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This Week in TV News: Smart Diapers and Monthly Streaming Services Budgets

We’re talking about how much people are willing to spend on streaming services, ratings for “Big Little Lies,” and new creative from P&G and Liberty Mutual.

Streaming service budgets hit a ceiling. Most U.S. households want to pay $21 a month for all their streaming services, a new Hollywood Reporter/Morning Consult poll finds. Many streamers pay for three services for a total of $37 per month. (Hollywood Reporter

“Big Little Lies” gets big, not little, ratings. According to Nielsen, encore showings and early streaming data shows the season two finale of the HBO drama clocked in at 3.1 million viewers the night it aired, or 2 million viewers for the linear premiere and a little over one million for two same-day reruns and early HBO GO or HBO NOW streams. (Vulture

Diapers get smart. P&G partnered with Google to create a smart diaper. The system, Lumi, will alert parents via app when diapers need changing; it will also use a Logitech video camera for two-way audio, which will help track room humidity, movement, and sleep. (Ad Age) 

Liberty Mutual’s wacky ads are working. The car insurance brand’s campaign, “Truth Tellers,” has resulted in a strong increase in ad awareness, with a year-over-year lift in unaided awareness of 25%. The campaign has been around for a few years and originally received mixed feedback, but after switching agencies and going through a reboot, the new creative is its “oddest and most compelling yet,” according to Adweek. One ad features the fortune-telling “Zoltar” machine from the 1988 Tom Hanks movie “Big.” (Adweek)

See last week’s TV trends.

This Week in TV News: Emmy Nominations and a ‘Gossip Girl’ Reboot

We’re talking about (yet another) series reboot, Emmy nominations and snubs and cable’s economic impact in the U.S.

Emmy nominations are out. As usual, there are plenty of surprise nominees (including Phoebe Waller-Bridge’s “Fleabag” and Eugene and Dan Levy’s “Schitt’s Creek”) and surprise snubs (including Julia Roberts in “Homecoming,” the movie star’s first TV show and Kieran Culkin in “Succession”). Check out Vulture’s entire list of shocking snubs and nominees. (Vulture)

Gen X shop on social and mobile. Xers use mobile apps for a variety of shopping purposes. More than half of U.S. smartphone/tablet owners from 35 to 54 said they had used a mobile retail app to seek out info about a product or service (61%) or to transact a purchase (54%), according to eMarketer/Bizrate Insights. But the generation doesn’t want to be inundated with ads on social or mobile. More than half (56%) of respondents for a separate poll from Morning Consult said there is too much advertising on the social platforms they use. (eMarketer)

Xoxo, Gossip Girl. Seven years after the ending of the hit show “Gossip Girl” last aired, WarnerMedia plans to recreate the show with a new plot and cast. The 10 episodes will take place eight years after the original Gossip Girl website shutdown and will dive into how social media and New York itself has changed throughout the past seven years. (Deadline)

Cable’s $450 billion economic impact. The cable industry, including broadband and phone businesses and programmers, accounted for $450 billion of the American economic impact for 2018, up $29 billion over last year, according to a Bortz Media & Sports Group report. The number counts the three million U.S. jobs the industry provides, as well as investments in services. Over the last 20 years, Bortz found, the industry has invested $290 billion in infrastructure and networks. (Multichannel News).

See last week’s TV trends.

Why Addressable Advertising Is a Core Component of Smart Pharma Marketing

Today, people can video-chat their doctor to talk about an ailment, compare and read drug reviews online and use their phone to schedule a same-day appointment for a check-up.

Technology is clearly changing the way people seek health information, from finding doctors to ordering medication. And for a pharmaceutical marketer, the opportunity to connect through an abundance of channels is enormous – and daunting, too.

Marketers are realizing that data can provide valuable insights and the opportunity to engage and connect with people who are more likely to need their product. And television, now targeted and data-driven, is an especially powerful component of fostering the path to purchase. 

Addressable TV helps pharma marketers differentiate

With more than 70 million addressable TV households in the U.S., the need for identifying and targeting consumers with a greater likelihood of being in-market for a specific drug is clear.

Today, many smart brands use addressable TV to their advantage. In one notable Cadent campaign the makers of a medication sought to increase sales and drive brand conversions for a drug. The brand used data to target households that had a higher propensity to have the specific ailment that the drug addresses, resulting in a 2% lift in patients with prior use, an 11% increase in new patients and a 2 to 1 return on ad spend.

To connect with consumers requires an understanding of customer behavior, including web browsing habits and purchasing patterns. Persona mapping can be effective for pharma marketers – using ethnography and other qualitative methods to create a customer portrait that incorporates geographical and demographic data, personal goals and behaviors, pain points, and decision drivers. A marketer can then develop a target customer journey relevant to that persona, potentially boosting loyalty and decreasing consumer churn.

Prioritizing customer experiences over the product might require a shift in mindset, but it’s vital to thriving today; McKinsey found that considering emotional and behavioral needs as well as clinical ones was especially important in the case of new products, since the way a new drug performs during its first six months tends to determine its market share moving forward.   

Part of prioritizing the customer experience means meeting customers wherever they’re looking for information with an understanding of where they are in their journey to purchase. That’s where addressable TV comes in – the medium fosters the customer experience by offering a relevant message to the right person at the right time. Powerful creative and a message that connects with consumers resonates with consumers and can move them from one stage of the journey to the next. 

Pharma marketers can use a variety of health-related and non-health related data to find their target audience, so households who have a higher propensity to need a specific drug can be reached, all in a HIPAA-compliant manner. And because addressable offers precise control over frequency, customers won’t see the same message too many times, which can leave a negative impression and detract from overall experience. 

Another consideration is patent lifetime – some pharma marketers have a limited window to get their message out to the right people quickly, making efficiency more critical than ever. Fortunately, addressable advertising is a medium that offers greater efficiency and fewer wasted impressions because the households reached are all in a marketer’s target audience. For marketers aiming to scale awareness for a product within a patent lifetime, a thoughtfully deployed combination of addressable TV and linear TV offers both the benefits of wide reach and a targeted approach. 

The key to improving a pharma campaign over time is understanding what worked and what didn’t work. Addressable TV advertising offers a clear understanding of business outcomes, such as prescription fills and doctor visits, along with insights to guide future campaign planning.

One important consideration when discussing addressable TV: privacy compliance is a given, addressable TV advertising doesn’t involve personally identifiable information (PII). Smart applications of non-PII data can open unprecedented possibilities for pharma industry marketers, allowing them to find and target precise audiences, with the power and impact that television has always been able to deliver.

Read more about how TV can enable you to connect with households in a more privacy compliant way.

How Data-Driven TV Connects Auto Marketers with Their Audiences

For the auto industry, TV advertising has traditionally always been about reach. Manufacturers and dealers use TV, radio, newspapers, and most recently, digital, to catch anyone in the market for a car and share their message.

But the last decade has brought change to the industry from all sides. Demand has evolved as environmental concerns and rising gas prices turned buyers away from gas-guzzling SUVs toward high-tech hybrid and electric cars. The buying audience has changed, too. Millennials — who delayed buying cars, along with having kids and buying houses, because of other financial pressures after the 2008 recession — tend to live in urban areas where cars are less of a necessity and more of a pain. Car-sharing and ride-sharing, plus whispers of a driverless-car future, are extending the already-long sales cycle and making it unsustainable for businesses and manufacturers.

With these challenges comes a new chance to refine how auto manufacturers and dealers market to consumers. The rise of technology and the evolution of TV have introduced more opportunities to better connect with potential buyers in the right place with the right message at the right time. Using data-driven addressable TV to target TV ads at the household level along with wider-reach cable and broadcast campaigns, marketers can take advantage of a new era of auto advertising.

Marketing in the auto industry

First, let’s look at the way that sales are made in this industry. Different tactics are employed to connect with different levels of the consumer consciousness. 

The manufacturer markets for broad brand awareness by tying its product to an emotional appeal. If you want to keep your family safe, you’ll buy this brand. If you want to embrace the fun of life, you’ll buy this brand. These messages are traditionally sold on a large-scale, national TV level, hitting every home television agnostically.

But with the growth of non-traditional TV (including VOD and OTT) watched on multiple devices, it’s making it difficult to capture an effective reach or ROI at each tier. As a result, brands and dealerships cut back on their TV ad spend: a recent forecast put auto ad spending growth at 0.8% (down from 1.5% in 2018) across the world. They then overcorrect and spend more on digital, where competition for consumer attention makes it harder and more expensive to impactfully reach the right audience. 

The shift is unsustainable: There needs to be a balance between one-to-one targeting and mass brand awareness across TV and digital, as well as on every tier.

Maximizing dollars in a slowing market

By using the full TV ecosystem–broadcast, cable and addressable–as part of omnichannel marketing campaign, auto marketers can make the most of their advertising investments. 

The auto industry is a very competitive, dynamic marketplace. After conversion, a customer won’t be in-market for a vehicle for several years. This means marketers need the latest, freshest look at who’s in-market for a car, and they need a clear understanding of ROAS and who converted, which addressable TV advertising can provide.

Addressable TV offers precise, household-level targeting at scale, allowing marketers to reach exact segments of viewers wherever they are watching TV. Manufacturers can reach people who already own models of their cars or people who own competitive vehicles. In practice, one luxury auto manufacturer saw a 37% lift in buy rate by those who were exposed to addressable advertising compared to those who were not, along with a $9.48 incremental ROAS for every TV media dollar spent.

In combination with wide-reaching national manufacturer campaigns and local broadcast campaigns by specific retailers, TV reemerges as a highly competitive and data-driven medium. What’s more, by pairing data-driven television with digital marketing and experiential campaigns, marketers in the auto industry will make more personalized, targeted and smart customer connections that will pay off in the long run.

The auto industry–and its marketing–have evolved. While consumers are becoming harder to reach, advanced TV has found ways to connect with them in more relevant and impactful ways.

Learn more about Cadent Advanced TV Platform, and get in touch with us today.

This Week in TV News: Experiential Marketing and an Ad Featuring Megan Rapinoe

This week, we’re talking about U.S. women in the World Cup, “Stranger Things” season three, and new ads from Amazon and Apple. 

U.S. women win the World Cup. The Women’s National Soccer Team brought home a victory against the Netherlands in Lyon, France, last weekend. Soon after, Nike released an inspirational ad called “Never Stop Winning,” heavily featuring star forward Megan Rapinoe. Up next: player endorsements. Keep an eye out for brands partnering with fan favorites including Rapinoe and her teammate Alex Morgan, who currently promotes Secret deodorant, FabFitFun subscription boxes and Molecule mattresses on her Instagram account. (MarketWatch)

World Cup stats. The Women’s World Cup final brought in 14 million viewers on Fox, making it the most watched soccer game since the final in 2015 when the U.S. beat Japan. Nearly 300,000 people streamed the game. This final game had 22% more viewers than the men’s World Cup final last year between France and Croatia, and it was also the most watched World Cup game on a Spanish-language channel, with 1.6 million Telemundo views. (NBC News)

“Stranger Things” and experiential marketing. The third season of Netflix’s hit show was released last week, with 40.7 million U.S. households viewing it in its first four days. Netflix is amping up the buzz with entertainment-linked merchandise and a slew of pop-ups, including a Hawkins fair on Santa Monica Beach and a Scoops Ahoy in Burbank. (Bloomberg)

Apple and Amazon release new ads. On Wednesday, Apple premiered their new humorous ad “Nap” featuring a man utilizing Face ID while relaxing, and Amazon premiered a heartfelt ad titled “Sisterhood” highlighting the sibling connection with an Amazon Echo. (Ad Age)

Read last week’s trends.

How Film Sentiment Impacts VOD Rental Success

When planning for video on demand (VOD) rentals, there are many variables at play that can affect a film’s VOD rental revenue potential. At Cadent, the Entertainment team tracks 20+ planning variables and emphasizes understanding how these variables work together to maximize returns. Recently, we took a look at one of these variables, film sentiment, to see how it impacted VOD rental performance.

For our analysis on film sentiment, we used both audience and critic score averages from Rotten Tomatoes while also recording if films were considered “Certified Fresh” by critics. Using these metrics, we set out to uncover any possible relationships these scores had with VOD rental revenue. 

First, let’s break down the different sentiment scores. Both audience and critic scores are an average out of 100. The audience score accounts for ratings from a typical viewer, while the critic score uses reviews from professional film critics. 

These scores aren’t always in line with one another. Look at a film like “The Greatest Showman,” which had a strong audience score of 86%, but a critic score of 56%. 

Many films created for critical acclaim don’t hit with audiences. “Hail, Caesar!” from the Coen brothers was critically loved — it sits at 86% with critics and is considered “Certified Fresh” — but it missed with audiences, who gave it a 44% score.

Ultimately, we found that an individual sentiment, like critical acclaim or audience reception, has little to no correlation with most VOD rental performance. However, films with a strong combination of the two saw sizable returns.

Movies with a built-in fan base can go either way. After all, these viewers are perhaps the most critical audience – they have high expectations, and their tolerance for missteps might be low. 

For example, 2018’s “Fantastic Beasts: The Crimes of Grindelwald” was built off of the huge Harry Potter fan base. The movie’s audience score topped 60%, while the critics were a bit less forgiving (at 38%). On the other hand, “Star Wars: The Last Jedi” was torn apart by fans of the franchise. It’s 44% audience score is the lowest of any live-action “Star Wars” film. Critics, however, gave the movie a 91% rating and dubbed the title “Certified Fresh.”

Despite the norms we discovered, our analysis found that a high critic or audience score did make an impact on one genre: horror films. Films that are R-rated, which include Oscar-winner “Get Out,” track an 85% correlation for critic score and VOD rental revenue while PG-13 rated films track a 68% correlation for audience score and VOD rental revenue. 

Things change when you start to look at Rotten Tomatoes’ other scoring mechanism, “Certified Fresh.” A film is “Certified Fresh” when it carries a critic score of 75% or higher consistently.

The current record-holding “Certified Fresh” film is “Lady Bird” from 2017. The film had a 100% Fresh rating for a chunk of its theatrical run (now it’s at 99%), and it overtook “Toy Story 2” as the film with the highest number of Fresh reviews (164).

In 2018, 39 of the top 100 films on-demand were “Certified Fresh” by Rotten Tomatoes. These films saw a 30% lift in the average number of transactions compared to the remaining 61 titles that were not “Certified Fresh.”

While “Certified Fresh” doesn’t take audience scores into account, we did: When a “Certified Fresh” film has an audience score higher than its already strong critic score, we saw a 97% lift in transactions. So, the ideal combination for the most successful VOD performance is a “Certified Fresh” movie that is also loved by audiences.

This idea proves true at the genre level, too. There was a 76% correlation between high audience scores and VOD rental revenue for Drama films with award show buzz (usually driven by critical acclaim). Overall, we found that “Certified Fresh” approval led to increased returns for action, family, horror and drama films. 

Cadent’s data and experience are a proven industry resource, and our planning database can optimize VOD campaigns and increase VOD rental revenue. Get in touch for more information. 

This Week in TV News: ‘Stranger Things’ Returns and the Women’s World Cup

This week, we’re talking about a new IAB Tech Lab transparency standard, summer TV watching habits and the new season of “Stranger Things,” which premieres July 4.

New data transparency standard from the IAB Tech Lab. The standard is aimed at establishing :minimum disclosure and transparency standards for any company that collects audience data for targeting, personalization, or measurement of digital advertising, and ultimately to encourage more informed data usage,” according to the IAB. The new standard allows for more clarity by allowing buyers to receive information regarding “the date the user ID was collected, the URL, location data, and if the segment includes lookalike modeling.” (AdExchanger)

People prefer TV to the beach. According to the VAB,  95% of P18+ watch ad-supported TV during summer months. Last year’s trends show that TV watching rises during summer holidays; P35-49 watched 24 more minutes of TV on the 4th of July in 2018. We can expect a similar trend for July 4 of this year. The report also said TV’s popularity goes beyond the TV screen with 68% of the top 10 trending Twitter conversations revolving around ad-supported TV accounts.  (The VAB)

“Stranger Things” is coming back. Netflix’s hit show returns tomorrow. If you forgot where we left off almost two years ago with season two, the Times has a handy guide to catch you up. (The New York Times)

U.S. Women move on to Finals in World Cup. The U.S. Women beat England 2-1 in the semifinals on Tuesday. They will continue to the finals on Sunday against either the Netherlands or Sweden, depending on today’s game. The U.S. is the first team to make it to the finals three years in a row.  (ESPN)