How Repetitive Advertising is Ruining the CTV Space
Where content is abundant and viewers have endless choices at their fingertips, a new menace has emerged that threatens to tarnish the reputation of brands and the streaming platforms themselves: repetitive advertising. A recent ad effectiveness test conducted by Magna Media Trials and Nexxen, an ad-tech platform, shed light on just how damaging these repetitive ads can be to both the viewers and the advertisers. During the controlled test, 1,246 weekly streaming viewers were exposed to the same ad at varying frequencies, from one to six times,
during an hour-long viewing session of their favorite TV show. The results were striking, with a staggering 87% of participants agreeing that they saw too many of the same ads. Overexposure to these repetitive ad campaigns was described as "annoying" and "disruptive," leading to a 16% drop in purchase intent among those who had seen the same ad six times or more. While it is undeniable that repetitive ads can achieve strong brand recall, with participants who saw the same ad six times exhibiting a 92% recall rate, negative associations were linked to increased frequency. Nearly half of the participants found the ad "annoying," and one-third reported that it "disrupted" their viewing experience. Furthermore, the study revealed that 83% of participants believed the
repetition was intentional, with 68% blaming the brand and 44% blaming the streaming service for the repetitive ads. "While repetitive ads may achieve strong brand recall, it is evident from our study that they come at a cost," remarked Kara Manatt, executive vice president of intelligence solutions at Magna. "The platforms are suffering too because people also attribute the fact that this
is happening to the platform. It really can be so annoying to people and viewers that they’re willing to find content elsewhere." The study also found that viewers were not passively enduring this ad bombardment. More than half of the viewers surveyed indicated that they would take action to avoid ad overkill. Actions included checking if another streaming service offered the same content,
recommending against the streaming service, ceasing to watch the service, canceling subscriptions, or developing a less favorable opinion of the service. The blame for this incessant repetition falls on both advertisers and streaming platforms. Marketers must ensure they purchase ad space on platforms equipped with effective technology to manage ad frequency. Failure to do so not only results in a decline in purchase intent but also damages the brand's reputation. Streaming platforms, on the other hand, need to ensure they have the ability and adequate data to manage ad frequency and avoid irritating their viewers. In the pursuit of maximizing profits,
streaming platforms have embraced ad-supported business models. However, the indiscriminate placement and repetition of ads are driving viewers to frustration. There are indications that people who repeatedly encounter the same ad become less likely to buy the advertised product, and many customers have voiced complaints about repetitive ads. Some networks have attempted to address this
issue by showing a single long ad at the beginning of the episode and nothing else during the show, or by employing unobtrusive pause-screen ads. However, a more comprehensive solution is required to ensure a pleasant and engaging advertising experience for viewers across different streaming platforms. The lack of underlying technology to manage ad frequency across multiple platforms exacerbates the problem. As more streaming services enter the market and vie for viewers' attention, ads risk becoming intolerable, rendering the platforms unwatchable. Advertising executives have already started seeking ways to innovate episodic ad campaigns to alleviate
repetition. Netflix, one of the giants in the streaming industry, is considering implementing episodic ad campaigns in its "Basic with Ads" subscription tier. This move would present consumers with a series of interrelated ads while binging a movie or series, potentially reducing the annoyance caused by repeated ads during an ad break. Ultimately, the responsibility lies with advertisers, streaming platforms, and ad tech companies to work together to deliver an advertising experience that does not deter viewers or damage brands' reputations. Effective management of ad frequency and employing innovative ad formats will be crucial in restoring the harmony between
advertising and streaming, ensuring both viewers and brands benefit from the streaming CTV space without being driven away by ad overkill.
|
All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
📺💼 Amidst an uncertain TV advertising marketplace and disruptive strikes, NBCUniversal concluded its upfront deal-making on a similar note as last year. While estimates point to a rare 5% decline in the overall upfront TV advertising market, NBCU remains resilient, boasting
its streamer Peacock with a 30% increase in upfront commitments compared to last year. Sports advertising also witnessed a significant boost, with revenues up 50%, predominantly driven by Peacock. Despite challenges, programmatic advertising and Telemundo showcased growth, providing promising signs for the network's future endeavors. 🎉📈
🍎💬 Lesson of the day: Don't believe everything you hear! Apple, known for downplaying A.I. projects, had
a major leak, causing their stock to soar. Turns out, they are secretly working on "AppleGPT," an A.I. chat system, running on the LLM called "Ajax" (akin to GPT-4 for ChatGPT). Though not much is known, speculation suggests it could be integrated with Siri or become an iPhone assistant. Apple's keeping mum for now, but an official announcement is expected in the next year. If they aim to compete with other companies, they better get a move on, especially since they've already banned
employees from using ChatGPT at work, hinting at something big in the works. 🤫📱💻
💻🔮 Microsoft came prepared to beta test new features, shake hands, and chew bubblegum... but they're all out of bubblegum! 🍬 In their open beta announcements, Performance Max is now accessible to select marketers, granting them the power to serve ads across Microsoft's network with automated ad campaigns, reaching new audiences effortlessly. 😎
Additionally, the logo extension pilot allows advertisers to display their company logo alongside ads on various devices. 🖼️ Moreover, Microsoft's expanded partnership with Meta introduces Llama 2 large language model to Windows, empowering developers to create AI experiences tailored to Microsoft's system. 🤝💡 GPT-4 and Llama 2 may be the mighty duo fueling Microsoft's impressive tools, bringing together the power of two giants in AI, almost like collecting infinity stones!
🌌🔥
True Religion has appointed Kristen D’Arcy as their Chief Marketing Officer in a newly-created position. D’Arcy's successful tenure as CMO at Homedics, where she grew DTC sales by 80%, made her a fitting choice as True Religion transitions into a "DTC, digital-first company." With her extensive background in digital marketing, including previous roles at Pacsun, American Eagle Outfitters, Coty, Oscar de la Renta, and Ralph Lauren,
she will oversee all aspects of the brand's marketing, including content creation, creative, brand, public relations, influencers, social media, partnerships, and philanthropy. D’Arcy's primary focus will be pivoting the brand towards DTC as True Religion aims to achieve a 50% e-commerce penetration rate and $250 million in e-commerce sales by 2025. Her expertise in omni-channel marketing, celebrity collaborations, and building loyalty with consumers through digital channels makes her an ideal
fit for this crucial role. True Religion's CEO, Michael Buckley, expressed confidence in D'Arcy's ability to drive business growth and foster brand love within the company. 🚀📈👖
🌌 The metaverse, once a marketing favorite, is facing challenges that have raised concerns about its future. Generative AI like ChatGPT has stolen the tech spotlight, and platforms are grappling with low engagement and privacy and brand safety issues.
Economic uncertainty has also led brands to prioritize marketing fundamentals over digital bets made during the pandemic boom. While client interest in the metaverse has waned, some brands in various categories are still deploying metaverse strategies to connect with young consumers, foster community, and support hybrid experiences. Despite a phase of hibernation and higher risks, the metaverse may evolve into a narrower and more defined space, attracting fewer players but those vying
for depth and business transformation rather than mere trend-chasing. Privacy concerns and a fragmented ecosystem pose challenges, making compliance and consumer safety a priority for marketers as the metaverse navigates its future path. 🚀📊👩💼
🚀📊 The marketing landscape experienced a reset in 2022 as pandemic-driven trends proved temporary, and economic constriction caused digital whiplash. The year 2023 will be a test of the
industry's transformational moves' long-term viability. Marketers will explore ad-supported streaming, alternatives to third-party cookies, and the practical value of the metaverse. As consumers prioritize simplicity and utility, advertisers should focus on worthwhile value exchanges and positivity in messaging. CMOs must do more with fewer resources and adapt to leadership challenges while dealing with turnover rates. Retail media will grow as marketers seek direct sales connections, and
consolidation may occur among players. The metaverse's concept will gain more clarity, and augmented reality will thrive. Social strategies diversify as user curiosity drives marketers to explore new platforms. Advertisers will seek solutions to protect data investments as third-party cookies continue to face challenges. Sports marketing will fragment further as consumers turn to alternative platforms, and vice industries like gambling and cannabis may see more advertising. Streaming fatigue
could affect the connected TV space, and ad-supported tiers may gain traction. 🎯💼🌐
📺💰 Streaming platforms are facing a challenge as consumers look to cut back on their subscriptions. A possible solution lies in consolidation, with streaming companies offering bundled packages 🔄🛍️ to cater to customer needs. Legacy TV companies are also considering this trend, with
Walt Disney leading the way in offering bundled packages of Disney+, Hulu, and ESPN+. Now, other players like Warner Bros. Discovery are talking about "super bundles" that bring together competing platforms under one monthly price, making it easier to cancel or add services. However, caution is advised as some executives fear recreating the issues faced by traditional pay TV MVPD businesses 🚫💵. The question remains whether any new distribution system can truly meet consumers' demands for
choice and flexibility 🤔🔍.
📊💡 Ah, the thrilling world of ad tech and its Twitter debates! 🌐 Polidiot Savant, the master of industry insights, starts by slamming the shady practice of bid density through duplicative bid responses, calling it a disingenuous business model that pubs (publishers) shouldn't rely on. Then, AdTechGod enters the ring with a question about the worst-case scenario for TTD (The Trade Desk) if UID2 fails to
become the industry standard. AdTechGod seems confident that UID2 is already an established standard, dismissing any chance of failure. Polidiot Savant counters, saying large publishers haven't committed to sharing in TTD auctions despite growing support from UID2 ad tech vendors. Rob Haile jumps in with a witty twist, suggesting that while TTD is a custodian of UID2, an impartial industry body could take over, sparking a discussion about what happens if no identifier gains critical mass. 🔥💬
The Twitter ad tech drama never disappoints! ENTER THE DEBATE!
🎙️💡 Box CEO Aaron Levie, the tech guru with a flair for simplifying complex moves, delves into the recent AI power
plays by tech giants like Meta and Apple. Levie sheds light on Meta's open-sourcing of Llama 2, aiming to commoditize competitors' tech stacks, and the strategic benefits of becoming a standard-bearer in the industry. He ponders the demand for chatbots in the face of graphical user interfaces and explores the enterprise applications of generative AI. As for Apple's rumored 'AppleGPT' project, Levie envisions a utilitarian approach, leveraging their software prowess for a seamless,
integrated smart assistant on your phone. 🍏📱 With Levie's insights, the tech world just got a whole lot clearer! 🌐✨
|
You're looking for an edge in your online marketing. Interest: ADOTAT.com is the answer. Our library of resources has been compiled by some
of the world's top internet marketing experts, and it's constantly updated with new information, case studies, and strategies. We want to help you succeed online - that's why we offer this information for free. It's our way of giving back to the community and helping people achieve their business goals.
Sign up now and gain access to our entire library of resources!
Want to advertise? Contact pesach@lattin.us |
|
|
The most POWERFUL name in TCPA Privacy
CIPA AI class action defense and counseling |
SCHILLER’S SHOWTIME: A MEDIA MAVERICK’S INSIGHTS UNVEILED In this exclusive two-part series, we dive
deep into the world of media and advertising with industry luminary Scott Schiller. With an illustrious career at the forefront of media giants like NBCUniversal and Glam Media, Schiller's strategic insights and innovative thinking have shaped the landscape of programmatic advertising. As an Adjunct Associate Professor at NYU Stern School of Business and an Executive-in-Residence at Progress Partners, he continues to mentor the next generation of talent and advise companies on navigating the ever-evolving digital terrain. Join us as we uncover Schiller's vision for the future of media, the rise of Connected TV (CTV), and the
transformative potential of Shoppable TV. Get inspired by the wit and wisdom of this media maverick, and discover how his expertise continues to drive innovation in the dynamic world of advertising and media consumption. Start with Part One only on ADOTAT.com
THE RIGHT WAY TO MEASURE MEDIA “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
The quote, from retail magnate and marketing pioneer John Wanamaker, is over 100 years old. Despite digital media’s promise of accountability, many retailers still struggle with this attribution conundrum. We’ve written this paper because we’ve witnessed first-hand the misleading results of ham-fisted and sometimes lazy models. At Undertone, we offer unique High Impact digital circulars,
recipe ads, and more, all personalized through a slew of AI- driven selected variables that drive sales lifts leading to 15x to 19x ROAS. These state-of-the-art products can stymie old and tired media models. This is because, in some retailer attribution models, high-impact display is treated with the same modeling considerations as boring, small, and entirely missable standard display ads. READ MORE OF THIS WONDERFUL ARTICLE
UNRAVELING THE EFFECTS OF MEDIAMATH’S BANKRUPTCY ON THE ADVERTISING ECOSYSTEM The recent Chapter 11 bankruptcy filing of MediaMath, once celebrated as a leading player in programmatic advertising, has sent shockwaves throughout the advertising ecosystem. With substantial debts owed to a vast array of ad tech businesses and creditors, the collapse of MediaMath is expected to have profound implications for various stakeholders within the industry. This comprehensive article delves into the financial
turmoil faced by MediaMath, the extent of its creditor obligations, and the far-reaching effects of its bankruptcy on the advertising ecosystem. READ THIS IN-DEPTH STORY
INSIDE THE GOOGLE VIDEO AD SCAM It’s bad. It’s actually worse than everyone was saying. Google may owe advertisers
billions of dollars and face huge lawsuits after scamming advertisers. For years, many people, including myself, have questioned the ecosystem of online advertising, particularly Google’s enormous advertising growth that seems to be backed by junk and scam sites. Now, new research reveals that Google has violated its promised standards when placing video ads on other websites, raising serious concerns about the transparency and integrity of the tech giant’s online ad business. READ THE FULL EXCITING STORY
THE FUTURE OF PROGRAMMATIC: MATT BARASH DEFENDS THE SSP. In an exclusive interview with VideoWeek, Matt Barash, Vice President at IndexExchange, provides valuable insights into the ever-evolving programmatic advertising landscape. With over 20 years of experience, IndexExchange has transformed from an ad network into a formidable exchange model, helping publishers monetize their assets. Barash highlights the seismic shifts witnessed in the industry, emphasizing the rise
of quality and video as paramount factors driving change. READ THE INTERVIEW
CRITEO’S COMPLIANCE WOES: REGULATORS SHOW THEY MEAN BUSINESS In a stunning turn of events, adtech firm Criteo has found itself in hot water with regulators, facing a hefty penalty of 40 million euros (U.S. $44 million) for multiple alleged violations of the General Data Protection Regulation (GDPR). The French data protection authority, CNIL, recently announced the fine, which sent shockwaves through the industry and left Criteo employees feeling like their yacht had suddenly transformed into a funeral barge, with no
explanation for this colossal punishment. READ MORE NOW |
|