As We Say Goodbye To 2016

2016 brought a record number of firsts, amazed many and dismayed many more.

As we prepare to bid adieu to 2016, I can't help but reflect on some of the news that moved our industry and will continue to impact us in 2017. AI, VR, BlockChain, new measurement currencies, new TV and video distribution models and the utter proliferation of programmatic are some of the topics worth revisiting as we plan for a strong 2017.

Data and AI

2016 was no doubt a year of surprises when it came to the use of data and AI in the election. I will not speak about the election and the outcome other than to point out some of the interesting uses of AI and data. It is important that we now accept the outcome and rally together as a united america to solve the many large issues ahead of us, then continue to reflect on the outcome which we cannot impact or change. Some might say that the entire election outcome was based on both positive and strong uses of data and other data use cases that completely failed. Deep Root Analytics and Cambridge Analytica led the news count on this topic and use of new and interesting successful data models for the republican party and Super PACs that clearly had a lasting impact on political marketing and will be dissected and examined to ensure future marketing success.

Do you know who or what Watson is? This is a hint into the future of AI and cognitive technology. Watson, built by IBM is a cognitive technology that can think like a human and in fact beat Ken Jennings on Jeopardy to win $1M. But the technology is not all fun and games. Watson is now being used at the industry's leading Cancer Institute Sloan Kettering churning through case histories at Memorial Sloan-Kettering, learning to make diagnoses and treatment recommendations.

Watson is using AI and cognitive learning to solve real world problems and is just a hint of what is to come with the use of Artificial Intelligence and decisioning. This use of cognitive learning has found its way into programmatic planning, buying and data targeting and will be a trend to watch in 2017.

AR and VR

Marketers seem to have indicated that 2016 was the year of VR (Virtual Reality) and AR (Augmented Reality) testing and there has been no shortage of discussion around the topic. Brands like Hilton, Coca Cola, Audi, Emirates, Mondelez, Heinz, Pizza Hut, Lamborghini, Volvo, Lexus and Mercedes are among brands testing VR and AR experiences.

Brand storytelling is a big part of marketing success today. VR and AR experiences help a brand immerse the consumer in an experience that can be extremely compelling. Imagine a trip you dreamed to take or a car you dreamed to own. A safari in South Africa perhaps or a Lamborghini? Visualize for example through their work with South Africa Tourism in partnership with UM helped bring the South African Safari and trip to life using 360 degree sound and video and the Oculus VR headset. Blippar as an example helps bring the physical world to life through the use of AR/VR and smart devices. National Geographic and a leading tour operator could truly immerse you in a virtual safari so much that your dreams of a safari can become virtually real and so much that it will compel you to take the trip.

In a very enlightening study by Parks and Associates, 63% of the population surveyed say they do not know what VR is nor were they aware of it. Troubling numbers indeed as the channel grows, but easily solved by creating great experiences and building experiential campaigns with activations in large venues to ensure consumers can experience this new and exciting world.

BlockChain

Given that the first and most famous cryptocurrency, Bitcoin, was launched back in 2009, it has taken the wider industry a relatively long time to warm to it. But now suddenly everyone is talking about Bitcoin’s underlying blockchain technology as a disruptor of potentially massive proportions. So, what’s the connection between Bitcoins and blockchain? And why is there such interest and excitement about the later?

A blockchain is a kind of database with built-in validation stored in ledgers. However, the ledger is not stored in a master location or managed by any particular body. Instead, it is said to be distributed, existing on multiple computers at the same time in such a way that anybody with an interest can maintain a copy of it. This allows use of unused processing power on multiple distributed systems. Excitingly, block validation systems ensure that nobody can tamper with the records. Rather, old transactions are preserved forever and new transactions are added to the ledger irreversibly. Anyone on the network can check the ledger and see the same transaction history as everyone else.

Effectively a blockchain is a kind of independent, transparent, and permanent database coexisting in multiple locations and shared by a community. This is why it’s sometimes referred to as a mutual distributed ledger (MDL).

So why do I care? Blockchain represents an exciting new way to share and exchange data. Audiences can be secured by Blockchain, locked behind a cryptographic key that Publishers and Brands can give — and revoke — access to at any time. Unlock data to power future campaigns, generate more efficient CPMs and build data integrity. Blockchain can also be used to manage payment processing and solve some of the antiquated payment issues in advertising that programmatic have not yet unlocked. So keep an eye on this tech and how it evolves because it has great promise for the programmatic landscape.

Video and TV Measurement

Moat, Sony Crackle, Fox, NBC and others have led the discussion in 2016 around audience and attention as currency. The most recent controversial look at measurement right before the holidays was a letter penned by Linda Yaccarino of NBC to Nielsen about the shortfalls she perceived in the new Total Audience Measures and slammed Nielsen for releasing a product that was not ready for primetime. This news came after announcements that Nielsen had acquired ACR (Automatic Content Recognition) company Gracenote.

“The media industry is in dire need of clear and comprehensive total audience measurement,” said  Linda Yaccarino in her letter penned to Nielsen leadership.

There is one thing that most will agree upon - yes we do need a new standard and GRP is not it. Audience attention and viewership is rapidly changing and the measurement of this new viewership is unfortunately not keeping pace with the needs of the market. I have long said that a mixture of STB (set top box) data with ACR data will win the day. Whether comScore emerges as victor or a new company with access to both data sets emerges is yet to be determined, but the subject of measurement will continue to plague the TV and Video marketplace until we find a solution.

2016 also experiences its fair share of discrepancies and measure dilemmas posed by the like of Facebook. The continued concern about validity of data has lead big brand marketers like Coke to look back to TV as a means to reach scale and deliver effective results.

"TV still offers the best ROI across media channels." said Coca-Cola Co. global Chief Marketing Officer Marcos de Quinto 

New TV Distribution Models

2016 was also host to new tests of TV distribution including partnerships with Twitter, SnapChat, Facebook as well as new ad formats from leaders like Hulu, Crackle, Fox, NBC and many more. Media companies are working with Snap, Twitter and Facebook in an effort to reach the type of younger viewers these social media companies target, which increasingly eschew traditional television. This is all happening while NBC, Turner and others test new ad pod lengths and formats. These efforts are taking place to deliver fewer traditional commercial breaks and to increase the number of innovative techniques such as shorter, more frequent ad stops, a heavier reliance on single sponsors and using actors from the shows in the commercials themselves. All are designed to better engage viewers who increasingly skip through the ad breaks using their DVR remotes.

Sony Crackle exec Rene Santaella spoke about their Break Free model at GABBCON Los Angeles and said Crackle would work with advertisers to “supersize” advertisers’ commercials by “packaging” them with story arcs.

“Story arcs could be creative narratives about the show’s setting, special insights about the characters from the creators, or a look behind the curtain at production – all designed to grab the viewer’s attention and tied to the brand’s valuable ad.”

Hulu, Fox and Canoe also spoke about new innovative ad formats and all say they will continue to experiment with new ways to target and reach their viewers in new and more effective ways.

Proliferation Of Addressable and Programmatic TV

2016 was also the year of very successful campaigns in both programmatic and addressable TV. The 2016 upfront had a consistent theme - Audience Based Buying was on the minds and in the narrative of all of the leaders in the space. While we are still in a state of infancy and testing in programmatic TV, big brands are finding meaningful success and 2017 will no doubt be a year of more scale and additional testing.

D2, a partnership between Dish and DirectTV continues to flourish and benefited from the election year. Agencies like MediaVest, MODI and IPG are finding a great deal of success in addressable TV and the ATSC3.0 promise could bring addressability to a national footprint soon.

In Summary...

2016 was indeed a great year for the media and marketing industry with lots of new innovation and testing. 2017 will see continued interest and excitement around measurement, VR, AI, BlockChain and new TV and Video ad formats based on audience based buying.

"It is imperative that we as an industry come together to continue to push forward standards and thought leadership on these exciting topics. TV and Video content is better now than it has ever been. Lets not sell ourselves short".

I am encouraged more every day about the prospect of TV and Video as I speak with partners in the ecosystem. I hope you will count on me as a resource on these and other topics in the year ahead.

May you and your families have a very safe, happy and prosperous New Year filled with laughs and love.

G