Fix/Lite - LinkedIn edition March 14
newTV
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Look at this chart showing??the churn rate the subscription services have to contend with?- proof that the industry needs a different offer.
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In this week's midweek deep dive on newTV, I looked at the moves by Disney to launch an ad supported service and commented on the ‘never say never’ quote from Netflix on their ad plans.
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I don't think they will ever run 30 second TV commercials on Netflix. They will continue to?take brand money for smart Brand integrations. Best example is still Stranger Things with Coke and with KFC. Or in a different way, Formula One.
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But they did test out a sampling service with older content available for free in India - briefly. Whilst that went away, I think that model makes so much sense for Netflix. They have a wealth of great content that is getting towards its sell by date. A free service using this content and supported by ads is a great way of recruiting your next generation of subscribers. Look at how Amazon use?IMDB TV
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We also looked at Sports and Audio. If you know anyone who would like to read this let me know and I will share a sample.
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The focus on Netflix and ads is a function of their stuttering growth in subscribers and you have to wonder how?another price increase?is going to be taken? Getting everything Netflix does for just ￡7 is a bargain, but those on the higher priced options may question the value. But I suspect the access to multiple devices hides a significant amount of password sharing.
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There is so much energy and opportunity around AVOD and FAST which I think is going to reshape TV. So I am pleased a new project puts me right in the centre of this. I am helping an exciting new start up called?Icaro?- focused on building a global business around FAST (Free Advertiser Supported Television)
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They have assembled a state of the art tech stack - particularly around ad insertion, AI and multi platform delivery.?
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The core business model is to partner with Mobile Network Operators and Content providers to increase engagement and monetisation. An initial focus on LatAm has validated both the business model and the operating model. In Brazil a partnership with TIM (the 2nd largest MNO) and Grupo Record (3rd largest Media Company) has driven significant revenues and innovative new content initiatives.
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A key part of my focus is designing the ad offering to be recognised as a world class, meeting the requirements and aspirations of leading Brands and Agencies. I believe that if we have the highest standard in how ads are bought, sold and measured, we can achieve the best performance for all our partners.
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So if you have significant audiences we can help you improve lifetime value. If you have good content we can help you monetise it better. And if you are investing in newTV advertising we can help you make your money work harder. We should be talking.
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Merchant
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This post by an Instacart engineer describes how they see the growth of CPG advertising on the platform impacting their product - creating ‘your fully personalised grocery store’;
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One weakness of the Merchant Media is a lack of focus on instore - where the majority of grocery is still bought. There are some offline elements to the Media offer in Tesco and Walmart etc but they don’t feel very exciting. Maybe Amazon will change that when their in store ad space gets going -?it sounds more comprehensive than most.
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I am working with a start up focused on bridging digital thinking to instore and keen to talk with retailers and CPG brands that are interested in innovation. If that sounds like you hit reply.
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Fast Last Mile is a phenomenon all around the world.?Huge in China. Big in most European cities and growing fast in the US. This business model has gone global. Perhaps Amsterdam is a good place to look at the emerging problems with this model.?
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Wired has a piece?looking at how the juxtaposition of dark stores with Amsterdam dense urban living is causing problems.?Kantar says 700,000 Dutch people are using these services?- up from 200k a year ago - and this growth is causing problems. The authorities are clamping down on the business by?limiting where stores can be situated?- a similar approach to that of New York we talked about in Merchant the other week.
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Adtech
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As the adtech industry awaits some guidance on what Google is going to do with tracking?a glitch at a US publisher has got lots of attention. Gannett publishes some national titles like USA Today but also lots of local ones and it seems a problem in the programmatic plumbing meant when people thought they were getting the national they were in fact getting the local. It's as if you placing ads in the Daily Mirror but they were actually running in the Heckmondwike?Herald
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There has been lots of analysis of what caused this and why it wasn't spotted earlier, but nothing really gets past the idea that this is a fragile system. The fraudsters exploit the complexity and fragility but it also affects brands and publishers when things go wrong.
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领英推荐
It looks like the universal ID project is toast. Whilst it still has lots of backers amongst agencies and adetch firms the fact?the IAB have decided not to handle the technical admin?meaning it's pretty much dead. When our friends at Arete spoke a couple of weeks ago, they pointed out that the California Consumer Privacy Act (CCPA) will unleash US trial lawyers to look for abuses and I think the IAB have decided not to step into that firing line.
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Of course it's not all doom and gloom.?This analysis of the Amazon advertising business?shows how healthy the industry is, when it has good data and good inventory
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Social
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The influence of social continues to grow. The UK entrant for the Eurovision?is a TikTok singer who picked up 12m followers?during lockdown. And Pepsi and MTV have taken this a step further with?an American Idol style singing competition on TikTok,?where the winner gets to appear in a Pepsi ad in the Video Music Awards
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The impact of TikTok on music is now widely recognised?
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So it’s no surprise they have got into the music business with?SoundOn?- explained by their global head of Music,
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Snap are nurturing a different sort of talent with?an accelerator to make content for their Discovery service?with support going to 19 creators ranging from Neil deGrasse Tyson’s StarTalk to Londons Connected Set
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web3?
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Profile picture NFTs are hot. Fashion is starting to dress them?- Vogue Business
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Plus+
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The great unbundling 2022 and ahead?- Benedict Evans talking at a Google event
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eCommerce Business Leader | CPG & Retail | DTC, Marketplaces, Pure Play & Retail.com
3 年Simon Andrews We're a CPG with a ton of interest in talking more about digital and retail. Would love to talk further on the topic.