NewFronts 2019: Trends & Insights - PM POV

M AY 2 01 9

NewFronts 2019: Trends & Insights

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                    Digital Content NewFronts: What They Are
                    & Why They Matter                          3

INSIDE THE REPORT   Every NewFront Presentation (In Five
                    Words or Less)                             4

                    Top Five NewFronts Trends                  5-10

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THE DIGITAL CONTENT NEWFRONTS: WHAT ARE THEY & WHY THEY MATTER

The NewFronts are a week-long, multi-billion-dollar marketplace
packed with the world’s biggest publishers, the best storytellers, and
the ad industry—all gathered to focus on the future of digital video
content. According to a recent IAB report, 2019 per-advertiser spend
on digital video is $18M, up from $14M in 2018, with nearly two-
thirds of digital budgets allocated to video. 43% of advertisers’
original digital video budgets are allocated at the NewFronts.
And one of our agencies, Digitas, started it. Digitas is the only agency
to hold a NewFront, having held its first NewFront in 2008. In 2012
Digitas co-founded the Digital Content NewFronts, igniting a US
digital video marketplace that was valued at $730M in 2008 and is
estimated to grow to over $58B by 2023 (source: eMarketer).
This report pulls from the collective insights of PMX and Digitas.

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EVERY PRESENTATION (IN FIVE WORDS OR LESS)

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TOP FIVE THEMES

                                                                           Premium,
                                          Intention More
                                                                           Brand Safe &
             Content > Ads                Important Than
                                                                           Transparent
                                          Attention
                                                                           Environments

                                                           The Power of
                         Performance                       Podcasts;
                         Accountability                    Second Coming
                                                           of Audio

                  UNDERPINNED BY THE IMPORTANCE OF DATA MANAGEMENT

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Content > Ads

The continued rise of branded content and influencer partnerships – along with the
resurgence of strategic product placement – was touted as a prime way to combat ad
avoidance, distrustful perceptions of ad messages, and ad-free streaming.
At this year's event, we saw a number of publishers unveil new content experiences for their
audiences. Viacom, for example, shared new Digital Studios programming with David Spade,
Marc Lamont Hill and Nickelodeon, who recently partnered with Kraft Heinz on a co-branded
Lunchables program called "Jackie & Patty's Mixed Up Challenges." BBC News introduced
new features to make content customized to users, including "object-based-media," an
interactive style of personalized, curated content based on users' interests, behaviors and
how much free time they have. Twitter also announced a WSJ partnership including original
video formats, full-day programming and livestreaming events to offer new ways to
experience content. Target Media Network rebranded as Roundel, and announced a primary
offering of leveraging Target 1st party data across Owned & Operated inventory as well as a
partner distribution network.

      KEY TAKEAWAY: With the rise of content and influencer marketing, brands need to
      identify and work with best-in-class partners – Publicis Media is prepared to help
      marketers navigate this process through the launch of ‘PM Content Verified,’ a
      comprehensive process to map and verify vendors across the ecosystem.

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Intention More Important than Attention

Consumer signals are indicators of intent, the most powerful insight a brand can have,
because intention drives action. Brands no longer have to guess what consumers want.
They’re being told thousands of times a day through millions of different signals, but the
key is knowing how to truly listen.
The New York Times for example currently shared their new targeting solutions in beta
that use machine learning to target and optimize advertising based on predictive
emotions, motivations and topics. Meredith focused on the power of understanding
consumer intent, which has been brought to life through unique audience profiles and
programming strategies. Hulu talked about their use of robust first-party data to inform
everything on their platform – whether its experience, content and advertising – all in an
effort to allow brands to tailor experiences to their target customers. They also announced
several unique ad units, including Binge Ads, which allows brands to target users who
watched three consecutive episodes in the same session with a unique message or value
exchange offering.

      KEY TAKEAWAY: Marketers that adapt to the wants and needs of consumers will win
      – using data to understand consumer trends and insights brands can adjust product
      offering, messaging, and targeting to ultimately cater to and win customer intent
      and dollars.

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Premium, Brand Safe, and Transparent Environments

Nearly every publisher offered solemn promises to raise the bar for programming and their
rigorous brand safety processes while also nodding to enhancements in transparent data
and privacy practices.
Digitas' Newfront theme, "Trust Me," focused heavily on why trust matters for brands and
how they can use technology and storytelling to build (or rebuild) trust, with presentations
form prolific thought leaders including Malcolm Gladwell, bestselling author and host of
podcast Revisionist History. Ellen Digital Network stated its continued commitment to
providing a brand safe environment to partner with a variety of influencers, from digital
natives discovered by Ellen to A-list celebrity talent. The New York Times echoed the
sentiment that trust is more important than ever and unveiled “The Privacy Project”, an
initiative that brings strong investigative journalism to educate audiences on the
consequences of under-regulated access to data and technology. Meanwhile, Studio 71
acknowledged the importance of maintaining brand safety, as evidenced through their
“Context” tool which brings automated content scanning married with human review. Vice
unveiled a collaboration with Oracle’s Grapeshot technology to review every piece of Vice
content for context to ensure it’s safe to monetize.

      KEY TAKEAWAY: While targeting, premium content alignment and technology give
      some reassurance to brand safety, it remains an ongoing industry challenge – there
      remains a need for publishers, brands and agencies to work together to find a joint
      solution.

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Performance Accountability

Historically the ROI of video and content have often been underrepresented. As more dollars
shift from traditional ad formats into content in the coming years, understanding the true
quantifiable impact of that channel is a key focus for publishers in the space.
Vudu focused on scale and robust 1st party purchasing data via parent company Walmart
and their other supporting brands (Bonobos, Moosejaw, ModCloth, etc). Vudu made a splash
in announcing New Shoppable Dynamic Ads for viewers to seamlessly purchase the
products featured in an ad via Walmart, as well as a new Audience Network Extension to
supplement their advertising reach with a variety of other premium OTT partners, eventually
offering access to over 50% of households. Meanwhile, Conde Nast announced New ROI
measurement capabilities through a partnership with Nielsen. YouTube shared evolution of
its Google Preferred offerings, including a revised scoring system (called the “P-Score”) to
include higher production values and TV popularity, as well as more precise targeting
through audience guarantees and show-level exclusions.

      KEY TAKEAWAY: With the continued expansion of platforms such as OTT/CTV,
      Podcasts/Audio, and Live Streaming Events to maintain and grow audience
      engagement a greater need for measurement exists – while partner specific solutions
      are not the end all be all, they give brands an opportunity to better inform planning
      and optimization.

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The Power of Podcasts; Second Coming of Audio

Podcasts breed a unique sense of trust unlike any other format. The ability to convey
tone makes it more engaging than print, the way consumers seek out the content
makes it more trustworthy than TV, and the personal connection makes it more
authentic than digital.
This year, we saw several presenters share new audio components and features,
including The New York Times who announced new storytelling experiences such as
Alexa voice skillset development and podcasts. BBC News talked about its "Project
Songbird" offering that provides users with automated audio versions of all BBC News'
online articles. And Verizon Media shared that Yahoo Finance is launching a new
podcast slate that can be accessed directly and via audio inventory across Pandora,
iHeart Radio and AdsWizz.

     KEY TAKEAWAY: The resurgence of audio gives brands a opportunity to build a
     unique and authentic sonic identify – done right marketers have the ability to
     enhance perception, increase brand awareness, encourage customer
     engagement, and maximize return on investment.

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THANK YOU