to just media apps and those in a handful of other categories, as is the case now. Apple SVP Phil Schiller discussed the updates with The Verge. It’s unclear precisely when they’ll go into effect.
Bell Media and the video advertising platform Videology recently announced a new partnership. After a three-month assessment period, the companies will begin a multi-phase integration in which Bell Media will make use of Videology’s programmatic TV technology. Phase one of the integration is set to launch in Q3 of this year. In addition, Videology has announced a new deal with another major Canadian media company, Rogers Media. Videology will integrate Rogers Media’s linear TV inventory into its data-enabled TV (DETV) platform, allowing Rogers access to advanced data targeting and programmatic technology. According to Videology, the partnership will enable clients to build real-time linear TV advertising plans through Videology’s platform. Rogers Media, a subsidiary of the mass media company Rogers Communications, owns numerous TV channels and radio stations.
Videology isn’t the only company partnering with Rogers Media. AOL announced plans to partner with the company to launch a new programmatic private marketplace for television. According to AOL, the initiative will allow advertisers in Canada to access linear television audiences through data and automation. AOL also says that custom data segments will also be available for programmatic purchase next year.
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Time Inc. announced a new partnership with the cloud-based video-creation platform Wochit. Under the partnership, Time Inc. video producers can now incorporate Wochit’s technology into their daily workflow, which Time Inc. says will help to facilitate the rapid generation and distribution of video stories. Wochit’s platform supports all forms of video production, with an emphasis on real-time short-form content. The deal is in keeping with the recent efforts of Time Inc., whose brands have been heavily expanding their video output.
Stringr, a video marketplace that connects videographers with organizations looking for video content, announced a new collaboration with The Associated Press. The partnership will offer AP Video Hub, The AP’s video news platform, access to video content from Stringr’s network. The AP’s internal editorial teams will have access as well. According to Stringr, its network consists of over 18,000 videographers in every media market throughout the U.S. “Stringr gives our customers extraordinary reach in terms of geography,” Stringr Co-Founder and CEO Lindsay Stewart told Cynopsis Digital. “Our customers can drop a pin on a map and get footage from nearly any locale in the US…Stringr gives our customers access to more than 19-thousand videographers who can and do submit video within an hour, if not minutes of their initial request. And finally, Stringr offers this access at price points that allow our customers to get more video for their money.”
Segment, a company that collects data from sites, apps, and other platforms, and then uses it to power various analytics and e-commerce tools, has announced its new Native Mobile Spec. Part of the company’s latest SDK (software development kit) for iOS and Android, the new package automatically collects data from six in-app lifecycle events: “Application Installed,” “Application Opened,” “Application Started,” “Screen Viewed,” “Order Completed” and “Application Updated.” According to the company, the Native Mobile Spec is already connected to roughly 3,000 apps. Segment’s data is used to power tools such as dynamic ads, attribution, and Custom Audiences through Facebook, as well as mobile marketing, analytics, and attribution through various other tools.
Is Netflix’s Fuller House more popular than AMC’s The Walking Dead? As initially reported by indiewire, data from the measurement company Symphony Advanced Media shows that the Full House sequel averaged 14.4 million viewers aged 18-29 in the 35 days after its release – equivalent to a 10.4 Nielsen rating. (AMC’s hit zombie-fest averaged a 9.6.) Another Netflix show, the docu-series Making a Murderer, garnered a 9.7 in its first 35 days, according to Symphony. There are some important caveats here: First of all, unlike network shows, Netflix debuts all episodes of TV season at once, giving a show’s initial overall numbers a major leg up. And Netflix itself has publicly ridiculed Symphony’s data in the past, calling it “remarkably inaccurate,” and arguing that Netflix doesn’t specifically factor the 18-49 demo into its programming decisions. But here’s the reality: Symphony is making a serious effort to concretely measure Netflix viewership, and Netflix, like other streaming services, doesn’t release any viewership metrics. Symphony’s data is all we have to go on at the moment.
As close to the vest as Netflix keeps its (house of) cards, it still releases some viewership tidbits ever now and again. Now, Netflix has unveiled what it calls The Binge Scale. Analyzing viewership data gathered from over 100 titles across the service’s 190 territories, the service found that users’ median viewing time is two hours and ten minutes per sitting. The median time for completing the first season of a series stands at five days. Dividing titles into two categories – “savored” and “devoured” – Netflix found that seasons of shows like Sense8, The Walking Dead, and Orange Is the New Black were completed, on average, in two hour-plus sittings. (That’s the “devoured” camp.) “Savored” shows, which were viewed in under two hours per session, included House of Cards, Bloodline, and Peaky Blinders.
Earlier this year, live VR specialists NextVR reached a five-year programming deal with Fox Sports. Now the partnership is moving to Oakmont Country Club. For the second straight year, NextVR will broadcast the U.S. Open golf tournament in virtual reality. The tourney runs from June 16-June 19. You’ll need a Samsung Gear VR headset to watch it in virtual reality.
Variety reports that the Internet video startup Frequency has raked in $11 million in a new funding round led by Liberty Global. The company, which aggregates multiple free online video services into channels occupying a single application, has its sights set on pay TV operators. As Variety points out, many operators have been reluctant to voluntarily introduce the likes of YouTube to their set-top boxes; the fear is that they’ll just wind up encouraging cord-cutting. But by and large, operators have been growing more comfortable with the practice; hence Frequency’s $11 million haul.
@lubster55: “Cavs are in sooo much trouble. Warriors having such a historic season it’s just craycray.”
Canvs.tv, the language analytics company that measures emotions around content, analyzed tweets about TV programming for the 7-day period through June 6 using Twitter data from Nielsen. Trends and insights from the 3,012,602 tweets expressing a specific Emotional Reaction (ER) include:
– TNT owned astonishment, with 21.3% of the 190,190 “crazy” ERs across all networks, mostly due to NBA Basketball.
– Thanks to the 2016 Miss USA pageant, Fox led in beauty, grabbing 23.5% of the 60,132 “beautiful” ERs across all networks.
– History Channel served up plenty of fear, leading with 6.4% of 18,178 "afraid" ERs across networks (outside of sports programming), thanks mostly to the
Roots miniseries reboot.
– ABC’s The Bachelorette drove the most dislike among non-sports programming, prompting 1.4% of the 187,778 “hate” ERs across all networks. Interestingly enough, Canvs generally finds that “hate” sentiment is rarely an indicator of low viewership. Quite the opposite, actually.
According to PwC’s annual Global Entertainment and Media Outlook 2016-2020 report, U.S. Internet advertising revenue will surpass that of broadcast advertising next year. Looking a little farther into the future, PwC finds that U.S. TV ad revenue will reach $81.7 billion in 2020, up from $69.9 billion. Internet ad revenue, on the other hand, is projected to reach $$93.5 billion by 2020, up from $59.6 billion last year. The biggest gains are expected to come from mobile advertising, which made up 34.7 percent of last year’s overall Internet advertising revenue, or $20.7 billion. By 2020, mobile ad revenue is projected to rise to 49.4% of Internet ad revenue.
PwC’s Global Entertainment and Media report also took a look at the out-of-home space. Among the findings:
– In 2018 the U.S. is expected to become the first OOH (out-of-home) market to exceed $10 billion in value, and will reach about $10.9 billion by 2020.
– In total, 87.5% of the revenue growth in the U.S. OOH market over the forecast period will come from digital, with traditional formats growing at only a 0.9% CAGR (compound annual growth rate)
– A major shakeup is looming for the digital out-of-home (DOOH) market as programmatic selling of ads makes its way to the world of OOH.
– Location-based mobile Internet advertising is booming and advertisers are increasingly interested in cross-platform campaigns that can leverage the big-screen impact of OOH.
Speaking of out-of-home marketing: 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. Successful out-of-home TV and brand marketers are making use of tools such as mobile-based geographical targeting and extensive data sets. Cynopsis Digital recently gathered experts to discuss how to craft successful out-of-home campaigns. The Cynopsis Webinar, The New Out-of-Home Marketing: How to Drive Tune-In and Brand Awareness, can be ordered on-demand here: http://bit.ly/1TDXACC
In January, Netflix commissioned an original series based on which famously pliable action figure? You can find the answer in tomorrow’s newsletter.
Yesterday’s Trivia Question: Back in March, Vice Media took a controlling stake in what U.K. production company? Answer: Pulse Films
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In an insightful conversation with The Drum, Shazam CRO Greg Glenday shared his thoughts on why programmatic buying has become increasingly important for marketers. You can check out what he had to say here.
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