television

Direct-to-consumer brands are ushering in the age of intelligent TV buying

Direct to consumer (DTC) is a way for advertisers to target their audience, meaning a lot of digital advertising. At first glance when digital was on the rise this had enormous success, but the market has since become saturated and it is hard to break through. TV has the ability to track like digital and is more effective. Click here to learn more!

‘Advertisers think it’s just like buying digital’: Myths of connected TV advertising

This year connected TV overtook mobile as the screen on which the most digital video impressions were served.

Why D2C brands are changing their course - from Facebook to TV.

Any D2C brand’s goal is to sell directly to the consumer. This is accomplished by D2C or DTC brands advertising of social media like Instagram and Facebook, where these brands are exposed to customers directly. Since market saturation actively is setting in marketers are switching outlets to DRTV or direct response television to fulfill their needs.

Amazon Plans New Video App, Latest Step Into TV Ad Market

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Author: Jessica Toonkel & Tom Dotan.  Source: TheInformation

Amazon.com is planning to launch a free, advertising-supported video service for the estimated 48 million people who use its Fire TV streaming video devices, say people familiar with the situation. The new service, which is being developed by Amazon’s IMDB subsidiary, will join a growing collection of efforts by Amazon to tap into the $70 billion TV ad market.

The company has already introduced ad-supported shows on IMDB, expanded video ads on its gaming site Twitch and run ads on NFL games on Prime Video, its primary streaming service. It is also expected to run ads on Prime Video in Europe for some sports events, said one of the people.

The Takeaway
• Amazon’s IMDB is discussing licensing shows for Fire TV app
• New app is latest in series of moves to sell TV ads
• Amazon’s ad revenue is expected to be $8 bn this year

Amazon’s ad business—mostly search ads and product sponsorships sold on its site and across the web—is growing faster than much of the rest of the company. It makes up most of the “other” segment in Amazon’s earnings statements, growing 132% to $2.2 billion in the second quarter. Wall Street firm Cowen estimates it will generate $8 billion in revenue from the category this year. That’s still a tiny fraction of Amazon’s expected $200 billion-plus revenue this year. And it is well behind what Facebook and Google make from digital advertising—Facebook had $13 billion in advertising in the second quarter alone. But Amazon’s access to shopping data gives it the chance to become a formidable rival.

“Amazon has very good data and if I could track back sales activity to the actual Amazon account and target those people, it would be very powerful,” said Andrew Sandoval, a media buyer with New York-based The Media Kitchen.

Fire TV Offering

The new Fire TV offering is separate from Amazon’s ad-free subscription Prime Video service, which has become a major rival to Netflix with original shows as well as recently-released series from TV networks. The Fire TV service is tentatively called Free Dive. Amazon is in talks with major studios to license older TV shows, which have already aired on TV networks, for Free Dive, the people said.

That suggests Free Dive will be similar to what Roku offers with its Roku Channel, a free, ad-supported app on Roku-powered devices and smart TVs, the people said. Roku has publicly championed the ad revenue from the Roku Channel as a key driver of its growing platform business, which brought in $90 million last quarter.

Roku recently announced it was going to be distributing the channel on the web and other devices that are not powered by Roku software. Roku is Fire TV’s biggest rival in the streaming-device market. This year it is expected to have 59 million users, ahead of Fire TV, eMarketer estimates.

The parallel to the Roku Channel suggests the new Free Dive app is targeting only a tiny portion of the TV ad market. Both Google’s YouTube and Facebook have been trying to lure away big advertisers from TV networks for a while, with limited success.

“Amazon has very good data and if I could track back sales activity to the actual Amazon account and target those people, it would be very powerful.”

Surprising Success

Still, for Amazon, expanding into video ads could fuel what is already one of the company’s fastest growing businesses. The profit margin of the ad business is likely to be higher than the Amazon’s overall profit margin, which was 5.6% in the second quarter. Retail has razor-thin profit margins.

Amazon sees an opportunity to grab ad dollars from the likes of Facebook and Google by providing more video inventory to advertisers that are eager to use the company’s targeting capabilities, the people said.

Advertisers who bought spots on NFL games on Amazon last year—paying $2.8 million for 30-second spots—were able to run ads across Amazon.com throughout the football season. Amazon and the NFL renewed the streaming deal for the 2018 and 2019 football season.

In Europe, Prime has licensed rights for sports events such as the U.S. Open tennis tournament in Britain and some Premier League soccer matches. Amazon is discussing showing ads during some sporting events, one of the people said, but declined to say which ones.

Amazon is also expanding video ads on its popular live-streaming platform, Twitch, which is widely used in the gaming community. And the company recently announced it was going to be including ads in the previously ad-free paid version of Twitch.

TV Isn’t Dying—Subscriptions Are Changing From Cable to Broadband Instead

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Millennials Prefer TV Viewing To Digital Media

Although new digital media continues to grow among young audiences, traditional ad-supported TV content dominates all new platforms

Why Google Owes TV a Big Thank You

Every day, Google processes 3.5 billion search queries. That’s an average of 40,000 per second. Google search can attribute much of its traffic to TV. This makes TV one big contributor to the success of search. TV and digital are more connected than ever before. This is why it is critical to have an SEO friendly website to accurately drive and measure traffic.

Hollywood Is Embracing the 50-Plus Crowd, and Marketers Need to Take Note

Everyone’s talking about the retro trend in television as iconic shows from the ’80s and ’90s are getting 2018 reboots.

Is your TV working?

Almost every prospective client we talk to asks the same question: What’s the best way to handle attribution across marketing channels?

With an eye on TV ad budgets, YouTube debuts search-based video ad targeting

Television networks and providers are racing to combine traditional, content-based ad buys with digital-style, audience-based targeting.

Facebook Signs Exclusive Deal to Stream 25 MLB Games

Facebook Inc. reached a deal with Major League Baseball for exclusive rights to stream 25 afternoon games on the social network in the U.S.

Momentum returning to TV ad market TV advertising forecast to return to annual growth in 2018

Online businesses remain the biggest investors in TV advertising

National TV Ad Minutes Rise, Up Nearly 4% Per Hour

In January, the average number of national TV advertising minutes per hour grew by its fastest rate in over three years.

Think your target is too niche for TV? Think Again.

Television is a mass medium. How many times have you heard this phrase articulated in one form or another?

Esports, Jump In or Miss the Mark

The esports industry is growing quickly, with new leagues, teams and distribution channels.

Some TV Networks Take a Hit from Cutting Ad Time

TV giants like Turner and Viacom VIAB -0.30% have been experimenting with cutting down the number of commercials they air in shows.