A PICTURE WORTH A MILLION A DAY: FACEBOOK’S TV AD SPENDING

Facebook has been spending heavily to back a TV ad campaign designed to win back its users’ trust following disclosures about users’ data being used to retarget them, its role in disseminating fake news, and other negative issues.

The campaign (see below) promises to get back to “what made Facebook good in the first place.”

So far, it’s making local and national TV outlets a better place to be. Facebook has been averaging $1 million per day since breaking mid-March, when it kicked off a six-week local flight, followed by a national rollout on April 25, according to an analysis by competitive ad tracker Kantar Media.

The outlays may seem a lot for the TV ad market, but it’s a pittance of what Facebook takes in from advertisers. According to Kantar Media, Facebook brought in $11.8 billion during the first quarter of 2018, or about 130 million per day.

Source: https://www.mediapost.com/publications/article/321021/a-picture-worth-a-million-a-day-facebooks-tv-ad.html

ONLINE BUSINESSES BOOMING ON TV; GLOBAL FIGURES REVEAL THE IMPORTANCE OF TV ADVERTISING TO ONLINE BUSINESSES

Figures from around the world show the extent to which online businesses are now investing in TV advertising, in some countries becoming the biggest investors in TV.

The figures compiled by The Global TV Group – the informal grouping of TV broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America – show that, from Brazil to Germany, brands such as Amazon, Zalando, Netflix, Expedia and Airbnb are building their image, reputation and sales through the reach and influence of TV.

The investment trend demonstrates the strong relationship between TV and online, with viewers armed with internet-connected devices able to respond to TV advertising immediately.

Australia

Some of the world’s biggest tech giants spent significantly more on TV advertising in Australia in 2017. According to Nielsen Adex, Google spent 6 times as much on TV advertising, reaching A$11.3 million, and Apple increased its ad spend by 17.4% to A$20.2m. Amazon backed its Australian launch with a TV ad investment of A$3.2 million, and Uber increased its TV spend with a first investment of A$3.4 million. (Source: Nielsen Adex. Total market: Metropolitan TV 2017 AUD 3.577 Billion)

Belgium

In 2016, TV represented a 62% share of the online business sector’s media investments. The Rocket Internet group, the second biggest spender, which owns companies like HelloFresh and Home24, spent a total of €6,072,463 in 2017 on TV advertising. (Source: MDB gross investments).

Brazil

Online businesses’ TV ad spend grew by 17% between 2015 and 2017. When including the e-commerce players owning physical stores, the increase is almost 20%. (Source: IBOPE Monitor Evolution)

Canada

Online businesses represent one of the fastest growing sectors in TV advertising. Online businesses have doubled their spend on TV over the past 5 years, with spend in 2017 topping $105 million. (Source: Ad Dynamics, Internet related sites & services category + Expedia, inc. (Hotels.com) + Priceline Group + Wayfair LLC + Sunwing Travel Group + E-Harmony.com + Elite Singles + Indeed + Justfabolous LLC + Web.com)

Colombia

The TV ad spend of online businesses owning physical stores was US$10,610,000 in 2017, a 20% increase compared to 2015. (Source: IBOPE Monitor Evolution)

Czech Republic

From 2015 to 2017, the online business sector doubled its gross TV ad spend to reach the equivalent of €47,4 million. (Source: Nielsen Admosphere. CZK 1 209 181 843)

Germany

Over a 3-year period (2015 to 2017), Airbnb’s TV ad spend increased by 44%. Expedia and Amazon show even more impressive figures with an increase of 65% each. (Source: Nielsen 2018)

Italy

Online businesses invested a total of €95,653,000 in TV in 2017, representing a 10.7% increase compared to 2015. (Source: Nielsen)

Netherlands

E-commerce advertisers increased their TV investment b 26y% between 2015 and 2017 to become the fourth biggest category of TV-advertisers. 200 e-commerce advertisers invested € 300 million gross in TV in 2017. The highest TV investor was the German booking site Trivago with a gross investment of € 25 million. (Source: Nielsen 2018)

Spain

Amazon’s TV ad spend went from €106,990 in 2015 to €11,006,360 in 2017, more than 100 times the investment in 2015. Google’s investment in TV went from €40,250 in 2015 to €603,620 in 2017, 15 times more. (Source: Arce Media)

Sweden

FurnitureBox’s TV ad spend went from €1,263,633 in 2015 to €6,908,984 in 2017 representing approximately 5 times the 2015 investment. (Source: TNS-Sifo Reklammatningar)

Switzerland

The gross TV ad spend of the top 10 e-commerce advertisers almost doubled between 2015 and 2017, resulting in a gross total of approximately €84,878,635 (Source: Media Focus WizzAd).

UK

Online businesses – including brands such as Amazon, Trivago, Google & Purple Bricks – invested a total of £682 million in TV advertising in 2017, up from £590 million in 2015. Despite cuts in other categories due to ongoing economic uncertainty, online businesses, which in 2016 became the biggest spenders on TV in the UK, remained steadfast in their TV investment. (Source: Nielsen 2017)

US

In 2017, digital-native companies – including brands like Amazon, Expedia, Wayfair & eBay – spent over $5.9 billion US dollars on TV, representing a 10% increase over 2016.  Within this spend is a group of 50 “direct-disruptor” newcomer brands – including Gwynnie Bee, Peloton & Leesa – who only recently began investing in TV but now collectively spend over $1.3 billion U.S. dollars in TV annually. (Source: Nielsen 2017)

The positive trend is set to continue in 2018 as more e-commerce brands around the globe put their trust in TV advertising to strengthen their image, drive traffic and generate return. Recent examples are the TV campaigns launched by Snapchat (“A new kind of camera”), Amazon (“Bedtime Blitz” or “Be Together More”),  Trivago (“In the Mountains”) and Airbnb (“Expletive-filled Interest”).

“TV advertising can provide e-commerce advertisers with a very impressive immediate effect but it is entirely irreplaceable in brand building and support. It also excels among other media types with its nearly 100% reach. For large digital companies, TV remains to be the core of their media mix and a number of them continuously increase their TV investments. 

This can be illustrated on an example of the Czech largest TV e-commerce advertiser, Alza.cz. According to the monitoring of ad spend, Alza.cz has invested approximately three times more in TV than in online or print advertising in recent years and has nearly doubled its spend on digital advertising between 2015 and 2017. A similar trend is reported by the second largest advertiser, Invia.cz, that has been continuously decreasing its spend on digital advertising and massively increasing its TV investments – since 2015, it has invested six times more in TV advertising than in the digital or print ads.”  

— Jan Vlček – President, Association of Commercial Television

 “TV works very well for us. It’s where we are spending a significant portion of our brand marketing ad dollars”.
— Vic Walia – Global Marketing VP of Expedia Group

“TV makes the virtual more real. TV advertising creates huge effects instantly. It also helps build and nourish profitable, trusted brands for the long-term. As online brands have little or no physical presence, TV’s ability to create emotional connections with huge audiences around the world is vital”.
— Katty Roberfroid – Director General of egta

“We’ve been analyzing digital-native companies since 2014 and found that those who turned to a heavy reliance on TV early in their company’s history saw substantial benefits. Digital brands using TV see immediate positive business outcomes, such as significant lift in website traffic, search volume and, most importantly, revenue growth. TV is where outcomes-obsessed disruptors go when they need to get big”.
— Sean Cunningham – President and CEO of the Video Advertising Bureau

“It’s wonderful to see some of the world’s fast-growing, most innovative companies investing more into TV advertising to grow their brands. These are some of the most iconic brands of our age embracing the power of today’s TV, an experience that is viewable on any screen at any time, to touch consumers with some of the finest creative executions around. The smartest brands know that TV reaches more people faster than any other media, is brand safe, generates the greatest return on investment and commands the most attention, which translates directly into sales. TV also partners beautifully with online-only media”.
— Kim Portrate – Chief executive of ThinkTV Australia

“Like most marketers, we use a range of channels to achieve campaign objectives. We know that audiences engage with content across different platforms at different times, and marketers do the same. For campaigns such as the launch of Google Home we used a combination of radio, TV, cinema, print, outdoor and online channels including search, YouTube and social. In this campaign we found the combination of contextual media and creative drove stronger uplift”.
— Aisling Finch – Director of marketing, Google Australia and New Zealand

“There’s no one medium that fits the bill and all media recognise the strengths of other media. The biggest e-commerce and online players in the world recognize what TV offers and TV is open and smart enough to understand that they need to embrace online too. The big digital players certainly recognise TV’s ability to reach mass audiences fast, to generate a superior return on investment and to generate sales through 100% viewability”.
— Richard Basil-Jones – Managing director of Ebiquity Asia-Pacific

Studies from around the world have proven the impact that TV advertising has on online activity.  For example:

  • study in France by SNPTV found that organic traffic to a pure players’s website increases by 66% during a TV advertising campaign.
  • Using comScore data in the US, the Video Advertising Bureau found that online businesses see an immediate and significant lift in web traffic once they launch TV campaigns – data from 14 online businesses showed the lift ranged from 11% to 1,075%.
  • In a more recent study, featuring various case studies, the VAB looked into how TV drives business outcomes for disruptor brands. For example, expanding brands saw an average increase of 188% in their search volume as they increased their TV investment. Interviews about the success stories from Wayfair and Gwynnie bee can be found on the VAB’s website here.

Source: https://www.theglobaltvgroup.com/online-businesses-booming-on-tv/

EUROPEAN TV GETS READY TO FIGHT OFF NETFLIX AND HBO

For the past two decades, Spain’s state-run RTVE and private rivals Mediaset España and Atresmediahave been fighting for viewers’ hearts with slates of game shows, sports, comedies, and glossy morning news. Now, in a plot twist worthy of the steamiest soap opera, they’ve decided to hook up: This summer the adversaries are launching LovesTV, a shared 18-channel streaming platform with programming from all three networks. The goal is to “aggregate broadcasters and serve as a common entry point into the digital world,” says Arturo Larraínzar, strategy director at Atresmedia.

A similar script is playing out across Europe, as long-standing foes in Britain, France, Germany, and Italy set aside rivalries to co-produce programs or offer shows online. The reason: interlopers from across the Atlantic. Netflix Inc. this year is doubling its European programming budget, to $1 billion; Amazon.com Inc.will soon have at least a dozen original series from Europe, up from one in 2014. And Home Box Office Inc. is boosting its non-U.S. offerings this year by 40 percent, to 250 hours of shows. These newcomers could spur a mass defection of viewers to the increasingly convenient web, and Europe’s traditional broadcasters are scrambling to find a response. “Consumers no longer care where they watch our content, so why should we still draw strict lines between linear and nonlinear, offline and online?” asks Bert Habets, chief executive officer of RTL Group, a traditional broadcaster that’s launched streaming sites in France, Germany, and four other countries.

“It’s confusing to have a different app for every network”

The model the Europeans say they’re emulating is Hulu LLC, the U.S. streaming service owned by perennial antagonists ComcastTime Warner21st Century Fox, and Walt Disney. Since its launch in 2007, Hulu has grown to 20 million subscribers, who pay $8 to $40 a month for access to hundreds of shows. Just as the U.S. networks have gone online to hold on to America’s 120 million TV-watching households—and the ad dollars they represent—European companies say they can build a simple video platform to keep viewers from clicking away. “People want this overriding interface,” says Alan Wolk, co-founder of media analysis website TVRev. “It’s confusing to have a different app for every network.”

Building a Hulu in Europe, with its dozens of languages and patchwork of regulations, will be trickier than in the U.S. Broadcast rights for most shows are sold country by country, so it’s difficult to put together a seamless service for the entire region. Different rules about storing recorded shows in the cloud—France, for instance, has more relaxed guidelines than the U.K.—could be a roadblock. And regulators in Germany and the U.K., citing antitrust concerns, have blocked broadcasters’ efforts to cooperate. “I don’t think it’s going to be simple to do a pan-European play,” says John Turner, a partner at media adviser OC&C Strategy Consultants.

That hasn’t stopped the broadcasters from trying. In recent months, ProSiebenSat.1 Media SE in Germany has teamed up with Discovery Inc.—which owns the popular Eurosport franchise—to create a service called 7TV, and the two are seeking partners in other countries. Britain’s media regulator has encouraged a similar alliance between the BBCITV, and Channel 4. Spain’s LovesTV will offer livestreams of all three of its networks and allow viewers to see the past week’s shows to catch up on episodes they may have missed.

The American upstarts are also spurring erstwhile rivals to sacrifice exclusivity and share costs. The BBC and Channel 4 have teamed up with Hulu and AMC Network Entertainment. And public broadcasters in France, Germany, and Italy have agreed to cooperate on what they call “bigger” shows; they say they’d welcome companies in other countries as well. “If we pool our resources, we can have a strong voice on the international scene,” says Delphine Ernotte, head of France Télévisions SA.

Even with shared resources, they’re likely to lose some premier programming to the cash-rich Americans. Netflix spent about $7 million per episode of The Crown, roughly five times what ITV—the U.K.’s biggest commercial broadcaster—paid for Downton Abbey (though the company doesn’t release figures for its shows). With so much money available, “screenwriters and directors increasingly want to work with the multinationals,” says Karin von Abrams, an analyst at researcher EMarketer Inc. “The funding is better, and they can actually see their projects become reality.”

The broadcasters will find themselves in competition with homegrown rivals such as the TVPlayer platform in the U.K.—part-owned by Hearst Communications Inc. and Walt Disney Co.—and French startup Molotov.TV. The two-year-old company has signed up 5 million users with its Netflix-like interface offering three dozen channels for free and premium bundles starting at €4 ($4.67) a month. Molotov founder Jean-David Blanc says he’s in talks with British, German, Italian, and Spanish companies to expand into those countries. “The content providers, the producers, they want to maximize their chances to find their audience,” he says. “So the world is changing, obviously.”

BOTTOM LINE – As American upstarts target Europe with big-budget series, broadcasters across the region are setting aside old rivalries to co-produce shows and create streaming platforms.

 

Source: https://www.bloomberg.com/news/articles/2018-06-06/european-tv-gets-ready-to-fight-off-netflix-and-hbo