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State of the Screens

TV networks are using a new strategy to sell ads more like Google and Facebook

By October 17, 2019No Comments

The big question: Can the member companies of OpenAP cooperate enough to compete with Google and Facebook?

Quote from Sara Fischer – Media Reporter @ Axios:
“During a panel I moderated last week at AT&T’s advertising conference, some of the country’s biggest buyers noted that sellers do these things to make it easier for them to sell ads, but these fragmented alliances don’t always make ads easier to buy.”

Pro tip: Sign up for Sara’s must-read newsletter here!

Key details for OpenAP:
1) Announced in 2018
2) Owned by Fox, NBCUniversal, Viacom, and Univision
3) Includes inventory from 20 cable networks and 3 broadcast networks
4) Buy-side marketplace launched October 1st

Share of advertisers who expect to increase spend by media type in the next 12 months according to FreeWheel:
1) Advanced TV – 78%
2) Digital Video – 65%
3) Mobile – 50%
4) Digital Display – 43%
5) Local TV – 14%
6) National TV – 8%

Video: OpenAP Grows Up: Next Step Is To Become A Marketplace, New CEO Levy Says

What happens next: TV Buyers are being rebranded as video investment teams, and digital buyers are going to school on TV metrics.

The future: The term “digital buyer” and “TV buyer” will go away, and there will be “video buyers.” Everyone cannot be great at everything so some buyers will be stronger in TV or digital, but the future is cross screen.

Who wins: The winners will be whichever side learns the other side’s piece first and effectively integrates it into a holistic video offering.

Flashback: OpenAP and NCC Media partner to expand advanced advertising on TV

Reminder: It is early in the game for advanced/addressable advertising.

National TV ad spend share by targeting type according to eMarketer:
1) Age/Gender – 95%
2) Advanced TV/Audience – ≈ 3%
3) Addressable – 2%

Adoption for addressable TV:

1) Fully using – 15%
2) Experimenting or not using – 85%

Adoption for advanced TV:
1) Fully using – 17%
2) Experimenting or not using – 83%

More #1: How to move addressable TV from a buzzword to an industry staple

More #2: Major Cable Companies Compile More Granular Data to Fuel Targeted Ads

More #3: Audience Planning Ate Media Planning

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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