2021 JUMPSTART: Advertiser Perceptions
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Featuring New Report Highlights Contact us for more information regarding access to these and other Advertiser Perceptions reports. 2021 JUMPSTART: HOW TO MAKE SURE 2021 WON’T BE 2020 ALL OVER AGAIN Have Confidence in Every January 27, 2021 Business Decision You Make
TODAY’S HOSTS Justin Fromm Sarah Bolton Lauren Fisher EVP Business Intelligence EVP Business Intelligence VP Business Intelligence 2
TODAY’S Momentum around key media types and channels built during 1 the pandemic will continue into 2021, with momentum likely to AGENDA build for added channels. 2 Where we’re headed: TV and digital trend Advertisers' evolving approaches Digital Content Safety 3 and Brand Suitability Identity in a cookieless future won’t be just a thorn in the industry’s 4 side, it will become a pivotal piece to solve for ahead of 2022. Advertiser Intelligence Report 3 News TV Category H2 2019
13% Search (paid) SEARCH, SOCIAL AND “VIDEO” 12% Social Media (paid) WERE ADVERTISING STRONGHOLDS IN 2020 11% Display 11% Linear TV (cable or broadcast) 10% Digital Video 7% Connected TV (OTT/Streaming) 6% eCommerce 6% Mobile In-App 5% Print 4% Data Driven or Addressable linear TV 4% Digital Audio 5% “All other media” omitted from chart. Q. Listed below are the media types/platforms you told us your [company/main client] is using (or will use) for advertising in 2020. To the best of 3% OOH (traditional or digital) your knowledge, what percentage of your [company’s/main client’s] total ad spending in 2020 2% Terrestrial radio will go to each of these media types/platforms? Base: Total Respondents
NEXT 12 MONTHS: Increasing Spend Maintaining Spend Decreasing Spend NET OPTIMISM OPTIMISM eCommerce 60% 36% 4% 56% Social 60% 34% 6% 54% Video 56% 39% 5% 51% Search 46% 50% 4% 42% Audio 43% 45% 13% 30% Display 39% 46% 15% 24% Print 30% 45% 25% 5% OOH 27% 39% 34% -7% *Video includes: Linear TV, Advanced TV and Digital Video. Q: Do you expect that your company/client’s advertising spending of each of these media types will increase, stay the 6 same or decrease over the next 12 months? Base: Using ‘Media Type' (Variable Base)
NET NEXT 12 MONTHS: Increasing Spend Maintaining Spend Decreasing Spend OPTIMISM OPTIMISM Digital video (desktop/mobile) 51% 45% 4% 47% OTT/Connected TV 48% 45% 7% 41% Addressable TV 40% 53% 7% 33% Data-driven TV 40% 53% 7% 33% Programmatic Linear TV 37% 49% 13% 24% Set top box Video on Demand 35% 50% 14% 21% Linear TV (cable or broadcast) 34% 45% 20% 14% Q: Do you expect that your company/client’s advertising spending of each of these media types will increase, stay the 7 same or decrease over the next 12 months? Base: Using ‘Media Type' (Variable Base)
Indicators to Resume Paused, Slowed, & Cancelled Advertising Rank ECONOMIC OR SOCIETAL SIGNALS Rank BUSINESS SIGNALS 1 Decreasing numbers of cases of Covid-19 in the US 1 Evidence of increasing consumer demand 2 Relaxing of social distancing 2 Increase in sales (e.g. month over month growth rate) 3 Travel restrictions lifted 3 Stabilization of revenue for one quarter 4 GDP on the rise or US economy recovering 4 Increased in-store traffic 5 Future economic stimulus packages 5 Competitors resume ad spending 6 Live entertainment events resume 6 Uninterrupted supply chain for products 7 Live sports events resumed 7 Sales team staffing and resources resuming/ramping up 8 Stabilization of stock market 8 Bankruptcy or financial insolvency no longer a risk Q.30a - Which of the following economic or societal signals / business signals is your [company/main client] using as an indicator to resume any paused, slowed or cancelled advertising activity? Base: Ad Spending Paused, Canceled or 8 Slowed in 2020 for any Media Type
We’re hopeful that there will be more activity and we’ll successfully launch campaigns that have been delayed and re-enter some of the marketplaces where [our clients] haven’t been [this year]. - Agency Respondent, Pharma Advertisers are having to be smarter with their dollars and create more flexibility... we need to have more strategic negotiations with these partners. Flexibility and efficiency are going to be critical. - Agency Respondent, CPG 9
When Spending Will Return to Pre-Pandemic Levels – by media type Already By end of By end of Beyond Sorted by Forecasted 2020 Spend Allocation Nov/Dec 2020 Happened Q1 2021 Q2 2021 Q2 2021 Search (paid) 20% 12% 22% 14% 31% Social Media (paid) 30% 12% 21% 15% 23% Display 28% 9% 19% 13% 31% Linear TV (cable or broadcast) 30% 3% 21% 23% 23% Digital Video 26% 9% 23% 15% 27% Connected TV (OTT/Streaming) 33% 6% 27% 8% 27% eCommerce 24% 16% 23% 6% 31% Mobile In-App 22% 21% 24% 8% 24% Print 25% 2% 17% 16% 40% Data Driven or Addressable linear TV 39% 0% 18% 7% 37% Digital Audio 31% 8% 18% 16% 27% OOH (traditional or digital) 19% 3% 31% 19% 29% Terrestrial radio 30% 1% 15% 21% 33% 0% 25% 50% 75% 100% Q.25B - And when do you expect your [company’s/main client’s] advertising efforts using each media type will return to a state that is unaffected by the COVID-19 pandemic? Base: 'Media Type' Ad Spending Paused, 10 Canceled or Slowed in 2020 for any Media Type
2. STREAM ON THE FUTURE IS STREAMING (CTV/OTT) 11
Summary of Respondents Ranking 1-3 VIDEO IS THE 1 Video (any type: linear TV, digital video, OTT, OOH) 82% MOST IMPORTANT MEDIA TYPE FOR 2 Social 60% ACCOMPLISHING 3 Search 57% GOALS/KPIS 4 Display 53% 5 Audio (any type: terrestrial radio, digital audio) 20% 6 Print 14% 7 OOH (billboards, buses) 13% Q. Please rank these media types based on how important or valuable each is to your [company’s / client’s] advertising goals/KPIs. Base: Respondents Spending $1M+ Annually on Video
Video Spend Optimism Remains High and Advertisers Are Finding New Dollars to Fund It Percent of respondents 2% Decreasing Increasing Spend, by how much? Where are the increasing funds coming from? (average) 52% Overall advertising budget increase 76% 23% 46% Increasing Maintaining Video Ad Spend Other non-digital media (next 12 months) (print, radio, OOH, etc.) 13% Other digital media types (display, search, audio, etc.) 11% Q: Do you expect your [company’s/main client’s] video ad spending to increase, stay the same or decrease over the next 12 months? Base: Base: Respondents Spending $1M+ Annually on Video Q. By approximately what percentage do you expect your [company’s/main client’s] video advertising budget will [increase/decrease] over the next 12 months compared with what was spent on video advertising in the past 12 months? 13 Base: Respondents Spending $1M+ Annually on Video, Planning to Increase or Decrease Video Ad Budget Q: Where will most of the increased funding for video advertising primarily come from? Base: Respondents Spending $1M+ Annually on Video, Planning to Increase Video Ad Budget
With the pandemic accelerating consumer adoption of streaming, advertisers have quickly followed. More than half of advertisers identify streaming as one of their top-5 video tactics Ranking All Video Advertising Tactics Used Summary of Respondents Ranking 1-5 Linear TV 65% Social Media Sites 62% Streaming (CTV/OTT) 57% Video Sites 55% TV Network Full Episode Players 43% Q. Thinking about all the video advertising tactics your [company/main client] will be using over the next 12 months, please rank these tactics based on how valuable they are to your [company’s/main client’s] video 14 advertising efforts. Base: Respondents Spending $1M+ Annually on Video, Using 'Tactic' Next 12 months (Variable base)
Streaming (OTT/CTV) accounts for a quarter of TV screen focused media budgets TV Ad Spend Allocation Across Tactics 24% Streaming DSPs for OTT/CTV programmatic OTT 26% 14% 11% 10% 9% 8% 8% 7% 6% Linear TV vMVPDs Programmatic Data-Driven Addressable Set-Top Other Linear TV Linear TV Linear TV Box VOD Q. Thinking about your [company’s/main client’s] TV ad spending , approximately what percentage will be allocated to the following tactics over the next 12 months? Base: Respondents Spending $1M+ Annually 15 on Video, Budgeting for TV
LINEAR TV’S DISAGREE Completely/Somewhat HOLD IS 29% TENUOUS AS NEARLY HALF OF VIDEO ADVERTISERS FEEL THEY I can achieve my video 45% COULD ACHIEVE THEIR advertising goals without GOALS WITHOUT IT purchasing linear TV. Neutral 26% AGREE Completely/Somewhat Q. How much do you agree with each of the following statements about video advertising? 16 Base: Respondents Spending $1M+ Annually on Video
As audiences splinter, advertisers are prioritizing reach as a partner selection criterion Advertisers prioritize reach when selecting a streaming (CTV/OTT) partner Most Important Factors when selecting Streaming (OTT/CTV) Advertising partner Summary of Respondents Ranking 1-3 Audience Reach 55% Quality of programming 43% Quality of advertising opportunities 38% Brand safety 35% Precise audience targeting 35% “We're looking a lot more to CTV for example, but oftentimes our Campaign results 33% biggest issue there is just scale. Guaranteed/verifiable fraud-free impressions 23% We can't always actually spend to the level that we want.” Ease of implementation 20% - Agency Respondent, User experience of advertising 13% Toys & Games Q. What factors are most important when considering which media company/TV network to partner with for OTT/Connected TV video advertising? Base: Respondents Spending $1M+ Annually on Video, Using CTV/OTT
DISAGREE YET CHALLENGES REMAIN: Completely/Somewhat CROSS-PLATFORM 20% REACH & FREQUENCY KEY AMONG THEM By adding on digital video and OTT to my linear buy, I'm just buying impressions without knowing the reach, frequency, effectiveness of 58% 22% my entire campaign. Neutral AGREE Completely/Somewhat Unchanged from 2019 Q. How much do you agree with each of the following statements about video advertising? Base: Respondents Spending $1M+ Annually on Video
3. A BRAND SAFETY RETHINK EVALUATING MEDIA CONTEXT WITH MORE INTENTION 19
2020 WAS A REMINDER THAT QUALITY JOURNALISM Beyond outmoded conceptions of brand safety, AND CONTENT INTEGRITY advertisers are increasingly taking responsibility MATTERS for shaping where money is spent . . . #1 To ensure high-quality credible journalism and premium content are funded SEARCH: Pandemic Economy #2 Climate that hate and disinformation are not Social justice Elections Advertiser Intelligence Report 20 News TV Category H2 2019
While advertisers morally support the role of an independent press in democracy, dollars have been held back by brand suitability concerns Level of Agreement: Statements about News Completely Agree Somewhat Agree Neither Agree nor Disagree Somewhat Disagree Completely Disagree 70% An independent press is an important part of a 47% 23% 26% 2% 2% functioning democracy. 47% It’s preferable to find news audiences outside of news sites 13% 34% 38% 10% 5% to avoid brand safety issues. Qj3N. How much do you agree with the following statements about News? Base: Total Respondents 21
Brand Safety/Suitability Policy that Avoids Adjacency to News Content NEARLY HALF OF BRANDS, DRIVEN BY RISK- Don't AVERSE AGENCIES, know AVOID NEWS ADJACENCY 13% Yes Agency: 50% 42% Marketer: 31% No 44% Agency: 35% Marketer: 58% Advertiser Intelligence Report Qvox3. [Does your company/Do your clients] have any brand safety/suitability filters or policies in place that avoid adjacency to news content (including news about Black Lives Matter or racial justice protests)? 22 News TV Category H2 2019 Base: Total Respondents | Statistically significant differences between groups noted in Red/Green
NEARLY HALF OF ADVERTISERS RECOGNIZE THAT BROAD-STROKES 23% BLOCKING OF NEWS DISAGREE CARRIES A DIFFERENT “Blocking/avoiding KIND OF RISK advertising with News 45% (BESIDES BRAND SAFETY) is making it difficult for AGREE publishers to fund quality journalism” 32% NEUTRAL Advertiser Intelligence Report Q. How much do you agree with the following statements? 23 News TV Category H2 2019 Base: Total Respondents
UNINTENDED CONSEQUENCES OF KEYWORD BLOCKING IN PRACTICE Over-blocking stops ads appearing in articles with safe or neutral content Annotated colormap of the NYTimes's landing page on December 3, 2020. • Pink indicates that a given article was labeled unsafe by Grapeshot • Green indicates a given article was labeled safe Source: Adalytics Dec 2020 – Research Methodology: extracting brand safety labels from 24 public internet archives
INADVERTENTLY FUNDING DISINFORMATION Programmatic advertising data from NewsGuard’s election misinformation tracking center shows that more than 1,600 top brands ran thousands of ads on sites publishing false claims about the 2020 Election between October and December 2020. Advertiser Intelligence Report Source: NewsGuard Special Report Advertising on Misinformation, January 2021 25 News TV Category H2 2019 https://www.newsguardtech.com/special-report-advertising-on-election-misinformation/
Misinformation and disinformation have revealed themselves as fundamental enemies of economic stability and growth, and as such supporting their spread through media investment with partners who serve to distribute misinformation and disinformation at scale must become anathema for advertisers. From 4As position paper on Dis-/Misinformation, October 2020 26
Site-level inclusion and exclusion lists, informed by trustworthy third- party sources that incorporate human review methodologies: NEW BRAND SAFETY SOLUTIONS Advertiser Intelligence Report 27 News TV Category H2 2019
Leaning into News: Some brands and agencies have made supporting journalism a brand value, which can translate into new content marketing opportunities 11% 12% Completely Completely Disagree Agree 17% As an advertiser, as a brand, we support the Somewhat Disagree Supporting media. We believe in the dissemination of news organizations information as part of our democracy. 30% with ad dollars Somewhat is important to my Agree We want the content to be available organization. to people for free. Completely Agree And anywhere we can, we’ve been 30% trying to underwrite paywalls. Neither Agree or Disagree — Marketer, Financial Services Qj3N. How much do you agree with the following statements about News? Base: Total Respondents 28
ONGOING PLATFORM SCRUITNY We’ve spent the past several months getting clients to adopt new responsible media principles. Separately, we worked on a full audit of all the social media platforms to see what they’re doing to stop the spread of disinformation. For us, it’s an organizational priority. We’re holding platforms accountable to it, and we’re auditing them and publicly sharing the results of those audits. — Agency Holding Company, Executive Officer 29
2021 ADVERTISERS WILL Demand more transparency into paid placements: specific publisher PREDICTIONS sites and URL-level detail, with pendulum swinging toward Direct and Programmatic Direct (PMP) buying Embrace media trust and credibility ratings (including human review) as a primary targeting and brand safety parameter, leaning into high-quality news sources Keep the pressure on broad consumer platforms to stop monetizing hate and disinformation, and to de-platform dangerous content and bad actors Advertiser Intelligence Report 30 News TV Category H2 2019
4. ARE ADVERTISERS AND PUBLISHERS TAKING ENOUGH STEPS TO PREPARE FOR THE FUTURE OF IDENTITY? 31
Portion of ad buyers expecting ‘the phase-out of third-party cookies’ to have major impact to double in next 12 months Impact of Phasing out of Third-Party Cookies on Programmatic Buying Currently Next 12 Months No impact at all MAJOR 8% IMPACT Minor impact 19% 17% Minor MAJOR impact IMPACT 29% 42% Moderate impact Moderate impact 39% 44% Source: Programmatic Intelligence Report, Demand Side Platforms, Q4 2020. Q: How much of an impact is the current phasing out of third-party cookies having on your programmatic buying practices today and how much of an 32 impact do you expect it will have over the next 12 months? Base: Total Respondents
Chrome phaseout of third-party cookie tracking seen as more disruptive than Apple’s earlier move with Safari or recent mobile IDFA update Advertising Industry Impact of Privacy-Related Policy Changes From Apple and Google Extremely disruptive Not at all disruptive Don’t know/unsure 9% 11% 9% 3% 18% 18% 3% 17% 17% 27% 3% 7% 27% 10% 9% 23% 31% 31% 27% 30% 31% Google phasing out third-party Apple’s iOS 14 IDFA policy change Apple phasing out cookie cookie tracking in Chrome (mandating explicit consumer opt-in tracking in Safari to the Identifier for Advertisers) Source: December 2020 Omnibus Report. Qios3. How would you assess the advertising industry impact of the following privacy-related policy changes from Apple and Google? Base: Involved in Digital/Mobile Advertising 33
3 in 5 rely on third-party cookies for measurement/attribution Just under a third rely on Android or iOS mobile device IDs Ad Campaign Measurement and Attribution Metrics Used Third-party cookie tracking 60% GAID on Android (Google Advertising ID) 30% IDFA in iOS (Apple Identifier for Advertisers) 28% None of the above. We rely on processes that don’t 14% involve cookies or mobile device identifiers. Don’t know/Unsure 16% Source: December 2020 Omnibus Report. Qios2a. Which of the following do you typically rely on for your [company’s/clients’] ad campaign measurement and attribution? Base: Total Respondents 34
OPTIMISM FOR Somewhat/ Completely INDUSTRYWIDE disagree Completely 10% agree 19% COOPERATION TO CRACK THE COOKIE Neither agree “The industry PROBLEM IS HIGH nor disagree 22% will work together to create a universal identifier that can replace third-party cookies” Somewhat agree 49% Advertiser Intelligence Report Source: Identity Resolution Report, 2020. Q84. How much do you agree with the following 35 statement: The industry will work together to create a universal identifier that can replace third- News TV Category H2 2019 party cookies. Base: Total Respondents
There are so many media companies in the marketplace that have a strong financial incentive to find a substitute [for third-party cookies] that I don’t need to worry about it that much. They need to worry about it, and they will figure it out because if they can’t figure it out, they are out of business. — Marketer, CPG 36
2021 Buyers and sellers who sit on the sidelines in 2021—instead of investing in new ways of PREDICTION targeting and measuring audiences—will be left behind as 2022 comes into play. Advertiser Intelligence Report 37 News TV Category H2 2019
TO PREPARE FOR BUYERS AND SELLERS RUNNING WITH THE PACK ARE: A COOKIELESS • Planning to invest more in contextual targeting FUTURE: • Building their own first-party databases and leveraging that data across various other partners via known identifiers • Looking into data consortia and data clean rooms • Vetting alternate identity resolution partners and providers BUYERS AND SELLERS WITH THE EARLY EDGE ARE: • Testing and learning various new targeting and measurement practices while the data they typically rely on still exists • Auditing measurement strategies and the metrics that matter • Raising identity conversations to the C-level Advertiser Intelligence Report 38 News TV Category H2 2019
Reports sourced in this presentation: Contact us at info@AdvertiserPerceptions.com for more information regarding access to these or any of our reports. 39
As cross-screen ad measurement matures, expect to see KEY 1 more advertisers move from more basic fulfillment metrics to ones that quantify true change and results TAKEAWAYS 2 Reach remains advertisers' first pass on evaluating video partners, but pandemic uncertainty and zero-based budgeting will open video budgets to more tactics and more publishers. A new vanguard of advertising leaders are now realizing the critical role they play supporting (or not supporting) sources of 3 news and information. Exercising more intentionality around their placements - both programmatic and direct - can help restore the business vitality of high quality, credible journalism. Media buyers and sellers must do their own work to prepare for 4 a world where third-party cookies and other digital identifiers go away. Waiting for a silver bullet or a partner to solve this problem will only delay the inevitable and disadvantage those who drag their feet. Advertiser Intelligence Report 40 News TV Category H2 2019
Contact us at info@AdvertiserPerceptions.com for more information regarding access to any of our reports. THANK YOU Sarah Bolton Sarah.Bolton@AdvertiserPerceptions.com Lauren Fisher Lauren.Fisher@AdvertiserPerceptions.com Justin Fromm Have Confidence in Every Justin.Fromm@AdvertiserPerceptions.com Business Decision You Make
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