What a $4 Mil. Super Bowl Ad Could Buy in Digital

TV ads during the Super Bowl are expensive: $4 million for 30 seconds of media, to be precise, and that’s before paying for things like production costs, agency fees and celebrity endorsements. They do, however, allow advertisers to reach over 100 million viewers at a single time — and be part of the cultural zeitgeist.

The digital industry regularly complains it doesn’t see the level of big-brand ad investment TV does, so I thought it’d be interesting to figure out how far $4 million would go in the world of digital advertising. Here’s what it’d buy, in theory at least:

A portal roadblock every day for at least a week
AOL, Yahoo and other major publishers sell day-long homepage takeovers for around $500,000, media buyers report. That means $4 million could ensure your ads are plastered all over a major homepage non-stop for at least a week.
$4 million / $500,000 = 8 days

Over 100 million video impressions on Hulu
According to media buyers, Hulu currently sells its video ad inventory at around a $30 CPM. Therefore:
$4 million / $30 CPM = 130 million impressions

YouTube homepage takeover
An eight-day YouTube homepage ad
Instead of a Super Bowl ad you could buy out YouTube’s homepage ad units for at least 10 days, based on a price tag of up to $500,000 a day.
$4 million / $500,000 = 8 days

50 million Forbes.com first-page interstitials
Media buyers say Forbes charges around an $80 CPM for its welcome interstitial ads. At that price you could buy around 50 million impressions, but even if every impression hit a unique user, that’d still only be half the potential audience for a Super Bowl ad.
$4 million / $80 CPM = 50 million impressions

Twitter’s Promoted Trending Topic every day for a month
Promoted trending topics on the social network currently sell for up to $120,000 a day. Based on that figure, $4 million would afford you the paid placement every day for at least a month.
$4 million / $120,000 = 33 days

Over 100 million video network impressions
A typical video ad network buy is charged in the region of $10 CPM. On that basis, $4 million could buy around 400 million impressions.
$4 million / $10 CPM = 400 million impressions

Source: digiday

Akamai’s plan to fix Social TV

Akamai, the Web optimization company whose servers deliver up to 30 percent of Web traffic, is setting its sights on creating a TV technology that can detect what a person is watching and stream secondary content to a smartphone or tablet in near real-time.

The aim, the company says, is to take today’s fast-growing but chaotic landscape of TV “companion” apps – such as ones delivering athlete stats to people watching the Olympics, or crime-fighting details to CSI junkies—and make it easier to create and see such additional content.

Nielsen, the measurement firm, recently reported that 40 percent of U.S. television watchers are now in the daily habit of using their smartphone or tablet in front of the TV. Many networks and shows have tried to reach such people with apps providing auxiliary content—often to encourage viewers to watch the show live and thus please advertisers.

At the same time, aggregators such as Shazam and Zeebox are cutting deals to deliver this so-called second-screen content. Shazam makes audio “fingerprints” of 160 channels of U.S. TV programs and delivers various bundles of content to people who open the app and record three seconds of whatever they are watching. “Consumers don’t want an app on the phone for every show they like—not everybody is that motivated,” says David Jones, marketing vice president for Shazam, which is based in Menlo Park, California.

But these technologies have only scratched the surface of what’s possible. People who use smartphones and tablets while watching TV are often checking e-mail or Facebook, and show-specific apps mainly serve the most devoted fans. Only half of Shazam’s 85 million users tune into TV-related content weekly or more often.

What Akamai sees is a chance to bring some order to this chaos and make everything run a bit faster—and through the Web, not a collection of apps. Indeed, Shazam takes one to four seconds to detect which show someone is watching, and it lacks something to offer for many local channels.

The Akamai proof of concept—shown for the first time to MIT Technology Review last week—consists of a few parts. The first is a piece of software that would reside on whatever device you use, whether it’s a television set fed by a cable or satellite service, a set-top box delivering content over the Internet, or even a DVR playing a recorded show. A one-time authentication process links your tablet or smartphone to the device.

Real-time information on what show you’re watching—even as you change the channel—gets sent to Akamai’s servers. Relevant secondary information then gets streamed directly back to your smartphone or tablet in near real-time.

Kris Alexander, an Akamai strategist, demonstrated the technology while showing a scene from Mission Impossible II, in which Tom Cruise’s character was visiting a racetrack. In the tablet in Alexander’s hand, a link popped up leading to information about the Randwick Racecourse in Australia, where the scene was filmed; later, a link for buying Cruise’s brand of aviator sunglasses appeared.

A New York-based industry consortium called Second Screen Society projects that the market for second-screen apps is $490 million today and could be $5.9 billion by 2017. Guy Finley, executive director of the group, says that while he’s not familiar with Akamai’s technology, faster delivery could be crucial. “Second-screen apps are all about user interface, user experience—so anything that impacts that user experience to make it more seamless and enjoyable is going to make a difference,” he says. “It will help the whole proliferation of the format in general.”

Akamai is still demonstrating the technology to broadcasters and other potential customers. Many other players are working on new strategies; in the past year, for example, Zeebox took on investments from Comcast and NBC Universal, and partnered with HBO, to deliver companion apps.

What could a widely used, super-fast platform lead to? One can imagine deeper dives into news content, or real-time polling during a presidential debate, building on the existing phenomenon of people tweeting their impressions about television shows in real-time (see “A Social Media Decoder”). But the most popular applications of new communications technology platforms—whether the World Wide Web or Twitter—are often far from clear at the outset.

Five Media Technologies to Watch in 2013

The digital media world will continue to change at a rapid pace, these are the technologies I am keeping my eyes on in 2013.

Multi Screen
The blending of paid, owned, and earned media will continue and intensify in 2013, spawning new technologies and necessitating new workflow systems and partnerships. As the lines continue to blur between what’s paid, owned, and earned in digital media and multi screen usage continues to shift the way we consume content this will be the trend that governs nearly all other major changes in the digital marketing and media landscape.

Native advertising
From banner blindness to the fact that display, search, and social advertising have largely moved toward programmatic buys that are much less profitable for publishers, we’re seeing a number of technologies and solutions emerge to facilitate native advertising, one of many terms for branded content integration. New Products and solutions in this area will continue to emerge, more publishers will accommodate, and we will see some interesting, large-scale media partnerships emerge as a result.

Real-Time Marketing
Real-time marketing demonstrably works — not just in social channels, but across the marketing spectrum. A recent GolinHarris study found that real-time not only positively impacts standard marketing goals (word-of-mouth, attention, preference, likelihood to try or buy), but it also turbocharges other marketing initiatives, including paid and owned media effectiveness. Event/news-driven marketing will become increasingly vital as brands work to become more relevant. This requires sophisticated listening and monitoring platforms. Teams require new tools and must also be permitted to work in an agile environment, free of the chain-of-approval strictures that are antithetical to real-time marketing.

Branded Content Marketing
As brands recognize the necessity of adding content to the marketing mix, they quickly realize something else. Few marketing organizations have a content division or strategy. In 2013, brands will begin to address this deficiency in earnest. They will hire, reorganize, and make room on the org chart for effective content marketing operations that work in concert with existing marketing functions from social to communications to brand, creative, and advertising.

Mobile Innovation
Mobile Phone and Tablet sales continue to outpace PC sales, but mobile ad technologies have failed to keep up with the needs of the mobile market. In 2013, mobile innovation will take center stage as marketers scramble to find new ways to engage this rapidly growing audience.

The above are my top five, but the single most interesting trend in 2013? Easy. It’s the one that hasn’t been created yet.

Smart TVs Expected to Dominate Market by 2016

Nearly 85% of all flat-panel TVs manufactured in 2016 will be able to connect to the web, according to a new Gartner report.

Worldwide production of “smart TVs” is expected to reach 108 million in 2013. Gartner cautions manufacturers that the ability to connect to the web won’t be enough to spur demand among consumers for smart TVs. “In the end, the choice may be all about the extra content that one TV brand offers over another.

Consumers will be asking questions such as, which internet TV services can the TV access? Are these the sites I think are valuable? Can I use my smartphone or tablet with this TV?” said Paul O’Donovan, Gartner’s Principal Research Analyst.

Gartner defines “a smart TV” as a set that has the ability to search the web for video content and then play that content back. It does not necessarily require an internet browser, but it does need to offer apps via an app store, regardless of whether it’s operated by the manufacturer or a third party.

Nielsen and Twitter Join Forces to Launch new Social TV Ratings

Audience measurement specialist Nielsen has joined forces with Twitter to create a TV ratings system for social TV.

Nielsen Twitter TV Rating will deliver a “syndicated-standard metric around the reach of the TV conversation on Twitter” and will be available on a commercial basis from the start of the fall 2013 TV season.

Twitter has increasingly aligned itself with the TV business over the past few years and last month Nielsen bought out social TV analytics firm SocialGuide, which ranks shows according to Twitter activity.

The new ratings system will complement Nielsen’s existing TV ratings, giving TV networks and advertisers the real-time metrics required to understand TV audience social activity, according to the two parties.

“The Nielsen Twitter TV Rating is a significant step forward for the industry, particularly as programmers develop increasingly captivating live TV and new second-screen experiences, and advertisers create integrated ad campaigns that combine paid and earned media,” he said.

Twitter claims over 140 million active users and a significant proportion of tweets related to TV shows.

“Our users love the shared experience of watching television while engaging with other viewers and show talent. Twitter has become the world’s digital water cooler, where conversations about TV happen in real time,” said the company’s VP of media Chloe Sladden.

“This effort reflects Nielsen’s foresight into the evolving nature of the TV viewing experience, and we’re looking forward to collaborating with Twitter ecosystem partners on this metric to help broadcasters and advertisers create truly social TV experiences.”

It’s not clear, however, what this means for social TV specialists such as Trendrr and Bluefin Labs, which have largely built businesses based on the providing clients with insights into Twitter activity around their programming.

2012 Social TV and Second-Screen Viewing Results


In 2012, a lot of people are using smartphones, tablets and/or laptops while watching TV. But how many, what are they doing, and what might it mean for the TV industry?

It’s a question being chewed over at pretty much every industry conference, and there is no shortage of research companies conducting surveys to try to help them understand viewer habits, and respond accordingly.

Here is a roundup of some of the latest studies, all from 2012:

Somewhere between 75% and 85% of TV viewers use other devices while watching, although a lot of these people are doing unrelated tasks – it’s startling how many surveys come up with around 60% for the percentage of people who are emailing, which is a telling (and somewhat dispiriting) comment on modern working habits.

Of these multi-screeners, how many are actually using their second device to look for something relating to the show they’re watching? Somewhere between 37% and 52%.

Verizon / Harris Interactive (October 2012)

Verizon commissioned Harris for a poll of 2,319 Americans who were planning to watch the US presidential debates. It found that 65% said they were going to do it with a smartphone, tablet or computer in their hands/laps.

41% said they were at least “somewhat likely” to use the second screen to fact-check statements by Barack Obama and Mitt Romney, while 39% were somewhat likely to follow the reactions of political reporters, and 26% to follow those of comedians (“although it is not clear if this is to track their political punditry or for comic relief”).

This wasn’t a one-way flow of social updates, though. 23% of people planning to watch the debates said they’d post their own reactions on Facebook, and 14% on Twitter.

Google second-screen study
Google’s multi-screen study included a warning

Google / Ipsos / Sterling (August 2012)

This is currently one of the most widely-quoted studies of multi-screen habits, thanks in part to its warning to the TV industry that “Television no longer commands our full attention”: 77% of the times people watch TV, it’s with another device.

The study, which involved 1,611 US participants, suggested that 81% of people use smartphones while watching TV, while 66% use laptops or PCs while watching TV. Top activities included emailing (60%), internet browsing (44%), social networking (42%) and playing games (25%).

Google suggested that 22% of “simultaneous usage” of more than one device is complementary – one use is related to the other. It also found that 22% of respondents have searched for something on their smartphone because they saw it on TV – a figure that breaks down to 17% because of an ad, and 7% because of a show (obviously, there’s an overlap).

Ericsson (August 2012)

Ericsson’s study of TV and video habits was based on its ConsumerLab research program, which involves interviewing 100,000 people a year in 40 countries.

Its key finding was that 62% of people use social media while watching TV – 18 percentage points more than 2011’s finding. 40% of them are discussing what they’re currently watching on social networks.

The report noted that social TV isn’t just for the young folk: 30% of 45-59 year-olds “engage in social TV behaviour at least weekly”.

Deloitte (August 2012)

Deloitte’s survey of 4,000 people in the UK dug into second-screen habits, claimed that 24% of all respondents use second screens, although nearly half of 16-24 year-olds use messaging, email, Facebook or Twitter to discuss what they’re watching on TV.

It suggested there is a “muted appetite” for interacting with shows from the second screen, with only one tenth of respondents browsing the internet for information about the show they’re watching.

40% said they like being able to send comments in to a live show, but 68% said they wouldn’t want websites for products, people or adverts that they’ve just seen on TV to “automatically appear on their computer, tablet or smartphone”.

Deloitte’s response was that second-screening has much more of an impact on driving “conversations about a programme, as opposed to interaction with it”, with the company’s Paul Lee suggesting it will be similar to eating in front of the TV: “An everyday experience for some; absolutely unthinkable for others. One thing is certain: it is here for good.”

Pew studyThe Pew Internet study examined what multi-screeners do

Pew Research Center (July 2012)

Another US study, this, conducted for the Pew Internet & American Life Project with a sample of 2,254 US adults in late March 2012, although published later in the year.

It found that 52% of mobile phone owners are “connected viewers”, using their phones while watching TV. 38% do it to keep themselves occupied during advertising breaks or other pauses, and 23% send texts to friends watching the same show as them.

22% fact-check what they’ve seen on TV, 20% visit websites mentioned in a show, 11% check what other people are saying online about the show they’re watching, and 11% post their own comments from their phone. Meanwhile, 6% said they use their phones to vote for reality show contestants.

IAB / Ipsos MediaCT (May 2012)

This was a study from the Internet Advertising Bureau which found that 63% of TV viewers had used a connected device the last time they watched live TV, with that rising to 66% for people the last time they watched time-shifted TV.

This research also found that most users are emailing, texting and social networking, which aren’t usually related to what they’re watching. However, it claimed that 45% of smartphone and 30% of tablet “multi-screeners” were doing something relating to the current show.

23% of smartphone multi-screeners were texting, emailing or messaging friends about the TV, while 20% were chatting about it on social networks, and 20% actually talking (as in voice calls) about it to friends.

37% of smartphone multi-screeners use their devices to talk about ads they’ve seen, with some intriguing findings that the more devices people use at once, the better they are able to remember ads – as in associate advertisers with specific TV shows.

Nielsen study
Nielsen compared habits across four countries

Nielsen (April 2012)

Nielsen’s study of multi-screening habits is also regularly quoted at TV and tech industry conferences, not least because it compared the US, UK, Germany and Italy rather than focusing on one market.

In the US, it found that 41% of smartphone owners use their phones at least once a day while watching TV, while 45% of tablet owners do the same. In the UK, those numbers were 40% and 41% respectively.

Across all countries, the most frequent tablet or smartphone activity was checking email, but Nielsen also dug into US (I think) simultaneous TV and tablet usage for some more depth.

It found that 61% of tablet owners check email while watching TV, 47% visit social networks during a show (and 45% during the ad break), 37% look up information relating to the show they’re watching, 34% check sports scores, and 27% look up product information based on a TV ad.

From The Guardian

 

Epic Meal Time Launches New Competitive Cooking Series

Epic Meal Time is one of the most popular channels on YouTube with nearly 3 million subscribers and over 486 million video views to date. Now, with the help of Collective Digital Studios and NextTime Productions, the channel has launched a new web series called Epic Chef, which is being described as “an over-the-top, calorie-filled take on the competitive cooking genre”. If you’re not familiar with Epic Meal Time, the channel is notorious among the college crowd (and like-minded viewers) for cooking up ridiculous, cholesterol-heavy dishes such as meat gingerbread houses and egg rolls the size of a human head.

Epic Chef, which will keep that notoriety intact, debuted Friday. The series pits two chefs against each other every week, as part of a bracket-style competition to determine who is, in fact, the most “Epic Chef” of them all. Each episode will feature a themed challenge such as “Epic Burger” or “Epic Mexican,” for which the competitors will have 45 minutes to create a meal worthy of the moniker, only using a box of mystery ingredients and a pantry that they will have access to.

Celebrity judges for the series include Duff from Ace of Cakes, Adam Gertler from Next Food Network Star, and a collection of YouTube stars, among others. Competing chefs include former contestants on shows like Top Chef and Iron Chef, as well as other notable food personalities.

Mobile is the driving force behind social media and social TV behavior

Nielsen’s just-released “Social Media Report” for 2012 drills deep on mobile, illustrating the inexorable relationship between social and mobile devices. “Time spent on mobile apps and the mobile web account for 63% of the year-over-year growth in overall time spent using social media,” the report said. Specifically, mobile apps, which dominate over mobile web in time spent.

Here’s the breakdown of social networks by mobile reach and time spent:

Not only for social platforms, but apps (+120%) continue to grow in time spent at a faster rate than mobile web (+22%) overall, Nielsen says.

All of this mobile/social growth reinforces social TV behavior. As you may have seen from Nielsen’s cross-platform report that we published last month, second-screen interaction is becoming routine behavior: 41% of tablet owners and 38% of smartphone owners use their device daily in front of the TV screen. Here’s how the behavior is distributed:

It’s no surprise that Twitter is a big driver. In June alone, one-third of Twitter’s active users tweeted at least once about TV, an increase of 27% since the beginning of the year:

Here’s a link to the full report from Nielsen.

From Lost Remote

10 Things You Need to Know About the Global Advertising Market

With Europe in recession and the U.S. facing a fiscal cliffhanger, ad forecasters this month trimmed their global-spending forecasts. But amid the uncertainty, there are bright spots and emerging opportunities. Here are 10 things to keep in mind about the global ad market.

1. Advertising is a $500 billion market. WPP’s Group M figures worldwide ad spending topped the half-trillion mark in 2012. Interpublic Group of Cos.’ Magna Global and Publicis Groupe’s ZenithOptimedia expect advertising to pass that milestone in 2013.

2. Consensus ad growth is 3.9% in 2012 — and 2013. The average of this month’s revised forecasts from Group M, Magna and ZenithOptimedia suggests the worldwide advertising market will grow 3.9% in both years.

3. Worldwide ad spending is at an all-time high. Spending in 2011 moved above the peak hit before the 2008-2009 global economic meltdown, according to ZenithOptimedia. Magna expects advertising to set new records each year through at least 2017 (as far as its December forecast extends).

4. Regional spending is a mixed picture. Advertising in Asia/Pacific and Latin America has rocketed past pre-recession levels, reflecting growth in emerging markets. ZenithOptimedia does not expect U.S. spending to pass its 2007 peak until 2015. Spending in Western Europe could see a meager gain in 2013, but it’s to be determined when spending will top its 2007 peak.

5. Emerging markets are set to pass the U.S. The world’s emerging markets in 2014 will account for one-third of ad spending, surpassing the U.S. share of advertising, according to Ad Age DataCenter‘s analysis of ZenithOptimedia forecasts. The media agency says developing markets will account for 61% of global ad spending growth between 2012 and 2015.

6. A giant BRIC. Brazil, Russia, India and China account for nearly half of emerging-market ad spending. By 2017, Magna expects the BRIC bloc to comprise four of the world’s 10 largest ad markets, with China No. 2 behind the U.S.

7. Digital captures one in five ad dollars. The internet in 2013 will pass newspapers to become the second-largest global ad medium, behind television, according to ZenithOptimedia. It says internet media will get 19.8% of the 2013 spending pie and expects internet advertising to account for 59% of growth in worldwide ad spending between 2012 and 2015.

8. TV’s share of global advertising peaked in 2012. TV’s portion of global ad spending this year reached its peak, according to Group M (43%) and ZenithOptimedia (40.2%). ZenithOptimedia expects TV’s share to hold steady at about 40% through 2015. Even with a flat share, TV is likely to score solid gains in revenue because the overall ad market is growing.

9. Number of billion-dollar advertisers: 46. That’s how many companies had 2011 worldwide measured-media spending above $1 billion, according to Ad Age DataCenter’s analysis. The group includes 43 Global 100 multinational, multi-region advertisers; and three big marketers (AT&T, Berkshire Hathaway, Verizon Communications) that don’t appear in the global ranking because their measured spending is virtually all in a single region (U.S.).

10. Personal care cleans up. It’s the world’s biggest advertising category, followed by automotive and food, and makes up one-fourth of 2011’s Global 100 spending. The three biggest global advertisers have the world in a lather: Procter & Gamble Co., Unilever and L’Oréal.

From Ad Age